Transaction Overview
In December 2000 Trinity Capital was approached by Tricon and FRANMAC, the Taco Bell Corporation Franchise Association to develop, orchestrate and execute a comprehensive restructuring program.
The restructuring program employed a unique scheme of putting Trinity in the middle of tri-part participants of creditor, franchisee and franchisor. This model yielded several important breakthroughs for this as well as the industry at large:
• Recognition of franchisors’ unique role in restructuring
• Development quasi-forensic accounting analysis of unit financial statements
• Recognition of significance of partnership and alignment of interests between franchisor and franchisee
• Underscoring of the need for good systems, data reporting and MBO in managing large QSR franchisees
