👴🏻The Great Boomer Handoff in Franchising

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

One of the biggest trends we have been focused on is the wave of Baby Boomer business owners retiring over the next decade. With millions of small businesses, including countless franchises, poised to change hands, this shift will be the most significant ownership transfer in history. For the next generation of entrepreneurs, the door is wide open.

Also in this edition:

💵 Subway’s new CEO sends millions back to franchisees in a one-time rebate
💪 Multi-unit owners fuel Burn Boot Camp’s rapid growth
🏋️ Extraordinary Brands adds CycleBar and Rumble to its fitness portfolio

Let’s dig in!

🤑Franzy Insights: A Trillion-Dollar Ownership Shift Is Coming

This is a trend we’re obsessed about, so we wanted to share it with all of you. An enormous ownership transition is unfolding as Baby Boomers retire.

Here’s the deal:

• Baby Boomers own about 40  percent of all U.S. small businesses and franchises, representing roughly 12 million businesses. These businesses employ tens of millions of people (TeamShares)

• Around 10 million Boomer-owned businesses are projected to change hands within the next decade.

• Less than one‑third of small business owners have a formal exit or succession plan—and only about 30 percent of family-owned businesses successfully transition to the next generation

🔍 Our Take:
Younger professionals are ideally positioned to capture an unprecedented number of high-quality, turnkey opportunities. With so many businesses set to change hands, many of them established, profitable, and community-rooted, the timing has never been better to step into ownership.

Franchise resales offer powerful advantages: they come with proven brand systems, operational training, and an existing customer base. Compared to starting from scratch, they have less friction and ramp-up time, allowing new owners to focus on growth and innovation. And with fewer Boomers passing businesses to family, the competitive field for these resales is wide open.

Moreover, many sellers lack clear exit strategies, opening the door to buyers who are ready, informed, and agile.

The bottom line is a wave of business transitions is imminent, and franchising, especially resales, is poised to be a direct beneficiary.

💵 Subway Sends Millions Back to Franchisees

Summary:

• Subway’s new CEO, Jonathan Fitzpatrick, is kicking off his tenure by issuing a one-time rebate to U.S. operators—about 10% of average weekly sales from the first half of the year.

• The rebates, tied to a shift from Coke to Pepsi beverage contracts, are expected to total $13.7M–$18.4M across roughly 19,500 locations ($700 - $900 per store).

• Even so, some franchisees note the payments may not be enough to save struggling stores.

Our take:
Subway’s move is as much about optics as it is about operator support. Franchisee profitability has been a major hurdle for the brand with 7,500 closures in the last decade being proof. Rebates offer a short-term boost and a goodwill gesture from new leadership, but sustainable growth will require deeper fixes: competitive positioning in a crowded sub market, stronger unit economics, and a revitalized marketing strategy. For prospective franchisees, the bigger story here is the signal it sends. Brands under new leadership may take bold, immediate steps to shore up their franchisee base, but the real question is whether the long-term economics improve.

Link to Restaurant Business Online →

💪 Multi-Unit Owners Power Burn Boot Camp’s Growth

Summary:

• Burn Boot Camp has grown to 400+ locations and $265M in systemwide sales, with multi-unit operators becoming a bigger force—over 65 franchisees now own multiple gyms.

• Standout operators say success hinges on hiring for personality, retaining strong trainers, and building scalable teams.

• The brand is investing in leadership and franchisee support, from quality audits to new executive hires, though operators note some profitability benchmarks still favor single-unit owners.

Our take:
Burn Boot Camp’s rise underscores a key theme in franchising: the shift toward multi-unit scale. With the right leadership team and operational infrastructure, fitness concepts can replicate success across markets, allowing owners to build bigger portfolios without diluting brand standards. The emphasis on personality-driven hiring is especially relevant in service-based franchises where member retention is critical.

Link to Franchise Times →

🏋️ Extraordinary Brands Adds CycleBar and Rumble to Its Fitness Portfolio

Summary:

• Extraordinary Brands has acquired CycleBar and Rumble Boxing from Xponential Fitness, adding to its existing Row House and barre concepts.

• The company operates on a shared services model, offering centralized marketing, unified operations, and franchise business coaches across all brands.

• Leadership is focused on franchisee profitability, aiming to cut overhead, enhance programming, and strengthen brand strategies for long-term growth.

Our take:
This acquisition highlights a growing playbook in franchising: platform-style ownership where multiple complementary brands share infrastructure to drive scale. For multi-unit and multi-brand operators, the benefits are clear—centralized support, cross-promotional opportunities, and streamlined systems. The key question will be execution: can Extraordinary Brands maintain brand identity and customer loyalty while integrating operations? If they can, this could be a strong blueprint for boutique fitness franchising’s next decade.

Link to 1851 Franchise →

✂️ Snippets

🍕Marco’s Pizza Opens 40 Stores in First Half of 2025, Eyes Further Expansion (Franchising.com)

🤖AI Overload? Industry Voices Caution for Franchise Brands (FranchiseWire)

🍩Dirty Dough, Craveworthy Brands in Dispute Over Unpaid Royalties (Nation’s Restaurant News)

🍔McDonald’s Loyalty Push and McValue Deals Boost Q2 Sales (Franchise Times)