Franchise mergers and acquisitions continued at a brisk pace in the second quarter of 2026, building on momentum from the first quarter. This sustained activity is significantly propelled by private equity firms, which are increasingly investing in and acquiring franchise brands. According to FRANdata, these firms now back over 12.4% of franchise brands, a trend that provides crucial support for entrepreneurs by enhancing access to new markets, expert advice, and skilled talent. The influence of private equity is further highlighted by their acquisition of numerous franchise-related service companies since 2021.
Looking ahead, Alicia Miller, managing director at FRANdata, predicts a highly active year for franchise M&A in 2026. Notable Q2 transactions underscore this trend. In June, Yum! Brands agreed to sell Pizza Hut for $2.7 billion to Yum China and LongRange Capital. Other key deals included Premium Service Brands’ acquisition of Wise Coatings and Great Hill Partners’ investment in Woof Gang Bakery & Grooming. May saw IFPG expand its reach by acquiring St. Jacques Marketing to launch Franchise Ignition, HomeFront Brands adding AdvantaClean to its portfolio, and Diversified Royalty acquiring Mr. Lube + Tires for approximately $171.3 million. Spark Harbor acquired Bach to Rock, and a Texas bankruptcy court approved the sale of FAT Brands’ restaurant portfolio.
April also featured significant activity. IFPG acquired Business Alliance Inc. (BAI), The Foundry Group invested in New York Butcher Shoppe, and Extraordinary Brands welcomed Basecamp Fitness. Five Star Franchising acquired and launched Five Star Flooring, while Tiger Global Management invested in PopUp Bagels, valuing the company at $300 million. SSCP Management purchased Logan’s Roadhouse, and Flynn Group substantially increased its Planet Fitness holdings. Crux Capital invested in Ivybrook Academy, and Real Brokerage Inc. announced its intention to purchase RE/MAX Holdings Inc. for $880 million, a deal expected to finalize later in the year. Additionally, Sixth Form Partners completed its majority investment in Morrow Hill.
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