Glazing Saddles

Largest Texas multi-unit franchisee of Krispy Kreme Doughnuts with locations in Central, South and West Texas


Cedar Park, TX


Consumer – quick service restaurant

Investment Type

Senior Debt & Preferred Equity


$7 million


Acquired by franchisor

Transaction Dynamics

  • The CEO & CFO wanted to buyout a minority shareholder and retain majority ownership.
  • Our capital (1) bought out the minority shareholder; (2) allowed the CEO & CFO to retain control; (3) refinanced existing debt; (4) removed personal guarantees; and (5) provided flexible debt to allow company to expand.

Investment Thesis

  • QSR Growth – quick service restaurants are a fast-growing segment of the restaurant industry
  • Strong Differentiated Brand – consumer survey ranked Krispy Kreme as the “Most Craveable Food”
  • Strong Management – CEO & CFO had significant applicable experience and ownership.  Additionally, the CEO was the president of the Krispy Kreme Franchisee Association
  • Proven & Compelling Unit Economics – cash on cash returns for new stores exceeded industry average

Post-Closing Initiatives

  • Real Estate – introduced management to a real estate broker to identify potential sites
  • Expanded – increased store count by 40% throughout Texas
  • Successful Sale to Strategic – sought approval to open sites outside of our territory which led to a successful sale to the franchisor

“Jay and Kevin developed a creative capital structure that was a win-win for both parties – bought out a minority shareholder, allowed management to retain control, refinanced existing debt and provided growth capital.  We leveraged their financial acumen, particularly with site selection and unit economics.  Ultimately, they played a vital role in the sale process to a strategic buyer, which resulted in a successful exit for all parties.”

Randy Willard, CEO of Glazing Saddles