Business media outlets have reported that TriArtisan Capital Partners and Texas-based Sentinel Capital Partners have sold 22 TGI Fridays restaurants to a California franchise group. The Oct. 27 deal comes in the wake of an announcement in the preceding month that most of the company-owned TGI Fridays restaurants would be offered to existing franchisees. Plans were also revealed to add a number of additional locations and update the look of the restaurants across the country. The price paid for the 22 locations has not been disclosed.
The restaurants included in the deal are located in Texas and Colorado, and the president of the acquiring company, MarLu Investment Group, said that the acquisitions demonstrated the franchise group's belief in the long term viability of the TGI Fridays brand. He also told reporters that the look of the 22 restaurants would be updated, although no firm timetable was announced for these renovations. MarLu is also planning to open 10 new TGI Fridays locations.
The sale is part of a strategy by TriArtisan and Sentinel to open additional TGI Fridays locations and complete the rebranding of existing restaurants. The decision to sell company-owned locations to franchisees was made to allow these goals to be accomplished as quickly as possible. In the two years since the rebranding effort was announced, the company has updated the look of 93 of its 247 company-owned restaurants.
The acquisition of an existing business often allows a company to rapidly develop its market position, but these transactions are sometimes complex and difficult to complete. An experienced business law attorney could provide insight regarding potential challenges to a successful outcome and thus help the client avoid pitfalls that could potentially derail the process.
Source: Dallas Business Journal, "TGI Fridays sells 22 Texas, Colorado restaurants to California franchisee group", Danielle Abril, October 30, 2014