Franchise Group Says Investigation Found No Ties to Prophecy

Franchise Group Inc. said an investigation into whether it had a relationship with Prophecy Asset Management found it had no ties to the investment firm whose co-founder is embroiled in a securities fraud case.

Franchise Group said the review by Petrillo Klein & Boxer also found no evidence that a former relationship between its chief executive officer Brian Kahn and Prophecy had impacted the firm. Franchise Group, which owns brands including The Vitamin Shoppe, Sylvan Learning and Pet Supplies Plus, detailed the findings in a statement to lenders, which was seen by Bloomberg News.

A representative for Franchise Group ...