Flynn Group, the largest franchisee company in the world, is reportedly looking to sell a majority stake in its business.
Sources told Reuters that the majority interest could be valued at more than $5 billion, including debt. The company is working with Bank of America on the sales process.
Flynn Group, founded in 1999 by industry veteran Greg Flynn, is the largest operator of Applebee’s, Arby’s, and Pizza Hut, and also owns hundreds of stores for Taco Bell, Panera, and Wendy’s. Altogether, the company oversees more than 2,600 units and earns more than $4.5 billion in annual sales. Last year, Flynn Group expanded internationally for the first time when it acquired master franchising rights for the 260-unit Pizza Hut Australia business. Shortly after, it reached an agreement with Wendy’s to open 200 locations in Australia over the next 10 years. Previously called “Flynn Restaurant Group,” the company switched its name after it purchased 37 Planet Fitness clubs in 2023.
Flynn Group declined to comment on the story.
Reuters reported that the company generates more than $450 million in annual EBITDA. Private equity firms and sovereign wealth funds are the type of entities interested in the majority stake, according to the publication.
Currently, the Ontario Teachers’ Pension Plan (OTPP) and private equity firm Main Post Partners each own about one-third of the business while Flynn management controls the rest. Reuters was told that OTPP, Main Post, and management could sell their stakes and remain invested after a deal. OTPP invested roughly $300 million in 2014, back when Flynn Group had 640 stores and $1.4 billion in sales.