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Good Morning Wolf Pack,

Today's newsletter covers a multi-brand franchisee emerging from bankruptcy with new ownership, one of the fastest-growing chicken finger brands in the country extending its reach coast to coast, and Subway making its boldest pricing move in years.

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FROM THE WOLF DEN

1) A Multi-Brand Franchisee Looks Beyond Bankruptcy With a New Majority Partner

Red Door Brands, the multi-brand franchisee operating locations across McAlister's Deli, Arby's, Little Caesars, and Main Squeeze Juice Co., is preparing to emerge from bankruptcy after bringing in a new majority partner.

Restaurant industry veteran Kayla Edidin, who helped Mike's Red Tacos sell more than 200 franchises in 2025, has acquired a 60% ownership stake in the company and all its subsidiaries. Founder Argus Wiley retains the CEO title. "Argus remaining CEO and me staying COO is more of a reflection of what the company needs. Stability," Edidin told Franchise Times.

The company's Del Taco franchisee, Matadoor Restaurant Group, closed earlier this year after shutting down its remaining locations. The three other subsidiaries, Maverick Restaurant Group (Arby's), Red Door Pizza (Little Caesars), and Red Door Sandwich (McAlister's Deli), are in various stages of emerging from Chapter 11. Red Door Juice Co., which operates Main Squeeze Juice Co. stores, is new and was unaffected by the bankruptcy.

Wiley reflected candidly on the company's rapid pre-bankruptcy expansion: "It almost always worked until it didn't." With 16 locations across four brands and a more disciplined playbook going forward, the turnaround is now in Edidin's hands.

2) Layne's Chicken Fingers Awards 50+ New Restaurants in Q1 2026

The Texas-born chicken finger franchise is no longer staying local. Layne's Chicken Fingers awarded more than 50 new restaurants in Q1 2026 alone, spanning Victoria (TX), Sacramento, Fresno, northeastern Pennsylvania, and a 27-unit agreement covering Charlotte, North Carolina.

Existing franchisees also expanded into Oklahoma, San Antonio, and the entire state of Arkansas. Four new locations opened in Georgia and Texas in the early months of the year, and 16 leases have already been executed for future development.

CEO Garrett Reed tied the momentum to infrastructure: "Throughout all of this growth, we've maintained our focus on partnering with the right people in the right markets." The brand doubled its footprint in 2025 to reach 40 open locations and is targeting another 40 openings in 2026. A new loyalty app launch is also on the roadmap.

For a brand built around hand-breaded tenders and a Texas A&M tailgate personality, Layne's is moving fast into markets far outside its home state.

3) Subway Launches Its First-Ever Value Menu With 15 Items Under $5

Subway made its biggest value play in brand history at the end of April, rolling out its first-ever Fresh Value Menu with 15 entrees priced under $5, available at participating locations nationwide.

The menu includes new Deli Faves (four classic six-inch subs starting at $3.99 each), Protein Pockets at $3.99, and a Sub of the Day for $4.99. The brand framed it plainly: "People want the right mix of price, taste and quality when grabbing a quick meal." The launch follows sustained pressure across the QSR segment to win back cost-conscious consumers.

For franchisees, the move carries real stakes. A permanent value menu changes the sales mix, margin math, and traffic patterns for every operator in the system. Subway's 35,000-plus locations are independently owned, so how this plays out at the unit level will be the real story to watch over the next few quarters.

EXTRA SAUCE 💥

Kidcreate Studio launches national expansion push under new ownership team The children's art enrichment franchise, now under new operators from WonderPlay Brands, is targeting mission-driven entrepreneurs nationwide with 30+ locations across 12 states as its foundation and plans to expand into high-potential markets.

McDonald's posts 3.8% global comp sales growth in Q1 2026, beating estimates The chain's value strategy and menu innovation drove its fourth consecutive quarter of comparable sales growth, with U.S. same-store sales up 3.9%, though management flagged a Q2 deceleration tied to a tough April comparison.

Texas Roadhouse posts strongest comparable sales since Q4 2024 in Q1 2026 The steakhouse chain recorded 7.1% same-store sales growth in Q1, including 4.5% traffic growth, with revenue topping $1.6 billion as its value-forward positioning continues to separate it from the casual dining pack.

Choice Hotels opens its 70th Annual Convention, spotlighting new tools for franchisee performance The lodging franchisor gathered thousands of owners and operators in Las Vegas under the theme "Making More Possible," unveiling demand-generation tools and initiatives centered on improving franchisee returns.

Applebee's co-branded IHOP push draws lawsuit from Texas franchisee over territory dispute A Texas-based Applebee's operator sued Dine Brands, alleging that the company's co-branded Applebee's-IHOP expansion violates its franchise agreement by diverting customers within its exclusive territory.

Tint World posts strong Q1 2026 development, adds two executives to accelerate growth Building on a 2025 that saw the brand surpass $100 million in store revenue and sign 39 franchise agreements, Tint World expanded its leadership team and real estate strategy heading into another active development year.

U.S. Labor Department proposes new national joint employer standard for franchise industry The DOL's proposed rule would create a uniform federal test for joint-employer status, a move backed by both the IFA and National Restaurant Association as they push for regulatory clarity after years of shifting definitions.

Firehouse Subs extends 2026 development incentive program, offering up to $100K per location The RBI-owned sub chain renewed its cash incentive program for 2026, offering $75K for single-unit openings and $100K per restaurant for operators committing to two or more new locations this year.

Franchise M&A Q1 2026 recap: WellBiz, WonderPlay, Vast Coworking, and more change hands A comprehensive Q1 look at deals including Transom Capital's acquisition of WellBiz Brands from KSL Capital, United Franchise Group's full ownership of Transworld Business Advisors, and the former Code Ninja exec team's acquisition of WonderPlay Brands.

Red Door Brands secures new majority investor as subsidiaries prepare to exit Chapter 11 Kayla Edidin's 60% stake acquisition gives the multi-brand operator a path forward after a difficult year that included four subsidiaries filing for bankruptcy and the closure of its entire Del Taco portfolio.

Perspire Sauna Studio opens its 100th location as infrared wellness demand surges nationwide The infrared sauna and red-light therapy franchise, founded in 2010 and now spanning 27+ states, hit the milestone with its Del Mar, California opening and earned the No. 1 ranking in the sauna category on Entrepreneur's 2026 Franchise 500.

Service Experts signs new franchise agreement in Fulshear, Texas as HVAC model draws career-changers The residential HVAC franchise, backed by 30 years of corporate operating infrastructure, signed with former data executive Norv Parsell and e-commerce marketing professional Emily Arnim in one of Houston's fastest-growing suburbs, as demand from white-collar professionals seeking essential-service ownership continues to build.

WOLF BITES

Intel and Apple reach a preliminary chip-making deal, sending Intel stock surging 15% 🖥️
Quantinuum files for a Nasdaq IPO as Honeywell's quantum computing spinoff targets public markets 🔬
Scientists identify "holy grail" gene set that could one day help humans regrow limbs 🦎
Nintendo surprises fans with a Star Fox Direct, confirming a Switch 2 remake 🎮
Meta, Amazon, Microsoft, and Alphabet collectively commit a record $725B in AI infrastructure spending for 2026 🤖
A massive 11,000-carat ruby has been unearthed in Myanmar 💎
Hotels have a big World Cup problem: Bookings are running far below projections 😬
This 72-year-old mom of four is set to graduate from medical school 🩺