Schlotzsky's(R) Growth Momentum Skyrockets with 75 Franchise Agreements

Newly Rebranded Image Captures Interest of Multi-Unit Investors in New Jersey and Central Texas

June 27, 2011 // Franchising.com // AUSTIN – Schlotzsky's®, the home of The Original® round toasted sandwich, announced today it has signed 75 franchise agreements for a total of 25 restaurants that will each house the Schlotzsky's, Cinnabon and Carvel concepts under one roof.

Company executives said the restaurants will begin to open throughout New Jersey and Texas during the next six to 12 months. The first development agreement was signed with New Jersey-based Better Bunz, LLC for 17 tri-brand locations (a total of 51 agreements between the three concepts), to open in areas throughout New Jersey. Meanwhile, Texas-based Sac-N-Pac inked the second deal, with eight tri-brand locations, for a total of 24 agreements, to open throughout Houston, San Antonio and Central Texas.

"Together, these agreements represent the largest in Schlotzsky's history," said Kelly Roddy, President. "We are thrilled to expand the brand throughout Texas and New Jersey with a talented group of business savvy entrepreneurs," added Roddy, who further noted that the new locations will feature the brand's 'Lotz Better' look, a bright, contemporary feel with a circle theme and a new service model where crew members hand-deliver food to the tables.

While Anthony and Lama Dalleggio of Better Bunz, LLC will own the new Schlotzsky's restaurants, their daughter, Lea, will oversee operations. In addition, the Dalleggios will work with experienced restaurateurs as part of their team to help with site selection, marketing and operations.

"Our family's strong affinity for the Schlotzsky's brand started many years ago while living in Houston," Lea Dalleggio said. "When we moved to New Jersey, our family missed our favorite Schlotzsky's sandwich and looked into bringing the brand to the region. After our due diligence, we couldn't pass up the opportunity to replicate the Schlotzsky's culture in New Jersey. We look forward to serving our customers with the best in gourmet sandwiches and beyond."

Family-owned and operated fuel and grocery retailer, Sac-N-Pac, will open non-traditional interstate/convenience connected locations primarily operated along major highways and travel plazas. Each Schlotzsky's restaurant will share a building with the fuel/convenience retail and have its own entrance, a separate drive-thru and a connected pass-through in the building.

With more than 350 locations worldwide, Schlotzsky's continues its growth momentum by aggressively targeting markets in Texas and in untapped markets around the country including Atlanta, Charlotte, Denver, Orlando, Tampa, Kansas City, Nashville, Phoenix, Raleigh and St. Louis for multi-unit developers. Roddy added that, ideally, Schlotzsky's plans to have upwards of 700 locations by 2015.

About Schlotzsky's

Since 1971, Schlotzsky's has been the home of The Original® toasted sandwich. The menu has evolved with customers' tastes to include the highest quality sandwiches, pizzas, salads, and soups available today. With more than 350 locations worldwide, Schlotzsky's is the fast-casual choice for a quick, healthful, and fresh dining experience. Schlotzsky's is enjoyed around the world, with restaurants in Turkey, China, Saudi Arabia, South Africa, Costa Rica, Jordan and Kuwait. Schlotzsky's is owned by FOCUS Brands Inc.®, the franchisor and operator of more than 3,300 Carvel®, Cinnabon®, Schlotzsky's®, Moe's Southwest Grill® and Auntie Anne's® locations and Seattle's Best Coffee® on certain military bases and in international markets. For more information, visit www.Schlotzskys.com.

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