Flynn Group
{{Short description|Operator of franchise restaurants and health clubs}}
{{Infobox company
| name = Flynn Group LP
| logo =
| logo_caption =
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| type = Private company
| industry = Franchising
| predecessor =
| founded = 1999
| founder = Gregg Flynn
| defunct =
| fate =
| successor =
| hq_location_city = San Francisco
| hq_location_country = USA
|areas_served = Australia, New Zealand, USA
| key_people =
| products =
| owner =
| num_employees = 72,000
| num_employees_year = 2024
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}}
Flynn Group LP is a major operator of franchise restaurants and health clubs. They operate approximately 2,600 franchise locations around the world, primarily Applebee’s, Pizza Hut, Arby's, Wendy's, Taco Bell, Panera Bread and Planet Fitness.
History
The Group was founded in 1999 by Greg Flynn. Its first acquisitions were eight Applebee's franchises. Early financing was provided by Goldman Sachs. Applebees was initially wary of the Flynn Group controlling too many franchises and entered an agreement which limited the Group to 11% of franchises. In 2007, Applebees, then under new ownership, lifted the restriction and sold the Group a number of company owned stores. The Group expanded its Applebees holdings during the Great Recession.
In 2018, the Group reported yearly sales of 2.3 billion. The Group historically avoided hamburger franchises, preferring niches with more differentiation between competitors.{{cite web |last1=LUCAS |first1=SCOTT |title=Greg Flynn Owns 1,245 Restaurants and Makes $2 Billion A Year. Here's How He Did It. |url=https://www.entrepreneur.com/franchises/greg-flynn-owns-1245-restaurants-and-makes-2-billion-a/333187 |website=entrepreneur.com |date=28 May 2019 |publisher=Entrepreneur Magazine |access-date=7 January 2025}}
In 2021, the Group acquired 937 Pizza Hut franchises during the bankruptcy of NPC International.{{cite web |last1=Michaels |first1=Laura |title=Pizza Hut Australia, Planet Fitness Mark Next Stage for Flynn Group |url=https://www.franchisetimes.com/dealmakers/pizza-hut-australia-planet-fitness-mark-next-stage-for-flynn-group/article_74194978-00ec-11ef-9830-ffdf81e9157b.html |website=franchisetimes.com |date=25 April 2024 |publisher=Franchise Times |access-date=31 December 2024}}
The Group began buying Wendy's franchises in 2021. As of 2024, it operated approximately 5% of Wendy's in the United States with a total of around 300 stores. It is also the master franchisee for Wendy's in New Zealand and Australia.{{cite web |last1=Canham-Clyne |first1=Aneurin |title=Flynn Group buys 32 more Wendy's |url=https://www.restaurantdive.com/news/flynn-group-buys-32-more-wendys-stores-ahead-of-2025-remodel-push/733666/ |website=restaurantdive.com |publisher=Restaurant Dive |access-date=30 December 2024}} The New Zealand franchisee Wendco (NZ) Ltd. was acquired in 2023 from the Lendich family.{{cite web |last1=Ruggless |first1=Ron |title=Flynn Group acquires New Zealand Wendy's |url=https://www.nrn.com/mergers-acquisitions/flynn-group-acquires-new-zealand-wendy-s |website=nrn.com/ |date=21 May 2024 |publisher=Nation's Restaurant News |access-date=31 December 2024}}
In 2024, they claimed to be the largest operator of franchises in the world.{{cite web |last1=Cunningham |first1=Waylon |title=Flynn Group buys 83 more Wendy's franchises in US |url=https://www.reuters.com/business/retail-consumer/flynn-group-buys-83-more-wendys-franchises-us-2024-08-15/ |website=reuters.com |publisher=Reuters |access-date=31 December 2024}} They were also the largest Applebees operator in the world with more than 450 restaurants. Annual sales were approximately $4.5 billion.{{cite web |last1=Lalley |first1=Heather |title=Greg Flynn expands his Applebee's empire |url=https://www.restaurantbusinessonline.com/financing/greg-flynn-expands-his-applebees-empire |website=restaurantbusinessonline.com |publisher=Restaurant Business |access-date=7 January 2025}}
In 2024, the Group reportedly explored the sale of a majority stake in the company. However the company quickly denied that they had with Greg Flynn clarifying that they were instead undergoing an equity recapitalization.{{cite web |last1=Halpern |first1=Joe |title=Greg Flynn: 'I'm Not Selling and We're Not Going Anywhere' |url=https://www.franchisetimes.com/greg-flynn-i-m-not-selling-and-we-re-not-going-anywhere/article_5a1a070a-d0c8-11ee-82af-77bb156e2077.html |website=franchisetimes.com |date=21 February 2024 |publisher=Franchise Times |access-date=31 December 2024}}
In March 2024, in response to claims that the Group had inserted a loophole into California law which would allow Panera franchises to charge lower wages than other restaurants, Gregg Flynn said that all of the Group's restaurants in California would pay 20 dollars an hour or better.{{cite web |last1=Zavala |first1=Ashley |title=Panera franchisee Greg Flynn says his California restaurants will pay a minimum of $20 an hour |url=https://www.kcra.com/article/california-greg-flynn-panera-20-dollar-minimum/60104256 |website=kcra.com |date=6 March 2024 |publisher=KRCA |access-date=7 January 2025}}
Operations
The Group is headquartered in San Francisco.{{cite web |last1=Jennings |first1=Lisa |title=Flynn Group acquires 83 more Wendy's units |url=https://www.restaurantbusinessonline.com/financing/flynn-group-acquires-83-more-wendys-units |website=restaurantbusinessonline.com |publisher=Restaurant Business |access-date=31 December 2024}} A support office is located in Independence, Ohio.
As of 2024, the Group operated around 2,600 franchise locations around the world, primarily of Applebee’s, Arby's, Pizza Hut, Wendy's, Panera Bread, Taco Bell, and Planet Fitness. They had approximately 72,000 employees.
The company engages in a complex menu strategy overseen by a team of economists and data scientists.{{cite web |last1=Haddon |first1=Heather |title=How America's Largest Restaurant Franchisee Decides When to Raise Prices |url=https://www.wsj.com/articles/how-americas-largest-restaurant-franchisee-decides-when-to-raise-prices-178d3295 |website=wsj.com/ |date=21 May 2023 |publisher=Wall Street Journal |access-date=31 December 2024}}
Investors
Company managers, the Ontario Teachers' Pension Plan, and private equity group Main Post Partners each own roughly a third of the company.{{cite web |last1=Summerville |first1=Abigail |title=Exclusive: Flynn Group, world's largest franchisee, explores $5 bln-plus sale -sources |url=https://www.reuters.com/markets/deals/flynn-group-worlds-largest-franchisee-explores-5-bln-plus-sale-sources-2024-02-08/ |website=reuters.com |publisher=Reuters |access-date=30 December 2024}}