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TGI Fridays rolls out re-franchising initiative

The casual dining chain expects 90 percent of its growth to come from franchising.

By Nick Powills1851 Franchise Publisher
SPONSOREDUpdated 1:13PM 11/04/15

As part of a re-franchising program, TGI Fridays has sold 175 stores to new and existing franchisees nearly six months ahead of schedule.

Last September, the Carrollton restaurant chain announced a plan to offer most of its 247-company-owned restaurants to potential and pre-existing franchisees in exchange for the operators committing to a re-imaging program for the stores. The company sold a combined 38 restaurants to existing franchisees, with New Orleans-based Southeast Restaurant Group buying 20 in the southern U.S. and Atlanta’s Jackmont Hospitality buying 16 in south Florida and two in North Carolina. New franchisee groups bought the remaining stores.

“We felt the best long-term opportunity was to re-franchise the majority of our stores and focus on being a great brand owner. It’s about ensuring that the brand remains vibrant and appeals to consumers,” said Friday’s President and COO Ricky Richardson in a press release.

A “restaurant refresh” is planned for 122 of the re-franchised locations in an effort to “brighten up and contemporize” the interiors and exteriors, which includes taking down divider walls between the dining room and bar area to make the bar a bigger part of the restaurant experience.

Now that re-franchising is complete, Fridays continues to look for both franchise and company-owned restaurants. The chain expects 90 percent of its growth will come from franchising.
 
“Having successful business individuals with strong balance sheets is just a ticket to entry,” Richardson said. “We center around personality and perspective of the ownership group. It’s very much an experience brand, not a transaction brand.”
 

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