FOR IMMEDIATE RELEASE

Kratos Capital Engaged by Franchisee Consortium to Pursue Acquisition of Select Assets in FAT Brands Chapter 11 Process

Dallas, TX — April 24, 2026 — Kratos Capital and its affiliate, Kratos Capital Markets, announced today that they have been formally engaged by a consortium of franchisee groups to evaluate and pursue the acquisition of select restaurant brand assets as part of the ongoing Section 363 sale process in the Chapter 11 restructuring of FAT Brands Inc.

Strategic Acquisition Focus

The franchise-led consortium is targeting select operating assets characterized by strong unit-level performance, established brand equity, and scalable growth opportunities.

The acquisition strategy is centered on:

• Preserving continuity across key franchise locations
• Enhancing franchisee profitability and system stability
• Securing flexible acquisition financing
• Streamlining brand-level operations post-transaction
• Supporting long-term franchise system growth

Kratos Capital Markets is actively engaging private credit funds, special situations investors, and structured finance providers to assemble a fully underwritten capital solution tailored to the transaction.

Opportunity in Franchise and Restaurant M&A

The current restructuring environment presents a unique opportunity for well-capitalized franchisees and institutional partners to acquire premium restaurant assets at compelling valuations. Franchise operators often represent the most informed buyers in distressed scenarios, with direct insight into unit-level economics and operational execution.

“Franchisees are frequently the natural long-term owners in restructuring situations,” Bammel added. “Our role is to align capital, structure, and execution to ensure these assets transition into stable, growth-oriented ownership.”

Execution Timeline

Kratos Capital and Kratos Capital Markets are working in coordination with legal and restructuring advisors to evaluate assets, conduct diligence, and advance negotiations through the court-supervised sale process.

The franchisee consortium intends to move quickly as assets are marketed and sale approvals progress, with targeted execution aligned to the bankruptcy timeline.

About Kratos Capital

Kratos Capital is a private investment and advisory firm focused on complex transactions, including distressed acquisitions, franchise investments, and structured finance solutions. The firm partners with operators, investors, and lenders to execute value-driven transactions across the consumer and franchise sectors.

About Kratos Capital Markets

Kratos Capital Markets is the firm’s capital markets affiliate specializing in debt placement, special situations financing, and institutional investor engagement across middle-market transactions.

Media Contact

Kratos Capital
info@kcapmarkets.com

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