CapitalSpring

When the year began, markets were enjoying all-time highs. Private equity investors were being aggressive in negotiations, as they had increasingly been over the past decade. Then came the coronavirus pandemic, which slowed and in many cases altogether shut down businesses across sectors and industries, and <a href="https://www.businessinsider.com/coronavirus-hits-private-equity-investments-in-hospitality-entertainment-2020-3?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchising-remains-a-safe-bet-for-private-equity-investments-post-covid-19-2712922" target="_blank" rel="nofollow">the private equity industry is no exception</a>.“Up until the coronavirus crisis, the market had been strong. There was a lot of capital out there, which was driving up valuations in addition to cheap financing. It got to the point where people were moving down to smaller, more emerging growth purchases because the big targets were being exhausted. It was an aggressive deal environment,” said Erik Herrmann, partner and head of <a href="http://www.capitalspring.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchising-remains-a-safe-bet-for-private-equity-investments-post-covid-19-2712922" target="_blank" rel="nofollow">CapitalSpring’s restaurant investment group</a>.Now, of course, everything has changed. It remains unclear how long many businesses will be forced to close their doors, and the economy continues to slide downward. However, while it’s not closing many deals right now, the franchise industry will likely remain attractive to private equity investors on the other side of this crisis.“What’s attractive about franchise business models to private equity firms is that they’re much less capital-intensive. If you have a model that’s sellable, meaning you can effectively sign up franchisees, then it’s something you can get exponential growth from with a minimal investment,” Herrmann said. “That’s a key driver of why people find the franchising industry to be attractive from a financial standpoint.”In addition to franchisors, private equity investors are likely to find franchisee-owned businesses attractive as well. According to Herrmann, “The average franchisee is growing in terms of unit count. If you have the ability to buy into a platform and embark on a series of acquisitions to create value, that’s also attractive from a private equity standpoint.”However, it will likely take a while for investment firms to start considering their next moves. Herrmann added, “Right now, most people are focused inwardly on their portfolios given the massive disruption we’ve seen across most industries. Any industry that isn’t deemed ‘essential’ is getting crushed. But with that being said, there are going to be interesting opportunities that grow out of this”These opportunities are still up in the air, given that nobody knows what’s around the corner and the fact that many companies are not expected to survive the coronavirus crisis. But Herrmann is predicting that the biggest changes that the private equity industry will see include risk pricing and financing costs massively resetting. He’s also anticipating some big deals on the other side of this despite the setbacks.“If you look at massive dislocations in the past, some major investments have come out on the other side,” said Herrmann. “People are generally looking at this and saying that if you have capital, there will be interesting opportunities that emerge after a few months when things settle. But I think it’s very much a case-by-case situation depending on the fund, their strategy and their sector. Some sectors are in for a longer recovery. It might be eight months or so before we get to normalcy in certain pockets of the economy.”In order for franchisors and franchisees to remain a safe bet for private equity firms on the other side of the crisis, Herrmann recommends closing any gaps and focusing on communication.“What we’ve seen is that there are varying levels of performance across the country. Some brands are slower to respond while there are others that are way ahead of this,” Herrmann said. “That’s the learning — responsiveness is different from concept to concept. It’s important to have tight alignment between franchisees and franchisors. That will determine how you optimize and survive on the other side of this thing.”

Franchising Remains a Safe Bet for Private Equity Investments Post-COVID-19

1851 Franchise

Erik Herrmann, partner and head of CapitalSpring’s restaurant investment group, tells 1851 Franchise why the franchising industry remains lucrative despite the economic crisis. 

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When&nbsp;<a href="https://www.primepizza.la/">Prime Pizza LA</a> opened its first shop on Fairfax in 2014, the goal wasn’t simply to make pizza. It was to fill a cultural void.“We are two huge pizza fans — both of our dads are from New York, and I lived there for five years,” said&nbsp;<a href="https://www.linkedin.com/in/zak-fishman-b04bab101/">Zak Fishman</a>, CEO and co-founder of Prime Pizza LA. “When I came back to LA in 2012 and started working with&nbsp;<a href="https://www.linkedin.com/in/james-starr-198947291/">James [Starr]</a> on his restaurants, we both lamented the fact that LA didn’t have any NY-style pizza. It was a different landscape back then. We really wanted to change that.”What came next became one of Los Angeles’ most beloved slice shops — a by-the-slice, neighborhood-rooted concept built on authenticity, craft and a relentless commitment to doing things the right way.“It was very important to us that it was by the slice,” Fishman said. “That is what was really missing. There wasn’t a strong slice-culture. We hired one of the best pizza makers in Brooklyn and he came out to help us develop the recipes. Two weeks later, we were off and running.”For the next 10 years, Prime Pizza grew methodically and deliberately, expanding to seven high-performing locations across LA county. But by 2024, the founders wanted a bigger future — one that required the right strategic partner.“We were at seven locations and we really wanted to grow faster and bigger,” Fishman said. “That’s when we went out looking for a capital partner.”They found that partner in&nbsp;<a href="https://www.capitalspring.com/">CapitalSpring</a>.<h2>Why Prime Pizza Chose CapitalSpring</h2>From the beginning of the search process, Fishman and his team were focused on finding an investor who&nbsp;<a href="https://1851franchise.com/capitalspring/capitalsprings-perspective-on-the-state-of-the-restaurant-industry-and-2025-predictions-2728362">understood the restaurant business at an operational level</a> — not one who would simply provide a check and step back.“A lot of private equity groups are really leading from a finance perspective,” Fishman said. “They are all finance people — that is their background — and they aren’t really getting into the operations with you very much, nor do they understand the nuances of our industry.”“What really attracted us to CapitalSpring is that they put a heavy emphasis on the operations side,” he said. “They have multiple partners in the firm who are true operators - having grown up in operations like I did. They are real restaurant operators. That differentiates them from other investment firms — they want to work hand in hand with us to improve operations and not just write a big check and tell us to open a million locations.”The alignment was immediate. “We were very lucky to find CapitalSpring early on in the process,” Fishman said. “We both locked in and both parties knew the other was the right partner.”The deal closed at the end of 2024, marking the start of a new era for Prime Pizza.<h2>Real Operational Support, Not Just Capital</h2>Once the partnership was formalized, the day-to-day differences became clear.&nbsp;<a href="https://1851franchise.com/capitalspring/info">CapitalSpring</a> wasn’t just advising from a distance — they were working alongside our team in meaningful, practical ways.“There is a huge operational lift that they do themselves because we are a small team and still building out our corporate team,” Fishman said. “We didn’t have a CFO or in-house accounting. They are doing a lot of the lifting on financial reporting. We’re having weekly calls with them. They are sending our weekly sales emails. They are putting together the board decks. That is typically something your internal team would be doing, but since we are such a small company, we don’t have the resources yet. All of this gives us time to focus on our business, opening stores, executing against the guest and building a team so we can take on these responsibilities ourselves.”In fact, CapitalSpring played a direct role in strengthening the company’s leadership infrastructure. “They helped lead the search for our CFO — who we just hired,” Fishman said.&nbsp;Beyond staffing and financial infrastructure, CapitalSpring also opened up an entire ecosystem of vetted partners, vendors and cost-saving opportunities.“Now, it’s a lot of sharing resources that they have success with across their other portfolio companies,” Fishman said. “That means it might be a chemical company, a financial services company, bookkeeping services — all different vendors across the restaurant spectrum. They think it could save us money or add value in some way, and they bring those partners to us. That is the most common way they add value to our back office and save money at the store level.”The partnership has already yielded tangible expansion. “We opened locations eight and nine this year with CapitalSpring,” Fishman said. “We are opening six stores next year and hoping to stay in that region of growth for the foreseeable future.”<h2>A Partner That Respects the Brand</h2>Above all, Fishman emphasizes the cultural fit.&nbsp;<a href="https://1851franchise.com/capitalspring/capitalspring-franchise-times-webinar-emerging-brand-growth-2730527#featured">CapitalSpring’s approach aligns closely with the founders’ values</a> — collaborative, respectful and focused on building a sustainable culture focused on people.“Part of the value in CapitalSpring is that they are not a heavy-handed organization,” Fishman said. “They invest in concepts they think are really great — they aren’t picking up a bunch of distressed assets and shoving solutions on them. They are investing in quality concepts they trust. It is very much collaborative: ‘You’ve done a great job getting the company to this point; let us help you in the next stage.’”For Fishman, that was non-negotiable. “They don’t just say, ‘We are in charge now, so do it this way,’” he said. “Rather they listened to us, learned our business and supported us where they felt they could add value.&nbsp; That is one of the most important things I needed to find in a partner.”The brand now has the capital, infrastructure, and operational backbone to grow at a pace that once felt out of reach, Fishman says. And just as importantly, it has a partner that respects the ethos behind the brand.With nine units open, six more on the way, and a long-term goal of becoming a 40- to 50-unit concept, Prime Pizza LA is stepping into its next decade stronger than ever.For more information on CapitalSpring, visit:<a href="https://1851franchise.com/capitalspring/info">&nbsp;https://1851franchise.com/capitalspring/info</a>.The statements above represent the opinions of founders and senior executives of portfolio companies in which private funds advised by CapitalSpring have invested. These individuals are not clients of CapitalSpring and have not received any compensation for their endorsement. Because their companies benefit from a relationship with CapitalSpring, including investments by CapitalSpring and private funds that we advise, conflicts of interest may exist. Past performance is not indicative of future results. These endorsements should not be interpreted as investment advice or recommendations.

Through a collaborative partnership, this New York-style slice shop is scaling its footprint across Los Angeles and beyond - without losing the soul that made it a local institution.

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Through a strategic partnership with&nbsp;<a href="https://www.capitalspring.com/">CapitalSpring</a>, the fast casual franchise concept&nbsp;<a href="https://www.cafeyumm.com/about/">Café Yumm!</a> is modernizing its systems, expanding its reach and strengthening its ability to serve guests across the Pacific Northwest while staying true to the mission and values that have defined the brand for more than three decades.“Café Yumm! was co-founded in the 1990’s. One of its cofounders, Mary Ann Beauchamp, was an Army brat who traveled extensively around the world. Her dad liked beans, her mom liked rice, and she liked both. So a lot of her recipes were connecting those two ingredients,” said&nbsp;<a href="https://www.linkedin.com/in/kimberly-boone-223835270">Kim Boone</a>, president of Café Yumm! “The signature Yumm! Sauce she created was originally meant to entice her toddlers to eat at restaurants. At the restaurant she owned, she cooked all the ethnic dishes she loved, but the rice and bean bowl with its signature sauce was what made the restaurant so popular. The name of the brand is derived from how much the customers loved the dish!”From the beginning, the founders built the company around a triple bottom line mindset — people, planet and profits — long before it became a widespread business standard.“When we make decisions, it might not always be the highest profitability decision,” Boone said. “We start everyone at Café Yumm! 10% over minimum wage, for example, and then they can earn up to three to four raises in the first few months. We have a really great benefits package, and we feed people a meal every day.”The combination of values-based decision-making and a simple, well-executed operating model made franchising a natural step for expansion. “Around 2005, the cofounders realized that they needed to franchise to grow the brand quickly,” Boone said. “It was easy to franchise; they had developed a great business model with simple processes.”Today, Café Yumm! operates 22 restaurants across the Pacific Northwest, with five franchised locations, and has expanded into consumer packaged goods through a growing grocery line.<h2>Why Café Yumm! Chose CapitalSpring</h2>The next phase of growth required a partner aligned not only with the brand’s ambitions, but also with its worldview.The decision to partner with&nbsp;<a href="https://1851franchise.com/capitalspring/info">CapitalSpring</a> came after a significant turning point for the company. “The founder’s husband passed away a few years ago, and that is when we started embarking on this new growth phase,” Boone said. “We engaged a broker and they introduced us to CapitalSpring.”Before closing the transaction, both teams invested significant time in getting to know one another. That process reaffirmed their alignment in mission and philosophy. “We were recently at a conference and I had so many people tell us how wonderful it is to work with the CapitalSpring team,” Boone said. “Having that validation from others was really neat.”For Boone,&nbsp;<a href="https://1851franchise.com/capitalspring/capitalspring-franchise-times-webinar-emerging-brand-growth-2730527#featured">CapitalSpring’s reputation and relational approach</a> made all the difference. “It’s their network of resources that is so important, whether it be working with consultants on packaging and design, or the real estate team, or the data and technology experts,” she said. “We wouldn’t have access to consultants or vendors of this caliber without them.”<h2>Supply Chain, Marketing Repositioning and Real Estate Support</h2>As Café Yumm! prepared for multi-unit expansion, it became clear that major upgrades to the brand’s infrastructure were necessary. For years, the company relied on legacy systems simply because investing in new ones wasn’t feasible.“We had systems that served us as a small brand, but to cue us up for strategic growth, we had to revamp,” Boone said.When it comes to technology, for example,&nbsp;<a href="https://1851franchise.com/capitalspring/capitalspring-franchise-private-equity-podcast-2729867#featured">CapitalSpring’s support unlocked a full modernization plan</a>. “We’ve worked with a tech consultant; we are revamping our entire tech stack with accounting software, business intelligence software, everything,” Boone said. “We’re launching a new POS with&nbsp;<a href="https://pos.toasttab.com/">Toast</a>. The reporting capabilities are great, but we didn’t have the capital before to invest in these.”One of the biggest breakthroughs came from implementing&nbsp;<a href="https://www.chabi.io/">Chabi</a>, a business intelligence platform that aggregates data across the new tech stack. “We never had access even to entertain the idea of business intelligence,” Boone said, “but now we can look at our business and metrics in a way we never have before.”Boone emphasizes the transformative impact the partnership has had on the team. “The tech consultant CapitalSpring introduced us to spending 20 to 30 hours with our team just talking about challenges and opportunities,” she said. “They crafted a full plan for us. We would never have had access to someone of that caliber.” And the impact extends far beyond technology.“They’ve introduced us to supply vendors we haven’t had access to,” Boone said. “With only 22 units and a small CPG line, we wouldn’t have access to a vendor of this caliber. Those umbrella contracts create a ton of value and help with logistics, too.”Café Yumm! is also refreshing its consumer brand and marketing strategy to meet the expectations of younger audiences. “The company has been around a long time, and the target market has been moms and millennials,” Boone said. “As Gen Z enters the workforce, we are repositioning our marketing. It’s been incredibly helpful to lean on their expertise.”On the development side, CapitalSpring’s analytics-driven real estate process is reshaping how the brand evaluates new markets. “They offer new site selection assistance; they can analyze data to determine the average income, traffic patterns, and more,” Boone said. “It changes the whole approach.”<h2>A Growth Plan Built for the Future and Built on Data</h2>With CapitalSpring as a strategic partner, Café Yumm! is pursuing a two-pronged growth plan: expanding company-owned restaurants in the Pacific Northwest and scaling its CPG line into a national brand.Much of that growth will come from data-driven operational improvements. “We’re taking a look at all of our costs and finding ways to reduce them,” Boone said. “We are transitioning to an item-based scheduling model and taking a hard look at labor. A lot of that comes back to the tech stack and the data now at our fingertips.”Boone says the relationship works because&nbsp;<a href="https://1851franchise.com/capitalspring/capitalsprings-perspective-on-the-state-of-the-restaurant-industry-and-2025-predictions-2728362">the CapitalSpring team challenges the brand to think differently</a> while still respecting the culture.“CapitalSpring’s approach to business and the way they think about metrics is that they ask a lot of questions and challenge our thinking, but they do it in a way that is focused and thoughtful,” she said. “Not all private equity firms are like that.”For a mission-driven brand like Café Yumm!, choosing the right partner was essential. With CapitalSpring, Boone says, the team has found an investor that sees the brand’s potential while respecting the values that have shaped it.“I truly believe that the cultural fit was the most important part,” she said. “CapitalSpring has been exactly the kind of partner we hoped for: supportive, collaborative and deeply invested in our long-term success.”For more information on CapitalSpring visit:&nbsp;<a href="https://1851franchise.com/capitalspring/info">https://1851franchise.com/capitalspring/info</a>.The statements above represent the opinions of founders and senior executives of portfolio companies in which private funds advised by CapitalSpring have invested. These individuals are not clients of CapitalSpring and have not received any compensation for their endorsement. Because their companies benefit from a relationship with CapitalSpring, including&nbsp;investments by CapitalSpring and private funds that we advise, conflicts of interest may exist. Past performance is not indicative of future results. These endorsements should not be interpreted as investment advice or recommendations.

Café Yumm! is expanding its company-owned restaurants and CPG line, backed by a private equity investment from CapitalSpring, to leverage new technology, data, and supply chain improvements.

How CapitalSpring Is Powering the Next Era of Growth for Café Yumm!

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When&nbsp;<a href="https://www.bushfirekitchen.com/">Bushfire Kitchen</a> set out to bring globally inspired, high-quality meals to Southern California diners at an accessible price point, the vision was rooted in family and passion. Founded in 2012 in Temecula, California, by CEO&nbsp;<a href="https://www.linkedin.com/in/oliverbarwin/">Oliver Barwin’s</a> father and cousin, the “elevated fast casual” brand quickly earned a loyal following for its high quality, chef-driven, vegan-friendly menu. But when it came time to expand beyond a handful of locations, Barwin knew the brand needed more than capital — it needed a true strategic growth partner.That’s where&nbsp;<a href="https://www.capitalspring.com/">CapitalSpring</a> came in, one of the longest-standing restaurant-focused investment firms in the U.S.<h2>From Family Roots to a Growth-Focused Future</h2>“The brand was really a passion project for my dad at the time,” Barwin said. “When I took over just before COVID, we had four locations. I had left my career on Wall Street because I truly believed the brand had legs to grow.”To achieve that growth, Barwin and his team ran a selective process to find an investor who would bring strategic expertise, not just funding. “It made a lot of sense to find the right partner,” he said. “We weren’t just raising capital; we wanted someone who could add value beyond writing a check. That’s how we got in touch with&nbsp;<a href="https://1851franchise.com/capitalspring/info">CapitalSpring</a>.”After building a relationship, the partnership culminated in an investment from CapitalSpring in 2022 — and the results speak for themselves. “We’ve doubled in size since then,” Barwin said. “We’re about to open our 10th unit and will continue to accelerate our growth over the next few years.”<h2>Why CapitalSpring Was the Right Fit</h2>CapitalSpring has completed more than 300 investments across more than 90 brands and deployed nearly $4 billion in capital over its 20-year history. Its deep operational expertise, particularly in foodservice and franchising, made it a natural fit for a growing brand like Bushfire Kitchen.“We knew they brought industry expertise and relationships that could expand beyond the opportunity,” Barwin said. “<a href="https://www.linkedin.com/in/jim-balis-5879a34/">Jim Balis</a> is a true operator as well as an investor — he’s run a number of different restaurant brands and grown them properly. A lot of other investors don’t have that kind of experience or expertise.”Barwin also emphasizes how the partnership aligned with Bushfire’s family values. “We’re a family business, and we felt the people at CapitalSpring shared those same values,” he said. “The deal was structured the right way — it allowed us to grow and maintain our business the way we wanted to without sacrificing quality.”<h2>The Power of Partnership: Real Estate, Supply Chain and Technology</h2>The partnership has paid dividends across multiple fronts.To start, Barwin says real estate has been a key advantage. “You can’t grow without the right locations,” he said. “Having CapitalSpring as an institutional investor behind us gave landlords a lot more confidence — especially in Southern California, which is a very competitive market. Having their name behind us allowed us to grow without signing a bunch of personal guarantees.”Similarly, supply chain support has been crucial as well. “They’ve had a helpful impact through their network and leads,” Barwin said. “We’ve been able to renegotiate supply chain contracts and find savings through their scale — food costs, packaging costs and more.”As an operator with a modern mindset, Barwin has overhauled Bushfire Kitchen’s tech stack — from&nbsp;<a href="https://pos.toasttab.com/?srsltid=AfmBOorpqU3mGaOmXC4m3UXmjwISoc-IgYcPhr-xyVZGCARyKtmTaIct">Toast POS</a> and&nbsp;<a href="https://www.restaurant365.com/">Restaurant365</a> to&nbsp;<a href="https://www.zenput.com/">Zenput</a> for training and operations. “CapitalSpring works with a lot of vendors,” he said. “It’s been helpful to have a sounding board to find the right solutions. When you make tech decisions, you want to go with someone who’s done it before.”<h2>Elevated Fast Casual, Refined for Scale</h2>Barwin describes Bushfire Kitchen as “elevated fast casual” — a hybrid between the affordability and speed of counter service and the hospitality and ambiance of full-service dining. “We’re providing great, high-quality food at an affordable price point,” he said. “But we also provide the experience that most fast casuals neglect. You’re paying fast casual prices, but getting the feel of a full-service restaurant.”That premium-yet-approachable positioning, combined with CapitalSpring’s strategic and financial backing, has positioned the brand for long-term success.“Looking ahead, we want to accelerate growth — hopefully 40% next year,” Barwin said. “By 2027, we plan to expand further in California and out of state to bring the brand to new markets. As you grow, the people around you and the team are critically important. Having CapitalSpring there — and being able to leverage their network to find the right people — has been great.”For more information on CapitalSpring, visit:&nbsp;<a href="https://1851franchise.com/capitalspring/info">https://1851franchise.com/capitalspring/info</a>.The statements above represent the opinions of founders and senior executives of portfolio companies in which private funds advised by CapitalSpring have invested. These individuals are not clients of CapitalSpring and have not received any compensation for their endorsement. Because their companies benefit from a relationship with CapitalSpring, including&nbsp;investments by CapitalSpring and private funds that we advise, conflicts of interest may exist. Past performance is not indicative of future results. These endorsements should not be interpreted as investment advice or recommendations.

Through a strategic partnership with the restaurant investment firm CapitalSpring, Bushfire was able to expand to 10 locations across southern California.


How CapitalSpring Helped Bushfire Kitchen Double in Size

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CapitalSpring Hits $505M in First Close of $1B Fund VII

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<a href="https://alloyfranchise.com/">Alloy Personal Training</a> has secured a growth investment from&nbsp;<a href="https://www.capitalspring.com/">CapitalSpring</a> as the boutique personal training brand looks to expand its national footprint.Founded in 1992 by&nbsp;<a href="https://www.linkedin.com/in/teamalloy/">Rick Mayo</a>, Alloy today operates more than 135 franchise locations in 38 states. The brand opened 61 gyms in 2025 after adding 46 locations the year before and now has agreements in place for roughly 400 additional units. Leadership has said the long-term vision is to grow to 800 locations by 2030 with support from&nbsp;<a href="https://1851franchise.com/capitalspring/info">CapitalSpring</a>.“It was time to go in this new direction and see how big we can grow this thing,” Mayo said. “We used to be a speedboat, moving really fast to keep things growing, and now we’re a bit of a cruiser with a great strategic partner helping guide us to the next level. I have no doubt that we found the right partner with CapitalSpring.”&nbsp;Mayo said the decision to partner with CapitalSpring was driven by a desire to add financial sophistication, marketing support and strategic oversight while continuing to operate the business as it does today. There are no planned leadership changes, and Alloy’s boutique personal training model will remain intact.CapitalSpring leaders say Alloy fits the firm’s investment profile, citing strong unit-level economics, disciplined operations, and a differentiated concept in the boutique fitness space. The firm plans to support the brand with resources, analytics and real estate data to help accelerate expansion in a thoughtful, sustainable way.The partnership marks another franchise-focused investment for CapitalSpring as the firm continues to deploy capital across consumer and service-based brands.Read the full article&nbsp;<a href="https://www.franchisetimes.com/franchise_mergers_and_acquisitions/personal-training-franchise-to-accelerate-growth-with-investment-from-capitalspring/article_ced0775c-b00e-449b-8b70-afaecb79fed9.html">here</a>.For more information on CapitalSpring, visit:&nbsp;<a href="https://1851franchise.com/capitalspring/info.">https://1851franchise.com/capitalspring/info.</a>&nbsp;

Franchise Times: Alloy Personal Training Backed by CapitalSpring to Fuel Franchise Growth

CapitalSpring’s investment is designed to help the brand grow nationally while keeping its leadership and training approach in place.

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Atlanta, GA&nbsp;—&nbsp;<a href="https://alloypersonaltraining.com/">Alloy Personal Training</a>, a leader in science-based, personalized fitness training, has announced a strategic investment from&nbsp;<a href="https://www.capitalspring.com/">CapitalSpring</a>, a leading sector-specialist&nbsp;investment firm specializing in franchises and other multi-location businesses. The partnership marks a significant milestone for Alloy and positions the brand for its next phase of accelerated, sustainable expansion.The investment further validates Alloy’s differentiated business model, strong unit-level economics, and people-first culture. The partnership will not impact Alloy’s day-to-day operations or leadership structure. The company will continue to operate with the same mission, leadership, and commitment to franchisee success that have defined our training methodology and operating philosophy for over three decades..“This partnership is about further strengthening our franchise system for the long term,” said&nbsp;<a href="https://www.linkedin.com/in/teamalloy/">Rick Mayo</a>, CEO of Alloy Personal Training. “CapitalSpring believes in our model, our mission, and the operators who bring the Alloy experience to life every day. This relationship allows us to invest more strategically in franchisee resources, infrastructure and growth while staying true to who we are.”Founded in 2005, CapitalSpring has a proven track record of helping franchise brands scale while preserving culture, unit profitability and brand integrity. The firm has invested in more than 100 multi-location brands over the past two decades and was named to Inc.’s Founder-Friendly Investor Lists in 2024 and&nbsp;<a href="https://www.inc.com/founder-friendly-investors/2025">2025</a>, recognizing its collaborative approach with founders and management teams.&nbsp;“We’re excited to partner with Rick and the Alloy Personal Training leadership team as the brand enters its next chapter,” said&nbsp;<a href="https://www.linkedin.com/in/wade-daniel-cfa-93430764/">Wade Daniel</a>, a Partner at CapitalSpring. “CapitalSpring has a proven playbook for building brands and businesses, and we look forward to supporting Alloy’s growth while expanding access to personalized training for adults seeking healthier, more active lifestyles.”The partnership underscores the strength of the Alloy franchise system and reflects growing market confidence in the brand’s long-term trajectory.“This is a meaningful moment for Alloy,” added Mayo. “It signals confidence in our franchise system, our studio operators and the future we’re building together. Most importantly, it’s a win for our franchisees, our team members and the clients we serve every day.”About Alloy Personal Training FranchiseAlloy's fitness program was created in 1992 around a very straightforward philosophy: people who get personalized coaching get better results. The Alloy systems, platforms, and know-how have already served millions of members in thousands of fitness facilities worldwide and were recently awarded the AFS Fitness Business of the Year.Alloy's established, effective fitness platform and business management solutions have delivered real results throughout the world. Alloy Personal Training Franchise gives franchisees the chance to impact their community and their future with a branded, brick-and-mortar Alloy Personal Training franchise location.Today, Alloy programs are among the most effective programs in the world for helping people who want to look and feel their absolute best. Learn more at&nbsp;<a href="http://alloyfranchise.com/">http://alloyfranchise.com</a>.About CapitalSpringCapitalSpring is a specialist private equity and debt investment firm with a 20-year track record of investing in franchises and other multi-location businesses that serve the everyday needs of consumers.  The firm has invested over $4 billion across more than 300 investments in 100+ different brands. CapitalSpring has developed competitive advantages including deep sector expertise, proprietary data/benchmarking analytics, an in-house strategic operations team, and a 20-year foundation of embedded relationships driving consistent flow. CapitalSpring manages multiple fund vehicles including private debt and private equity strategies focused on the lower middle market and middle market. The firm is headquartered in Nashville and has regional offices in Los Angeles, New York and Atlanta. For more information about CapitalSpring, please visit&nbsp;<a href="http://www.capitalspring.com">www.capitalspring.com</a>.

Alloy Personal Training announces a strategic partnership with CapitalSpring to accelerate franchise growth while preserving leadership, culture and franchisee focus.

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For nearly four decades,&nbsp;<a href="https://w.worksbakerycafe.com/franchise.html">The Works Bakery Café&nbsp;</a>has served as a community-driven, Northeast-based legacy brand — but Founder and CEO&nbsp;<a href="https://www.linkedin.com/in/richard-f-french/">Richard French</a> knew longevity alone wasn’t enough. He wanted a partner who could help the brand stay relevant, scale with intention, and strengthen operational foundations.“We’ve been around for 38 years, so I would call us a little bit of a legacy brand,” French said. “What got us here may not get us there.”As he explored the market, he evaluated several growth equity firms. “In my mind,” French said, “<a href="https://www.capitalspring.com/">CapitalSpring</a> was the cream that rose to the top.”<h3>What Set CapitalSpring Apart</h3>French’s decision centered on three major factors: industry experience, franchise expertise and personal fit.&nbsp;<a href="https://1851franchise.com/capitalspring/info">CapitalSpring’s</a> deep specialization in restaurants — from fast casual to QSR to full service — gave French confidence that the team understood the unique pressures operators face. “They’d been around for a few decades, so that was a plus,” he said.&nbsp;But the final deciding factor was cultural alignment. French describes the team as grounded and collaborative — the kind of partner he believed would navigate tough decisions with integrity. “I found them to be down-to-earth, real people,” he said. “My gut instincts were correct.”<h3>Strengthening Leadership and Operational Infrastructure</h3>One of the most immediate impacts of the partnership was support in building out leadership and strengthening the company’s infrastructure. CapitalSpring provided access to recruiters, participated in interviews and helped shape the senior management team.“They’ve been immensely helpful,” French said. “Access to recruiters, involvement in the interviewing process — as we scale, that’s been important.”CapitaSpring also helped the Works implement more rigorous financial analysis and performance tracking. French notes that their business is now reviewing data at a level of detail that unlocks better decision-making. “We analyze the numbers at a much deeper level than we ever have,” he said. “That could lead to wonderful insights and further refinement of profitability.”<h3>Improving Site Selection and Accelerating Growth</h3>With CapitalSpring’s tools, relationships and experience, The Works rebuilt its approach to development and real estate strategy. The brand now uses a more data-driven process for evaluating sites, forecasting performance, and mapping expansion.“We scrutinize sites in much greater detail than we ever did,” French said. “It’s hopefully more science and less gut.”The partnership has already produced measurable results. In the first 18 months, the brand grew by 30%, supported by robust site-selection frameworks and a development roadmap shaped by CapitalSpring’s playbook.<h3>Leveraging Portfolio-Wide Advantages</h3>Being part of CapitalSpring’s portfolio also brings the benefits of scale — something regional operators often struggle to access on their own. Through negotiated partnerships and shared vendor programs, The Works now receives enterprise-level pricing in several operational categories.“We’re a Toast customer, and we have special pricing because we’re a CapitalSpring portfolio partner,” French said. “They bring pricing for a much larger company.”This extends to everything from linen services to signage to technology platforms. By tapping into a $3-billion-plus portfolio, The Works gains cost efficiencies that directly strengthen margins.<h3>Building the Foundation for the Future</h3>Beyond operational improvements, the partnership is helping the brand prepare for long-term innovation. The Works is exploring new restaurant design concepts, expanded pick-up and drive-thru formats, and modernization initiatives supported by CapitalSpring’s broader network.“We’ve had upgrades in our accounting software — we’re cloud-based now,” French said. “We’ve instituted labor, scheduling and back-of-house software that we didn’t have before.”French also notes upcoming collaboration with Mosley Group to develop “The Works 4.0,” the brand’s next-generation design vision. “They have that large network, and can bring fully vetted professionals so we know we are hiring someone great,” he said.<h3>A Partnership Built on Trust and Momentum</h3>Eighteen months in, French describes the partnership as both affirming and transformative. The company is growing faster, operating with greater precision, and planning for a stronger future — all while maintaining alignment with a partner that shares their values.“It has played out very true and very significantly,” he said. “We’re working really hard on continuing to build the foundation to support that growth.”For more information about CapitalSpring, please visit&nbsp;<a href="http://www.capitalspring.com">www.capitalspring.com</a>.&nbsp;The statements above represent the opinions of founders and senior executives of portfolio companies in which private funds advised by CapitalSpring have invested. These individuals are not clients of CapitalSpring and have not received any compensation for their endorsement. Because their companies benefit from a relationship with CapitalSpring, including investments by CapitalSpring and private funds that we advise, conflicts of interest may exist. Past performance is not indicative of future results. These endorsements should not be interpreted as investment advice or recommendations.

With support from CapitalSpring, the legacy cafe brand has expanded its footprint, upgraded its infrastructure and adopted a more data-driven approach to long-term growth.

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