Nicholas Perkins grew up eating Fuddruckers, and still maintains “you cannot buy a better burger.” So when the opportunity arose this spring to purchase 13 of his own franchise locations, Perkins leaped and closed on the deals under his affiliate Black Titan Holdings.
Then, when Perkins learned Houston-based Luby’s was liquidating its assets including Fuddruckers, he immersed himself “in a competitive bidding process that lasted more than a year, in large part due to COVID,” he said. Fuddruckers contacted more than 150 bidders before accepting the offer from Perkins.
Perkins "always wanted to become a part of this iconic brand. I just didn’t realize that one day I’d wind up owning it,” he said. “So, nostalgia has definitely played a minor role in my acquisition of Fuddruckers.”
Luby’s agreed to sell the master ownership of the Fuddruckers brand nationwide to Perkins' newly-formed affiliate, Black Titan Franchise Systems, on June 17 for an anticipated $18.5 million. The deal—which is expected to close in about 90 days—will help Luby’s continue selling its assets, paying its liabilities and returning proceeds to shareholders.
Luby’s acquired Fuddruckers in June 2010, buying its former owner Magic Brands out of bankruptcy for $63.5 million.
“I firmly believe I have the managerial abilities to restore this iconic brand to prominence,” Perkins said. “…I am also encouraged by a talented franchisee base that has demonstrated a passion and commitment to the brand and that has a vested interest in its long-term success.”
Perkins is set to make history with this deal, making him the largest Fuddruckers franchisee and the first African American with 100 percent ownership of a national burger franchise. That's according to Perkins’ alma mater Howard University, a historically Black university in Washington, D.C.
HU alumnus Nicholas Perkins is slated to acquire the Fuddruckers restaurant chain for an estimated $18.5 million, making him the first African American with 100% ownership of a national burger franchise. #BisonPride #BisonintheNewsRead more here: https://t.co/b5hLbebceP pic.twitter.com/Lv40Rc9Ove— Howard University (@HowardU) June 19, 2021
Perkins said that immediately upon closing, he and his team at Black Titan will implement a three-phase strategic plan to focus on stabilizing the company, repositioning the brand and developing a growth strategy.
“Our initial focus will not be on growth but on our strategic-planning process and on supporting our existing franchisee base,” he added. “At the appropriate time, we will employ an aggressive growth strategy that will encompass franchise expansion in both foreign and domestic markets. Also, we have 85 franchises in the United States, a tally that exceeds 90 when our restaurants in Canada, Mexico and Panama are also taken into account.”