Noble Roman’s Signs 19 Unit Area Development Agreement for Kern County, California Plus Three Surrounding Cities
Indianapolis based Noble Roman’s, Inc. (BULLETIN BOARD: NROM) today announced the signing of another Area Development Agreement for 19 units, along with receipt of the development fees, for its dual-branded concepts, Noble Roman’s Pizza and Tuscano’s Italian Style Subs. This newest development territory is for Kern County, California plus the cities of Santa Clarita, Palmdale and Lancaster, and includes a development schedule requiring 19 new franchise locations within the territory over the next five years.
Area Developers pay a development fee of $.05 per capita in their development area, and receive 30% of the initial franchise fee and 2/7ths of the royalty from the locations developed pursuant to their agreements. Noble Roman’s, Inc. retains all training and supervision responsibilities, and must approve all franchisees and all locations. In order to maintain the right to develop the territories, each Area Developer has to meet the minimum development schedule as stipulated in their Area Development Agreement. The territory covered by this development schedule has a population of approximately 1.05 million people.
During the last several months the company has announced the signing of seventeen other Area Development Agreements for its traditional, dual-branded concept. These include an agreement for 49 units in 15 counties surrounding the Greensboro, Winston-Salem, High Point areas of North Carolina and Virginia, an agreement for 20 units in three counties near Cincinnati, Ohio, an agreement for 25 units in Sacramento County, California, an agreement for an additional 40 units in 21 additional counties surrounding Cincinnati, Ohio, an agreement for 30 units in five counties near Atlanta, Georgia, an agreement for 70 units in three additional counties in Georgia, near Atlanta, an agreement for 52 units in two counties near Dallas, Texas, an agreement for 25 units for Springfield, Missouri and surrounding counties, an agreement for 35 units for Riverside County, California, an agreement for 38 units for San Bernardino County, California, an agreement for 30 units in Dayton, Ohio and surrounding counties, an agreement for 15 units in Collin County, Texas, an agreement for 60 units in Los Angeles County, California, an agreement for 45 units in Orange County, California, an agreement for 18 units in Ventura County, California, an agreement for 34 units in Santa Barbara, San Luis Obispo and Fresno Counties, California, and an agreement for 60 units in San Diego County, California. With the signing of this new agreement, the eighteen Area Development Agreements in place thus far call for 665 units over the next five to seven years. In addition, so far this year the company has entered into 81 dual-branded franchise agreements for traditional locations, 35 of which were sold through Area Developers.
The company has franchises in 45 states from coast-to-coast within the United States plus Guam. In addition, it has sold franchise agreements for military bases in Puerto Rico, Guam and Italy, and for entertainment facilities and convenience stores in Canada. In past years the company’s growth strategy was to expand primarily through franchising in non-traditional locations. The company is continuing its growth by franchising non- traditional locations and, in addition, it is also part of the company’s strategy to sell dual-branded Franchise Agreements for traditional locations. The company is selling development territories to Area Developers to spur its growth in stand-alone traditional locations.
The statements contained in this press release concerning the company’s future revenues, profitability, financial resources, market demand and product development are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) relating to the company that are based on the beliefs of the management of the company, as well as assumptions and estimates made by and information currently available to the company’s management. The company’s actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the company’s operations and business environment including, but not limited to: competitive factors and pricing pressures, shifts in market demand, general economic conditions and other factors, including (but not limited to) changes in demand for the company’s products or franchises, the success or failure of individual franchisees and the impact of competitors’ actions. Should one or more of these risks or uncertainties adversely affect the company or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended.
Source: Noble Roman’s, Inc.