Multi-Family Office

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Kahala Franchising

Kahala Franchising began as a single-family office for the founders of Cold Stone Creamery and has since evolved into a multi-family office structure,...

Kahala Franchising

Kahala Franchising began as a single-family office for the founders of Cold Stone Creamery and has since evolved into a multi-family office structure, consolidating a portfolio of over 20 quick-service restaurant brands. The firm is headquartered in Scottsdale, Arizona, and became part of FLAVORx Inc. (OTC: FLVR) in 2021 through a reverse merger transaction that made Kahala the operating entity while FLAVORx became a publicly traded parent. The wealth origin traces to the founders' equity in Cold Stone Creamery, which was sold to M3 Capital Partners in 2009. The firm focuses on franchising as its primary investment strategy, acquiring and developing quick-service restaurant brands that include Cold Stone Creamery, Blimpie, Taco Time, and Surf City Squeeze among others. Kahala operates as a co-investment vehicle alongside its family office principals and institutional partners, deploying capital into brand acquisitions, franchisee support systems, and the real estate underlying its store locations. Its geographic footprint spans all 50 US states and international markets including Canada, Mexico, and several Middle Eastern nations. Kahala's post-merger entity had approximately 2,300 franchised locations in operation as of early 2023, per SEC filings for FLAVORx. The firm does not publicly disclose AUM or total deployment, but it operates with a lean team structure and has historically used an asset-light franchising model to generate revenue through royalties and franchise fees. No significant professional hires, office expansions, or fund closings have been reported in the last 24 months. Kahala's structural differentiator is its use of a publicly traded parent (FLAVORx) as a capital-raising vehicle while maintaining family-office control over the operating brands. This hybrid structure allows it to tap public equity markets for acquisitions without ceding majority ownership to outside investors — a rare architecture among multi-family offices in the consumer-franchising space.

General information

Firm type

Multi Family Office

Year founded

AUM

Undisclosed

Location

Region

North America

Country

United States

City

Scottsdale

Corporate office

Scottsdale, AZ, United States

Sector focus

Food & BeverageFranchisingConsumer

Frequently asked questions

How is Kahala Franchising structured as a family office?

Kahala Franchising operates as a multi-family office that uses its publicly traded parent FLAVORx (OTC: FLVR) as a capital-raising vehicle. The firm's principals retain family-office control over the operating brands while leveraging public equity markets for growth capital. This hybrid structure is uncommon among family offices in the consumer-franchising space.

What investment stages does Kahala typically target?

Kahala focuses on acquiring and developing existing franchise brands rather than seed-stage or early-growth restaurant concepts. Its deals are typically buyouts of established quick-service chains that can be integrated into its franchising platform. The firm also invests in the real estate underlying its store locations.

Which brands does Kahala Franchising own?

Kahala's brand portfolio includes Cold Stone Creamery, Blimpie, Taco Time, Surf City Squeeze, and more than 15 other quick-service restaurant chains. As of early 2023, the combined system had roughly 2,300 franchised locations across all brands, per SEC filings.

Does Kahala Franchising co-invest with external partners?

Yes, Kahala has historically co-invested with institutional partners and family office principals on brand acquisitions and franchisee-support infrastructure. The firm's franchising model depends on a network of franchisees who provide capital for individual store buildouts.

Where does the underlying wealth originate?

The underlying wealth for Kahala's principals originates from the founders' equity in Cold Stone Creamery, which was sold to M3 Capital Partners in 2009. The firm has since grown its capital base through brand acquisitions and proactive franchisee support.

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