Last month, Franchise Times held its annual “Dealmakers Week” where it offers a series of webinars with top franchise dealmakers to discuss the year’s biggest franchise deals and industry trends. The week included a discussion on how to get the M&A market moving again, the current deal environment, and a mid-year update on transaction activity with panelists Brad Cashman (Monroe Moxness), Rick Ormsby (Unbridled Capital), Barry Dubin (Wild Investments), Christopher Kelleher (Auspex Capital) and Doug Augustine (Elite Burgers).
The discussion was primarily focused on the franchise restaurant and food service industry. Coming out of the Restaurant and Finance Development Conference last November, the panelists sensed a general excitement and anticipation that the new administration would positively impact the M&A franchise market. However, the uncertainty surrounding tariffs and other market issues had most of the panelists concluding that a positive turn should not be expected before 2026.
Unfortunately, as Christopher Kelleher explained, there are too many restaurants and many of them will just need to close. Brad Cashman discussed how he has seen more distress deals in the last 6-12 months than in the last three years whether as result of franchisors forcing sales or lenders tightening the screws. Rick Ormsby identified a category of franchisors who are not allowing franchise unit closures to happen, instead insisting on aggressive development schedules. Kelleher agreed that there is enormous pressure in franchise systems to build new stores and not to close bad stores. However, at some point if the brand provides the value proposition to allow a franchisee to make money, then they will build stores without being forced to do so. There was even discussion about the need for certain struggling brands to allow the bottom 20% of units to close so the system can rebound.
It certainly wasn’t the update that a franchise transactional attorney wants to hear, but it was not unexpected. Franchise attorneys representing struggling franchisees or legacy QSR and other restaurant brands should expect the need for guidance in navigating these issues which may include facilitating mutual termination of underperforming units, amending development agreements, and innovative responses to improve unit economics.
While the panel offered thoughtful insights into the current M&A environment and the challenges facing the franchise restaurant sector, it’s worth noting that the discussion would have been further enriched by a broader range of perspectives. In 2025, it is increasingly important—and expected—to see diverse voices represented in industry conversations, particularly in a panel of this size. The absence of any women panelists in this webinar was noticeable. Greater inclusivity not only reflects the reality of our varied franchise professions but also strengthens the depth and relevance of these important discussions.