Blackstone will acquire a majority stake in Jersey Mike's Subs, the sandwich chain said Tuesday, marking the private equity firm's latest investment in a franchise business.

Reuters had reported on Monday, citing a person familiar with the matter, that Blackstone was nearing a deal for Jersey Mike's at around $8 billion, including debt.

The deal underscores private equity firms' increasing interest in franchise operators.

Last year, private equity firm Roark Capital agreed to buy Subway, Jersey Mike's bigger rival, in a deal valued at up to $9.55 billion.

Blackstone, the world’s largest alternative asset manager with more than $1.1 trillion in assets under management, has been on an investing spree in food franchises this year.

In April, Blackstone agreed to buy Tropical Smoothie Cafe, a franchiser of fast casual restaurants, from private equity firm Levine Leichtman Capital Partners.

Blackstone's previous franchise deals include the 2007 acquisition of Hilton Hotels and its investment in Servpro, a franchise in the cleanup and emergency restoration industry.

"We believe we are still in the early innings of Jersey Mike's growth story and that Blackstone is the right partner to help us reach even greater heights," Jersey Mike's founder and CEO Peter Cancro said.

Cancro will maintain an equity stake in the company and continue to lead the business.

"Blackstone has helped drive the success of some of the most iconic franchise businesses globally and we look forward to working with them to help make significant new investments going forward," Cancro said.

The deal is expected to close in early 2025.

Guggenheim Securities, Morgan Stanley, and White & Case were the advisers to Jersey Mike's. Barclays, Bank of America, and Simpson Thacher & Bartlett advised Blackstone on the deal.