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{{short description|American holding company of Liberty Tax Service and Sears Outlet Stores}}
{{short description|American holding company}}
{{POV|date=April 2020}}
{{Use mdy dates|date=December 2018}}
{{Use mdy dates|date=December 2018}}
{{Infobox company
{{Infobox company
| name = Franchise Group, Inc.
| name = Franchise Group, Inc.
| logo = Franchise Group Logo.png
| logo = Franchise Group Logo.png
| predecessor = Liberty Tax Service
| predecessor =
| type = [[Public company|Public]]
| type = [[Privately held company|Private]]
| traded_as = {{NASDAQ|FRG}}
| traded_as = {{NASDAQ was|FRG}}
| genre = {{Plain list |
| genre = {{ubl|[[Franchising]]|[[Retail]]}}
| founder = Brian R. Kahn
* [[Tax software]]
⚫
| foundation = {{start date and age|2019}}
* [[Retail]]
| location = [[Delaware, Ohio]]
}}
| key_people = Brian R. Kahn ([[Chief executive officer|CEO]]) <br /> Eric Seeton ([[Chief financial officer|CFO]])
| founder = [[John Hewitt (entrepreneur)|John Hewitt]]
⚫
| products =
⚫
| foundation = {{start date and age|1997}}<br />{{Nowrap|[[Virginia Beach, Virginia]], U.S.}}
| subsid = Buddy's Home Furnishings<br>[[American Freight]]<br>[[The Vitamin Shoppe]]<br>[[Pet Supplies Plus]]
| location = Virginia Beach, Virginia, U.S.
⚫
| revenue = {{increase}} $4.937{{nbsp}}billion (2023)<ref>{{Cite web|url=https://finance.yahoo.com/news/franchise-group-inc-announces-fourth-210100524.html|title=FRG Financials|website=Yahoo!}}</ref>
| key_people = [[CEO]] Brent Turner <br />[[Chief operating officer|COO]] Ted Demarino <br />[[CFO]] Michael Piper <br />
| net_income = {{decrease}} $-68.573{{nbsp}}million (2023)
⚫
| products = {{Plain list |
* [[Tax preparation]]
* Tax preparation courses
* General retail
}}
| subsid = {{Plain list |
* Liberty Tax Service
* Buddy's Home Furnishing
* JTH Tax, Inc.
* [[American Freight]]
* [[The Vitamin Shoppe]]
* [[Pet Supplies Plus]]
}}
⚫
| revenue = {{increase}} $2.152{{nbsp}}billion (2020)<ref>{{Cite web|url=https://www.nasdaq.com/market-activity/stocks/frg/financials|title=FRG Financials|website=Nasdaq}}</ref>
| homepage = {{URL|https://www.franchisegrp.com}}
| homepage = {{URL|https://www.franchisegrp.com}}
}}
}}


'''Franchise Group, Inc.''' is an American privately-held holding company that acquires and manages mainly [[Franchising|franchise]] companies. It owns brands in various retail industries including [[American Freight]], Buddy's Home Furnishings, [[The Vitamin Shoppe]], and [[Pet Supplies Plus]].
'''Franchise Group, Inc.''', is an American holding company that owns retail companies and companies that specialize in the preparation of tax returns. It is the third largest tax preparation franchise in the United States. The company began in Canada in 1997 when [[John Hewitt (tax preparation entrepreneur)|John Hewitt]], co-founder of [[Jackson Hewitt]], acquired a Canadian tax franchisor, U&R Tax Depot. In 1998, the company became Liberty Tax Service and opened five offices in the United States.<ref>[http://www.skopem.com/liberty-tax-franchise-business-review/ Tax Service Franchise Reviews] {{webarchive|url=https://web.archive.org/web/20111028072756/http://www.skopem.com/liberty-tax-franchise-business-review/ |date=October 28, 2011 }}</ref> Liberty Tax Service is the company's primary subsidiary. On September 19, 2019, the company changed its name to '''Franchise Group, Inc'''.<ref name="Piper">{{cite news|url=https://ir.libertytax.com/news-releases/news-release-details/liberty-tax-inc-changes-name-franchise-group-inc|title=Liberty Tax, Inc. Changes Name to Franchise Group, Inc.|work=[[GlobeNewswire]]|date=September 19, 2019|first=Michael S.|last=Piper|publisher=[[West Corporation]]|location=[[Los Angeles]]|accessdate=November 12, 2019}}</ref>

On August 21, 2023, it was announced that a [[consortium]] of investors had acquired Franchise Group for $2.6 billion.<ref>{{Cite web|url=https://www.furnituretoday.com/furniture-retailer/under-new-ownership-leadership-team-completes-franchise-group-acquisition/|title=Under new ownership: Leadership team completes Franchise Group acquisition |work=Furniture Today|access-date=2023-07-17|language=en-US}}</ref>


==History==
==History==
Founded in 2019 through the merger of [[Liberty Tax]] and Buddy's Home Furnishings,<ref name="SAlpha">{{cite web |title=Mini-Berkshire In The Making At Franchise Group: Strong Organic Growth, Accretive M&A To Drive Stock Price |url=https://seekingalpha.com/article/4475135-mini-berkshire-franchise-group-stock-strong-organic-growth-to-drive-price |website=Seeking Alpha|date=December 14, 2021 }}</ref> it originally operated under the name Liberty Tax. However, when it was renamed Franchise Group, the company retained Liberty Tax and Buddy's Home Furnishings as its subsidiaries.<ref name="Piper">{{cite news|url=https://ir.libertytax.com/news-releases/news-release-details/liberty-tax-inc-changes-name-franchise-group-inc|title=Liberty Tax, Inc. Changes Name to Franchise Group, Inc.|work=[[GlobeNewswire]]|date=September 19, 2019|first=Michael S.|last=Piper|publisher=[[West Corporation]]|location=[[Los Angeles]]|accessdate=November 12, 2019}}</ref>
Liberty Tax Service appeared on Forbes "Top 20 Franchises for the Buck" in 2012.<ref>{{Cite web|url=https://www.forbes.com/sites/jjcolao/2012/02/08/top-20-franchises-for-the-buck/|title = Top 20 Franchises for the Buck|website = [[Forbes]]}}</ref> Liberty Tax Service is well known for its wavers, people in Statue of Liberty costumes and Uncle Sam costumes, used as a form of [[guerrilla marketing]].<ref>http://www.themorningsun.com/articles/2011/02/11/news/doc4d546a4f74704261795371.txt {{Dead link|date=February 2022}}</ref><ref>https://www.avclub.com/chicago/articles/liberty-tax-services-wavers-are-people-too,54410/ {{Dead link|date=February 2022}}</ref><ref>http://www.kansan.com/news/2009/apr/16/life_liberty_tax_service_waver/{{dead link|date=December 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref><ref>http://www.dailyinterlake.com/news/local_montana/article_de41daa8-21ea-11e0-b184-001cc4c03286.html {{Dead link|date=February 2022}}</ref><ref>http://chronicle.augusta.com/news/crime-courts/2012-02-10/north-augusta-barring-tax-services-wavers {{Dead link|date=February 2022}}</ref> On October 28, 2011, a flash mob of costumed Lady Libertys danced in [[Times Square]] to promote Liberty Tax Service and celebrate the anniversary of the [[Statue of Liberty]].<ref>http://www.paramuspost.com/article.php/20111026153220527 {{Dead link|date=February 2022}}</ref><ref>{{Cite web|url=http://www.businesswire.com/news/home/20111021005041/en/Liberty-Tax-Delegation-Celebrate-Anniversary-Statue-Liberty|title = Liberty Tax Delegation to Celebrate Anniversary of Statue of Liberty|date = October 21, 2011}}</ref>

On July 10, 2019, Liberty Tax completed the acquisition of Buddy’s Newco, LLC, the parent company of Buddy's Home Furnishings, a chain of 293 company-owned and franchisee [[rent-to-own]] stores with locations in the United States and Guam, 90% of which are operated by franchisees.<ref name="vp-2019jul12">{{cite news |url=https://pilotonline.com/business/article_8fd7c906-a4ca-11e9-b6b5-e3f77fd1f895.html |title=Liberty Tax gets into the rent-to-own business, changes corporate name |newspaper=[[Virginian Pilot]] |date=July 12, 2019 |first=Kimberly |last=Pierceall}}</ref><ref name="globenewswire-2019jul10">{{cite press release |url=https://www.globenewswire.com/news-release/2019/07/10/1881155/0/en/Liberty-Tax-Announces-a-Series-of-Strategic-Transactions.html |title=Liberty Tax Announces a Series of Strategic Transactions |work=[[GlobeNewswire]] |date=July 10, 2019 |author=<!--Staff writer(s); no by-line.-->}}</ref>


In August 2019, the company announced the pending acquisition of [[The Vitamin Shoppe]], a chain of vitamin supplement stores found in malls and shopping centers.<ref name="bw-2019aug08">{{cite news|url=https://www.businesswire.com/news/home/20190808005350/en/Vitamin-Shoppe%C2%AE-Acquired-Liberty-Tax|title=The Vitamin Shoppe to be Acquired by Liberty Tax|work=[[Business Wire]]|publisher=[[Berkshire Hathaway]]|location=[[San Francisco]]|date=August 8, 2019|author=<!--Staff writer(s); no by-line.-->|accessdate=November 13, 2019}}</ref> On September 19, 2019, the company changed its name to '''Franchise Group, Inc.''' to reflect the company's expansion into general retail.<ref name="Piper"/>
One year after purchasing [[The Vitamin Shoppe]] and [[American_Freight#Sears_Surplus_and_Sears_Outlet|Sears Outlet]],<ref name="bw-2019aug08">{{cite news|url=https://www.businesswire.com/news/home/20190808005350/en/Vitamin-Shoppe%C2%AE-Acquired-Liberty-Tax|title=The Vitamin Shoppe to be Acquired by Liberty Tax|work=[[Business Wire]]|publisher=[[Berkshire Hathaway]]|location=[[San Francisco]]|date=August 8, 2019|author=<!--Staff writer(s); no by-line.-->|accessdate=November 13, 2019}}</ref> the company purchased [[American Freight]] for $450 million in cash in 2020.<ref name="globenewswire-2019dec30">{{cite press release |url=https://www.globenewswire.com/news-release/2019/12/30/1964875/0/en/Franchise-Group-Inc-to-Acquire-American-Freight-Group-Inc.html |title=Franchise Group, Inc. to Acquire American Freight Group, In |work=[[GlobeNewswire]] |date=December 30, 2019 |author=<!--Staff writer(s); no by-line.-->}}</ref><ref name="globenewswire-2020feb14">{{cite press release |url=https://www.globenewswire.com/news-release/2020/02/14/1985490/0/en/Franchise-Group-Inc-Closes-on-the-Acquisition-of-American-Freight-Group-Inc.html |title=Franchise Group, Inc. Closes on the Acquisition of American Freight Group, Inc. |work=[[GlobeNewswire]] |date=February 14, 2020 |author=<!--Staff writer(s); no by-line.-->}}</ref> - then Sears Outlet merged into American Freight.<ref name="globenewswire-2020feb27">{{cite press release |url=https://www.globenewswire.com/news-release/2020/02/27/1992042/0/en/Sears-Outlet-American-Freight-Combine-to-Create-One-Stop-Shop-for-Your-Home.html |title=Sears Outlet, American Freight Combine to Create One-Stop-Shop for Your Home |work=[[GlobeNewswire]] |date=February 27, 2020 |author=<!--Staff writer(s); no by-line.-->}}</ref>


On November 5, 2020, Franchise Group announced that it would acquire [[Fort Smith, Arkansas]]-based regional furniture retailer FFO Home, which filed for Chapter 11 bankruptcy protection on the same day.<ref>{{cite news |last1=Engel |first1=Clint |title=FFO Home files for bankruptcy |url=https://homenewsnow.com/blog/2020/11/05/ffohomebankruptcy-to-be-acquired/?rq=FFO |access-date=14 January 2023 |work=Home News Now |date=5 November 2020}}</ref> The acquisition was completed on December 29.<ref>{{cite news |last1=Engel |first1=Clint |title=Franchise Group completes FFO Home purchase |url=https://homenewsnow.com/blog/2020/12/29/franchisegroup-completes-ffohome-deal/ |work=Home News Now |date=29 December 2020}}</ref>
On October 23, 2019, Sears Hometown and Outlet Stores completed its sale of Sears Outlet to Franchise Group<ref name="globenewswire-2019oct23"/> while Transform Holdco completed the acquisition of the remainder of Sears Hometown at the end of the same business day.<ref name="sa-2019oct23"/>


In the year it sold Liberty Tax to NextPoint Financial for $249 million,<ref>{{cite news |last1=Pierceall |first1=Kimberly |title=Virginia Beach's Liberty Tax to be sold for $243 million, will offer consumer loans through LoanMe |url=https://www.pilotonline.com/business/consumer/vp-bz-liberty-tax-loan-0223-20210222-xlbmt7gafbgb3gkkguv4pefwhm-story.html |access-date=April 11, 2022 |publisher=The Virginian-Pilot |date=February 22, 2021}}</ref> Franchise Group made numerous acquisitions in 2021. Around that time, it purchased [[Pet Supplies Plus]] in a deal valued at $700 million,<ref>{{cite news |url=https://peprofessional.com/blog/2021/03/12/sentinel-closes-sale-pet-supplies-plus/ |title=Sentinel Closes Sale of Pet Supplies Plus |work=Private Equity Professional |date=March 12, 2021 |first=John |last=McNulty}}</ref> [[Sylvan Learning]] for $81 million,<ref>{{cite news |url=https://seekingalpha.com/news/3744877-franchise-group-acquires-sylvan-learning-for-81m |title=Franchise Group acquires Sylvan Learning for $81M |date=September 27, 2021 |first=Pranav |last=Ghumatkar |work=[[Seeking Alpha]]}}</ref> and [[Badcock Home Furniture]] for $580 million.<ref>{{cite web |last1=Thomas |first1=Brad |title=Franchise Group Stock: The Plan Is Working |url=https://seekingalpha.com/article/4493208-franchise-group-plan-working |website=Seeking Alpha |access-date=April 17, 2022}}</ref><ref name="TheLedger"/>
The acquisition of The Vitamin Shoppe was completed in December 2019.<ref name="globenewswire-2019dec16" />


In August, a group of investors bought Franchise Group for US$2.6 billion. In November 2023, Kahn was identified by Bloomberg as one of two co-conspirators in a securities fraud case, following the guilty plea of John Hughes, co-founder of Prophecy Asset Management<ref>{{cite web |last1=Voreacos |first1=David |title=Prophecy Fund Co-Founder Pleads Guilty to $294 Million Fraud |url=https://finance.yahoo.com/news/prophecy-fund-co-founder-pleads-222110364.html |website=Yahoo! Finance |access-date=November 18, 2023}}</ref>
In December 2019, the company announced the pending acquisition of American Freight, a discount furniture and home furnishing retail chain, from an affiliate of the [[Jordan Company]] for approximately $450 million in cash.
<ref name="globenewswire-2019dec30">{{cite press release |url=https://www.globenewswire.com/news-release/2019/12/30/1964875/0/en/Franchise-Group-Inc-to-Acquire-American-Freight-Group-Inc.html |title=Franchise Group, Inc. to Acquire American Freight Group, In |work=[[GlobeNewswire]] |date=December 30, 2019 |author=<!--Staff writer(s); no by-line.-->}}</ref> The acquisition was completed in February 2020 after company received a $675 million loan to finance this acquisition and to restructure the debt incurred upon the previous acquisitions of Buddy’s Home Furnishings and Sears Outlet.<ref name="globenewswire-2020feb14">{{cite press release |url=https://www.globenewswire.com/news-release/2020/02/14/1985490/0/en/Franchise-Group-Inc-Closes-on-the-Acquisition-of-American-Freight-Group-Inc.html |title=Franchise Group, Inc. Closes on the Acquisition of American Freight Group, Inc. |work=[[GlobeNewswire]] |date=February 14, 2020 |author=<!--Staff writer(s); no by-line.-->}}</ref> It was also announced that the company plans to merge Sears Outlet into America Freight with the store rebranding completed by April 2020.<ref name="globenewswire-2020feb27">{{cite press release |url=https://www.globenewswire.com/news-release/2020/02/27/1992042/0/en/Sears-Outlet-American-Freight-Combine-to-Create-One-Stop-Shop-for-Your-Home.html |title=Sears Outlet, American Freight Combine to Create One-Stop-Shop for Your Home |work=[[GlobeNewswire]] |date=February 27, 2020 |author=<!--Staff writer(s); no by-line.-->}}</ref>


In December 2023, [[Conn's]] acquired [[Badcock Home Furniture &more]] from the Franchise Group.<ref>{{Cite web|url= https://www.furnituretoday.com/financial/conns-makes-deal-that-adds-w-s-badcock-as-a-380-store-subsidiary/|title= Conn's makes deal that adds W.S. Badcock as a 380-store subsidiary|date=December 18, 2023|access-date=July 23, 2024|website=Furniture Today|language=en}}</ref> Conn's ended up filing for [[Chapter 11 bankruptcy]] in July 2024, and liquidated all of its namesake and Badcock stores by October 2024.<ref>{{Cite web|url= https://www.bloomberg.com/news/articles/2024-07-24/retailer-conn-s-files-for-bankruptcy-following-sales-declines|title= Home Goods Retailer Conn's Files for Bankruptcy Following Sales Declines |date=July 23, 2024|access-date=July 23, 2024|website=Bloomberg|language=en}}</ref><ref>{{Cite web|url=https://www.furnituretoday.com/financial/restructuring-or-shutdown-conns-documents-raise-the-possibility/|title=Restructuring or shutdown? Conn’s documents raise the possibility|date=July 24, 2024|access-date=July 24, 2024|website=Furniture Today|language=en}}</ref>
===Awards===
''Entrepreneur'' magazine has ranked Liberty Tax Service on its "[[Franchise 500]]" list of best franchise opportunities since 1998. Liberty Tax Service is the only tax franchise on the Forbes magazine's "Top 20 Franchises for the Buck." (2012) <ref>{{Cite web|url=https://www.forbes.com/sites/jjcolao/2012/02/08/top-20-franchises-for-the-buck/|title=Top 20 Franchises for the Buck|website=[[Forbes]]}}</ref>


In February 2024, Unleashed Brands, owner of [[The Little Gym]] and Urban Air Trampoline Park, acquired [[Sylvan Learning]] from Franchise Group for an undisclosed amount.<ref>{{Cite web|url=https://www.franchisetimes.com/franchise_mergers_and_acquisitions/unleashed-brands-buys-sylvan-learning/article_a568813e-d4c7-11ee-bb32-1f85230cfdda.html|title=Unleashed Brands Buys Sylvan Learning|last=Liedke|first=Matthew|date=February 26, 2024|access-date=November 3, 2024|website=Franchise Times|language=en}}</ref>
==Criticism and legal actions==
Liberty Tax has been the subject to criticism related to their business practices. Many of these have become the subject of legal actions by former franchise owners and some state attorneys general:


On November 2, 2024, Franchise Group announced that they were preparing to file for Chapter 11 bankruptcy after months of losses and turmoil caused by its owner, B. Riley Financial. HPS Investment Partners, a private equity firm, amongst other lenders, will take over the company once the restructuring is completed.<ref>{{Cite web|url=https://news.bloomberglaw.com/bankruptcy-law/b-riley-backed-franchise-group-prepares-to-file-for-bankruptcy|title=B. Riley-Backed Franchise Group Prepares to File for Bankruptcy|date=November 2, 2024|access-date=November 3, 2024|website=Bloomberg Law|language=en}}</ref> On November 3, 2024, Franchise Group and all of its affiliated subsidiaries filed for Chapter 11 bankruptcy protection in Delaware. The company plans to keep its Pet Supplies Plus, The Vitamin Shoppe, and Buddy's Home Furnishings stores open during the procedure, while it plans to liquidate American Freight. American Freight suffered major losses due to high rising costs and macroeconomic challenges. Liquidation sales are set to begin on November 5, with stores to close by the end of the year.<ref>{{Cite web|url=https://www.pymnts.com/news/retail/2024/vitamin-shoppe-owner-franchise-group-filing-for-bankruptcy/|title=Vitamin Shoppe Owner Franchise Group Filing for Bankruptcy|date=November 3, 2024|access-date=November 3, 2024|website=PYMNTS|language=en}}</ref>
* Liberty Tax makes use of "[[Human billboard|sign wavers]]", people dressed in costume actively advertising for nearby franchises. They have come under criticism for violating zoning regulations,<ref>[http://ww2.gazette.net/stories/022708/burtnew203848_32363.shtml Tax firm's 'wavers' not exempt from concern]</ref> disrupting traffic <ref>[https://www.forbes.com/sites/kellyphillipserb/2013/03/14/arrest-of-dancing-mascot-puts-liberty-tax-wavers-in-the-spotlight/ Arrest of Dancing Mascot Puts Liberty Tax Wavers In The Spotlight]</ref><ref>[http://www.leagle.com/decision/In%20FDCO%2020131113832 Case No. CV F 13-0547 LJO SMS]</ref>
* Liberty Tax was sued by the State of California in 2009 for promising its customers speedy tax refunds while failing to disclose that they were actually taking out high-interest bank loans on their behalf subject to finance charges and debt collections, a state appeals court has ruled in upholding a $1.3 million judgment against the tax preparation firm.<ref>[http://www.sfgate.com/bayarea/article/Court-rules-against-Liberty-Tax-Service-4215104.php Court rules against Liberty Tax Service]</ref><ref>{{Cite web |url=http://www.kmtg.com/node/2630 |title=Attorney General Prevails In Lawsuit Against Income Tax Preparation Company |access-date=February 15, 2015 |archive-url=https://web.archive.org/web/20150216005052/http://www.kmtg.com/node/2630 |archive-date=February 16, 2015 |url-status=dead |df=mdy-all }}</ref>
* Liberty Tax franchises were the subject of a class action suit in South Carolina in 2011. The suit claims that the firm inflated business expenses and produced false information about charitable donations and that the Liberty Tax Service office they hired did not follow through with a guarantee to assist them during the audit process. The suit claims that Liberty Tax had a plan or a scheme to increase their profits by filing false, fraudulent or inappropriate forms.<ref>[https://abcnews.go.com/Business/signs-bad-tax-preparer-accountant/story?id=13212616 Five Signs You Might Have a Bad Tax Preparer]</ref><ref>[http://www.april15th.com/taxes/the-ugly-truth-about-the-tax-preparation-chains/ The Ugly Truth about the Tax Preparation Chains]</ref>
* Liberty Tax has been accused of engaging in predatory lending targeted at low income and military families. The alleged abuses relate to what is known as refund anticipation loans (RAL). An RAL is a [[Payday loan|high interest rate short-term loan]] secured by a taxpayer's expected tax refund, and designed to offer customers quicker access to funds, rather than waiting for their tax refund from the IRS. The New York State Division of Human Rights in 2008 filed a complaint against Liberty Tax Service and others, seeking to limit the tax preparers' ability to market RALs.{{citation needed|date=March 2016}} According to the DHR's court filings, military families and ethnic minority families have found themselves in deep debt having to use their tax-refund and savings just to keep up with interest payments that can balloon up to 700% annualized when they get RALs.<ref>[http://www.tnj.com/predatory-lenders-milking-consumers Predatory Lenders Milking Consumers]</ref>


==Subsidiaries==
==Subsidiaries==
===Current subsidiaries===
* {{anchor|JTH Tax, Inc.}}'''JTH Tax, Inc.''' ([[doing business as]] '''Liberty Tax Service'''<ref>{{cite news|url=https://www.bloomberg.com/profile/company/4476315Z:US?cic_redirect=3|title=JTH Tax Inc|work=[[Bloomberg News]]|publisher=[[Bloomberg L.P.]]|location=[[New York City]]|accessdate=November 12, 2019}}</ref> ) &ndash; facilitates refund-based tax settlement financial products, including tax preparation, refund anticipation loans, electronic refund checks, and personal income tax refund discounting. Liberty Tax Service conducts its business in the United States.
* {{anchor|American Freight}}'''[[American Freight]]''' &ndash; a chain of discount furniture and home furnishing stores that was acquired in February 2020<ref name="globenewswire-2020feb14" />
* {{anchor|American Freight}}[[American Freight]]; a chain of discount furniture and home furnishing stores that was acquired in February 2020<ref name="globenewswire-2020feb14" />
* {{anchor|Buddy's Home Furnishings}}'''Buddy's Newco LLC''' ([[doing business as]] '''Buddy's Home Furnishings''') &ndash; offers home furniture including sofas, chairs, dining tables, as well as electronics, and appliances. Buddy's Home Furnishings serves clients in the United States.<ref>{{cite news|url=https://www.bloomberg.com/profile/company/0821102D:US|title=Buddy's Newco LLC|work=[[Bloomberg News]]|publisher=[[Bloomberg L.P.]]|location=[[New York City]]|accessdate=November 12, 2019}}</ref>
* {{anchor|Buddy's Home Furnishings}}Buddy's Home Furnishings; offers home furniture including sofas, chairs, dining tables, as well as electronics, and appliances. Buddy's Home Furnishings serves clients in the United States.<ref>{{cite news|url=https://www.bloomberg.com/profile/company/0821102D:US|title=Buddy's Newco LLC|work=[[Bloomberg News]]|publisher=[[Bloomberg L.P.]]|location=[[New York City]]|accessdate=November 12, 2019}}</ref>
* '''[[The Vitamin Shoppe]]''' &ndash; offers nutritional supplements in every 785 stores across the U.S., as well as online. Acquired by Franchise Group in December 2019 after Irving Place Capital sold the remaining shares of the company and its division, Super Supplements to Franchise Group in the same year.<ref name="globenewswire-2019dec16">{{cite press release|url=https://www.globenewswire.com/news-release/2019/12/16/1961229/0/en/Franchise-Group-Inc-Closes-on-the-Acquisition-of-The-Vitamin-Shoppe.html|title=Franchise Group, Inc. Closes on the Acquisition of The Vitamin Shoppe.|work=[[GlobeNewswire]]|date=December 16, 2019|first=Andrew F.|last=Kaminsky|publisher=[[West Corporation]]|location=[[Virginia Beach]]|accessdate=December 16, 2019}}</ref>
*[[The Vitamin Shoppe]]; offers nutritional supplements in every 785 stores across the U.S., as well as online. Acquired by Franchise Group in December 2019 after Irving Place Capital sold the remaining shares of the company and its division, Super Supplements to Franchise Group in the same year.<ref name="globenewswire-2019dec16">{{cite press release|url=https://www.globenewswire.com/news-release/2019/12/16/1961229/0/en/Franchise-Group-Inc-Closes-on-the-Acquisition-of-The-Vitamin-Shoppe.html|title=Franchise Group, Inc. Closes on the Acquisition of The Vitamin Shoppe.|work=[[GlobeNewswire]]|date=December 16, 2019|first=Andrew F.|last=Kaminsky|publisher=[[West Corporation]]|location=[[Virginia Beach]]|accessdate=December 16, 2019}}</ref>
* {{anchor|Pet Supplies Plus}}''' [[Pet Supplies Plus]] '''&ndash; offers pet supplies and services in 400-plus locations in 30-plus US states.'''<ref>{{Cite web|url=https://www.petsuppliesplus.com/about-us/real-estate|title = Real Estate}}</ref>
* {{anchor|Pet Supplies Plus}}[[Pet Supplies Plus]]; offers pet supplies and services in 400-plus locations in 30-plus US states.<ref>{{Cite web|url=https://www.petsuppliesplus.com/about-us/real-estate|title = Real Estate}}</ref>


===Former subsidiaries===
===Former subsidiaries===
* {{anchor|Sears Outlet Stores|Sears Outlet}}'''[[Sears Outlet Stores]]''' &ndash; outlet version of Sears department stores located in various retail locations across the U.S., as well as online. Sold to Franchise Group in October 2019 while [[Transform Holdco]] completed the acquisition of the remainder of Sears Hometown at the end of the same business day.<ref name="globenewswire-2019oct23">{{cite news|url=https://www.globenewswire.com/news-release/2019/10/23/1934267/0/en/Franchise-Group-Inc-Closes-on-the-Acquisition-of-the-Sears-Outlet-Business-from-Sears-Hometown-and-Outlet-Stores-Inc.html|title=Franchise Group, Inc. Closes on the Acquisition of the Sears Outlet Business from Sears Hometown and Outlet Stores, Inc.|work=[[GlobeNewswire]]|date=October 23, 2019|first=Andrew F.|last=Kaminsky|publisher=[[West Corporation]]|location=[[Los Angeles]]|accessdate=November 12, 2019}}</ref><ref name="sa-2019oct23">{{cite news|url=https://seekingalpha.com/news/3508845-sears-hometown-outlet-plus-2_7-percent-merger-transaction|title=Sears Hometown and Outlet +2.7% after merger transaction|work=[[Seeking Alpha]]|date=October 23, 2019|first=Jason|last=Aycock|publisher=Seeking Alpha Ltd.|location=[[Ra'anana]]|accessdate=November 12, 2019}}</ref> In April 2020, Sears Oulet was merged into American Freight and the stores were rebranded American Freight.
* {{anchor|Sears Outlet Stores|Sears Outlet}}[[Sears Outlet Stores]]; outlet version of Sears department stores located in various retail locations across the U.S., as well as online. Sold to Franchise Group in October 2019 while [[Transform Holdco]] completed the acquisition of the remainder of Sears Hometown at the end of the same business day.<ref name="globenewswire-2019oct23">{{cite news|url=https://www.globenewswire.com/news-release/2019/10/23/1934267/0/en/Franchise-Group-Inc-Closes-on-the-Acquisition-of-the-Sears-Outlet-Business-from-Sears-Hometown-and-Outlet-Stores-Inc.html|title=Franchise Group, Inc. Closes on the Acquisition of the Sears Outlet Business from Sears Hometown and Outlet Stores, Inc.|work=[[GlobeNewswire]]|date=October 23, 2019|first=Andrew F.|last=Kaminsky|publisher=[[West Corporation]]|location=[[Los Angeles]]|accessdate=November 12, 2019}}</ref><ref name="sa-2019oct23">{{cite news|url=https://seekingalpha.com/news/3508845-sears-hometown-outlet-plus-2_7-percent-merger-transaction|title=Sears Hometown and Outlet +2.7% after merger transaction|work=[[Seeking Alpha]]|date=October 23, 2019|first=Jason|last=Aycock|publisher=Seeking Alpha Ltd.|location=[[Ra'anana]]|accessdate=November 12, 2019}}</ref> In April 2020, Sears Outlet was merged into American Freight and the stores were rebranded American Freight.
* {{anchor|Liberty Tax}}[[Liberty Tax]]; facilitates refund-based tax settlement financial products, including tax preparation, refund anticipation loans, electronic refund checks, and personal income tax refund discounting. Liberty Tax Service conducts its business in the United States.<ref>{{cite news|url=https://www.bloomberg.com/profile/company/4476315Z:US?cic_redirect=3|title=JTH Tax Inc|work=[[Bloomberg News]]|publisher=[[Bloomberg L.P.]]|location=[[New York City]]|accessdate=November 12, 2019}}</ref>
* [[Badcock Home Furniture &more]]; furniture store chain with over 370 company and dealer owned furniture stores in eight states across the southeastern United States.<ref name="TheLedger">{{cite web |last1=Nutcher |first1=Paul |title=Mulberry-based W.S. Badcock acquired by Franchise Group Inc. for $580 million |url=https://www.theledger.com/story/business/2021/11/26/w-s-badcock-acquired-franchise-group/8751954002/ |website=The Ledger |access-date=April 17, 2022}}</ref>
* [[Sylvan Learning]]; supplemental learning centers which provide personalized instruction in reading, writing, mathematics, study skills, homework support, and test preparation for college entrance and state exams.<ref>{{cite web |last1=Kirchen |first1=Rich |title=Franchiser of Pet Supplies Plus, Sylvan Learning submits bid for Kohl's: Reuters |url=https://www.bizjournals.com/milwaukee/news/2022/04/12/franchiser-of-pet-supplies-sylvan-learning-kohls.html |website=Milwaukee Business Journal |access-date=April 17, 2022}}</ref>


==References==
==References==
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[[Category:Tax preparation companies of the United States]]
[[Category:Tax preparation companies of Canada]]
[[Category:Holding companies of the United States]]
[[Category:Holding companies of the United States]]
[[Category:Financial services companies established in 1997]]
[[Category:American companies established in 2019]]
[[Category:Holding companies established in 1997]]
[[Category:Companies that filed for Chapter 11 bankruptcy in 2024]]
[[Category:American companies established in 1997]]
[[Category:Companies based in Virginia Beach, Virginia]]
[[Category:Franchises]]
[[Category:Franchises]]
[[Category:Companies listed on the Nasdaq]]
[[Category:Companies formerly listed on the Nasdaq]]
[[Category:2023 mergers and acquisitions]]

Latest revision as of 20:13, 14 December 2024

Franchise Group, Inc.
Company typePrivate
Nasdaq: FRG
Genre
Founded2019; 5 years ago (2019)
FounderBrian R. Kahn
HeadquartersDelaware, Ohio
Key people
Brian R. Kahn (CEO)
Eric Seeton (CFO)
RevenueIncrease $4.937 billion (2023)[1]
Decrease $-68.573 million (2023)
SubsidiariesBuddy's Home Furnishings
American Freight
The Vitamin Shoppe
Pet Supplies Plus
Websitewww.franchisegrp.com

Franchise Group, Inc. is an American privately-held holding company that acquires and manages mainly franchise companies. It owns brands in various retail industries including American Freight, Buddy's Home Furnishings, The Vitamin Shoppe, and Pet Supplies Plus.

On August 21, 2023, it was announced that a consortium of investors had acquired Franchise Group for $2.6 billion.[2]

History

[edit]

Founded in 2019 through the merger of Liberty Tax and Buddy's Home Furnishings,[3] it originally operated under the name Liberty Tax. However, when it was renamed Franchise Group, the company retained Liberty Tax and Buddy's Home Furnishings as its subsidiaries.[4]

One year after purchasing The Vitamin Shoppe and Sears Outlet,[5] the company purchased American Freight for $450 million in cash in 2020.[6][7] - then Sears Outlet merged into American Freight.[8]

On November 5, 2020, Franchise Group announced that it would acquire Fort Smith, Arkansas-based regional furniture retailer FFO Home, which filed for Chapter 11 bankruptcy protection on the same day.[9] The acquisition was completed on December 29.[10]

In the year it sold Liberty Tax to NextPoint Financial for $249 million,[11] Franchise Group made numerous acquisitions in 2021. Around that time, it purchased Pet Supplies Plus in a deal valued at $700 million,[12] Sylvan Learning for $81 million,[13] and Badcock Home Furniture for $580 million.[14][15]

In August, a group of investors bought Franchise Group for US$2.6 billion. In November 2023, Kahn was identified by Bloomberg as one of two co-conspirators in a securities fraud case, following the guilty plea of John Hughes, co-founder of Prophecy Asset Management[16]

In December 2023, Conn's acquired Badcock Home Furniture &more from the Franchise Group.[17] Conn's ended up filing for Chapter 11 bankruptcy in July 2024, and liquidated all of its namesake and Badcock stores by October 2024.[18][19]

In February 2024, Unleashed Brands, owner of The Little Gym and Urban Air Trampoline Park, acquired Sylvan Learning from Franchise Group for an undisclosed amount.[20]

On November 2, 2024, Franchise Group announced that they were preparing to file for Chapter 11 bankruptcy after months of losses and turmoil caused by its owner, B. Riley Financial. HPS Investment Partners, a private equity firm, amongst other lenders, will take over the company once the restructuring is completed.[21] On November 3, 2024, Franchise Group and all of its affiliated subsidiaries filed for Chapter 11 bankruptcy protection in Delaware. The company plans to keep its Pet Supplies Plus, The Vitamin Shoppe, and Buddy's Home Furnishings stores open during the procedure, while it plans to liquidate American Freight. American Freight suffered major losses due to high rising costs and macroeconomic challenges. Liquidation sales are set to begin on November 5, with stores to close by the end of the year.[22]

Subsidiaries

[edit]

Current subsidiaries

[edit]
  • American Freight; a chain of discount furniture and home furnishing stores that was acquired in February 2020[7]
  • Buddy's Home Furnishings; offers home furniture including sofas, chairs, dining tables, as well as electronics, and appliances. Buddy's Home Furnishings serves clients in the United States.[23]
  • The Vitamin Shoppe; offers nutritional supplements in every 785 stores across the U.S., as well as online. Acquired by Franchise Group in December 2019 after Irving Place Capital sold the remaining shares of the company and its division, Super Supplements to Franchise Group in the same year.[24]
  • Pet Supplies Plus; offers pet supplies and services in 400-plus locations in 30-plus US states.[25]

Former subsidiaries

[edit]
  • Sears Outlet Stores; outlet version of Sears department stores located in various retail locations across the U.S., as well as online. Sold to Franchise Group in October 2019 while Transform Holdco completed the acquisition of the remainder of Sears Hometown at the end of the same business day.[26][27] In April 2020, Sears Outlet was merged into American Freight and the stores were rebranded American Freight.
  • Liberty Tax; facilitates refund-based tax settlement financial products, including tax preparation, refund anticipation loans, electronic refund checks, and personal income tax refund discounting. Liberty Tax Service conducts its business in the United States.[28]
  • Badcock Home Furniture &more; furniture store chain with over 370 company and dealer owned furniture stores in eight states across the southeastern United States.[15]
  • Sylvan Learning; supplemental learning centers which provide personalized instruction in reading, writing, mathematics, study skills, homework support, and test preparation for college entrance and state exams.[29]

References

[edit]
  1. ^ "FRG Financials". Yahoo!.
  2. ^ "Under new ownership: Leadership team completes Franchise Group acquisition". Furniture Today. Retrieved July 17, 2023.
  3. ^ "Mini-Berkshire In The Making At Franchise Group: Strong Organic Growth, Accretive M&A To Drive Stock Price". Seeking Alpha. December 14, 2021.
  4. ^ Piper, Michael S. (September 19, 2019). "Liberty Tax, Inc. Changes Name to Franchise Group, Inc". GlobeNewswire. Los Angeles: West Corporation. Retrieved November 12, 2019.
  5. ^ "The Vitamin Shoppe to be Acquired by Liberty Tax". Business Wire. San Francisco: Berkshire Hathaway. August 8, 2019. Retrieved November 13, 2019.
  6. ^ "Franchise Group, Inc. to Acquire American Freight Group, In". GlobeNewswire (Press release). December 30, 2019.
  7. ^ a b "Franchise Group, Inc. Closes on the Acquisition of American Freight Group, Inc". GlobeNewswire (Press release). February 14, 2020.
  8. ^ "Sears Outlet, American Freight Combine to Create One-Stop-Shop for Your Home". GlobeNewswire (Press release). February 27, 2020.
  9. ^ Engel, Clint (November 5, 2020). "FFO Home files for bankruptcy". Home News Now. Retrieved January 14, 2023.
  10. ^ Engel, Clint (December 29, 2020). "Franchise Group completes FFO Home purchase". Home News Now.
  11. ^ Pierceall, Kimberly (February 22, 2021). "Virginia Beach's Liberty Tax to be sold for $243 million, will offer consumer loans through LoanMe". The Virginian-Pilot. Retrieved April 11, 2022.
  12. ^ McNulty, John (March 12, 2021). "Sentinel Closes Sale of Pet Supplies Plus". Private Equity Professional.
  13. ^ Ghumatkar, Pranav (September 27, 2021). "Franchise Group acquires Sylvan Learning for $81M". Seeking Alpha.
  14. ^ Thomas, Brad. "Franchise Group Stock: The Plan Is Working". Seeking Alpha. Retrieved April 17, 2022.
  15. ^ a b Nutcher, Paul. "Mulberry-based W.S. Badcock acquired by Franchise Group Inc. for $580 million". The Ledger. Retrieved April 17, 2022.
  16. ^ Voreacos, David. "Prophecy Fund Co-Founder Pleads Guilty to $294 Million Fraud". Yahoo! Finance. Retrieved November 18, 2023.
  17. ^ "Conn's makes deal that adds W.S. Badcock as a 380-store subsidiary". Furniture Today. December 18, 2023. Retrieved July 23, 2024.
  18. ^ "Home Goods Retailer Conn's Files for Bankruptcy Following Sales Declines". Bloomberg. July 23, 2024. Retrieved July 23, 2024.
  19. ^ "Restructuring or shutdown? Conn's documents raise the possibility". Furniture Today. July 24, 2024. Retrieved July 24, 2024.
  20. ^ Liedke, Matthew (February 26, 2024). "Unleashed Brands Buys Sylvan Learning". Franchise Times. Retrieved November 3, 2024.
  21. ^ "B. Riley-Backed Franchise Group Prepares to File for Bankruptcy". Bloomberg Law. November 2, 2024. Retrieved November 3, 2024.
  22. ^ "Vitamin Shoppe Owner Franchise Group Filing for Bankruptcy". PYMNTS. November 3, 2024. Retrieved November 3, 2024.
  23. ^ "Buddy's Newco LLC". Bloomberg News. New York City: Bloomberg L.P. Retrieved November 12, 2019.
  24. ^ Kaminsky, Andrew F. (December 16, 2019). "Franchise Group, Inc. Closes on the Acquisition of The Vitamin Shoppe". GlobeNewswire (Press release). Virginia Beach: West Corporation. Retrieved December 16, 2019.
  25. ^ "Real Estate".
  26. ^ Kaminsky, Andrew F. (October 23, 2019). "Franchise Group, Inc. Closes on the Acquisition of the Sears Outlet Business from Sears Hometown and Outlet Stores, Inc". GlobeNewswire. Los Angeles: West Corporation. Retrieved November 12, 2019.
  27. ^ Aycock, Jason (October 23, 2019). "Sears Hometown and Outlet +2.7% after merger transaction". Seeking Alpha. Ra'anana: Seeking Alpha Ltd. Retrieved November 12, 2019.
  28. ^ "JTH Tax Inc". Bloomberg News. New York City: Bloomberg L.P. Retrieved November 12, 2019.
  29. ^ Kirchen, Rich. "Franchiser of Pet Supplies Plus, Sylvan Learning submits bid for Kohl's: Reuters". Milwaukee Business Journal. Retrieved April 17, 2022.
[edit]
  • Official website
  • Business data for Franchise Group, Inc.:
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