Jump to content

Franchise Group

Add links
From Wikipedia, the free encyclopedia

This is an old revision of this page, as edited by RandomEtidor (talk | contribs) at 16:52, 22 August 2023. The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Franchise Group, Inc.
Company typePrivate
Genre
Founded2019; 5 years ago (2019)
FounderBrian R. Kahn
HeadquartersDelaware, Ohio
Key people
Brian R. Kahn (CEO)
Eric Seeton (CFO)
RevenueIncrease $3.255 billion (2021)[1]
Subsidiaries
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, Pet Supplies Plus, Sylvan Learning and Badcock Home Furniture.

History

The Franchise Group was founded in 2019 through the merger of Liberty Tax and Buddy's Home Furnishings.[2] It originally operated under the name Liberty Tax but changed its name to the Franchise Group, leaving Liberty Tax and Buddy's Home Furnishings as subsidiaries.[3]

It began expanding in 2019 with the acquisition of The Vitamin Shoppe and Sears Outlet.[4] The Franchise Group purchased American Freight for $450 million in cash in 2020.[5][6] After the acquisition, the company merged Sears Outlet into American Freight.[7]

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.[8] The acquisition was completed on December 29.[9]

In 2021, the Franchise Group sold Liberty Tax to NextPoint Financial for $249 million.[10] The same year, it purchased Pet Supplies Plus in a deal valued at $700 million,[11] Sylvan Learning for $81 million,[12] and Badcock Home Furniture for $580 million.[13][14] In 2023, the Franchise Group announced a partnership with YTWL Retail to launch YTWL Shop in the USA.[15]

Subsidiaries

Current subsidiaries

  • American Freight; a chain of discount furniture and home furnishing stores that was acquired in February 2020[6]
  • 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.[16]
  • 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.[17]
  • Pet Supplies Plus; offers pet supplies and services in 400-plus locations in 30-plus US states.[18]
  • 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.[19]
  • Badcock Home Furniture; furniture store chain with over 370 company and dealer owned furniture stores in eight states across the southeastern United States.[14]

Former subsidiaries

  • 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.[20][21] In April 2020, Sears Oulet 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.[22]

References

  1. ^ "FRG Financials". Nasdaq.
  2. ^ "Mini-Berkshire In The Making At Franchise Group: Strong Organic Growth, Accretive M&A To Drive Stock Price". Seeking Alpha. December 14, 2021.
  3. ^ Piper, Michael S. (September 19, 2019). "Liberty Tax, Inc. Changes Name to Franchise Group, Inc". GlobeNewswire. Los Angeles: West Corporation. Retrieved November 12, 2019.
  4. ^ "The Vitamin Shoppe to be Acquired by Liberty Tax". Business Wire. San Francisco: Berkshire Hathaway. August 8, 2019. Retrieved November 13, 2019.
  5. ^ "Franchise Group, Inc. to Acquire American Freight Group, In". GlobeNewswire (Press release). December 30, 2019.
  6. ^ a b "Franchise Group, Inc. Closes on the Acquisition of American Freight Group, Inc". GlobeNewswire (Press release). February 14, 2020.
  7. ^ "Sears Outlet, American Freight Combine to Create One-Stop-Shop for Your Home". GlobeNewswire (Press release). February 27, 2020.
  8. ^ Engel, Clint (November 5, 2020). "FFO Home files for bankruptcy". Home News Now. Retrieved January 14, 2023.
  9. ^ Engel, Clint (December 29, 2020). "Franchise Group completes FFO Home purchase". Home News Now.
  10. ^ 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.
  11. ^ McNulty, John (March 12, 2021). "Sentinel Closes Sale of Pet Supplies Plus". Private Equity Professional.
  12. ^ Ghumatkar, Pranav (September 27, 2021). "Franchise Group acquires Sylvan Learning for $81M". Seeking Alpha.
  13. ^ Thomas, Brad. "Franchise Group Stock: The Plan Is Working". Seeking Alpha. Retrieved April 17, 2022.
  14. ^ a b Nutcher, Paul. "Mulberry-based W.S. Badcock acquired by Franchise Group Inc. for $580 million". The Ledger. Retrieved April 17, 2022.
  15. ^ "YTWL Shop arrives at America!". YinTheWooLoo News. May 13, 2023. Retrieved May 13, 2023.
  16. ^ "Buddy's Newco LLC". Bloomberg News. New York City: Bloomberg L.P. Retrieved November 12, 2019.
  17. ^ 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.
  18. ^ "Real Estate".
  19. ^ Kirchen, Rich. "Franchiser of Pet Supplies Plus, Sylvan Learning submits bid for Kohl's: Reuters". Milwaukee Business Journal. Retrieved April 17, 2022.
  20. ^ 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.
  21. ^ 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.
  22. ^ "JTH Tax Inc". Bloomberg News. New York City: Bloomberg L.P. Retrieved November 12, 2019.
  • Official website
  • Business data for Franchise Group, Inc.:
Retrieved from "https://en.wikipedia.org/enwiki/w/index.php?title=Franchise_Group&oldid=1171685402"