Private equity and venture capital firms have been increasingly acquiring restaurant franchises in recent years, with global investment in the sector doubling in 2025, according to an S&P Global report.
The trend has drawn mounting criticism, as some argue that private equity ownership tends to emphasize rapid expansion and financial returns at the expense of food quality and everyday operations.
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When a franchisor is acquired by private equity, it’s not inherently bad, but it does change the game: priorities, timelines, leadership and relationships shift, Susan Blackbeth, founder and managing partner of Auspicious Owl Group, said during a podcast with Franchise Business Review.
“Sometimes franchisees don’t feel heard, and they don’t feel understood, and they don’t feel like they are really getting a voice in the room,” she said.
Misaligned timelines between the franchises and private equity can create real strain on operations, Blackbeth stated. Franchisees tend to think long-term, say 10 or more years, while private equity typically thinks in exit terms of five to seven years.
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