New Funding for Premium Service Brands, Plus More Deals
by Callie Evergreen, originally published on franchisetimes.com on April 13, 2021
Best Life Brands acquired PROHealth Home Care Services, which provides in-home nursing in the greater Los Angeles area. PROHealth marks the fourth brand in Best Life Brands’ portfolio, and they plan to begin franchising the business under a new name in the coming months, in addition to hiring a new brand president and vice president of franchise development. This deal will mark PROHealth’s entry into home health franchising, part of the parent organization’s strategic plan to add complementary companies that serve older adults and people with diverse needs. Best Life Brands is based in Bloomfield Hills, Michigan, and in addition to PROHealth, includes home care franchises ComForCare and At Your Side, senior placement franchise CarePatrol and estate sale franchise Blue Moon Estate Sales, which together total more than 400 franchise locations across the U.S. and Canada.
Vertically integrated cannabis operator Item 9 Labs closed on its merger agreement with Colorado-based franchisor One Cannabis Group on March 23. One Cannabis is the parent company to cannabis dispensary franchise Unity Rd, which planned to merge with Cannabis One Holdings last year but failed after regulatory hurdles. The reduced capital expenditure franchise model will help accelerate growth for Item 9 Labs and Unity Rd., while keeping dispensaries locally owned and operated. Headquartered in Arizona, Item 9 Labs is expanding its operations space by more than 650,000 square feet on its 50-acre site, one of the largest properties in Arizona zoned to grow and cultivate flower.
WOWorks has acquired fast-casual Greek restaurant franchise The Simple Greek and its 24 units. WOWorks, fully owned by Centre Lane Partners, was formed in December 2020 when the parent company of Saladworks acquired Frutta Bowls and Garbanzo Mediterranean Fresh.The Simple Greek was founded in 2015 by entrepreneur and TV personality Marcus Lemonis, who aimed to redefine the traditional Greek restaurant with an interactive concept and a menu based on a fresh, contemporary take on ancient Greek recipes. “Guests are looking for menu choices that do more than merely sate their appetite in the moment, but serve as fuel to help nourish their mind, body and soul,” said Kelly Roddy, CEO of WOWorks in a statement. “With a menu centered around the Mediterranean Diet, The Simple Greek fits perfectly into a healthy, active lifestyle.” Between all of its brands, WOWorks has more than 215 locations across the United States.
Premium Service Brands, a franchisor with seven home services brands, received an investment from Susquehanna Private Capital, but terms of the deal were not disclosed. Boxwood Partners advised PSB during the deal. “There has been a high demand for home services over the past few years and our partnership with Susquehanna Private Capital gives us the resources to support our growth strategy while attracting top franchise candidates to the PSB family,” said Paul Flick, CEO of Premium Service Brands, in a statement. PSB’s brands include 360° Painting, Maid Right, ProLift Garage Doors, Handyman Pro, Kitchen Wise, Rubbish Works and Renew Crew.
After operating for 47 years, Bill Vollenhals and Pat Kern sold nine KFC restaurants in the Reno, Nevada, market to SC Food Group, a new franchisee to the KFC system led by Chris Porter. “Bill and Pat had been in the KFC system as long as I’ve been alive,” said Rick Ormsby, managing director at Unbridled Capital, which provided sell-side advisory services. “When they called us with the desire to sell, I was honored to help them. The industry is definitely shifting with much of the old-guard looking to retire and pass the torch to the next generation.” Vollenhals added they sifted through several strong offers during the marketing process, including many outside buyers new to the KFC system. As a condition of this closing, Unbridled Capital will make a charitable contribution to the KFC Foundation.
Ruby Tuesday completed its reorganization about five months after it filed for Chapter 11 protection as COVID-19 restrictions halted dine-in operations. Through a consensual, court-approved reorganization plan, the brand was acquired by its lenders, TCW Direct Lending and Goldman Sachs Specialty Lending Group. Founded in 1972 in Knoxville, Tennessee, Ruby Tuesday has more than 200 full-service, casual dining franchise restaurants in the U.S., Canada, Puerto Rico, Guam, Chile, El Salvador, Honduras, Hong Kong, Kuwait, Panama, Romania and Spain. NRD Capital bought Ruby Tuesday in 2017 and made it a private company in a $335 million deal. FocalPoint Securities provided financial advisory services to Ruby Tuesday during the transaction.
PVG Restaurant Group sold 26 Sonic Drive-In restaurants in Georgia and South Carolina to Atticus Franchise Group, led by Mike Drum. PVG Restaurant Group, led by Gary Zancanelli, acquired its initial nine Sonic locations in 2014 and grew across two states over seven years, mainly by acquiring, remodeling and improving underperforming units. The acquisition will bring Sonic into Atticus’ portfolio, which also includes Wingstop and Massage Envy. Unbridled Capital provided sell-side advisory services to PVG.
