127 Pizza Hut Locations to be sold by National Franchise Sales
127 Pizza Hut locations across the South and Midwest are currently being offered for sale. The company has enlisted the expertise of National Franchise Sales (NFS) to manage the sale process. Based in Newport Beach, California, NFS is a leader in franchise mergers and acquisitions (M&A) advisory and brokerage, specializing in asset recovery and sales.
Headquartered in Newport Beach, California, NFS has long been a leader in mergers and acquisitions (M&A) advisory and brokerage.
Strategic Move
National Franchise Sales is well-known for handling large franchise sales, and Alan Gallup, Lead Advisor for the NFS Asset Recovery Team, commented, “Our goal is to ensure a smooth transition and maximize value for all parties impacted by this process.”
NFS has significant experience in managing franchise sales and auctions, including the recent sale of a significant group of Zaxby’s franchises along with the associated real estate, acquired by multi-brand operator Guernsey Holdings, LLC. Other sizeable transactions that have involved auctions include engagements with large franchisees of national brands such as Burger King, Denny’s, Papa John’s, and Jack in the Box, among others.
Stalking Horse Bid Deadline: October 30, 2024
For the Pizza Hut engagement, National Franchise Sales has set a stalking horse bid deadline for October 30, 2024. A stalking horse bid is an initial offer that sets a baseline for the sale process, encouraging competitive bidding and potentially increasing the final sale price. The stalking horse bidder often benefits from certain advantages, such as the right to match higher bids and the potential to receive a breakup fee if outbid.
Opportunities for Franchisees and Investors
For existing Pizza Hut franchisees or those looking to enter the market, the sale of these 127 restaurants offers a significant growth opportunity. Acquiring established stores under a well-known brand provides instant market recognition and a built-in customer base. Economies of scale can also help improve operational efficiency and profitability.
While the restaurants being sold are previous and existing Pizza Hut franchises, franchise restaurants sometimes transition to new ownership that will not continue operating under the original brand. Competitors looking to block and grow, other franchise brands looking for new sites, or independent buyers may acquire these locations. Yes, corporate strategic planning or individual entrepreneurism does sometimes trump existing brand operators.
NFS carefully vets all interested parties to ensure that the transition is smooth and that buyers are well-prepared to take over operations.
Looking Forward: The Sales Process
With the Stalking Horse Bid deadline set for October 30, 2024, National Franchise Sales is already fielding inquiries from interested parties.
The sales process will be managed to ensure that all aspects of the transaction are transparent and fair. Buyers can expect a structured process that provides them with the information they need to make informed decisions about acquiring these Pizza Hut locations.
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