SHARE

April 11, 2022

Sweet Deal: Contributing to the Rise of Federal Donuts

You've Reached Your
Free Article Limit This Month
Register for free to get unlimited access to all Law.com OnPractice content.
Register Now

Key Takeaways

  • The company is owned by renowned Philadelphia restaurateurs Steve Cook and Michael Solomonov—a James Beard Award winner for best chef in the country.

 

It takes just the right mix of high-quality ingredients to make a delicious donut.

The same can be said for a successful business partnership.

So it was crucial to find the right partner to support a national expansion of Federal Donuts—the wildly popular culinary pioneer that serves up staples of donuts, fried chicken, and coffee at 11 locations in the Greater Philadelphia area.

Fortunately, Federal Donuts' longtime counsel, Ballard Spahr's Greg Seltzer, is dialed into the venture capital community in Philadelphia and nationally. Co-leader of the firm's Emerging Companies and Venture Capital practice, Greg realized he knew of a good fit for a growth equity investment in Federal Donuts' parent company, CookNSolo. The company is owned by renowned Philadelphia restaurateurs Steve Cook and Michael Solomonov—a James Beard Award winner for best chef in the country.

Greg and the leaders of Radnor, Pa.-based NewSpring knew each other from the VC space. Greg saw potential in a Federal Donuts alliance with NewSpring Franchise, the firm's strategy focused on innovative franchise and multi-unit concepts.

"I thought it would be a nice strategic fit for our client," Greg said. "As lawyers, we actually get out there and add value and make introductions for our clients."

Through pandemic hiccups and other transactional twists and turns, Greg and the Ballard Spahr legal team helped keep the deal cooking. Last week, NewSpring formally announced its growth equity investment in Federal Donuts. The Ballard Spahr team working with Greg on the project included Christopher J. DePizzoJohn J. EaganJessica Laderman Origlio, and Aron Mozes.

Federal Donuts plans to use the investment to fill a hole in the fast-casual space nationally with growth beyond its Philly roots to the rest of the mid-Atlantic region and beyond.

It was the latest of Ballard Spahr's work for CookNSolo. In addition to Federal Donuts, the company's nine restaurants include Zahav in Philadelphia—a James Beard Award winner for best restaurant in the country. Greg and Ballard Spahr have advised Federal Donuts since its founding in 2011 by what the company describes as "five hungry Philadelphians whose lives were changed by donuts—partners Tom Henneman, Steve Cook, Michael Solomonov, Felicia D'Ambrosio, and Bob Logue."

"Greg Seltzer and the entire Ballard team were instrumental in getting this transaction closed for Federal Donuts," Steve Cook said. "Their professionalism and practical approach to deal-making made for a seamless process that achieved our objectives in a timely manner.

"As a small company, we were pleased to find that Ballard provided Federal Donuts with the best of both worlds: A large firm with deep expertise in all aspects of the transaction, along with a small deal team that was accessible, responsive, and a pleasure to work with."

ALM expressly disclaims any express or implied warranty regarding the OnPractice Content, including any implied warranty that the OnPractice Content is accurate, has been corrected or is otherwise free from errors.

More From Ballard Spahr

New York Restricts Automated Decision Making in Employment

By Timothy Dickens Ballard Spahr August 29 , 2022

Businesses operating in New York City should be aware of a local law addressing the use of automated employment screening and decision-making tools coming into effect on January 1, 2023.

Status Update: Federal Contractor Vaccine Mandate Injunction Narrowed

By Lila A. Sevener Ballard Spahr August 29 , 2022

On August 26, 2022, the United States Court of Appeals for the Eleventh Circuit narrowed the nationwide injunction of Executive Order 14042, which requires federal contractors and employees who work on or in connection with a covered federal contract, or share a workplace with another employee who works on or in connection with such contracts, to be fully vaccinated against COVID-19.

Unions Cannot Force OSHA to Issue Permanent COVID Standard

By Shannon D. Farmer Ballard Spahr August 26 , 2022

On August 26, 2022, the U.S. Court of Appeals for the District of Columbia Circuit turned back efforts by a group of unions seeking to force the Occupational Safety and Health Administration (OSHA) to quickly issue a permanent rule establishing protections for healthcare workers from COVID-19.

More From Hospitality and Lodging

5 Trends to Watch: 2023 Venture Capital

By Chinh H. Pham Greenberg Traurig January 20 , 2023

The current macroeconomic environment, coupled with record increases in valuations over the last several years, is creating an increase in down-rounds, re-pricings, and recapitalizations.

5 Trends to Watch: 2023 Hospitality

By Samantha Ahuja Greenberg Traurig January 18 , 2023

For many hotels, the pandemic exacerbated the challenges of finding enough qualified workers to fill jobs.

SEC Adopts Final Amendments to Rule 10b5-1 and New Disclosure Requirements

By Raffael Fiumara Greenberg Traurig January 12 , 2023

On Dec. 14, 2022, the Securities and Exchange Commission (SEC) adopted significant amendments to Rule 10b5-1 under the Securities Exchange Act of 1934 (the “Exchange Act”) and new rules and disclosure requirements associated with 10b5-1 trading plans meant to address the SEC and other industry participants’ views of potential abuses under the current insider trading regime, including “cooling-off” periods for insiders, prohibitions on overlapping plans, certain insider certifications, and other requirements summarized below.

Featured Stories
Closeclose
Search
Menu

Working...