American West Restaurant Group

www.pizzahut.com

Management Buyouts
Add-On Acquisitions

Press Releases

Headquartered in Orange, California, American West Restaurant Group ("AmWest") is the largest Pizza Hut franchisee in California and Utah and the third largest in the United States. AmWest operates more than 270 Pizza Hut restaurants in greater Los Angeles across five contiguous counties: central Los Angeles, Riverside, San Bernadino, Ventura, North Orange County, and metropolitan Salt Lake City. Its leading position in Southern California gives AmWest control over local marketing initiatives and brand image in one of the nation's largest and most important quick service restaurant and pizza markets. A large majority of AmWest's restaurants are highly efficient and modern delivery / carryout units that generate strong unit-level economics.

Sentinel previously owned AmWest under the name Southern California Pizza from 2008 to 2012 and created the platform through a carveout transaction from franchisor Pizza Hut, a subsidiary of Yum! Brands. In December 2012, Southern California Pizza was sold to another private equity firm. Under Sentinel's ownership, Southern California Pizza was transformed into a standalone business with its own management and corporate infrastructure from a regional group of stores tightly integrated into Pizza Hut's existing infrastructure. During this period, Southern California Pizza grew substantially and almost tripled its profitability.

AmWest is a powerful platform in the Pizza Hut system that has an opportunity to continue growing organically and to make strategic add-on acquisitions of Pizza Hut stores in new geographies.

Bandon Holdings LLC

www.anytimefitness.com

Management Buyout
Add-on Acquisitions

Press Releases
07/2022

Headquartered in Austin, Texas, Bandon is the largest franchisee in the Anytime Fitness family with more than 200 clubs and 140,000 members. Bandon's strategy has traditionally focused on owning and operating clubs in small suburban and rural markets with limited fitness club options. Bandon's clubs are well maintained and feature high-quality equipment and personal training services, offering a friendly, convenient fitness solution to local communities in over 25 states.

Franchisor Anytime Fitness is headquartered in Woodbury, Minnesota and is the largest fitness company in the United States and the fastest growing gym franchise in the world, with more than 5,200 clubs in nearly 40 countries and territories. Anytime offers affordable fitness options that emphasize a complete gym product offering and unparalleled convenience for members, including 24-hour access. For franchisees, Anytime's small-box format with low buildout costs promotes attractive unit economics and return on investment. Bandon's growth strategy is to continue subconsolidating the Anytime Fitness system.

Border Foods, Inc.

www.tacobell.com

Corporate Carveout
Only Store / Field Operations Included
Built Management Team
Restructured Operations
Add-On Acquisitions

Press Releases
01/2000
12/1997
09/1996

Border Foods, a Minnesota company originally organized by Sentinel Capital Partners and management, owns, operates, and franchises 170 Taco Bell, Pizza Hut and KFC restaurants in Minnesota, and has exclusive rights to develop the Taco Bell brand in that state.

In 1996, Sentinel Capital Partners orgainzed and financed Border Foods to acquire its initial 75 restaurants from Taco Bell Corporation, at the time a subsidiary of Pepsico, in a carveout transaction. Taco Bell, with $6.0 billion in systemwide revenues and more than 6,800 restaurants, is the largest Mexican food Quick Service Restaurant (QSR) operation in the United States and the fourth largest QSR operation nationwide. Strucured as a franchisor, Taco Bell has a 70% share of the Mexican food QSR market, both nationwide and in Minnesota.

In December 1999, after achieving substantially all of its investment objectives, Sentinel sold its interest in Border Foods to management in a recapitalization transaction. Under Sentinel's ownership, Border Foods was transformed into a standalone business with its own management and corporate infrastructure from a regional group of stores tightly integrated into Taco Bell's existing backbone. During this period, Border Foods' sales and profitability grew substantially. With its management as the majority owner, Border Foods is aggressively expanding its existing core Taco Bell business and its newly acquired Pizza Hut and KFC franchises.

Sentinel originated, sponsored and provided the private equity financing for the original formation of Border Foods and structured and arranged debt financing for the recapitalization. It is also the only U.S. private equity firm to have secured exclusive statewide development rights from Taco Bell. Border Foods is well positioned to acquire additional restaurants from Tricon Global Restaurants (NYSE: YUM), the current parent company of Taco Bell, Pizza Hut and KFC, which operates one of the largest worldwide QSR operations with more than 25,000 units.

Captain D's Inc.

www.captainds.com/

Management Buyout

Press Releases
05/2022
12/2017

Captain D's is a franchisor and operator of more than 500 Captain D's seafood restaurants spanning 21 U.S. states. The Captain D's system has established strongholds in the Southeast and Midwest and is the nation's leading restaurant operator in the quick service restaurant seafood sector. With Captain D's seafood menu based on ocean-caught fish and a beach-themed dining format, it is uniquely positioned in the QSR market, a sub category that has outgrown the broader restaurant industry since 2011.

Captain D's holds a unique market position and is recognized as one of the top 10 brands in America for consumer loyalty. Captain D's also attracts younger guests and is the clear category leader. Moreover, its same-store-sales growth over the past decade is in the very top QSR tier regardless of category. Captain D's provides highly attractive and consistent unit economics for its franchise partners, which is fueling growth in new franchise sales and openings.

Having owned the business for four-and-a-half years and having achieved our investment objectives, in May 2022, Captain D's was sold to another private firm in a management buyout. Since Sentinel's original investment, Captain D's performed well, especially through the COVID pandemic. Captain D's remains well positioned to continue growing under the leadership of its outstanding management team.

Checkers Drive-In Restaurants, Inc.

www.checkers.com

Management Buyout

Press Releases
04/2017
03/2014

Checkers Drive-In Restaurants, headquartered in Tampa, Florida, is a franchisor and operator of Checkers® and Rally's® restaurants. With a more than 40-year history, the Checkers system consists of 450 franchised and 332 company-owned locations with established strongholds in the Southeast, Mid-Atlantic, and Midwest. Checkers is the largest QSR operator of dual drive-through restaurants and differentiates itself through its craveable food and exceptional value. Checkers/Rally’s operates within the $65 billion hamburger QSR market and has achieved steady growth since 2001.

Checkers is known for providing guests with fresh and irresistibly good food and for its signature buildings and trade dress that evoke timeless American imagery. Checkers provides a differentiated menu with robust flavors, delivered to consumers at an exceptional value. The Checkers system generates more than $700 million in annual system-wide sales.

Having owned the business for three years and having achieved our investment objectives, in April 2017, Checkers was sold to another private firm in a management buyout. Since Sentinel's original investment, Checkers generated three consecutive years of positive same store sales and significantly expanded its geographic footprint. During our ownership, Checkers' profitability grew substantially. Checkers remains well positioned to continue growing under the leadership of its outstanding management team.

Cottman Transmission Systems, Inc.

www.cottman.com

Management Buyout
Transition from Founder Ownership

Press Releases
03/2004
12/2002
08/1999

Cottman Transmission Systems, Inc., a company headquartered in Fort Washington, PA, is a franchisor of automotive transmission centers that repair, remanufacture and service transmissions and related components. Cottman, the "Transmission Physician," opened its first transmission repair center on Cottman Avenue in Philadelphia in 1962. With more than 300 centers in the United States and Canada, Cottman is now one of the largest transmission service and repair chains in North America.

Consistently ranked among the top franchise organizations in the U.S., Cottman continues to grow by aggressively franchising new centers and by selectively acquiring independent transmission repair chains. This growth is driven by several positive industry trends: an aging U.S. vehicle population; increased popularity of front-wheel and four-wheel drive vehicles that have more complex transmissions; a return to high-performance/high-output engines that place more strain on transmissions; and greater use of computers in automobiles that make transmission repair a more specialized and costly service.

Sentinel Capital Partners and Cottman's management team acquired the company in a buyout transaction in July 1999. Sentinel originated and sponsored the acquisition, arranged the debt and provided private equity financing.

In March 2004, after achieving substantially all of its investment objectives within four-and-a-half years, Sentinel sold Cottman to American Capital Strategies, Ltd. Since Sentinel's original investment, Cottman's sales and profitability grew substantially. With approximately 400 stores in its franchise system, Cottman is well positioned to continue growing.

Falcon Holdings, LLC

www.falconholdings.com

Debt Restructuring / Recapitalization
Operational Turnaround

Press Releases
05/2005
12/1999

Falcon Holdings, headquartered in Chicago, Illinois, owns, operates, and franchises 97 Church's® Chicken Restaurants in Chicago, St. Louis, Detroit, Indianapolis, Cleveland, Dayton, Richmond, and Columbus, making it the largest franchisee in the worldwide Church's system. Falcon has also secured exclusive rights to develop the Church's brand in Indianapolis and Richmond, and is well positioned to build and acquire additional restaurants within the fragmented Church's system.

With more than $800 million in system-wide revenues and 1,400 restaurants worldwide, Church's is the second largest chicken quick service restaurant chain in the United States. Established more than 45 years ago and structured as a franchisor, Church's specializes in southern-style chicken and follows a model based on focused menu selection, value pricing and an emphasis on take-out.

Church's Chicken was formerly a wholly owned subsidiary of AFC Enterprises, which franchised the Church's concept and also owned and operated Church's restaurants. AFC Enterprises was one of the world's largest operators and franchisors of restaurants, bakeries and cafes with more than 3,500 restaurants in 27 countries. In addition to Church's Chicken, AFC also owned Seattle Coffee Company®, with its Seattle's Best Coffee® and Torrefazione Italita® brands, Popeyes Chicken & Biscuits®, and Cinnabon® World Famous Cinnamon Rolls.

In November 1999, Falcon was organized by Sentinel Capital Partners and management to acquire the 97 Church's restaurants from Atlanta Franchise Development Corporation in an operational turnaround and restructuring transaction. Sentinel sponsored the transaction, secured the debt financing, and provided the private equity.

In May 2005, after achieving substantially all of its investment objectives, Sentinel sold Falcon to its management team. Under Sentinel's ownership, Falcon was transformed into a standalone business with its own management and corporate infrastructure from a regional group of stores operated remotely from Atlanta, the headquarters location of franchisor Church's Chicken. During our five-year ownership, Falcon's sales and profitability grew substantially.

Fazoli's Group Inc.

www.fazolis.com

Management buyout

Press Releases
12/2021
07/2015

Fazoli's Group, Inc. is a franchisor and operator of Italian fast casual restaurants in the United States and is well positioned to accelerate its growth in the rapidly expanding fast casual segment of the restaurant industry.

Founded in 1988 and headquartered in Lexington, Kentucky, Fazoli's is the leading Italian fast casual dining concept that offers moderately priced, freshly-prepared pasta entrees, sandwiches, pizza and salads in a convenient, friendly environment. Fazoli's blends the low price point and speed of a quick service restaurant with the quality, atmosphere and service traditionally found in the casual dining segment. With strong brand awareness and a loyal customer base, Fazoli's was named the 2013 Fast Casual Brand of the Year and Franchise Business Review's "Top 40 Food Franchises" in 2015.

In December 2021, after achieving our investment objectives, Fazoli's was sold to FAT Brands (NASDAQ: FAT), a global franchising company that strategically acquires, markets, and develops fast casual and casual dining restaurant concepts. In the six years since Sentinel's original investment, Fazoli's performed well under its excellent management. Fazoli's performed particularly well through the COVID pandemic, demonstrating the resilience of its brands. Fazoli's remains well positioned to continue growing under the leadership of its superb management team.

Huddle House, Inc.

www.huddlehouse.com

Management Buyout

Press Releases
02/2018
03/2012

Huddle House, headquartered in Atlanta, Georgia, is a leading franchisor of family dining restaurants serving southeastern communities. With its nearly 50-year history, Huddle House is one of the oldest franchise systems in the country. Huddle House was founded by John Sparks, who had opened a few restaurants under various names. John needed a great name for his new restaurant chain. One evening in Decatur, Georgia, he saw a boy meeting friends after football practice holding his helmet in one hand and a football in the other. It looked as if the group were "huddled up" talking and laughing together. It was at that moment he decided that Huddle House was the perfect name for the restaurant chain and it would be the place where folks would gather, or "huddle up," for great food and good times after Friday night football games.

Huddle House focuses on serving quality food in warm, friendly environments that bring communities together. Huddle House offers customers “Any Meal. Any Time.” with a broad menu of high-quality, cooked-to-order food, and 24-hour service, and serves breakfast, lunch and dinner all day. Huddle House has more than 375 franchised units and 17 company-owned units in the Southeast that generate more than $225 million in annual system-wide sales.

Under Sentinel’s nearly six-year ownership, Huddle House performed well. Average unit volumes increased almost 15%, and systemwide sales reached more than $240 million. Having increased its profitability significantly, we achieved our investment objectives and Huddle House was sold to another private equity firm in a management buyout. Huddle House remains well positioned to continue growing under the leadership of its outstanding management team.

Interim Healthcare Holdings, Inc.

www.interimhealthcare.com

Recapitalization
Restructured Operations
Refocused Business Strategy

Press Releases
10/2012
05/2006

Interim Healthcare Holdings, Inc., headquartered in Sunrise, Florida, is the nation's largest provider of home healthcare and supplemental healthcare staffing services. Interim is the nation's oldest and best established healthcare franchise organization with an average owner tenure in excess of 23 years, more than 300 service locations in 39 states and Puerto Rico, more than $620 million in systemwide sales, and a committed workforce of 75,000 employees.

Structured as a franchisor, Interim operates two complementary businesses serving the healthcare market. Interim’s core business provides home healthcare services, including skilled medical care delivered by nurses, therapists and other specialized caregivers, and non-medical support services provided by home health aides, personal care aides, companions and homemakers. Interim’s second business provides supplemental staffing for healthcare facilities and other businesses. Supplemental staffing places nurses, therapists and other healthcare personnel in facilities and businesses for short-term assignments or as direct hires.

With more than 40 years of continuous operation, Interim has proven experience in the healthcare sector and with franchise organizations, both as franchisee and as franchisor. With the greying of America fueling growth in the healthcare sector, industry experts expect home healthcare to grow significantly in the next several years. With a well-established business model, strong management team and loyal franchisees and employees, Interim is well positioned to capitalize on this trend.

In May 2006, Sentinel Capital Partners and management invested in Interim in a buyout transaction. Sentinel originated, sponsored and negotiated the transaction, arranged the acquisition debt and provided private equity financing from Sentinel Capital Partners III, L.P.

In October 2012, after owning the business for more than six years and achieving substantially all of our investment objectives, Interim Healthcare was sold to another private equity firm. Under Sentinel's ownership, Interim underwent an operational transformation from a franchisor and direct provider of healthcare services into a "pure-play" healthcare franchisor. As part of the transformation, Interim refranchised all of its company-owned home healthcare locations, exited non-core healthcare businesses, and focused its efforts on recruiting new franchise owners to its network. Interim Healthcare remains well positioned to continue growing under the leadership of its superb management team.

Massage Envy, LLC

www.massageenvy.com

Corporate Carveout
Management Buyout

Press Releases
09/2012
01/2010

Massage Envy, headquartered in Scottsdale, Arizona, is the nation’s largest provider and franchisor of therapeutic massage services.

Massage Envy offers professional and affordable therapeutic massage services to consumers with busy lifestyles, offering convenience, high quality, and excellent value. Since its founding in 2002, Massage Envy has established itself as the leading franchisor of massage therapy services in the United States, with more than 600 clinics operating in 42 states generating more than $450 million in systemwide sales. With a highly trained and committed workforce of more than 10,000 employees, Massage Envy offers a range of services that include full-body and partial-body massage therapies and facial skin treatments.

Massage Envy operates through a membership model, giving the company and its franchisees the benefit of recurring, predictable revenues. In 2009, Entrepreneur magazine’s Franchise 500® ranked Massage Envy as one of the nation’s 20 “Fastest Growing Franchises” in addition to #1 in the “Massage Services” category.

Massage Envy is well positioned to continue to expand via openings of de novo centers in new and existing markets. Massage Envy is fueling market growth by offering convenience, high-quality, and competitive value pricing. According to the American Massage Therapy Association, the many powerful benefits of therapeutic massage include reducing fatigue, lower back pain, and post-operative pain; boosting the body’s immune system; decreasing the symptoms of carpal tunnel syndrome; lowering blood pressure; and diminishing headache frequency. Massage Envy has taken an exclusive, high-priced service and made it affordable to and accessible for the general public. Today, millions of Americans find therapeutic massage to be an invaluable component of their wellness.

In September 2012, after achieving substantially all of our investment objectives, Massage Envy was sold to another private equity firm. Since Sentinel's original investment, Massage Envy grew rapidly, expanding from 600 to 800 clinics in 45 states, more than doubling its sales and profits, and having a backlog of more than 200 yet-to-be-opened units. Massage Envy remains well positioned to continue growing under the leadership of its superb management team.

Newk's Eatery

www.newks.com

Management buyout

Press Releases
03/2014

Newk's Eatery, headquartered in Jackson, Mississipi, is a franchisor and operator of fast casual restaurants. Newk's is a rapidly growing market leader in the fast casual restaurant segment throughout the Southeast and is well positioned to accelerate its growth in the rapidly expanding fast casual segment of the restaurant industry.

Newk's began in 2004 as a sandwich shop in Oxford, Mississippi and has grown into one of the fastest growing franchisors of fast casual restaurants. Newk's offers a diverse menu of high quality, made-from-scratch sandwiches, soups, salads, and pizzas.

Having owned the business for more than nine years and having achieved our investment objectives, in November 2023, Newk's was sold to the a portfolio company of another private firm. Since Sentinel's original investment, Newk's performed, especially through the COVID pandemic. Newk's remains well positioned to continue growing under the leadership of its outstanding management team.

Pet Supplies Plus, LLC

www.petsuppliesplus.com/

Management Buyout

Press Releases
03/2021
12/2018

Pet Supplies Plus is a leading franchisor and operator of pet-specialty stores that provide a customer-centric shopping experience in smaller stores that have a neighborhood feel. Pet Supplies Plus blends the advantages of national scale with those of a friendly, local neighborhood pet store. Stores have a streamlined design, which makes them easy to navigate, and a wide assortment of natural foods, hard goods, and pet services. Serving 33 states, Pet Supplies Plus' system comprises 448 stores, split evenly between franchised and company-owned locations. Pet Supplies Plus also operates a distribution network with significant buying power that provides scale, profitability, and operational advantages to its franchisees. Pet Supplies Plus is recognized by Entrepreneur magazine as the top full-service pet supplies franchise for its excellent performance, financial strength and stability, growth rate, and system size.

Pet Supplies Plus is the #1 pet franchise system in the U.S. with an expanding footprint and a large white-space opportunity. The pet industry is stable, growing, and has a passionate consumer base. Pet Supplies Plus has a strong position in the pet retail segment and a loyal customer base. Pet Supplies Plus combines the convenience, expertise, and high-touch experience of a local neighborhood pet store with the curated selection and value of a national player.

In the 2¼ years since making our investment, Pet Supplies Plus performed superbly. During our ownership, its sales and profits grew substantially. Having achieved our investment objectives, Pet Supplies Plus was sold to strategic buyer Franchise Group (NASDAQ: FRG). Pet Supplies Plus's hugely talented management team will continue to run the business under new ownership.

Southern California Pizza Co., LLC

www.pizzahut.com

Complex Corporate Carveout
Only Store / Field Operations Included
Built Management Team
Created Corporate Infrastructure
Add-On Acquisitions

Press Releases
12/2012
08/2009
08/2008

Southern California Pizza, a Corona, California company organized by Sentinel and management, owns and operates 224 Pizza Hut restaurants in the greater Los Angeles market, and has rights to develop the Pizza Hut brand in this region.

In 2008, Sentinel acquired an initial block of 123 of restaurants in a corporate divestiture transaction from franchisor Pizza Hut, a subsidiary of Yum! Brands, Inc. This was Sentinel's third investment in the quick-service restaurant sector and its second in the Yum! Brands system. Sentinel's two prior quick-service restaurant investments—Border Foods, a Taco Bell franchisee (part of Yum! Brands), and Falcon Holdings, a Church's Chicken franchisee—were both successful. Sentinel made the acquisition through an investment in newly-formed Southern California Pizza Company.

In August 2009, Southern California Pizza acquired an additional 98 Pizza Huts in northern Los Angeles, making it the largest franchisee in California and the third largest in the Pizza Hut system, which operates more than 7,500 QSRs worldwide. Sentinel originated and sponsored the transaction, arranged the acquisition debt and provided equity financing from Sentinel Capital Partners III, L.P.

Sentinel Capital Partners also originated, sponsored and provided the private equity financing for the original formation of Southern California Pizza and structured and arranged debt financing for the acquisition.

In December 2012, after owning the business for more than four years and achieving substantially all of our investment objectives, Southern California Pizza was sold to another private equity firm. Under Sentinel's ownership, Southern California Pizza was transformed into a standalone business with its own management and corporate infrastructure from a regional group of stores tightly integrated into Pizza Hut's existing infrastructure. During this period, Southern California Pizza grew substantially and almost tripled its profitability. Southern California Pizza remains well positioned to continue growing under the leadership of its superb management team.

TGI Fridays, Inc.

www.tgifridays.com

Corporate Carveout
Management Buyout

Press Releases
07/2014

TGI Fridays, headquartered in Carrollton, Texas, is a global leader in the $85 billion casual dining segment of the restaurant industry, with an iconic, globally recognized, 49-year-old brand and a heritage as the original American bar and grill. The Fridays system comprises more than 900 restaurants in 60 countries, including more than 500 restaurants in the U.S. Fridays boasts the largest international presence of any U.S. casual dining chain, and customers around the world equate the highly recognizable brand with classic American fare and expert service. The Fridays system generates more than $2.6 billion in systemwide sales.

Fridays differentiates itself from other casual dining restaurants through its unique positioning as a "casual dining bar." The bar-centric concept—to which the social experience of customers is as central as the restaurants’ high-quality food and drinks—is embodied in Fridays' name and motto: "In Here It's Always Friday." Fridays is known for inventing the "happy hour" and introducing Long Island iced tea, potato skins, and Jack Daniels-branded food items to American casual dining.

Having owned the business for five years and having achieved our investment objectives, in Ocotber 2019, Fridays was sold to another private firm.

Tony Roma Restaurant Holdings, Inc.

www.tonyromas.com

Corporate Carveout
Management Buyout

Press Releases
07/1998

Tony Roma's, headquartered in Dallas, Texas, is the franchisor of Tony Roma's restaurants. With 260 restaurants in 25 states and 19 foreign countries, Tony Roma's is the largest national casual dining chain specializing in ribs. The Tony Roma's name and its "Famous for Ribs" and "A Place for Ribs" slogans are familiar throughout the United States, especially in Florida, Texas and California where the majority of restaurants are located. Since Tony Roma's inception in 1972, its baby back ribs have won numerous consumer and industry awards in more than 25 markets.

In 1998, Sentinel acquired a controlling interest in Tony Roma's, a subsidiary of NPC International, Inc., in a corporate carveout transaction. NPC is the largest franchisee in the Pizza Hut system with more than 850 units, and continues to own a minority stake in Tony Roma's. The recapitalization positions Tony Roma's for aggressive growth in the United States and internationally. Sentinel originated, sponsored and negotiated the transaction, arranged the senior debt financing, and provided the private equity financing.

After holding the investment for more than seven years, in March 2006, Sentinel sold Tony Roma's.

Vital Care, LLC

www.vitalcareinc.com

Junior Capital
Structured Equity

Press Releases
12/2020

Vital Care is the premier franchisor of home infusion services in the United States. Founded in 1986 and headquartered in Meridian, Mississippi, Vital Care serves the medical needs of a wide range of patients, including those with chronic and acute conditions. Home infusion therapy involves the intravenous or subcutaneous administration of drugs or biologicals to patients at home. Vital Care supports more than 50 franchises across 20 states and focuses on underserved secondary markets.

Using a franchise model with which Sentinel has considerable experience, Vital Care serves the growing $15 billion home infusion market. As one of the top-5 home infusion providers in the U.S. and only franchisor, Vital Care has a differentiated competitive position, is growing rapidly, and is well positioned to extend its geographical reach.