Industry News | September 25, 2002
Ultimate Franchise Systems Sells 80% of Jreck Subs
Ultimate Franchise Systems, Inc. (OTC Bulletin Board: UFSY), today announced that it sold 80% of its Jreck Subs, Inc. division for two million dollars. Ultimate Franchise Systems will continue to own 20% of the on-going business of Jreck Subs, Inc. Additionally, as in the prior transactions, Ultimate retains all of the brand's product purchasing rights.
Michael Cronin, Chief Operating Officer of Ultimate Franchise Systems, Inc., stated, "We are very excited to successfully complete another transaction whereby we were able to sell a stake in an existing brand to strong entrepreneurs who will accelerate brand development and create significant value to our shareholders and franchisees. We believe our continued 20% participation will grow exponentially in value over the next ten years. Ultimate will continue to leverage Jreck Subs' purchasing power and marketing programs."
Robert C. Taft, Chief Concept Officer, commented, "Our ability to invest the sales proceeds of this transaction into new acquisitions and exciting growth vehicles should bring excellent returns for the company. The partnership group in this venture which includes our CEO, Christopher M. Swartz, shares our corporate philosophy and has the capital to grow the chain at a rapid pace. We hope this transaction will help illustrate to the investing public the value of our brands and, more importantly, the value of our underlying shares."
Ultimate Franchise Systems, Inc., a franchise management Company, currently has investments in approximately 350 franchised restaurants in 30 states throughout the United States. These brands include Gator's Dockside Restaurants, Jreck Subs, Inc., Central Park Hamburgers, Li'l Dino's Deli and Grille, Sobik's Subs (OTC Pink Sheets: SBIK) and NY Burrito.
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