Redneck Foods, Inc. announced today that the company had entered into a major agreement under which Redneck Foods, Inc. would operate the Love’s BBQ chain.
The agreement with the owners of the Love’s chain calls for Redneck Foods, Inc. to pay 1,250,000 shares of its common stock in return for a four year agreement to manage and operate the Love’s chain. Redneck will receive 50% of the adjusted cash flow from Love’s as a management fee.
The Love’s chain is comprised of 14 midscale BBQ restaurants located in Southern California. Of the 14 Love’s restaurants, one is a company-owned restaurant and the balance are franchised. Five new Love’s are expected to open during this calendar year. At least five new Love’s are planned for each year thereafter.
Commenting on the new agreement, William E. Eskew, President of Redneck Foods, Inc. stated: “We are very pleased and excited with this agreement and our association with Love’s BBQ. Love’s is a very respected brand that’s been operating in the important Southern California market since 1948. The management agreement offers the potential for significant income for Redneck with a minimum investment. Plus, we believe Love’s is a solid growth vehicle.
“This agreement should also help Redneck accelerate its growth of Jeff Foxworthy’s Bar-B-Q(TM) restaurants and Jeff Foxworthy’s Smokehouse Grill(TM) restaurants by bringing additional resources to our company, and by helping us realize some very important economies of scale. Redneck Foods, Inc. plans to initiate a major campaign to open new Jeff Foxworthy’s(TM) restaurants.”
Eskew further stated: “We plan to report Love’s results as those of an affiliated company of Redneck Foods, Inc.”
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Redneck Foods, Inc. acquires, operates and franchises barbecue restaurants, which are promoted through advertisements and regional appearances by internationally acclaimed comedian Jeff Foxworthy. In addition, the company markets Jeff Foxworthy’s Backyard Bar-B-Q(TM) sauces in its own restaurants, as well as in selected grocery stores and mass merchandisers throughout the Southeast and Midwest.
This press release may contain forward-looking statements made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company’s products and restaurants, product demand, competition and other risks and uncertainties detailed from time to time in the Company’s periodic reports, including Quarterly reports on Form 10-Q and Annual Reports on Form 10-K.