Così Inc. announced that it sold 13 restaurants in the Washington D. C. market to Capitol C Restaurants LLC for $8.4 million. The restaurants will be operated under a franchise agreement between the parties, and Capitol C has entered into a development agreement to open six additional Così restaurants in the District of Columbia. Capitol C is led by Richard Pawlowski, principal and CEO. Pawlowski is an experienced multi-unit restaurant operator and developer in the D. C. market.
Under the terms of the Asset Purchase and Sale Agreement, $6.4 million of the purchase price was paid in cash at closing, $1.4 million is to be paid pursuant to a three-year note, and the balance of $600,000 is being held in escrow subject to the satisfaction of certain conditions.
"We are pleased to have a franchisee of Richard's caliber join the Così system," says James Hyatt, Così's president and CEO. "He is a seasoned operator and developer who fully understands the D. C. market. He aligns perfectly with the profile of our ideal franchisee. As we continue to operate 11 company-owned restaurants in the greater Washington D. C. area, we look forward to working together with Richard and his team to further develop the brand in this market."
"Così is an exciting concept with delicious food, innovative menu offerings, and a great casual ambience," Pawlowski says. "We look forward to working collaboratively with Così to expand the brand in the D. C. market."
"This transaction fits our strategic plan of expanding the brand by assembling experienced operators with proven abilities to develop new restaurants and providing them with quality development area opportunities,” Hyatt says. “Capitol C's joining the Così family demonstrates our ability to attract the finest quality franchisees and reinforces our conviction in the brand and its potential. In addition, this transaction will provide us with additional capital to stimulate revenue growth, support franchisee growth, selectively develop company-owned stores, and otherwise enhance stockholder value."