Franchise Group Explained
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, and Sylvan Learning.
On August 21, 2023, it was announced that a consortium of investors had acquired Franchise Group for $2.6 billion.[2]
History
Founded in 2019 through the merger of Liberty Tax and Buddy's Home Furnishings,[3] it originally operated under the name Liberty Tax. However, when it was renamed Franchise Group, the company retained Liberty Tax and Buddy's Home Furnishings as its subsidiaries.[4]
One year after purchasing The Vitamin Shoppe and Sears Outlet,[5] the company purchased American Freight for $450 million in cash in 2020.[6] [7] - then Sears Outlet merged into American Freight.[8]
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.[9] The acquisition was completed on December 29.[10]
In the year it sold Liberty Tax to NextPoint Financial for $249 million,[11] Franchise Group made numerous acquisitions in 2021. Around that time, it purchased Pet Supplies Plus in a deal valued at $700 million,[12] Sylvan Learning for $81 million,[13] and Badcock Home Furniture for $580 million.[14]
In August, a group of investors bought Franchise Group for US$2.6 billion. In November 2023, Kahn was identified by Bloomberg as one of two co-conspirators in a securities fraud case, following the guilty plea of John Hughes, co-founder of Prophecy Asset Management[15]
In December 2023, Conn's acquired Badcock Home Furniture &more from the Franchise Group.[16]
Subsidiaries
Current subsidiaries
- American Freight; a chain of discount furniture and home furnishing stores that was acquired in February 2020
- 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.[17]
- 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.[18]
- Pet Supplies Plus; offers pet supplies and services in 400-plus locations in 30-plus US states.[19]
- 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.[20]
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.[21] [22] In April 2020, Sears Outlet 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.[23]
- Badcock Home Furniture &more; furniture store chain with over 370 company and dealer owned furniture stores in eight states across the southeastern United States.[24]
Notes and References
- Web site: FRG Financials. Yahoo!.
- Web site: Under new ownership: Leadership team completes Franchise Group acquisition . Furniture Today. 2023-07-17. en-US.
- Web site: Mini-Berkshire In The Making At Franchise Group: Strong Organic Growth, Accretive M&A To Drive Stock Price . Seeking Alpha. December 14, 2021 .
- News: Liberty Tax, Inc. Changes Name to Franchise Group, Inc.. GlobeNewswire. September 19, 2019. Michael S.. Piper. West Corporation. Los Angeles. November 12, 2019.
- News: The Vitamin Shoppe to be Acquired by Liberty Tax. Business Wire. Berkshire Hathaway. San Francisco. August 8, 2019. . November 13, 2019.
- Franchise Group, Inc. to Acquire American Freight Group, In . . December 30, 2019 . .
- Franchise Group, Inc. Closes on the Acquisition of American Freight Group, Inc. . . February 14, 2020 . .
- Sears Outlet, American Freight Combine to Create One-Stop-Shop for Your Home . . February 27, 2020 . .
- News: Engel . Clint . FFO Home files for bankruptcy . 14 January 2023 . Home News Now . 5 November 2020.
- News: Engel . Clint . Franchise Group completes FFO Home purchase . Home News Now . 29 December 2020.
- News: Pierceall . Kimberly . Virginia Beach's Liberty Tax to be sold for $243 million, will offer consumer loans through LoanMe . April 11, 2022 . The Virginian-Pilot . February 22, 2021.
- News: Sentinel Closes Sale of Pet Supplies Plus . Private Equity Professional . March 12, 2021 . John . McNulty.
- News: Franchise Group acquires Sylvan Learning for $81M . September 27, 2021 . Pranav . Ghumatkar . Seeking Alpha.
- Web site: Thomas . Brad . Franchise Group Stock: The Plan Is Working . Seeking Alpha . April 17, 2022.
- Web site: Voreacos . David . Prophecy Fund Co-Founder Pleads Guilty to $294 Million Fraud . Yahoo! Finance . November 18, 2023.
- Web site: Conn's makes deal that adds W.S. Badcock as a 380-store subsidiary. December 18, 2023. July 23, 2024. Furniture Today. en.
- News: Buddy's Newco LLC. Bloomberg News. Bloomberg L.P.. New York City. November 12, 2019.
- Franchise Group, Inc. Closes on the Acquisition of The Vitamin Shoppe.. GlobeNewswire. December 16, 2019. Andrew F.. Kaminsky. West Corporation. Virginia Beach. December 16, 2019.
- Web site: Real Estate.
- Web site: Kirchen . Rich . Franchiser of Pet Supplies Plus, Sylvan Learning submits bid for Kohl's: Reuters . Milwaukee Business Journal . April 17, 2022.
- News: Franchise Group, Inc. Closes on the Acquisition of the Sears Outlet Business from Sears Hometown and Outlet Stores, Inc.. GlobeNewswire. October 23, 2019. Andrew F.. Kaminsky. West Corporation. Los Angeles. November 12, 2019.
- News: Sears Hometown and Outlet +2.7% after merger transaction. Seeking Alpha. October 23, 2019. Jason. Aycock. Seeking Alpha Ltd.. Ra'anana. November 12, 2019.
- News: JTH Tax Inc. Bloomberg News. Bloomberg L.P.. New York City. November 12, 2019.
- Web site: Nutcher . Paul . Mulberry-based W.S. Badcock acquired by Franchise Group Inc. for $580 million . The Ledger . April 17, 2022.
