Under New Owner, MOD Pizza Will Start Refranchising

The following is a reprint of an article published on QSRMagazine.com

MOD Pizza, acquired by Elite Restaurant Group this summer, will now lean heavily into franchising.

The fast casual’s new owner is partnering with National Franchise Sales—a brokerage firm focused on the sale, acquisition, and refranchising of franchise restaurant businesses—to initiate the effort.

“NFS’s expertise in refranchising, asset recovery reorganization, and franchise sales makes them the ideal partner to help us optimize MOD Pizza’s market presence and operational efficiency,” Michael Nakhleh, leader of Elite Restaurant Group, said in a statement. “We are confident that their strategic approach will be instrumental in identifying the right franchise partners to grow the MOD Pizza brand.”

MOD Pizza is the largest fast-casual pizza chain in the U.S. in terms of unit count. MOD Pizza finished 2023 with 552 restaurants, and about 84 percent were company-operated.

The company did not specify how much of the brand’s system would be turned over to franchisees.

“We are excited to collaborate with MOD Pizza’s new owners and support them in this pivotal phase of growth,” Michael Ingram, VP of National Franchise Sales, said in a statement. “Our goal is to facilitate a refranchising effort that aligns with the brand’s core values and future vision, ensuring long-term success for MOD Pizza and its franchisees.”

In July, Bloomberg reported MOD Pizza was considering bankruptcy. The fast casual closed 25 corporate stores and one franchise earlier in the year. Beth Scott, who stepped away as CEO after the acquisition, said the closures impacted underperforming locations. The shutdowns spanned 10 states and Washington, D.C., with notable concentrations in California, Philadelphia, Chicago, and Dallas. Despite speculation, Scott clarified that these decisions were not directly tied to California’s new $20 minimum wage law for fast-food workers, although rising wages did impact some of their closed locations.

Leading up to 2024, MOD Pizza saw positive growth. The restaurant opened a net of 17, 25, and 21 restaurants in 2021, 2022, and 2023, respectively. A majority of those openings were from the company side.

MOD Pizza announced plans to go public in November 2021 but ultimately did not proceed. Leadership changes included Scott assuming the CEO role in early 2024 and succeeding cofounder Scott Svenson, who transitioned to executive chairperson.