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Log In / Register | May 26, 2017

Sonic Negotiates Hundreds of Millions in Securitization

OKLAHOMA CITY—Sonic Corp. (NASDAQ:SONC), a chain of 3,500 drive-in restaurants, announced last week that it will be dipping into business securitization for debt based on future fees that its franchisees are expected to pay the franchisor. Sonic has negotiated to receive $425 million in a 4.472 percent fixed rate senior secured note with an expected life of seven years.

Franchise Securitization Is Back

They're baaack —asset-backed securities, or ABS that is. Record low interest rates have spurred investors over the past year to rediscover higher yielding bonds that franchisors like Domino's Pizza issue. The bonds are based on estimated future royalties that franchisees are committed to pay.

Burger King Shakeup, Chidsey Leaves

Burger King announced that former CEO John Chidsey will step down, effective April 18, as co-chair of Burger King Holdings, according to Florida Business Journal.

Church's Goes for $245M Securitization

Church's Chicken issued a $245 million asset-backed security Friday.

Securitization Strips Franchising Skin-in-the-Game

On November 17, 2010, I was walking past the Empire Room on 33rd Street in New York City, when I noticed something going on.

Dunkin' Donuts: Expanding? Or, Just Roadside Advertising?

Yesterday, my college roommate and I, were traveling from NJ to CT, along on I-95, for a franchise vendor convention and some good ole harness racing action.  We were running a few minutes

Prospectus Offering: Lake Woebegone

Over the past two days, the Wall Street Journal released two articles related to the franchise industry.  So, why not bring them here.

Sonic Says It Can Service Debt

NEW YORK, NY - Sonic Drive-In (NASDAQ: SONC) sought to reassure investors today as it presented results for the past year, a period which posed challenges for the company. The stock, which had tumbled in 2008 and drifted lower thru 2009, fell again on higher-than-average volume last week.