Franchise Finance
Round Table Pizza, Marble Slab Creamery, Fazoli's, Great American Cookies, Johnny Rockets, and Twin Peaks all have new owners after a May 20, 2026 court approval.
FBG Bid Co. acquired 11 brands including Round Table Pizza, Fazoli's, Marble Slab Creamery, Great American Cookies, and Johnny Rockets. Twin Peaks went to TWNPKS Bid Co. Hot Dog on a Stick and Elevation Burger were sold in separate cash deals.
In Chapter 11, the debtor can assume (keep) or reject (cancel) existing franchise agreements. Assumed agreements transfer to the new buyer; rejected ones allow franchisees to file unsecured creditor claims but may not guarantee continued operating rights.
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Request the most current FDD and verify it reflects post-sale ownership. Confirm the new owner is registered as a franchisor in your state. Contact existing franchisees via Item 20 contacts to understand how operations and support have changed since the sale.
Fat Brands entered Chapter 11 in January 2026 carrying roughly $1.5 billion in debt accumulated through an aggressive acquisition spree between 2017 and 2022. Five months later, a Texas bankruptcy court approved the sale of the entire restaurant portfolio in four separate transactions totaling nearly $1 billion. For the franchisees operating Round Table Pizza, Marble Slab Creamery, Fazoli's, Great American Cookies, Johnny Rockets, Twin Peaks, and other brands in the portfolio, the court approval is the moment their franchise relationship formally changed hands—and it raises a specific set of questions every franchisee and prospective buyer should be working through right now.
Fat Brands Inc. filed for Chapter 11 bankruptcy protection in January 2026 before the U.S. Bankruptcy Court for the Southern District of Texas, listing approximately $1.5 billion in secured debt [1]. The company had grown through more than a dozen acquisitions starting in 2017, assembling a portfolio that included Round Table Pizza, Marble Slab Creamery, Great American Cookies, Fazoli's, Hurricane Grill and Wings, Johnny Rockets, Hot Dog on a Stick, and Elevation Burger, as well as the sports bar chain Twin Peaks [1][2].
On May 20, 2026, Judge Alfredo R. Perez of the U.S. Bankruptcy Court for the Southern District of Texas approved the sale to four separate buyers in a single hearing [2]:
Combined, the four transactions total approximately $965 million [2].
A bankruptcy sale under Section 363 of the U.S. Bankruptcy Code transfers assets free and clear of most liabilities—which matters to franchisees in a specific way. The new owners of the FBG Bid Co. portfolio are not obligated to honor pre-bankruptcy commitments made by Fat Brands to franchisees unless those commitments are explicitly assumed in the sale agreement [1][2].
Franchisees of affected brands should confirm three things. First, whether their franchise agreement was assumed or rejected in the bankruptcy—agreements that are rejected allow franchisees to file a general unsecured creditor claim, but do not guarantee continued operating rights. Second, what entity now holds their franchise agreement, and whether the new owner has indicated changes to royalty structures, required vendor relationships, or capital expenditure mandates. Third, whether the brand-level FDD will be updated before the close of the 2026 FDD renewal season, and whether the new owner is a registered franchisor in applicable registration states [1][2][3].
For prospective buyers evaluating any of these brands, the most recent FDD filed before the bankruptcy may no longer accurately represent the franchisor's current corporate structure, financial condition, or operational support commitments. Request the most current registration filing in your target state before any deposit.
The post-sale period is when franchisee uncertainty peaks. The new owners—particularly FBG Bid Co., which now controls the largest share of the portfolio—will need to file updated FDDs in each registration state before they can sell new franchises. Those filings will be the first public document revealing the new ownership structure, capitalization, and any operational changes to each brand.
Franchisees with existing agreements should watch for notice of lease assignments, vendor contract transitions, and any communications from new ownership about rebranding or remodel requirements. Buyers considering entry into any of the affected brands should wait for updated FDDs and independently verify that the new owner has secured financing sufficient to support franchise development commitments.