Portland, Ore.-based Elmer's Restaurants has entered into a multi-unit franchise agreement with a restaurant group based in southern Oregon.

Southern Oregon Elmer's, headed by local restaurateurs Bob Brutke and Dave Thomason, purchased three corporate-owned Elmer's Breakfast. Lunch. Dinner restaurants in Medford, Grants Pass, and Roseburg, Oregon and has agreed to develop two more Elmer's units in southern Oregon. Further disclosures are provided in the company's Form 8-K, filed on 17 May 2002.

Commenting on the transaction, chairman Bruce Davis said: "Adding another strong multi-unit Elmer's operator underscores our strategy to increase significantly the number of franchisees in our system and to expand the Elmer's brand in the western US.

"This transaction follows the recent and successful opening of two new franchised Elmer's restaurants in Woodburn, Oregon and Nampa, Idaho," Davis continued.

Elmer's owns and operates ten Elmer's restaurants and franchises 22 restaurants in six western states. The company also owns and operates five Mitzel's American Kitchen restaurants in Puget Sound, Washington and ten deli-style restaurants in Oregon.