As franchise systems mature, many of their most successful operators are becoming natural successors to corporate ownership. The latest example comes from Mr Gatti's Pizza, where longtime franchisee G. Brint Ryan has acquired the remaining ownership interest in the company, taking full control of the franchisor as CEO Jim Phillips begins his planned retirement.
Ryan first became a majority owner in 2025 after years of operating multiple Mr Gatti's locations and investing in the brand, and now will lead its next phase of expansion. Phillips leaves behind a significantly stronger company, having grown the brand from three states to 12, increased restaurant count by 50%, nearly doubled systemwide revenue over the past five years and modernized the franchise system through improved operations, marketing and franchisee support.
Operators with day-to-day experience running successful locations are increasingly viewed as ideal stewards of entire franchise systems. Rather than relying on private equity firms or outside investors, brands are turning to franchisees who understand the business from the ground up, have credibility with fellow operators and are already invested in the brand's success.
Following FAT Brands' bankruptcy, for example, a group of longtime Twin Peaks franchisees formed Summit Acquisitions to oversee the sports lodge chain during its transition, with plans to ultimately purchase the brand outright after helping stabilize the business. In 2025, longtime Friendly's franchisee Amol Kohli acquired BRIX Holdings, the parent company of Friendly's, Clean Juice, Orange Leaf, Red Mango, Smoothie Factory + Kitchen, Souper Salad and Humble Donut Co.
While still relatively uncommon, franchisee-led acquisitions are becoming an increasingly notable trend and could reshape how ownership transitions occur across the franchise industry.
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