The Wall Street Journal reports today that AFC Enterprises, Inc. has agreed to sell the Cinnabon franchise chain to Roark Capital Group for $30.25 million. AFC formerly held four franchise chains including Cinnabon, Popeye’s Chicken and Biscuits, Church’s Chicken, and Seattle’s Best Coffee, which it sold to Starbucks Corporation last year. As part of the sale to Starbucks, AFC retained Seattle’s Best Coffee international franchise rights and the franchise rights for Hawaii and U.S. military bases. According to the Wall Street Journal article, the sale of Cinnabon to Roark will include these reserved franchise rights for Seattle’s Best Coffee.
Meanwhile, as AFC reduces its franchise holdings (the chain has stated that it is exploring options for Church’s Chicken), Roark continues to grow. The Atlanta-based, private equity firm holds majority stakes in Carvel Corporation and Money Mailer, LLC.