The group franchisor, FAT Brands Inc, has acquired Fazoli’s restaurant chain for $130m from Sentinel Capital Partners. This acquisition brings to the group, the largest premium quick-service Italian chain in the U.S., and will be funded with cash from the issuance of new notes from the company’s securitization facilities. The transaction is expected to close by mid-December 2021.
With over 200 stores currently open and a development pipeline of 100 units over the next several years, the purchase of Fazoli’s will increase FAT Brands’ footprint to 2,300 franchised and corporate-owned stores around the world, bringing 2022 expected systemwide sales at FAT Brands to more than $2.1bn.
“Fazoli’s has a great growth story, in particular, over the last year. They continue to surpass sales expectations across the board,” said FAT Brands CEO Andy Wiederhorn.
“We have been eyeing this category for some time; however, we were waiting for the right brand – one that is high-growth, with almost all restaurants having drive-thru access, in addition to, the synergies that we will achieve adding Fazoli’s to our portfolio of brands. We look forward to building off of the success of Sentinel Capital Partners.”
“We have had an outstanding year and we couldn’t be more pleased to join forces with FAT Brands, a company that has the same growth-oriented mentality as us at Fazoli’s,” said Carl Howard, CEO of Fazoli’s.
“From co-branding to virtual kitchens to menu development opportunities, we see great value in being a part of FAT Brands.”
It’s been a busy year for FAT Brands, with the acquisitions of Twin Peaks, Johnny Rockets and the Global Franchise Group.
