BOSTON With a dissident investor demanding changes and the home office considering a sale or other strategic alternatives, a group of 39 Friendly’s franchisees sent a letter to shareholders of the family-dining chain’s parent company on Wednesday, saying it supported “the long term interests” of the system and opposed any investor who does “not look to protect” the success of the concept’s franchisees.
The letter to shareholders of Friendly Ice Cream Corp. was not signed by 46-unit franchisee Kessler Family LLC, which announced earlier this month it planned to evaluate the purchase of all or a part of the franchisor.
In the open letter, the franchisee group said it wanted to express “united support” for preserving the interests of the company in light of the recent decision to explore corporate strategies. It did not detail what those interests included.
The group said it was encouraged by the board of directors’ hiring of a new chief executive, George Condos, who has 30 years of experience in the ice cream manufacturing and restaurant industries.
“We believe [Condos] is in a position to grow our business for the benefit of shareholders and franchisees alike,” the franchisee letter stated.
The group said it represented 95 percent of all Friendly franchisees, and consisted of “major stakeholders” in the Friendly’s brand.
“For many of us, our investment in Friendly’s and the success of Friendly’s restaurants is our livelihood,” the letter said.
Currently, Wilbraham, Mass.-based Friendly and dissident 15-percent stakeholder Sardar Biglari have battled over the future of the company, which operates or franchises about 514 Friendly’s restaurants. Biglari, chairman of steakhouse operator and franchisor Western Sizzlin Corp., is seeking two seats on the board of directors at Friendly. The company’s annual meeting is scheduled for May 9.
