🏠What Franchise News Is Signaling Now - Expansion for QSR Brands

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

This week’s stories highlight a widening gap in franchising: legacy food brands grappling with legal and operational strain, while disciplined growers and service-based models continue to attract attention. From restaurant closures tied to franchisee disputes to a fresh look at who’s actually scaling smart, the signals for operators and investors are getting clearer.

Also inside:

🥪 Potbelly Charts Its Next Growth Phase Under RaceTrac
🍔 Hardee’s closures and a franchisee lawsuit raise red flags

Let’s get into it.

🥪 Potbelly Charts Its Next Growth Phase Under RaceTrac

Summary:

Potbelly is leaning into disciplined growth following its $566M acquisition by RaceTrac. The plan is not to drop Potbelly into every RaceTrac location, but to selectively expand through c store adjacent sites, smaller footprint prototypes, and strong non traditional venues like airports and universities.

With roughly 450 units today and 400 more already committed, the brand expects to pass 500 locations in 2026 and accelerate openings in the years ahead, all while focusing on ROI, digital ordering, and franchisee profitability.

Our Take

This is quiet, smart franchising. Private ownership gives Potbelly room to think long term, improve unit economics, and grow with experienced operators instead of chasing headline unit counts. RaceTrac brings scale, resources, and patience, which is often the difference between sustainable growth and forced expansion.

Not flashy, but very intentional.

Link to Restaurant Dive →

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🍔 Hardee’s Faces Closures as Franchise Dispute Escalates

Summary:

Hardee’s is dealing with another wave of franchise closures as ARC Burger, one of its largest operators, continues a legal battle with parent company CKE Restaurants. ARC Burger has accused the franchisor of failing to modernize the brand and placing franchisees under increasing financial pressure.

The dispute comes as Hardee’s footprint continues to shrink, with dozens of units closed or sold in recent years.

The lawsuit highlights tensions around brand investment, remodel requirements, and the burden placed on franchisees in mature, competitive QSR segments. While CKE has stated it is committed to supporting the system, the public nature of the dispute underscores ongoing challenges for legacy restaurant brands.

Our Take:

This is another reminder that scale alone doesn’t equal stability. When franchisors and franchisees lose alignment, closures often follow.

For investors, it reinforces the importance of understanding franchisor-franchisee economics, reinvestment expectations, and long-term brand strategy, especially in legacy food concepts where margins are already tight.

Link to 1851 Franchise →

🍗 Jollibee’s Long Planned Franchise Push Hits the U.S.

Summary:

Jollibee is officially shifting into franchising mode in North America after decades of company owned expansion. With more than 100 locations across the U.S. and Canada and $4.4M reported average unit volumes, the brand opened its first North American franchise in Queens in 2025 and is now selling multi unit deals to experienced operators.

The strategy is intentional. Jollibee waited until it had proven economics, systems, and brand clarity before franchising. Deals currently require a minimum of three units, with a long term goal of reaching 500 North American locations by 2030, roughly 70 percent franchised and 30 percent company owned.

Our Take:

This is patient franchising done right. Jollibee resisted the urge to franchise early, fixed its positioning, leaned into what made the brand special, and built real operating proof before opening the doors to partners.

Now it is tapping seasoned multi unit operators to scale faster without sacrificing quality. High AUVs plus disciplined franchisee selection is a powerful combo, and it explains why some of the hottest QSR brands wait years before flipping the franchise switch.

Link to Franchise Times →

📰 Other News in Franchising

How Franchise Buyers Are Actually Finding Opportunities in 2025 (Source: 1851 Franchise)

12 Trends Set to Reshape Franchising in 2026 (Source: Franchise Wire)

Oakberry Signs 100-Unit Texas Deal as U.S. Expansion Accelerates (Source: Franchise Times)