Fireman Capital Partners has acquired a majority stake in Surfside Coffee Company, a newly created entity that will own the Dunkin’ Donuts franchise network based in southern Florida.
Surfside Coffee Company was recently formed through the purchase of two Dunkin’ Donuts franchise networks and is now the largest Dunkin’ Donuts franchise network in Florida. Surfside operates 38 units in and around Fort Myers, Miami and the Florida Keys, and, as part of the purchase, assumed a Store Development Agreement with Dunkin’ Donuts Franchising for the development of a minimum of 23 new Dunkin’ Donuts restaurants in other Florida territories including Greater Miami.
“We are pleased to add significant resources and value to the Surfside Coffee Company as it expands its footprint in southern Florida,” said Dan Fireman, Managing Partner of FCP. “With our extensive relationships in franchising, restaurant operations and the food and beverage industry, we are uniquely poised to move ahead on substantial new development, while maintaining our focus on customer satisfaction and existing unit growth.”
Chris Mellgren, an experienced franchise network executive, has been hired by Fireman Capital Partners to lead Surfside as its new Chief Executive Officer. Mr. Mellgren has played a key role in operating Dunkin’ Donuts franchise networks for over ten years and most recently served as Chief Executive Officer of Morningside Venture Group, a 16-unit Dunkin’ Donuts Franchisee in the Orlando market.
“I am thrilled to lead the Surfside team and work closely with FCP, an industry leader with a proven track record of growing successful retail and food and beverage companies,” said Mr. Mellgren. “I’ve been in and around the Dunkin’ Donuts system for over ten years, and I’ve never been more excited about the brand and the market opportunity in southern Florida.”
Fireman Capital Partners was founded in 2008 under Chairman Paul Fireman and Managing Partner Dan Fireman. The firm invests in consumer products companies with revenues between $20 million and $150 million, and is based in Boston (www.firemancapital.com).
“Dunkin’ Donuts is a remarkable brand, one we are excited to partner with, and we see their franchise model as attractive and highly scalable,” said Liam Patrick, Partner at Fireman Capital Partner. “Florida is a rapidly growing market, and we look forward to collaborating with the Dunkin’ Donuts’ team to expand and serve the brand’s base of extremely loyal customers.”
TD Bank is serving as lender to Surfside Coffee Company. McDermott Will & Emery acted as legal advisor to Fireman Capital Partners on this transaction.
Founded in 1950, Dunkin’ Donuts is a market leader in the hot regular/decaf/flavored coffee, iced coffee, donut, bagel and muffin categories. The company has nearly 11,000 restaurants in 33 countries worldwide. Based in Canton, MA, Dunkin’ Donuts is part of the Dunkin’ Brands Group (Nasdaq: DNKN) family of companies (www.DunkinDonuts.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 3-14-14
