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Why Private Equity May Be the Preferred Vehicle for Franchise Expansion
Why is private equity funding the hottest thing in franchising today? In the past 12 months, private equity buyouts have included well-known brands such as Cinnabon, Church's Chicken, Taco Bueno (a regional taco maker), and regional frozen dessert operator Rita's Italian Ice.
In the last quarter of 2005, two huge transactions occupied the financial stories about franchising. First, Dunkin' Brands Inc., the umbrella company for the Dunkin' Donuts, Baskin Robbins and Togo's brands, was spun off by Pernod Richard, the French wine and spirits manufacturer, to raise money for its recent acquisition of British distiller Allied Domecq PLC. Dunkin' Brands was purchased for more than $2.4 billion by a consortium of equity firms Bain Capital Partners, the Carlyle Group, and Thomas H. Lee Partners. Second, Quiznos, the fastest-growing sandwich restaurant chain in the United States, hired Wall Street investment bank Goldman Sachs Group Inc. to find a buyer for the chain.
These deals may only be the beginning of the food industry consolidation of franchise companies. Private equity firms are heating up the restaurant and franchise sectors, increasing the multiples for pricing. Restaurants and franchise companies have predictable cash flow, which can be improved by cost cutting. Many private equity firms or hedge funds are flush with cash. They can inject much-needed capital into mature concepts by updating the image of the concepts and investing in expensive market research. As franchisors mature and competition increases, the companies that act on the results of market research will have the competitive edge.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?