Area Development Agreements Signed for Eight New Franchise Restaurants
EDEN PRAIRIE, Minn.–(BUSINESS WIRE)–Famous Dave’s of America (Nasdaq:DAVE – news) has signed agreements for the development of 8 new franchise restaurants with two franchise groups. In related transactions, the Company also announced that it will be selling 4 of its company-owned restaurants to these franchise groups to seed their territories. With the new Area Development Agreements, there are now 80 franchised restaurants either open or with commitments to open.
In the first of the two transactions, Famous Dave’s signed an Area Development Agreement for the development of 6 new franchise restaurants in the Milwaukee and Green Bay area and simultaneously entered into an agreement to sell its three Wisconsin restaurants to the new franchise group. The new group is led by Larry Seedorf, whose experience includes senior operating roles and ownership in three different franchise groups including Papa Johns, Bonanza / Ponderosa and Hardees.
In the second transaction, Famous Dave’s has sold its restaurant in Rochester, Minnesota to an existing franchisee, Competition BBQ, headed by John Nermyr. This franchise group also increased its previous development commitment by agreeing to develop 2 additional franchise restaurants in out-state Minnesota.
Sale price for the two transactions totals approximately $3.7 million.
“We are excited about the continued growth in franchise commitments, both from new franchisees as well as increased commitments from our existing franchise community.” said Mark Bartholomay, Famous Dave’s Vice President of Business Development.
The Company anticipates closing on the sale of the three Wisconsin restaurants in mid-February, 2002, pending third-party contingencies. Total annual revenues for the four restaurants were approximately $7.2 million.
About Famous Dave’s
Famous Dave’s of America, Inc. (Nasdaq:DAVE – news) owns, operates and franchises barbeque restaurants. The company currently owns 36 locations and franchises an additional 19 units in Alabama, Georgia, Illinois, Indiana, Iowa, Maryland, Minnesota, Nebraska, South Dakota, Tennessee Utah, Virginia and Wisconsin and has signed development agreements for an additional 61 franchised locations. Its menu features award-winning barbecued and grilled meats, as well as salads, side items, sandwiches and signature desserts. Additional information on Famous Dave’s is available at www.famousdaves.com.