Back Yard Burgers Announces Multi-brand Development Agreement With Tricon

Back Yard Burgers, Inc., announced that on January 2, 2002, the company entered a development agreement with Tricon Global Restaurants, Inc.

Under the terms of the agreement, Back Yard Burgers granted Tricon the right to use the Back Yard Burgers trademarks in the United States in connection with the establishment and operation of up to ten Back Yard Burgers outlets as part of multi-brand units with Taco Bell, Pizza Hut, and/or KFC operations.

It is anticipated that the first ten outlets will be constructed and opened by 2003. The Development Agreement also grants to Tricon an option to co-brand up to 500 additional restaurants within certain geographic areas if the development schedule for the initial ten outlets is being met.

A limited menu has been developed for these co-branded outlets, and the outlets are to be constructed and operated consistent with Back Yard Burgers' standards, says the chain. The Taco Bell, Pizza Hut, and/or KFC signage and imaging at the multi-brand outlets is to be predominant, although brand imaging will be reasonably obvious and balanced, according to Back Yard Burgers.

As of January 7, 2002, Back Yard Burgers' restaurant system comprised 104 units, including 37 company-operated stores and 67 franchised stores. Expansion plans for 2002 include seven company-operated stores and eight or more franchised stores as well as six or more co-branded outlets.

Back Yard Burgers operates and franchises quick-service restaurants in Memphis, Little Rock, Nashville, and other markets across seventeen states. The restaurants specialize in charbroiled, freshly prepared. Back Yard Burgers strives to offer the same high-quality ingredients and special care typified by outdoor grilling in the backyard. Its menu features made-to-order gourmet Black Angus hamburgers and chicken sandwiches—charbroiled over an open flame—fresh salads, chili, and other specialty items, including hand-dipped milkshakes, fresh-made lemonade, and fresh-baked cobblers.

Tricon has more than thirty thousand restaurants around the world in over one hundred countries and territories. Tricon's three brands are KFC, Pizza Hut, and Taco Bell.