Franchise acquisitions have significant effect

Posted on October 14, 2010 by Franchise Gator Admin

One of the biggest trends in franchising recently has been the purchase or merger of two well-known brands. By joining forces, franchises can take their business methods all over the United States and earn big dollars for those involved.

One of the biggest deals in the franchising industry in recent months was the acquisition of Fuddruckers by Lubby's, a Texas-based company. The deal was important to both businesses because under new management, Fuddrucker's has been able to find success in the growing field of fast-dining causal restaurants. Lubby's was able to take advantage of the fact that Fuddruckers' parent company was in the middle of declaring Chapter 11 Bankruptcy, purchasing it for a price of $61 million.

At least one industry expert thinks it could be a great opportunity for Lubby's.

"There is a lot of opportunity to fix Fuddruckers in terms of its operating costs," said Stas Kiselev, an industry expert, in an interview with the Houston Chronicle.

It's important for franchisees to stay up-to-date on what is happening with their brand as a whole. When a franchise is purchased, it can mean big changes to how the business operates.