Restaurant franchisor FAT Brands is set to be split and sold to multiple buyers in a series of court-approved transactions valued at nearly $1 billion, marking one of the biggest restructurings in the global restaurant franchise sector this year. The sales come after the company filed for Chapter 11 bankruptcy protection earlier in 2026 under the weight of roughly $1.5 billion in debt.
A U.S. bankruptcy court approved four separate deals that will divide FAT Brands’ extensive portfolio of restaurant chains among different buyers and lender groups. The company’s brands include Fatburger, Johnny Rockets, Fazoli’s, Round Table Pizza, Twin Peaks, Marble Slab Creamery, Great American Cookies, Pretzelmaker, Hurricane Grill & Wings, Native Grill & Wings, Elevation Burger, and Hot Dog on a Stick, among others.
Under the approved transactions, sports bar chain Twin Peaks will be transferred to lender-backed entity TWNPKS Bid Co. through a $359.5 million debt-to-equity credit bid.
Meanwhile, the remainder of FAT Brands’ core restaurant portfolio, including Fatburger, Johnny Rockets, Fazoli’s, Round Table Pizza, Marble Slab Creamery, Pretzelmaker, Great American Cookies, Hurricane Grill & Wings, Native Grill & Wings, and Buffalo’s Café, will be sold to another lender-backed group, FBG Bid Co., through a separate credit bid valued at approximately $595 million.
Two brands are being acquired through direct cash deals. Hot Dog on a Stick will be sold to Amazing Brands for $8 million, while Elevation Burger is being acquired by Kuwait-based TABCo International Food Catering for $2.5 million plus assumed liabilities.
Amazing Brands was founded by restaurateur Stephen Siegel and operates concepts including Pinkbox Doughnuts, Siegel’s Bagelmania, and Piero’s Italian Cuisine. TABCo already operates Elevation Burger locations in Kuwait and has previously stated it is “actively expanding and growing Elevation Burger” in the Middle East.
The restructuring effectively dismantles a restaurant empire built aggressively through acquisitions over the past several years. Founded as a holding company for Fatburger in 2017, FAT Brands rapidly expanded by acquiring Johnny Rockets in 2020, Global Franchise Group in 2021, Twin Peaks later that year, and Smokey Bones in 2023.
However, mounting leverage, rising interest costs, inflationary pressures, and weaker consumer spending strained the company’s finances. The group entered bankruptcy proceedings in January 2026, listing liabilities between $1 billion and $10 billion.
The company’s bankruptcy was further complicated by governance and legal challenges surrounding former CEO Andy Wiederhorn, who stepped down earlier amid federal investigations linked to alleged financial misconduct.
Industry analysts say the breakup sale reflects a broader shift in the franchise restaurant sector, where lenders and investors are increasingly prioritising operational discipline and profitability over debt-fuelled expansion strategies.
