Wiggin and Dana's Franchise Law Blog

Private Equity Continues to Flock to Franchising

Private equity firm Freeman Spogli & Co. has invested $45 million in El Pollo Loco Inc., owned by New York private equity firm Trimaran Partners according to this article. The article reports the funding will be used for growth, but may be needed to help deal with El Pollo Loco's trademark woes. The investment may have played a part in Trimaran's ability to issue a letter of credit according to this article to support an appeal of an adverse $22 million judgment against El Pollo Loco in favor of El Pollo Loco-Mexico in a trademark dispute (see earlier blog posting).

Triarc Focusing on Food

As expected, billionaire activist investor Nelson Peltz has not stopped to pose for pictures after getting regulatory approval to invest in Cheesecake Factory (see earlier blog posting). Peltz may be sharpening his focus on food companies, in hopes of consumating a deal to acquire Wendy's restaurant system. Peltz's Triarc Companies Inc., which owns the Arby's restaurant system, sold its investment advisory business Deerfield & Co. LLC according to this article. Triarc has submitted the only publicly announced bid to acquire Wendy's.

Say Cheese

Billionaire investor Nelson Peltz probably won't stop to pose for pictures. Peltz, a corporate activist when it comes to his investments, has received permission from the Federal Trade Commission to make a major investment in Cheesecake Factory, a company-owned restaurant chain, according to this article. Peltz controls the corporate parent of Arby's and is a major investor in the Wendy's chain (see prior blog postings).

Home of the ??? It Takes Two Hands to Handle ???

In a prank conducted in connection with promoting the Whopper sandwich on its fiftieth anniversary, Burger King Corporation told customers it has discontinued the signature sandwich forever, according to this article. Customers' reactions may be seen here.

Papa John's Supports Future Entrepreneurs

Papa John's International Inc. has formed a national partnership with Junior Achievement to support JA's in-school and after-school programs that focus on work readiness, entrepreneurship and financial literacy according to this article. Papa John's will provide funding from the redemption of online coupons, conduct job shadowing events and encourage employees to teach at local schools.

Pooh Fighters

Picking a name for the brand is an important decision, especially when the company must be delicate in describing the services to be performed by its franchisees. Once selected, the franchisor should take steps to protect its rights to the name. The 80-unit Pet Butler franchise system which provides poop-scooping services may have waited too long to attempt to register its mark, according to this article. Pet Butler's application to register the trademark was rejected because of a pre-existing registration by a two-unit company called Dog Butler. Pet Butler is now trying to cancel Dog Butler's registration in the United States Patent and Trademark Office. The growth of businesses offering poop-scooping services confirms Jerry Seinfeld's theory that aliens watching our planet would believe that dogs are the masters here on earth. The USPTO will determine whether either company has stepped into something it shouldn't have.

Togo's To Go Again, But Solo

Dunkin' Brands Inc. has sold the Togo's Eateries sandwich chain , its smallest system, to Mainsail Partners, a private equity firm, according to this article. Togo's had been under common ownership with the Dunkin' Donuts and Baskin-Robbins brands since 1997 when it was acquired by Allied Domecq, which already owned Dunkin' Donuts and Baskin-Robbins. Allied Domecq was acquired by the French beverage company Pernod Ricard S.A. in 2005 (see prior blog entry), which then quickly spun off all three brands to a consortium of three private equity firms, Bain Capital Partners, the Carlyle Group and Thomas H. Lee Partners (see prior blog entry).

Rattlin' Dem Bones

The 73-restaurant Smokey Bones BBQ chain will be sold to an affiliate of Sun Capital Partners Inc. according to this article. The Smokey Bones will now be connected to Boston Market, Friendly Ice Cream, Sweet Tomatoes, Chevy's Fresh Mex, Fazoli's, Bruegger's and other restaurant brands owned by Sun Capital. There should be no concerns about the bones being dry, as Ian Baines, Smokey Bones CEO, says the chain plans to add new flavors and focus more on beer and frozen adult beverages.