Franchise Group, Inc.

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Ademi LLP is investigating Franchise Group (Nasdaq: FRG) for possible breaches of fiduciary duty and other violations of law in its transaction with the Consortium Led by Management Group.

Franchise Group public stockholders are expected to receive only $30.00 in cash for each share of Franchise Group common stock they hold. The transaction has an enterprise value of approximately $2.6 billion, including the Franchise Group’s net debt and outstanding preferred stock. The transaction agreement unreasonably limits competing bids for Franchise Group by imposing a significant penalty if Franchise Group accepts a superior bid. Franchise Group insiders will receive substantial benefits as part of change of control arrangements.

We are investigating the conduct of Franchise Group’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Franchise Group.