August 17, 2026
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Key Takeaways
- Private equity-backed franchises are becoming increasingly common as investors seek scalable brands with long-term growth potential.
- Thompson Street Capital Partners acquired Bubbakoo’s Burritos in 2025 to help accelerate the brand’s growth through investments in technology, infrastructure, brand development and franchisee support.
- For franchisees, private equity backing can translate into stronger operational resources, enhanced marketing capabilities and continued investment in the franchise system.
- Bubbakoo’s combines the creativity and culture that built the brand with the experience and resources of an established investment partner.
Not long ago, private equity investment was largely associated with mature franchise systems that had already reached national scale. Today, that landscape is changing.
Increasingly, private equity firms are investing in emerging franchise brands, such as the Bubbakoo’s franchise, earlier in their growth journeys, providing capital and strategic expertise that help promising concepts expand more efficiently. According to FRANdata, more than 12% of active U.S. franchise brands now have some level of private equity ownership or investment backing, reflecting a broader shift in how franchise systems are built and scaled.
For prospective franchisees, this trend raises an important question: What does private equity backing actually mean for franchise owners?
While every investment partnership is different, the right private equity partner can provide resources that strengthen the franchise system while allowing the brand to stay true to the culture that made it successful in the first place. That’s exactly the opportunity Bubbakoo’s Burritos found when Thompson Street Capital Partners joined the brand in 2025.
Meet Thompson Street Capital Partners
Thompson Street Capital Partners (TSCP) is a St. Louis-based private equity firm that specializes in partnering with founder-led, middle-market businesses with significant long-term growth potential.
Over the years, TSCP has invested across multiple industries, including consumer brands, business services, healthcare and franchising, including Freddy’s Frozen Custard & Steakburgers. Rather than simply providing capital, TSCP focuses on helping businesses scale through strategic investments in areas such as:
- Technology
- Operational infrastructure
- Leadership development
- Marketing
- Franchise support systems
- Sustainable long-term growth
Why Thompson Street Chose Bubbakoo’s Burritos
Private equity firms are looking for businesses with proven systems, differentiated positioning and meaningful room for expansion. The Bubbakoo’s franchise fit the bill.
Since opening its first restaurant in 2008, Bubbakoo’s has grown from a single Jersey Shore location into a rapidly expanding burrito franchise known for bold flavors, menu innovation and a hospitality-first culture. The brand’s customizable menu, loyal guest following and scalable operating model positioned it for continued national growth.
“As we evaluated Bubbakoo’s, we saw a brand that had already built something special: a differentiated concept with a loyal following, a strong culture and significant room for growth,” said Joe St. Geme, Managing Director at Thompson Street Capital Partners. “Our role is to help strengthen the foundation that’s already in place by investing in the people, systems and resources that support franchisees, while preserving the entrepreneurial spirit that has made Bubbakoo’s successful from the beginning.”
Why Operators Often Value Private Equity-Backed Franchises
Private equity ownership doesn’t automatically make one franchise opportunity better than another. However, when the partnership is built around long-term growth, franchisees can benefit from additional resources that may not always be available to smaller independent brands.
Some of the advantages include:
- Continued Investment in Technology: As restaurant technology continues to evolve, franchise systems need to invest in digital ordering, guest engagement tools, operational software and data analytics. Additional capital can help brands continue improving these systems over time.
- Enhanced Marketing Capabilities: Growing brands require consistent investment in consumer marketing, digital advertising, brand awareness and franchise development. A well-capitalized system is often better positioned to continue building brand recognition as it enters new markets.
- Stronger Franchise Support: Private equity-backed franchises frequently invest in expanding their support infrastructure as the franchise system grows. That can include additional field support, training resources, operational guidance and development assistance designed to help franchisees succeed.
- Long-Term Scalability: One of the biggest reasons private equity firms invest in franchising is because they believe the brand has room to grow.
For franchisees, joining during this stage can present the opportunity to grow alongside a system that is actively investing in expansion while continuing to refine its operations and support model.
A Different Kind of Growth Story
At Bubbakoo’s, “Create Something Different” is reflected in the brand’s bold menu, energetic culture and commitment to delivering memorable guest experiences, but also comes through in the burrito franchise’s system itself. Today, with the backing of Thompson Street Capital Partners, that same mindset is supported by additional resources designed to help the franchise system continue evolving without losing what made it successful in the first place.
For entrepreneurs evaluating franchise opportunities, that’s an important combination: an established brand with a differentiated identity, paired with a long-term investment partner focused on helping the system grow responsibly.
If you’re looking for a franchise opportunity backed by both creativity and strategic investment, Bubbakoo’s Burritos offers a compelling opportunity to build something different. Fill out our inquiry form to learn more!
