NexCen Brands Expands Franchised Stores Internationally
24 Oktober 2008 - 1:30PM
Business Wire
NexCen Brands, Inc. (NASDAQ: NEXC) today announced that it has
expanded its franchised stores internationally through the opening
of 43 stores to date in 2008 outside the United States and through
the entry into multi-year agreements that provide for the opening
of a minimum of an additional 160 stores in eight countries. Under
the new international development agreements, the Company will
receive approximately $2.5 million in initial franchise fees, in
addition to future franchise fees, store opening fees and monthly
royalty payments over the life of the agreements. NexCen�s pipeline
of letters of intent and franchise agreements for franchised stores
to be opened both domestically and internationally increased to 394
stores at the end of the third quarter of 2008 versus 225 stores at
the end of the second quarter of 2008. The Company�s Quick Service
Restaurant (QSR) division, which is comprised of Marble Slab
Creamery, MaggieMoo�s, Pretzel Time, Pretzelmaker and Great
American Cookies, has opened 22 new independently owned and
operated franchised stores year to date outside the United States,
exclusive of the new agreements. Marble Slab Creamery and
MaggieMoo�s have entered into a new development agreement that
calls for 40 stores to be opened in the United Kingdom over 10
years, which will be these brands� first expansion into Europe.
Marble Slab also has entered into an agreement that calls for 35
stores to be opened in Mexico over 20 years and an agreement that
calls for five stores to be opened in Lebanon over seven years, the
first of which opened in September 2008. Pretzelmaker signed an
agreement that provides for 15 stores to be opened in Mexico over
15 years, and Great American Cookies signed a development agreement
that provides for 30 stores to be opened in Mexico over 15 years.
This is the first international agreement for Great American
Cookies since NexCen purchased the brand. NexCen�s Retail division,
which is comprised of The Athlete�s Foot (TAF) and Shoebox New
York, has opened 21 new independently owned and operated franchised
stores year to date outside the United States, exclusive of the new
agreements. TAF recently signed agreements that call for 10 stores
to be opened in Angola over 10 years and for three stores to be
opened in Botswana and Namibia over 10 years. Shoebox New York
signed its first international agreement to open a minimum of 20
stores in South Korea over 25 years, followed by the signing of an
agreement to open two stores in Vietnam over 15 years. The first
Shoebox New York store in Vietnam is slated to open in Hanoi in
December 2008. �We are very pleased to have secured an opportunity
to further increase our brands� reach outside the United States
with the signing of these new international development
agreements,� stated Kenneth J. Hall, Chief Executive Officer of
NexCen Brands. �We believe that our franchise brands offer products
and value that are attractive to an international audience.
Importantly, customizable merchandising systems on the retail side
and co-branding options with our QSR brands are helping to drive
international expansion in both established and emerging markets.�
�Since our announcement in the first quarter of 2008 on the
execution of the agreement to open 10 TAF stores in Sweden over 10
years, we have seen the rate of execution of international deals
increase significantly,� stated Chris Dull, President of NexCen
Franchise Management, the franchising subsidiary of NexCen Brands.
�We believe that by focusing on the franchising business as the
core business of the Company, we are able to better support our
franchise brands and capitalize on their significant growth
potential.� 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.
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.