Franchise Group
A U.S. holding company that acquired, operated, and franchised retail, consumer-services, education, and home-furnishings businesses.
Last updated August 26, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
History
Franchise Group emerged in 2019 from the combination of Liberty Tax and Buddy's Home Furnishings. Although the corporate entity initially operated under the Liberty Tax name, the group adopted Franchise Group to reflect its broader strategy of acquiring and managing multiple franchise and retail businesses. Liberty Tax and Buddy's Home Furnishings remained subsidiaries after the rebranding. The first major phase of expansion added businesses outside tax preparation and rent-to-own furniture. Franchise Group acquired The Vitamin Shoppe and Sears Outlet in 2019. The Vitamin Shoppe gave the group a national nutritional-supplement retail platform, while Sears Outlet provided a discount-oriented home-goods business. In 2020, Franchise Group acquired American Freight for reported cash consideration of $450 million. Sears Outlet was later merged into American Freight, and the stores were rebranded under the American Freight name. The same year, the company announced the acquisition of FFO Home after that regional furniture retailer filed for Chapter 11 protection; the purchase was completed on December 29, 2020. The portfolio expanded again in 2021. Franchise Group sold Liberty Tax to NextPoint Financial for reported consideration of $249 million. It simultaneously pursued several acquisitions, including Pet Supplies Plus, a pet-supplies franchise system; Sylvan Learning, a supplemental education provider; and Badcock Home Furniture &more, a southeastern furniture chain with company-owned and dealer-operated stores. Reported transaction values were approximately $700 million for Pet Supplies Plus, $81 million for Sylvan Learning, and $580 million for Badcock Home Furniture. These deals made Franchise Group a widely diversified operator spanning retail stores, franchise locations, education centers, tax services, and home furnishings. In August 2023, an investor consortium acquired Franchise Group in a transaction reported at approximately $2.6 billion. The company therefore ceased to be a publicly traded operating group, although its former public-market identity remained associated with the FRG ticker. Later in 2023, Badcock Home Furniture was sold to Conn's. In February 2024, Sylvan Learning was sold to Unleashed Brands for undisclosed consideration. The group then entered a period of financial distress. American Freight experienced significant losses amid rising costs and difficult macroeconomic conditions. In November 2024, Franchise Group announced plans to seek Chapter 11 protection, and the company together with its affiliates filed in Delaware on November 3. The restructuring plan sought to preserve operations at Pet Supplies Plus, The Vitamin Shoppe, and Buddy's Home Furnishings while liquidating most American Freight stores. A bankruptcy court later approved the sale of up to 28 American Freight stores and one distribution center to AF Newco I LLC. The restructuring also led to the divestiture of The Vitamin Shoppe. Franchise Group announced a $193.5 million sale to Kingswood Capital Management and Performance Investment Partners in April 2025, and the deal closed on May 15. On June 6, 2025, Franchise Group reported that it had exited bankruptcy after approval of its reorganization plan on June 2. Its remaining assets, identified in the supplied reference as Pet Supplies Plus, Buddy's Home Furnishings, and Wag 'N Wash, were sold to Fusion Parent LLC. The sources do not establish whether Franchise Group continues as a material operating brand after these asset sales.
- 2025
Exit from bankruptcy and asset sales
[1]The Vitamin Shoppe was sold, and Franchise Group exited Chapter 11 after its remaining assets were sold to Fusion Parent LLC.
- 2024
Chapter 11 filing
[1]Franchise Group and its affiliated subsidiaries sought Chapter 11 protection in Delaware amid losses and financial turmoil.
- 2023
Take-private transaction
[1]An investor consortium acquired Franchise Group for a reported $2.6 billion.
- 2021
Major portfolio expansion
[1]The company sold Liberty Tax and acquired Pet Supplies Plus, Sylvan Learning, and Badcock Home Furniture.
- 2020
Acquisition of American Freight
[1]The company acquired American Freight and later consolidated Sears Outlet into the brand.
- 2020
FFO Home acquisition
[1]Franchise Group announced and completed the acquisition of FFO Home after the furniture retailer entered Chapter 11.
- 2019
Formation through Liberty Tax and Buddy's Home Furnishings
[1]The business was formed through the combination of Liberty Tax and Buddy's Home Furnishings and initially operated under the Liberty Tax name.
- 2019
Acquisition of The Vitamin Shoppe and Sears Outlet
[1]Franchise Group expanded into supplements and outlet retail by acquiring The Vitamin Shoppe and Sears Outlet.
Products and positioning
A diversified, acquisition-led holding company focused on franchised and multi-unit consumer businesses, with an emphasis on portfolio diversification and operational scale.
Nutritional supplements retail
The Vitamin Shoppe
A U.S. specialty retailer of vitamins, supplements, sports nutrition, and related wellness products, operating through stores and online channels. Franchise Group acquired the business in 2019 and sold it in 2025 to Kingswood Capital Management and Performance Investment Partners.
Pet supplies and services
Pet Supplies Plus
A pet-supplies retail and franchise business serving pet owners through a network of locations across the United States. Its offering includes pet food, consumables, accessories, and selected store-based services. Franchise Group acquired the business in 2021.
Rent-to-own home furnishings
Buddy's Home Furnishings
A rent-to-own home-furnishings business offering furniture, electronics, and appliances, including products such as sofas, chairs, dining furniture, and household equipment. It was one of the businesses involved in the formation of Franchise Group in 2019.
Discount furniture and home furnishings
American Freight
A discount retailer focused on furniture, mattresses, appliances, and other home-furnishing products. Franchise Group acquired American Freight in 2020 and combined Sears Outlet stores into the business. Most locations were targeted for liquidation during Franchise Group's 2024 bankruptcy, although a limited group of stores and a distribution center was later sold to AF Newco I LLC.
Tax preparation and financial services
Liberty Tax
A tax-preparation franchise and consumer-services business offering income-tax preparation and related refund-oriented financial products. Liberty Tax formed part of the company's original 2019 combination and was sold to NextPoint Financial in 2021.
Supplemental education
Sylvan Learning
An education-services franchise providing supplemental instruction in subjects including reading, writing, mathematics, study skills, homework support, and test preparation. Franchise Group acquired Sylvan Learning in 2021 and sold it to Unleashed Brands in 2024.
Home furnishings retail
Badcock Home Furniture &more
A southeastern U.S. furniture retailer operating through company-owned and dealer-owned stores. Its merchandise included household furniture and related home products. Franchise Group acquired Badcock Home Furniture in 2021 and sold it to Conn's in 2023.
Regional furniture retail
FFO Home
A regional furniture retailer based in Fort Smith, Arkansas. Franchise Group acquired the business in December 2020 after it filed for Chapter 11 protection.
Controversies
2023
Securities-fraud allegations involving Brian Kahn
Bloomberg identified Brian Kahn as one of two alleged co-conspirators in reporting on a securities-fraud case after John Hughes, a co-founder of Prophecy Asset Management, pleaded guilty. The supplied material does not establish a final adjudication against Kahn.
Brand decisions
2025
Sell The Vitamin ShoppeM&ABackground
The sale formed part of Franchise Group's bankruptcy-related restructuring and asset-reduction program.
Action taken
Franchise Group sold The Vitamin Shoppe to Kingswood Capital Management and Performance Investment Partners.
Aftermath
The transaction closed on May 15, 2025, before Franchise Group completed its restructuring and exited Chapter 11.
Sale consideration. $193.5 million (April-May 2025)
2025
Sell remaining operating assets and exit bankruptcyM&ABackground
Franchise Group's reorganization plan required the disposition of its remaining assets.
Action taken
After court approval of the plan, Pet Supplies Plus, Buddy's Home Furnishings, and Wag 'N Wash were sold to Fusion Parent LLC.
Aftermath
Franchise Group exited Chapter 11 on June 6, 2025. The continuing status of the residual corporate entity is not established in the supplied material.
2024
Enter Chapter 11 restructuringStrategyBackground
The company experienced losses and financial turmoil, with American Freight particularly affected by higher costs and difficult macroeconomic conditions.
Action taken
Franchise Group and its affiliated subsidiaries filed for Chapter 11 protection in Delaware and proposed keeping selected businesses open while liquidating most American Freight locations.
Aftermath
The proceedings led to store liquidations, asset sales, and the eventual sale of the remaining portfolio before the company exited bankruptcy in June 2025.
2023
Take Franchise Group privateM&ABackground
The investor consortium acquired the publicly traded holding company after its multi-brand expansion period.
Action taken
A consortium of investors acquired Franchise Group in a transaction reported at approximately $2.6 billion.
Aftermath
Franchise Group became privately held and later underwent substantial portfolio restructuring and bankruptcy proceedings.
Transaction value. $2.6 billion (August 2023)
2020
Acquire American Freight and consolidate Sears OutletM&ABackground
Franchise Group sought to expand its discount home-furnishings presence after acquiring Sears Outlet.
Action taken
The company acquired American Freight for reported cash consideration of $450 million and subsequently merged Sears Outlet into the American Freight platform.
Aftermath
Sears Outlet stores were rebranded as American Freight locations.
Acquisition consideration. $450 million cash consideration (2020)
2019
Combine Liberty Tax and Buddy's Home FurnishingsM&ABackground
The company was created to assemble multiple franchise and consumer-service businesses under a common holding-company structure.
Action taken
Franchise Group was formed through the merger of Liberty Tax and Buddy's Home Furnishings and later adopted the Franchise Group name.
Aftermath
The transaction established the platform for a broader acquisition program spanning retail and franchise sectors.
Recent events
- 2025
American Freight assets are sold during bankruptcy[1]
Bankruptcy · M&A
A bankruptcy judge approved the sale of up to 28 American Freight stores and a distribution center to AF Newco I LLC, with plans for the buyer to reopen the acquired locations.
- 2025
The Vitamin Shoppe is sold to Kingswood Capital Management and Performance Investment Partners[1]
M&A
Franchise Group announced the sale of The Vitamin Shoppe for $193.5 million; the transaction was completed on May 15, 2025.
- 2025
Franchise Group exits Chapter 11[1]
Bankruptcy · M&A
The reorganization plan was approved in June 2025, and Franchise Group exited bankruptcy after its remaining assets were sold to Fusion Parent LLC.
- 2024
Unleashed Brands acquires Sylvan Learning[1]
M&A
Unleashed Brands, the owner of brands including The Little Gym and Urban Air Trampoline Park, acquired Sylvan Learning from Franchise Group for undisclosed consideration.
- 2024
Franchise Group announces preparations for Chapter 11[1]
Bankruptcy
After extended losses and financial turmoil, Franchise Group announced that it was preparing to seek bankruptcy protection and that lenders including HPS Investment Partners were expected to assume control through restructuring.
- 2024
Franchise Group and subsidiaries file for Chapter 11[1]
Bankruptcy · Other
The company and affiliated subsidiaries filed for Chapter 11 protection in Delaware. Pet Supplies Plus, The Vitamin Shoppe, and Buddy's Home Furnishings were intended to continue operating, while American Freight was slated for liquidation.
- 2023
Investor consortium acquires Franchise Group[1]
M&A
An investor consortium acquired the company in a transaction reported at approximately $2.6 billion, taking Franchise Group private.
- 2023
Conn's acquires Badcock Home Furniture[1]
M&A · Bankruptcy
Conn's acquired Badcock Home Furniture &more from Franchise Group. Conn's subsequently entered bankruptcy in 2024 and liquidated its Conn's and Badcock store base.
- 2021
Franchise Group sells Liberty Tax and acquires three businesses[1]
M&A
Liberty Tax was sold to NextPoint Financial for reported consideration of $249 million, while Franchise Group acquired Pet Supplies Plus, Sylvan Learning, and Badcock Home Furniture.
- 2020
American Freight is acquired and Sears Outlet stores are rebranded[1]
M&A
Franchise Group acquired American Freight for reported cash consideration of $450 million, and Sears Outlet was subsequently combined with and rebranded under American Freight.
Showing the 10 most recent.
Sources3 sources
Cite this profile: Cite the canonical profile. /brand-wiki/franchise-group · Editorial policy · How profiles are compiled