{"id":21137,"date":"2021-06-30T21:27:01","date_gmt":"2021-07-01T02:27:01","guid":{"rendered":"https:\/\/myboysay.com\/blog\/?p=21137"},"modified":"2021-06-30T21:45:45","modified_gmt":"2021-07-01T02:45:45","slug":"nicholas-perkins-chairman-president-and-ceo-at-perkins-management-services-co-and-black-titan-franchise-systems-will-acquire-fuddruckers-from-lubys-for-estimated-18-5-million-updated-0","status":"publish","type":"post","link":"https:\/\/myboysay.com\/blog\/?p=21137","title":{"rendered":"Nicholas Perkins, Chairman, President, and CEO at Perkins Management Services Co and Black Titan Franchise Systems, Will ACQUIRE Fuddruckers From Luby\u2019s for Estimated $18.5 Million. UPDATED 06-30-2021"},"content":{"rendered":"
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\"Nicholas<\/div>\n<\/div>
Nicholas Perkins, CEO of Black Titan Franchise Systems, signed an agreement to purchase Fuddruckers from Luby’s.<\/strong><\/figcaption><\/figure>\n<\/div>\n
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Nicholas Perkins grew up eating Fuddruckers<\/a>, and still maintains \u201cyou cannot buy a better burger.\u201d So when the opportunity arose this spring to purchase 13 of his own franchise locations, Perkins leaped and closed on the deals under his affiliate Black Titan Holdings.<\/strong><\/p>\n

Then, when Perkins learned Houston-based Luby\u2019s was liquidating its assets including Fuddruckers, he immersed himself \u201cin a competitive bidding process that lasted more than a year, in large part due to COVID,\u201d he said. Fuddruckers contacted more than 150 bidders before accepting the offer from Perkins.<\/strong><\/p>\n

Perkins “always wanted to become a part of this iconic brand. I just didn\u2019t realize that one day I\u2019d wind up owning it,\u201d he said. \u201cSo, nostalgia has definitely played a minor role in my acquisition of Fuddruckers.\u201d<\/strong><\/p>\n

Luby\u2019s agreed to sell the master ownership of the Fuddruckers brand nationwide to Perkins’ newly-formed affiliate, Black Titan Franchise Systems, on June 17 for an anticipated $18.5 million. The deal\u2014which is expected to close in about 90 days\u2014will help Luby\u2019s continue selling its assets, paying its liabilities and returning proceeds to shareholders.<\/strong><\/p>\n

Luby\u2019s acquired Fuddruckers in June 2010<\/a>, buying its former owner Magic Brands out of bankruptcy for $63.5 million.<\/strong><\/p>\n

\u201cI firmly believe I have the managerial abilities to restore this iconic brand to prominence,\u201d Perkins said. \u201c\u2026I am also encouraged by a talented franchisee base that has demonstrated a passion and commitment to the brand and that has a vested interest in its long-term success.\u201d<\/strong><\/p>\n

Perkins is set to make history with this deal, making him the largest Fuddruckers franchisee and the first African American with 100 percent ownership of a national burger franchise. That’s according to Perkins\u2019 alma mater Howard University,\u00a0a historically Black university in Washington, D.C.<\/strong><\/p>\n

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HU alumnus Nicholas Perkins is slated to acquire the Fuddruckers restaurant chain for an estimated $18.5 million, making him the first African American with 100% ownership of a national burger franchise. #BisonPride<\/a> #BisonintheNews<\/a>Read more here: https:\/\/t.co\/b5hLbebceP<\/a> pic.twitter.com\/Lv40Rc9Ove<\/a><\/strong><\/p>\n

\u2014 Howard University (@HowardU) June 19, 2021<\/a><\/strong><\/p><\/blockquote>\n

Perkins said that immediately upon closing, he and his team at Black Titan will implement a three-phase strategic plan to focus on stabilizing the company, repositioning the brand and developing a growth strategy.<\/strong><\/p>\n

\u201cOur initial focus will not be on growth but on our strategic-planning process and on supporting our existing franchisee base,\u201d he added. \u201cAt the appropriate time, we will employ an aggressive growth strategy that will encompass franchise expansion in both foreign and domestic markets. Also, we have 85 franchises in the United States, a tally that exceeds 90 when our restaurants in Canada, Mexico and Panama are also taken into account.\u201d<\/strong><\/p>\n

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Luby’s sells Fuddruckers to a franchisee for an estimated $18.5M<\/strong><\/h1>\n

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The buyer is a newly formed affiliate of Nicholas Perkins, an operator of 13 Fuddruckers units and a contract management company.\u00a0<\/span><\/strong><\/p>\n<\/header>\n<\/div>\n

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\"\"Luby\u2019s has agreed to sell its 92-unit Fuddruckers fast-casual brand to an affiliate of the chain\u2019s largest franchisee, Black Titan Enterprises, in a buyout deal with a potential value of $18.5\u00a0million.<\/strong>The Back Titan affiliate has also agreed to buy the land underneath what are now company-operated Fuddruckers units. The details of that transaction, including the price, were not disclosed.<\/strong>The sale of the restaurant chain is the latest step in Luby\u2019s liquidation<\/a>, which was announced in September after the cafeteria operator failed to find a buyer. Luby\u2019s main business is its namesake cafeterias, including four that are paired with a Fuddruckers.<\/strong>Luby\u2019s said it will hang onto those four Fuddruckers, as well as five standalone units.<\/strong>The parent of Fuddruckers\u2019 intended buyer, newly formed Black Titan Franchise Systems, already owns and operates 13 franchised restaurants and plans to acquire two more. Both Black Titan entities are controlled by Nicholas Perkins, who also has a foodservice management company, Washington, D.C.-based Perkins Management Systems. That operation runs the foodservice operations of colleges, healthcare institutions, government facilities, offices and factories. It also provides catering for sports and entertainment events.<\/strong>Perkins will serve as CEO of Black Titan Franchise Systems, or BTFS, as he does for Black Titan Enterprises and Perkins Management Systems.<\/strong>The deal announced Thursday by Luby\u2019s calls for Black Titan Franchise Systems, or BTFS, to provide Luby\u2019s with a note for most of the $18.5\u00a0million transaction price. \u00a0Luby\u2019s said it cannot guarantee the value will remain at $18.5 million, but the public company is not adjusting its projections of what its liquidation will fetch.<\/strong>Luby\u2019s said it contacted 150 potential buyers before accepting Perkins\u2019 bid, the highest in the batch.<\/strong>“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,\u201d Perkins said in a statement.<\/strong>Luby\u2019s has yet to find a buyer for its cafeterias and its contract management company, Luby’s Culinary Contract Services, which competes in several of the non-commercial segments served by Perkins Management Systems.<\/strong><\/p>\n

Fuddruckers was a pioneer of fast-casual dining. It was created by Phil Romano, also the father of Romano\u2019s Macaroni Grill and Eatzi\u2019s, as a place where consumers could get a better burger than what they would find at a typical fast-food restaurant.<\/strong><\/p>\n

The burgers were made to order, and early units featured a butcher shop and bakery.<\/strong><\/p>\n

Luby’s said it expects the deal to close within 90 days.<\/strong><\/p>\n

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A D.C. business owner just saved Fuddruckers burger chain<\/strong>\u00a0<\/a> <\/strong><\/h1>\n<\/header>\n<\/div>\n<\/div>\n<\/div>\n
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\"The<\/strong><\/div>\n<\/div>\n<\/div>\n
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The Fuddruckers brand of burger restaurants was sold last week to a D.C. business owner.<\/strong><\/p>\n<\/div>\n<\/figure>\n<\/div>\n<\/div>\n

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The new owner of the Fuddruckers restaurant brand is Nicholas Perkins<\/a>, an existing franchisee and the owner of a D.C. business that specializes in contract food services and the fast-food industry.<\/strong><\/p>\n

Houston restaurant company Luby\u2019s Inc. (NYSE: LUB) reached a deal last week to unload its Fuddruckers franchise business to Black Titan Franchise Systems LLC, an affiliate of Perkins\u2019 Black Titan Enterprises. The deal is expected to be valued around $18.5 million, most of which will come from Black Titan’s issuance of a note to Luby’s and assumption of certain liabilities, Luby’s said. Perkins will take overall ownership of the Fuddruckers brand.<\/strong><\/p>\n

Luby’s and its financial adviser contacted more than 150 entities before settling on Perkins, who was already Fuddruckers\u2019 largest franchisee, owning 13 of the restaurants with deals in place to acquire two more. The purchase by an existing franchisee puts the future of the Fuddruckers on firmer footing, as the sale of the brand had the potential to put an end to its existence.<\/strong><\/p>\n

\u201cAs 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,\u201d Perkins said in a statement.<\/strong><\/p>\n

Perkins is a Howard University School of Business alum, and the school said in a tweet<\/a> the purchase makes him “the first African American with 100% ownership of a national burger franchise.”<\/strong><\/p>\n

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\"Nicholas <\/i> Enlarge<\/span><\/span><\/a><\/strong><\/div>\n
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Nicholas Perkins is the new owner of the Fuddruckers brand.<\/strong><\/p>\n

Nicholas Perkins<\/strong><\/p>\n<\/div>\n<\/figure>\n<\/div>\n

There are currently 92 Fuddruckers locations operating in the U.S., with just two locations in Greater Washington \u2014 one in Ashburn and another in Woodbridge.<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Perkins leads D.C-based Perkins Management Services Co., a company that, among other business, oversees the food services contract at the University of the District of Columbia. It lists a headquarters in downtown D.C. and a regional office in Charlotte, North Carolina. The company also does work in facilities management and custodial services and operates in 11 states and the District. It lists restaurant retail management work with Burger King, Starbucks and Church\u2019s Chicken, among other fast-food chains.<\/strong><\/p>\n

The sale of the Fuddruckers brand is part of the liquidation of Luby\u2019s, after which the company aims to be dissolved by June 2022. The Luby\u2019s board said it expected to generate between $93 million and $128 million through its liquidation, which also includes the Luby\u2019s Cafeterias brand \u2014 a buyer was announced Monday \u2014 and real estate related to both brands. In February, Luby\u2019s brought on JLL to market its real estate<\/a>.<\/strong><\/p>\n<\/div>\n

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