Argosy Private Equity, a lower middle market private equity firm, today announced it has exited its investment in Rita’s Franchise Company, LLC.
Founded in 1984 and headquartered in Trevose, PA, Rita’s is one of the premier frozen treat purveyors in the industry. The company’s journey began when Bob Tumolo, a former Philadelphia firefighter, opened the first Rita’s location in Bensalem, PA. Tumolo expanded the brand by introducing franchising, and today, the Rita’s franchise network spans approximately 600 locations across 30 U.S. states, as well as international markets. Known for its loyal customer base, Rita’s has been named a top food franchise by Franchise Times, Entrepreneur Magazine, and Entrepreneur’s Startup. Additional recognition from top publications like Zagat and The Wall Street Journal have solidified its place as a beloved and celebrated brand in the frozen dessert space.
Argosy acquired Rita’s in December 2016 and began implementation of its Value Acceleration Methodology (VAM™) at acquisition. Key initiatives included refining its expansion strategy and leveraging data to drive key decisions, such as new store and drive thru locations. Enhancing franchisee support through upgraded training and ordering tools, while boosting customer engagement through a revamped app and mobile ordering, contributed to additional growth. On the product front, relentless R&D led to new flavors and offerings including Frozen Coffee and seasonal favorites.
“Partnering with the Rita’s leadership team has been an extraordinary experience. From the outset, we were impressed by the brand’s potential and its passionate customer base. In collaboration with the management team, the implementation of VAM™ initiatives led to significant growth and contributed to more than doubling EBITDA during our hold period. Rita’s has evolved into a beloved and celebrated brand, and it has been a privilege to contribute to their journey. The numerous changes implemented during our ownership period have significantly increased franchisee profitability and improved the customer experience. We are excited to see the brand continue to thrive under its new ownership,” said Kirk Griswold, Founding Partner of Argosy Private Equity.
“Argosy has been a great partner, helping us refine our strategy and align our core fundamentals with our business objectives. Argosy’s VAM™ tools were instrumental in growing revenue, improving processes, and ultimately helping our franchisees better serve our customers. The Argosy team has not only been a trusted business partner but also a key contributor to making this journey rewarding for everyone involved,” said Linda Chadwick, CEO of Rita’s.
About Argosy Private Equity
Argosy Private Equity, founded in 1990, is a lower middle market private equity firm dedicated to growing and professionalizing U.S. manufacturing and business services companies, often family or founder owned. For over 30 years, Argosy Private Equity has partnered with more than 135 investments, focusing on companies with $3 to 10 million of EBITDA and substantial potential to grow. Argosy manages a diverse portfolio across six funds and over $1.1 billion in assets under management as of June 30, 2024.
For further information, please visit: www.argosype.com
