Farragut Invests in Factorial Restaurant Holdings

WASHINGTON, D.C. – Farragut Capital Partners, Inc. (“Farragut”) is pleased to announce the closing of an investment in a newly formed, 26-unit Burger King franchisee based in the Midwest.  This transaction represents Farragut’s third investment in the Quick Service Restaurant (“QSR”) space in recent years and fifth investment this year out of the firm’s recently closed fund. 

Farragut provided senior debt and made an equity co-investment to support the acquisition of the 26 locations by Factorial Restaurant Holdings, LLC (“Factorial”), a Chicago-based financial sponsor focused on the QSR space.  Farragut partnered with Pelham S2K on the debt and equity transaction, which also included a delayed draw development line to support store remodels and growth. 

Factorial is led by industry veterans and advisors who have 50 plus years of combined restaurant and operations experience, having most recently led the buy-out, growth and exit of Irish Beef, LLC, an Arby’s franchisee located in the Southwest.  This transaction represents an attractive entry point for Factorial into the Burger King system, with future restaurant growth expected over time.  The Factorial team is bolstered on this transaction by the involvement of Fred Beilstein III of The Beilstein Group, LLC, a long-time restaurant industry CEO and CFO with experience as a franchisor and franchisee as well as within the Burger King system.

Javier Aguirre of Farragut Capital Partners said of the transaction, “We’re excited to partner with the Factorial team as they capitalize on strong growth opportunities within the Burger King system. The group brings a wealth of restaurant operations experience and we look forward to working with them as they strengthen and expand their geographic market, which we believe has great potential.”

Michael Stanley of Factorial commented, “We are thrilled to be partnering with Farragut and Pelham S2K as we build what we intend to be one of the preeminent restaurant platforms in the country. Their restaurant experience and expert team makes them the ideal partner for our growth plans within the Burger King system.”