Revitalized Arby’s® Inks Major Franchise Deal in Dallas

By: Arby's | 8 Shares 139 Reads

July 16, 2012 // Franchising.com // Arby’s Restaurant Group, Inc. announced today the sale of 51 company-owned locations and extensive development rights for Dallas/Fort Worth to Guillermo Perales, the nation’s largest Latino franchisee and one of the most pre-eminent multi-brand franchisees in North America.

“Guillermo has reached his stature as one of the most influential Latinos in the business world in part by making wise development choices. Attracting someone with his restaurant expertise and outstanding reputation is a true testament to the current strength of the Arby’s brand,” said Hala Moddelmog, President of Arby’s. “Dallas is the first of several deals we are looking to secure around the country with qualified franchisees like Guillermo.”

Arby’s announcement of the multi-unit franchise transaction with Perales follows seven consecutive quarters of same store sales growth and the successful introduction of new menu items, including the now-renowned Ultimate Angus Beef. The agreement also marks the first major franchising announcement since the 48-year-old quick-service restaurant chain was acquired last summer by Roark Capital Group, an Atlanta-based private equity firm that specializes in investing in franchised companies and brand building. Roark has since assembled for Arby’s a new Board of Directors comprised of seasoned franchise and restaurant executives and led by Chairman Jon Luther, a veteran of the restaurant industry credited, most recently, for leading the transformation of Dunkin Brands®.

“In the year since Arby’s became a private company, we’ve made significant investments in all facets of the business, from research and development of new products to operations and advertising and marketing,” Moddelmog said. “As we bring on franchise developers, like Guillermo, to help us grow in markets across the country, we also plan to retain a healthy percentage of company-owned Arby’s locations and to continue investing in our brand.”

Perales said he was attracted to Arby’s for many reasons, specifically pointing to the value of Jon Luther’s leadership on the Arby’s board and a planned new restaurant image that will debut later this year.

In addition to remodeling Arby’s restaurants purchased in the Dallas/Fort Worth market, Perales has committed to build 15 new Arby’s locations over the next five years.

Michael Rauch of MJ Rauch & Associates advised Arby’s in this transaction. For more information about Arby’s refranchising, he can be reached at mjrauch@live.com.

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