Dhanani Group, a US-based quick-service restaurant (QSR) franchisee firm, has secured $500m in financing from Monarch Alternative Capital and its partners to drive its future growth.

A leading QSR group, Dhanani has nearly 850 restaurants across 23 US states.

The company entered the restaurant franchise segment in 1994.

Monarch Alternative Capital managing principal Joshua Acheatel said: “The Dhanani Group is an exceptionally well-run company with strong franchisor support that is positioned to thrive in various market environments.

“We were drawn to Dhanani’s demonstrated record of success investing in and growing multiple franchise concepts through the company’s cohesive and long-standing management team.

“Monarch and our investors are pleased to partner with the Dhanani Group to provide both capital and operating expertise to help the company continue on its path of successfully improving and growing its asset base.”

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The five-year bank loan facility will bolster Dhanani’s business financially and support its future growth plan.

Dhanani Group co-CEO Amin Dhanani said: “Monarch provides us with a unique and differentiated value proposition through their prior experience in the restaurant industry and ability to provide a holistic capital solution in an expedited manner.

“The new capital led by Monarch comes at an important time in the firm’s history, providing Dhanani with the resources to capitalise on our growth initiatives in the years ahead.”   

For the transaction, Dhanani Group was advised by Centerview Partners, FTI Consulting and Vinson & Elkins, while Akin Gump Strauss Hauer & Feld represented Monarch Alternative Capital.