NexCen Brands Announces Expansion of Great American Cookies(R) into Canada
Master Franchise Agreement Provides for 40 Stores over 10 Years
New York--(BUSINESS WIRE)--NexCen Brands, Inc. (NASDAQ: NEXC) today announced the signing of a master franchise agreement for the expansion into Canada of its Great American Cookies® franchised stores. This agreement, together with the development agreement previously announced for 30 stores to be opened in Mexico, provides a platform for Great American Cookies stores to be opened throughout North America.
The master franchise agreement calls for the development of 40 Great American Cookies stores in Canada over a 10-year term. Four stores are expected to open in the first year of the agreement. The principals of the master developer under this agreement also are the principals of the master developer for the Company's Marble Slab Creamery concept in Canada under an existing agreement, pursuant to which 42 Marble Slab Creamery franchised stores have been opened since 2003 with 25 under development for 2009.
"We believe this new development agreement for Great American Cookies in Canada demonstrates the broad strength of this brand and more generally our ability to expand the international reach of all our franchise brands," stated Kenneth J. Hall, Chief Executive Officer of NexCen Brands, Inc.
"Canada is an attractive market where we hope to seamlessly expand the presence of Great American Cookies," stated Chris Dull, President of NexCen Franchise Management, the franchising subsidiary of NexCen Brands. "Through this master franchise agreement with proven developers, we believe we are well-positioned to successfully grow the Great American Cookies brand in Canada."
"I look forward to building on my existing relationship with NexCen to develop an international presence for Great American Cookies as we did for Marble Slab Creamery," stated Cam Inglis, signatory to the master franchise agreement. "Great American Cookies is a well-recognized premium cookie brand, and I anticipate that it will be well received by our Canadian consumers."
About NexCen Brands
NexCen manages global brands, generating revenue through franchising and licensing. The Company currently owns seven franchised brands. Two sell retail footwear and accessories (The Athlete's Foot and Shoebox New York), and five are quick service restaurants (Marble Slab Creamery, MaggieMoo's, Pretzel Time, Pretzelmaker, and Great American Cookies). We also currently own and license the Bill Blass consumer products brand.
About Great American Cookies®
Great American Cookies was founded in Atlanta, Georgia in 1977 on the strength of an old family chocolate chip cookie recipe. For over 30 years, Great American Cookies has maintained the heritage and integrity of its products by producing original cookie dough exclusively from its plant in Atlanta. Made famous by their signature cookie cakes, trademark flavors and menu of gourmet products the brand now leads the mall-based cookie system with nearly 300 locations.
Forward-Looking Statement Disclosure
This press release contains "forward−looking statements," as such term is used in the Securities Exchange Act of 1934, as amended. Such forward−looking statements include those regarding expected cost savings, expectations for the future performance of our brands or expectations regarding the impact of recent developments on our business. When used herein, the words "anticipate," "believe," "estimate," "intend," "may," "will," "expect" and similar expressions as they relate to the Company or its management are intended to identify such forward−looking statements. Forward−looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties. They are not guarantees of future performance or results. The Company's actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward−looking statements. Factors that could cause or contribute to such differences include: (1) international development agreements may not result in the actual opening of the stores provided for under those agreements, which could negatively impact anticipated franchise fees, store opening fees and monthly royalty payments over the life of the agreements; (2) economic conditions may deteriorate in international and domestic markets, which could negatively impact the sale or operations of new and existing franchise stores; (3) we depend on the success of our franchisees to develop and grow our franchise systems both domestically and internationally; (4) we and/or our franchisees may not be successful in operating or expanding our brands or integrating them into an efficient overall business strategy, (5) our marketing, licensing and franchising concepts and programs may not result in increased revenues, expansion of our franchise network or increased value for our trademarks and franchised brands, (6) other factors discussed in our filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward−looking statements, whether as a result of new information, future events or otherwise.