Dive Brief:
- Legacy Brands International, an investment group led by Friendly’s franchisee Amol Kohli, is acquiring Brix Holding Company, the parent company of Friendly’s and several other brands, the companies announced Tuesday.
- Kohli will assume the position of board chair at Brix, while CEO Sherif Mityas will remain in place along with the current leadership team, according to the press release. Existing Brix ownership will continue involvement with the company and become investors in Legacy Brands.
- Brix will continue growing its brands, which also include Clean Juice, Orange Leaf, Red Mango, Smoothie Factory + Kitchen, Souper Salad, and Humble Donut, and will pursue further acquisitions.
Dive Insight:
Kohli owns more than 30 Friendly’s locations on the East Coast, a significant portion both of Friendly’s store system — which was about 100 units as of mid-2024 — and Brix’s roughly 250-unit storebase across all its brands. According to the press release, Kohli’s operational experience could help with the expansion of Brix.
Backed by Legacy Brands, Brix is pursuing immediate growth for Friendly’s in Georgia, the Carolinas and Texas — where Brix is headquartered.
The press release states that Brix’s brands have had a successful run over the last year.
“The company had positive same-store systemwide sales comps in 2024 and is showing continued momentum across its portfolio of brands heading into the second half of this year.”
Last year, Mityas told Restaurant Dive that Friendly’s sales success in recent quarters was driven by menu changes, significant brand loyalty and a restrained pricing approach. At the time, Mityas said Brix was offering franchising discounts to persuade existing franchisees to build new units and to draw new operators into the system.
According to the press release, Brix has awarded eight new franchise agreements so far this year, though the company did not specify which brands had awarded those agreements.
Brand acquisitions by franchisees have become a trend in restaurant mergers and acquisitions in recent years. Thrive Restaurant Group bought out Modern Market Eatery last year after signing a major franchising agreement with the brand. Sun Holdings, a Burger King franchisee, has built up a multi-brand platform in other restaurant segments and recently acquired Uncle Julio’s. Earlier this year, two franchisees bought a significant chunk of Hooter’s storebase during Chapter 11 proceedings and also assumed responsibility for much of the brand’s franchisee support.
