🔥 Multi-Unit Deals, Patient Capital, and a Fitness Shakeout

Welcome to the Franzy Five — your 5-minute fix on what’s moving the franchise world.

This week’s stories point to a clear theme in franchising right now: growth is being powered by experienced operators and long-term capital, not hype or one-off bets. From global brands leaning into multi-unit franchising, to legacy concepts finding new owners with a longer time horizon, the playbook is becoming more disciplined.

At the same time, fitness franchising continues to split in two, forcing investors to choose between scale and specialization.

Inside this week:

🍗 Why Jollibee is betting on multi-unit franchise partners to scale the U.S.
🍕 What California Pizza Kitchen’s sale says about patient capital in restaurants
🏋️ How fitness franchising is diverging, and where new buyers are leaning

Let’s get into it.

🍗 Jollibee Uses Franchising to Fuel U.S. Expansion

Summary:

Jollibee is kicking off its next phase of U.S. growth by opening the brand to franchising after more than 25 years of operating company owned restaurants stateside. With 107 corporate locations already in place, the brand enters franchising with a mature U.S. support system.

The focus is on experienced multi unit operators, not single unit buyers, with early franchisees already committing to multiple locations. Priority markets include Florida, Texas, California, and the Northeast, with flexible real estate formats supporting expansion.

Our Take

This is how scalable brands grow. Jollibee is pairing strong unit economics and white space with multi unit operators who know how to execute. It’s a proven playbook, and one the fastest growing QSR brands continue to rely on.

Link to QSR Magazine →

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🍕 Investment Firms Bet on California Pizza Kitchen’s Next Chapter

Summary:

Starbucks will pay $38.9 million to settle allegations that it violated New York City’s Fair Workweek Law more than 500,000 times across roughly 300 stores from 2021 to 2024. The city said Starbucks routinely failed to provide predictable schedules, cut hours unlawfully, and blocked workers from picking up additional shifts. More than 15,000 employees will receive compensation, marking NYC’s largest-ever worker protection settlement. The agreement comes amid a growing union strike and ongoing scrutiny of Starbucks’ labor practices.

Our Take:

This settlement is a clear signal that major municipalities are tightening labor enforcement, especially in fast food where scheduling volatility is common.

For franchisors and operators, the message is simple: compliance is no longer a box to check, it is a strategic risk factor. Predictable scheduling laws are spreading nationwide and the cost of misalignment can be massive, even for well resourced brands. Franchise systems with strong labor tech, training, and guardrails will gain an advantage as regulatory pressure increases. This is the new operating reality for QSR operators.

Link to Restaurant Dive →

🏋️ Fitness Franchising Reaches a Fork in the Road

Summary:

Fitness franchising is no longer one unified category. According to 1851, the industry is splitting into two distinct camps: capital-intensive big-box gyms and smaller, more focused boutique concepts.

Big-box operators still dominate raw membership counts, but they require multimillion-dollar investments, large staffs, and prime real estate. Boutique fitness brands, on the other hand, are leaning into specialization, community, and smaller footprints, often with lower overhead and more flexible ownership models.

Our Take:

Fitness isn’t slowing down… it’s segmenting. For many new franchise investors, boutique and specialty concepts offer a cleaner risk-reward profile: less upfront capital, clearer differentiation, and tighter operational control.

Big-box gyms may win on scale, but boutique brands are winning on focus. The smartest buyers will choose fitness models that align with their lifestyle, capital stack, and tolerance for complexity, not just the biggest name on the sign.

Link to 1851 Franchise →

📰 Other News in Franchising

🏈 Replay Sports Cards Signs Its First Franchise Deal (Franchise Wire)

🔥 SweatHouz Inks 30 Unit Deal (Franchise Times)

🚀 Why Now Is the Time to Jump Into Franchising (Business Franchise)