Franchise Group Inc. and Kohl's are in negotiations for Franchise Group to purchase Kohl's for $60 a share in cash. Here's what we know about Franchise Group.
Franchise Group is based in Ohio
Franchise Group Inc. is based in Delaware, Ohio, a suburb about 30 miles north of Columbus.Franchise Group is a relatively young company, formed in June 2019 and has grown quickly through a series of acquisitions, primarily in the retail sector.For the fiscal year ended Dec. 25, 2021, Franchise Group earned $363.8 million on revenue of $3.26 billion.
Franchise Group's best-known brands are already in Wisconsin
Among Franchise Group's brands are Pet Supplies Plus,The Vitamin Shoppe and Sylvan Learning.
Pet Supplies Plus. There are a number of Pet Supplies Plus stores in Wisconsin, including in Germantown, Mequon, West Bend, Sheboygan, Appleton, Neenah, Green Bay, Marshfield and Fitchburg. Pet Supplies Plus has more than 600 stores in 39 states. Most Pet Supplies Plus stores are franchises, which means they are independently owned and operated.
The Vitamin Shoppe. Franchise Group's other well-known brand is The Vitamin Shoppe. There are Vitamin Shoppe locations in Wauwatosa, Greenfield and Madison. There are about 700 Vitamin Shoppe locations in the U.S. All of them are company-operated but represent "a significant refranchising opportunity," the company said in a recent investor presentation.
Sylvan Learning. Another brand is Sylvan Learning, anomnichannel tutoring franchise for pre-K through high schoolstudents. The brand has more than 700 locations in 49 states and seven countries. Nearly all the locations are franchises.
Other brands include:
Badco*ck Home Furniture & more.Home furnishings retailer with 383 stores across eight states in the rural southeastern U.S.
American Freight.Retailer of value furniture and appliances with more than 369 locations across 30 states. Sells as-is appliances (including scratch and dent, one-of-a-kind and overstocks)and serves as a liquidation channel for major appliance vendors.
Corporate culture
As of Dec.25, Franchise Group employed 9,119 full-time and 5,551 part-time employees.This is how the company describes itself in its annual report filed with the U.S. Securities and Exchange Commission:
"We operate in a performance-based environment where results matter and financial discipline is enforced. We strive to create a highly collaborative culture in which employees feel that their input is sought after and valued. At the same time, we believe in holding individuals accountable and endeavor to create a culture in which employees do what they say they are going to do. We believe that our culture is a long-term competitive advantage for us, fuels our ability to execute our business strategy and is a critical component of our employee talent strategy."
An equity firm owns more than 10% of Franchise Group
Asof Dec.25, Vintage Capital ManagementLLC,a private and public equity firm, owned 12.3% of Franchise Group stock. The two are closely related. Brian Kahn, president, chief executive officer and a director of Franchise Group, is also the founder and serves as investment manager of Vintage Capital Management.Shares of Franchise Group trade under stock ticker FRG on the Nasdaq exchange.
