Hooters franchisees to purchase over 100 corporate stores
Hooters of America is moving forward with plans to sell a substantial share of its corporate locations to a buyer group including its original founders.
The casual dining chain, which filed for bankruptcy in March 2025, is undergoing restructuring transactions that would allow a buyer group consisting of existing Hooters franchisees, including the original Hooters founders, known as Hoot Owl Restaurants LLC to acquire more than 100 corporate-owned restaurants.
Both parties still expect approximately 200 domestic Hooters restaurants and 60 international Hooters restaurants to remain open at the transaction's expected closing in August 2025, representing approximately $700 million in systemwide sales.
Upon closing of the transaction, Hoot Owl Restaurants anticipates operating approximately 130 Hooters locations, or roughly 65% of the domestic Hooters locations. Currently, Hoot Owl members collectively own and operate over 30% of the domestic franchised Hooters locations, including 14 of the 30 highest-volume Hooters locations.
All existing Hooters franchise locations, including those restaurants located outside the U.S., will continue to be operated by the company's franchise and license partners.
In April 2025, the parties negotiated the key terms to acquire more than 100 corporate-owned restaurants and a management agreement under which Hooters Brand Management LLC, an entity owned by Hoot Owl Restaurants and other parties with experience with the Hooters brand, will provide the majority of the franchise support functions on behalf of Hooters of America.
Hooters Brand Management has also negotiated the key terms of a management agreement with Hooters of America under which it will assume most of the franchise support obligations of Hooters, including oversight of the national ad fund, the central purchasing organization, franchise development and support and other key franchise functions.
The parties are in process of finalizing the definitive documentation to be presented to the bankruptcy court in the next few weeks.
"We are confident that the acquisition will be finalized later this summer, and we are excited to move forward into the next chapter of the Hooters brand," said Neil Kiefer, CEO of Hooters Inc. on behalf of Hoot Owl Restaurants. "Decisions about store closures are never easy to make but all parties are completely aligned in bringing the necessary resources required to make the remaining 200 domestic Hooters locations as successful as possible."
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Hoot Owl Restaurants is being represented by North Point Mergers & Acquisitions and Morrison & Foerster LLP is serving as its legal counsel.
Hooters Inc., founders of the Hooters concept, own and operate 22 Hooters restaurants in Tampa Bay and Chicagoland and two Hoots locations in Chicagoland.
