By Waylon Cunningham
(Reuters) - Flynn Group, which says it is the world’s biggest franchise operator, bought 83 Wendy’s franchises in New Jersey and Pennsylvania, bringing its total to 277.
The deal closed on Wednesday, according to Greg Flynn, the company's CEO. Terms of the deal and the identity of the seller were not disclosed.
The purchase makes San Francisco-based Flynn one of Wendy’s biggest U.S. franchisees with nearly one out of every 20 of the burger chain's locations. Flynn Group became a Wendy’s franchisee in 2021 by purchasing around 190 outlets from a bankrupt operator.
Wendy’s objected to Flynn’s entry at first, citing Flynn’s ownership of competitor restaurants. Flynn also owns Arby's and Panera Bread (NASDAQ:PNRA) locations.
“It went from a stiff arm — to keep us out of their system — to an embrace, now that they’ve realized we’re the kind of franchisee they’d like to see grow in the system,” said Greg Flynn, referring to its relationship with Wendy's (NASDAQ:WEN).
Based in Columbus, Ohio, Wendy's on Aug. 1 disclosed that same-store sales rose by a mere 0.6% in its U.S. stores and 2.5% internationally in its most recent quarter.
Flynn Group says it generates $5 billion in annual sales and operates more than 2,900 franchises including Wendy's, Applebees, Taco Bell, Arby’s, Panera Bread, Pizza Hut and Planet Fitness (NYSE:PLNT).
Flynn last year became the sole franchisee for Wendy’s in Australia, where it plans to develop 200 restaurants in the coming decade. Earlier this year, the company also purchased Wendy’s New Zealand franchise.