Cambridge Franchise Partners

Richard S. Ruback; Royce  Yudkoff; Ahron  Rosenfeld

Teaching Note | HBS Case Collection | April 2020

Cambridge Franchise Partners

by Richard S. Ruback, Royce Yudkoff and Ahron Rosenfeld

Abstract

Teaching Note for HBS No. 217-082. Cambridge Franchise Partners (CFP) was established by Matt Perelman and Alex Sloane (both HBS ’15) to pursue a roll-up strategy in the quick service restaurant (QSR) sector. Burger King (BK) approved CFP’s request to become a franchisee and presented it with the opportunity to acquire Carolina Quality (CQ), an operator of 23 BK restaurants. The owner of CQ had decided not to extend its contract with BK because it would have required remodeling the restaurants at a total cost of $8 million. CFP acquired 100% of CQ’s equity without making any cash payment to the seller, despite CQ’s corporate level EBITDA of $700,000.

Keywords: roll-up; franchise; franchise management; small firms management; Franchise Ownership; Small Business; Management; Acquisition;

Language: English

Format: Print

12 pages

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Citation:

Ruback, Richard S., Royce Yudkoff, and Ahron Rosenfeld. "Cambridge Franchise Partners." Harvard Business School Teaching Note 220-082, April 2020.

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Cambridge Franchise Partners

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