Haynes and Boone, LLP Partner Rob Lauer was quoted in a RetailWire article after the largest Dunkin’ franchisee in the New York metropolitan area was sold.
This private equity investment in a large Dunkin’ franchisee is part of a broader trend, according to some experts. Lauer suggests that Americans will be seeing the investment of more private equity into franchises like Dunkin’ to keep faltering brands afloat.
“There are more restaurant brands operating today than ever before, and there seems to be an endless supply of new brands trying to gain a foothold in an extremely competitive market,” Lauer said to RetailWire. “Not all will succeed, and that provides private equity lots of opportunities to swoop in, especially if they have more available cash due to rate decreases.”
He continued: “We are also at a stage in PE involvement with the restaurant industry generally that many new(er) restaurant founders went into this business with dreams of cashing out to private equity sooner rather than later, and so I think there are many more brands open to PE than ever before (whereas in the past I know some old school founders were philosophically opposed to private equity involvement in ‘their’ brand).”
To read the full article in RetailWire, click here.
