Schlotzsky's(R) Makes Huge Entrance into Philly with Record-Breaking 30-Unit Deal

Local Multi-Unit Franchise Group Commits to Opening Iconic Fast Casual Sandwich Restaurants; Separate Agreements Call for Cinnabon and Carvel Concepts inside Each Location

November 15, 2011 // Franchising.com // AUSTIN – Schlotzsky’s® announced today that it has signed a history-making franchise deal to bring 30 new restaurants throughout the Philadelphia metro area that would also house Cinnabon® and Carvel® franchises inside the buildings.

Schlotzsky’s, Carvel, and Cinnabon are all part of the parent company FOCUS Brands Inc.®. The three iconic food franchises began partnering early last year to open tri-branded locations and have seen robust sales due to this strategy. In total, the new tri-branded restaurants resulted in a total of 90 franchise agreements to be signed—the largest in Schlotzsky’s 40-year history.

Company executives said the first restaurant is set to open during the first quarter of 2012, with several scheduled to open throughout the remainder of the year. Signed with Philadelphia-based multi-unit franchise group Prayosha Philly, LLC, this major development agreement includes growth into Philadelphia, Bucks, Mercer, Montgomery, Chester, Burlington, Gloucester, Camden and Delaware counties. No stranger to the franchising industry, the Prayosha Philly group owns many hotel franchise concepts throughout the tri-state area, as well as several Dunkin Donuts® and Moe’s Southwest Grill® locations, which is also part of FOCUS Brands.

“This is by far the largest franchise deal in our company history,” said Schlotzsky’s President Kelly Roddy. “Demand for our brand has been growing in the Philadelphia area, and we’re thrilled to enter the market with such a talented group of business savvy entrepreneurs.”

The Philadelphia deal marks the third major development agreement for the company in the past five months alone. In June 2011, Schlotzsky’s announced it had struck deals to open 25 tri-branded locations throughout New Jersey and Texas.

Chirag K. Patel, principle of Prayosha Philly said, “With the success we were experiencing with Moe’s Southwest Grill, our team began researching its sister brands and ways we could expand our portfolio with tri-branded locations. Through conversations with Schlotzsky’s executives and franchisees, we felt their principles mirrored our own. Everything from their culture to their partnership approach with franchisees exceeded our expectations. This is an iconic brand that has clearly stood the test of time, and we look forward to introducing it to Philadelphians.”

To be situated in both traditional and non-traditional venues such as train stations, these new locations will feature the brand’s refreshed ‘Lotz Better®’ look. The contemporary design incorporates a bright, vibrant color scheme, tongue-in-cheek phrases, circular-themed photography as well as a newly implemented service model where crew members hand-deliver food to the tables.

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.

For more information regarding the Schlotzsky’s franchise opportunity, visit http://www.schlotzskys.com/cms/franchise.

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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