Fast-casual restaurant concept Freddy’s has been acquired by investment funds affiliated with Rhône, a global private equity firm, from Thompson Street Capital Partners, a Missouri-based middle-market private equity firm. The Freddy’s brand currently has more than 550 locations in the US and Canada, generating more than $1 billion in systemwide sales in the past year.

“This acquisition marks a pivotal moment for Freddy’s,” said Chris Dull, president and CEO of Freddy’s. “Over the last few years, we’ve seen steady growth and surpassed many milestones for our brand, while simultaneously strengthening our franchise system and building a loyal guest following. We’re excited to take our success to the next level with this new partnership with Rhône. Together, we look forward to unlocking even greater opportunities for the Freddy’s franchise family.”

Expanding a growth mindset

Rhône has significant experience supporting businesses in their global expansion efforts and partnering with management teams to drive growth and create long-term value. Rhône’s history of investments in consumer businesses makes it a natural partner for Freddy’s.

“Rhône looks forward to bringing its experience with global consumer brands to its most recent investment in Freddy’s as the company expands its footprint and further improves its guest experience,” said Lucas Flynn, a managing director at Rhône. “We see a compelling opportunity to partner with Chris and the rest of the leadership team to help bring the unique Freddy’s offering to more customers around the world and support the company in this next chapter of growth.”

Building off foundational success

As a portfolio company of Thompson Street Capital Partners, the past five years for Rhône have been focused on growth investments to accelerate unit and AUV expansion, in combination with foundational improvements to enhance guest and franchisee experience, including back-of-house efficiency, consumer digital platforms, menu innovation and franchisee support.

“Our partnership with Freddy’s was centered on building an even stronger foundation for the brand—investing in people, systems, and innovation,” said Joe St. Geme, a managing director at Thompson Street Capital Partners. “Those efforts were extremely successful, resulting in sustained growth and the achievement of significant operational and strategic milestones during our ownership. We’re grateful for the collaboration with Chris and his team, and are confident that alongside Rhône, Freddy’s is well-positioned for this exciting next stage of growth.”

Leadership

Following the acquisition, the Freddy’s executive team will remain unchanged, with Dull continuing to lead the charge as president and CEO, as well as Bill Valentas as CFO, Brian Wise as COO, Erin Walter as CMO and Andrew Thengvall as CDO and CLO.

“Freddy’s has and always will remain committed to The Freddy’s Way, which has guided our brand to success,” said Dull. “Our guests and franchisees alike can rest assured that we will always prioritize maintaining high-quality food items and genuine hospitality and cleanliness in our restaurants, just as we have for the last 23 years.”

For this acquisition, William Blair served as the lead financial advisor to Freddy’s, with North Point also acting as a financial advisor. Jefferies LLC served as the financial advisor to Rhône.

Source: Rhône Group