Texas-based Luby's sells Fuddruckers to franchisee for $18.5 million
The future of Luby's may be uncertain at best, but Fuddruckers will live on. The Texas-based cafeteria announced it has sold the burger joint's franchise business to Nicholas Perkins and his affiliated entity, Black Titan Franchise Systems LLC.
In addition to acquiring master ownership of the brand that has 92 locations nationwide, Perkins also acquired five company-owned locations. Perkins previously purchased 13 other Fuddruckers restaurants in December 2020.
"We're excited to be purchasing Fuddruckers and look forward to working with Fuddruckers' many dedicated, highly capable franchisees to further build this brand," Perkins said in a statement. "As a Fuddruckers franchisee, I have a vested interest in ensuring that all Fuddruckers franchisees have the resources, infrastructure, and operational and marketing support they need to maximize their return on investment."
Selling Fuddruckers is part of Luby's longterm strategy of liquidation and dissolution that the company adopted last year. It expects to realize approximately $18.5 million from the transaction, an amount that does require it to adjust the company's liquidation value, according to a release. Luby's expects to generate additional revenue by selling Fuddruckers' real estate holdings.
Luby's reports that it is "actively seeking buyers" for its other business units, including Luby's Cafeterias, Luby's Culinary Contract Services that operates food service at hospitals, and for its real estate holdings. In February, the company announced it planned to cease most restaurant operations by the end of its fiscal year in August.