Franchise Group
| Company type | Private |
|---|---|
| Industry | Holding company |
| Founded | 2019 |
| Fate | Acquired by investors in 2023; filed for Chapter 11 bankruptcy in 2024; emerged from bankruptcy in 2025 |
| Headquarters | United States |
| Products | Franchise businesses including American Freight, Buddy's Home Furnishings, The Vitamin Shoppe, Pet Supplies Plus |
| Parent | B. Riley Financial (prior to bankruptcy) |
Franchise Group, Inc. is a privately owned American holding company specializing in acquiring and managing franchise businesses. Its portfolio includes brands from various retail segments such as American Freight, Buddy's Home Furnishings, The Vitamin Shoppe, and Pet Supplies Plus.
On August 21, 2023, Franchise Group was purchased by a group of investors for $2.6 billion.
History
The company was established in 2019 through the combination of Liberty Tax and Buddy's Home Furnishings. Initially operating under the Liberty Tax name, it later rebranded to Franchise Group while maintaining both entities as subsidiaries.
In 2019, Franchise Group expanded its holdings by acquiring The Vitamin Shoppe and Sears Outlet. The following year, it bought American Freight for $450 million and integrated Sears Outlet into American Freight.
Following the Chapter 11 bankruptcy filing of regional furniture retailer FFO Home in November 2020, Franchise Group completed its acquisition in December of the same year.
In 2021, after divesting Liberty Tax for $249 million, Franchise Group further broadened its portfolio by purchasing Pet Supplies Plus for $700 million, Sylvan Learning for $81 million, and Badcock Home Furniture for $580 million.
The August 2023 investor acquisition valued Franchise Group at $2.6 billion. Subsequently, CEO Brian R. Kahn became involved in a securities fraud investigation related to Prophecy Asset Management’s co-founder.
By December 2023, Conn's acquired Badcock Home Furniture from Franchise Group but later filed for Chapter 11 bankruptcy in July 2024, resulting in the liquidation of all Badcock locations by October.
In February 2024, Sylvan Learning was sold to Unleashed Brands by Franchise Group.
On November 2, 2024, Franchise Group declared intentions to file for Chapter 11 bankruptcy due to ongoing financial losses connected to its parent company, B. Riley Financial. Post-restructuring ownership is expected to transfer to private equity firm HPS Investment Partners along with other creditors. The bankruptcy filing occurred on November 3, 2024; while Pet Supplies Plus, The Vitamin Shoppe, and Buddy's Home Furnishings continued operations, American Freight entered liquidation owing to financial difficulties. Liquidation sales commenced on November 5 with all stores slated to close by the end of the year. In January 2025, bankruptcy court approval was granted for AF Newco I LLC to purchase up to 28 American Freight outlets and one distribution center, with plans to reopen these locations later that year.
In April 2025, Franchise Group completed the sale of The Vitamin Shoppe to Kingswood Capital Management and Performance Investment Partners for $193.5 million; the transaction finalized in May.
Franchise Group emerged from bankruptcy on June 6, 2025, following confirmation of its reorganization plan; operations of Pet Supplies Plus and Buddy's Home Furnishings were transferred to Fusion Parent LLC.
Current subsidiaries
- American Freight; a discount furniture and home goods retailer acquired in February 2020.
- Buddy's Home Furnishings; a nationwide seller of sofas, chairs, dining sets, electronics, and appliances.
- Pet Supplies Plus; operates more than 400 pet supply outlets across over 30 states in the U.S.
Former subsidiaries
- Sears Outlet Stores; these department store outlets were sold to Franchise Group in October 2019. By April 2020, the outlets were integrated into American Freight and underwent rebranding.
- Liberty Tax; offered tax preparation services and refund-based financial products across the United States.
- Badcock Home Furniture &more; managed a network of more than 370 furniture retail locations throughout eight southeastern states.
- Sylvan Learning; provided supplemental education through personalized tutoring and test preparation programs.
- The Vitamin Shoppe; a retailer specializing in nutritional supplements with 785 stores nationwide, acquired from Irving Place Capital in December 2019.