Franchise Group, Inc. (NASDAQ: FRG) (“Franchise Group” or the “Company”) announced today that it intends to offer and sell 3,500,000 shares of its common stock in an underwritten public offering. In addition, the Company intends to grant the underwriters a 30-day option to purchase additional shares of common stock equal to up to 15% of the number of shares of common stock offered. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the size or terms of the offering.

The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.

B. Riley FBR, Inc. is serving as the lead book-running manager in the offering. Stephens Inc. is also serving as a book-running manager in the offering. Barrington Research Associates, Inc., CJS Securities, Inc. and National Securities Corporation are serving as co-managers in the offering.

The offering of these securities is being made pursuant to an effective shelf registration statement on Form S-3, which was initially filed with the Securities and Exchange Commission (the “SEC”) on January 31, 2020, and declared effective by the SEC on June 22, 2020. The offering will be made only by means of a prospectus and prospectus supplement.