PE Firms Are Reshaping Franchising

How Neil Burggava grew from 10 to 110+ units across multiple brands using a finance-first approach

Author

Chris Wright
May 01, 2025

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💰 Multi-Brand Mastery: Inside a Major Franchise Portfolio

A recent Smart Franchising podcast offers a rare glimpse into how sophisticated operators are building large multi-brand franchise portfolios spanning diverse industries.

Neel Burggava's NB Group has assembled an impressive collection of franchise units across European Wax Center and Crunch Fitness, showcasing a finance-focused approach that's increasingly common as more organized capital enters franchising.

Key Highlights:

  • Multi-brand franchise portfolios allow operators to diversify risk across different industries while leveraging shared overhead costs

  • PE-backed groups typically apply sophisticated financial modeling to territories that traditional franchisees might overlook

  • Operating complementary concepts like fitness and beauty creates cross-marketing opportunities to the same core demographic

  • Scale becomes a competitive advantage in negotiations with suppliers, landlords, and even potential acquisition targets

👉️ Why It Matters:

As more private equity and sophisticated investor groups enter franchising, the development landscape is changing for both franchisors and individual operators. Multi-brand strategies allow operators to diversify risk while potentially creating operational efficiencies across concepts. This finance-first approach represents an important trend for anyone involved in franchise development or investment.

📊 Franchise Ad Dollars go to Facebook, Instagram & LinkedIn

The real money in franchise marketing is flowing through social media, and despite all the hype about new platforms, one veteran channel still dominates both spending and results.

Key Highlights:

  • According to the 2024 Annual Franchise Marketing Report (AFMR), an overwhelming 88% of franchise brands use Facebook for consumer marketing, with 81% actively purchasing ads on the platform.

  • Instagram (85%) and LinkedIn (75%) follow as the next most popular platforms for franchise consumer marketing

  • Video is gaining traction with YouTube at 56% adoption and TikTok climbing to 44%

  • When it comes to spending, Facebook gets the lion's share — 80% of franchise marketers say that's where most of their social budget goes

👉️ Why It Matters:

Facebook still delivers the highest ROI for franchise marketers, with 74% reporting it generates their most social media-driven sales. Successful brands maintain presence across multiple channels to reach audiences wherever they scroll. For franchisees maximizing local marketing dollars, following the money to Facebook while building presence on Instagram and LinkedIn is the winning formula.

🥤 The Beverage Boom

Major restaurant franchises are tapping into America's unquenchable thirst for specialty beverages with standalone concepts and major menu expansions built around drinks.

Key Highlights:

  • Taco Bell's Live Más Cafe boosted sales by 40% at its first location in Chula Vista with specialty drinks like Rockstar-infused Agua Refrescas

  • McDonald's is tweaking its CosMc's concept by closing larger stores and opening smaller, drive-thru focused locations

  • Potbelly saw immediate sales lift after adding craft refreshers like strawberry dragonfruit lemonade to its menu

  • Consumer behavior shows people love mixing flavors: "They won't just grab one flavor," says Potbelly CMO David Daniels

👉️ Why It Matters:

Beyond just revenue, these beverage innovations are helping brands reclaim the personal touch lost during pandemic-era digital transformation. The next frontier may include CBD-infused options and other innovations as brands compete to create custom experiences that can't be replicated at home or through delivery apps.

🌱 The 3-Step Secret to Hiring Regional Managers

Finding someone with the right mix of operational expertise and people skills who's willing to work while everyone else is brunching is like hunting for a unicorn. These decision-makers can make or break your multi-unit operation in real-time. Veteran Hungry Howie's franchisee David Plait has cracked the code for hiring regional managers with a three-step approach that starts with promoting from within.

Key Highlights:

  • Hire from within. Most successful regional managers grew up in the system, understanding how decisions affect everyone in the pipeline

  • Find relationship builders. Look for people who can quickly assess store culture and identify which employees tell the truth

  • Be brutally honest about lifestyle and seek contentment — Regional managers work nights and weekends when everyone else is off with family, so candidates must find genuine satisfaction within these constraints

👉️ Why It Matters:

Plait's system addresses the root causes of management turnover by prioritizing cultural fit alongside operational skills. Multi-unit franchisees can reduce the expensive cycle of recruiting and training by following his three-step approach. As he bluntly puts it: "If you don't have all of those three things in place, it makes no sense to expend the resources on an individual to try and move them up into a regional position.

✂️ Snippets

👩‍💼 From Single Mom to Franchise Leader

Emma Dickison rose from single mom at a 150-location Blockbuster to helping grow it to 8,800 units before becoming CEO of Home Helpers Home Care. Recently appointed to the IFA board, she's advocating for franchisees and educating lawmakers about franchising's local business model. (Source: Entrepreneur)

📱2025 Franchise Trends

What do AI, spa chains, and senior relocation services have in common? They’re all part of the next wave of franchise growth. As consumer needs evolve, the best-positioned brands are adapting through tech, thoughtful design, and purpose-led expansion. (Source: 1851 Franchise)

🛠️ Build a Franchise Without Breaking the Bank

You don’t need a storefront or six figures to start a franchise. From mobile services to seasonal businesses, today’s low-investment models are built for flexibility and fast launch. The key? Do your homework and know your numbers. (Source: Franchise Direct)

🧠 Smart Tech Tackles Restaurant Growing Pains

Staff turnover, rising costs, and shrinking foot traffic? Franchise operators are leaning on tools like Opus, Science on Call, and Bite kiosks to solve the five biggest challenges: from boosting check size to training new workers. It's less about tech hype, more about building smoother, smarter systems that actually work. (Source: QSR Magazine)