Schlotzsky's has reached an agreement to sell substantially all of its assets to Bobby Cox Companies for $28.5 million. The sale was approved by Judge Leif Clark of the United States Bankruptcy Court for the Western District of Texas, San Antonio Division. The sale has a targeted closing date of December 31, and Bobby Cox Companies will operate the Schlotzsky's franchise system as a privately owned company.
Bobby Cox Companies is both a franchisee of Blockbuster Video stores and a restaurant operator. Cox will serve as Chairman of the new management group.
With the majority of the Schlotzsky's restaurants being owned by franchisees, the group's primary goal is to help them improve their profitability and add additional units in designated territories.
"Having been on both the franchisee and the franchisor side of numerous businesses over the years," said Cox, "I truly understand that the parent company only prospers when the franchise community is strong and successful. We will do everything in our power to help franchisees reach their growth goals by supporting them with an organization that will meet their needs and then some.
Cox began his restaurant career in 1961 by owning and operating a small snack bar in Odessa, Texas. He has also built Taco Villa, Rosa's Café & Tortilla Factory, and Texas Burger, and been a franchisee of Dairy Queen and Peter Piper Pizza. He is currently a franchisee of Dippin' Dots and operates 36 franchised Blockbuster Video stores in 14 markets throughout the Southwest.