Company's Ability to Cut 70% From Build-Out Costs and Start-Up Time Increases First Year Performance Expectations by More Than 300%; 6-8 Additional SodaShops Now Expected to Open in '08
NEW YORK, NY--(Marketwire - April 3, 2008) - H3Enterprises, Inc. (PINKSHEETS: HTRE) has today revealed a comprehensive plan to rapidly grow its HipHopSodaShops around the USA and Canada. The new Business Model features as much as a 70% reduction in start up costs and build-out related construction time with no loss of quality or value.
After successfully opening its flagship store in Tampa Florida in December 2007, H3 has been concurrently working six (6) other US locations with potential Franchisees and/or Joint Venture Partners located in Miami, Gainesville, Chicago, Atlanta, Atlantic City, and in New York. H3 has also made significant headway into the start-up of Canadian HHSS operations beginning with Quebec and moving west towards Montreal and Toronto.
The common thread learned while searching potential SodaShop sites is that there are many facilities available that are fully equipped for lease or sale that can be easily transformed into HipHopSodaShops for a great deal less cost and time than what's required to open a new unit or complete a major remodeling job. This strategic breakthrough greatly increases the pool of eligible SodaShop franchisees, the number of stores that can be converted in any given time period, and together, H3's capability to achieve maximum growth for franchise sales and related franchise revenues.
H3's original projections call for the opening of 2 additional Shops this year at a cost of about $1,000,000/unit for the Company and/or its Franchisees. There are a number of national and regional chains of Sports Bar Restaurants and Clubs that are available throughout the country looking for takeover suitors due to lagging sales. This formula for finding facilities is working to perfection for H3 as a ready-made supply of "convertible SodaShops" while the Company begins to aggressively expand its award winning concept to the entire Hip Hop Generation.
H3 is expecting to add another 6-8 HHSS units this year and is currently working with a number of major financial institutions to purchase the HHSS properties. H3 will lease back the facilities to the Franchisees. A future goal of owning a minimum of 50% of the real estate will add stabilizing asset value to H3's financials.
Certain statements contained herein are 'forward-looking' statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements, such as statements relating to plans for future expansion and other business development activities. Such forward-looking information is subject to changes and variations, which are not reasonably predictable and which could significantly affect future results and other factors discussed in filings made by the Company with the Securities and Exchange Commission.