PHOENIX, April 27, 2005 (PRIMEZONE) -- Franchise Capital Corporation (OTCBB:FCCN) today announced that portfolio investment Kokopelli Franchise Company LLC, operator and franchiser of Kokopelli Sonoran Grill, has entered into an agreement with SYSCO, North America's largest foodservice marketer and distributor, for the distribution of branded products and specialty items to Kokopelli locations across the United States.
The price verification system contracted by Kokopelli Franchise Company on behalf of its franchisees on products SYSCO supplies and distributes is expected to save 10%-15%, which represents up to $25,000 annually for each Kokopelli location.
SYSCO (www.sysco.com) provides customers with a full spectrum of food product offerings, foodservice supplies and equipment needed for operations, from front-of-the-house serviceware to heavy-duty, back-of-the-house janitorial supplies and everything in between. SYSCO distributes to restaurants, nursing homes, hospitals, hotels, motels, schools, colleges, cruise ships, sports parks, and summer camps.
As part of its relationship with the Beilman Wensing Group (www.thebwg.com), the premier procurement service company specializing in the U.S. food industry, Kokopelli will benefit from pricing on products supplied by SYSCO based on the Beilman Wensing Group's Cost Plus Verifiable model, ensuring that Kokopelli franchises will have the ability to control their purchasing dollars while producing permanent savings. The Beilman Wensing Group will also conduct regular auditing to ensure compliance with agreed upon prices.
Bradford Miller, Chief Executive Officer of Franchise Capital Corporation, commented, "We are pleased to have SYSCO, the industry leader in foodservice distribution, service our Kokopelli Sonoran Grill franchises. The association with a company of the profile and reputation of SYSCO will make Kokopelli that much more attractive to potential franchisees and is expected to fuel additional franchise development agreements.
"SYSCO will maintain inventories of branded products and specialty items for Kokopelli, and in doing so, will help to ensure consistency for products distributed over large geographic areas. They will bring products in from suppliers, warehouse them, transfer them to other SYSCO facilities, and deliver to stores as needed. As we expand the number of Kokopelli and other FCCN franchise concepts throughout the U.S., our relationship with the Beilman Wensing Group and SYSCO will also assist in managing growth and maintaining consistency in our supply and pricing systems for our franchisees," added Mr. Miller.
About SYSCO
SYSCO, the largest foodservice marketing and distribution organization in North America, provides food and related products and services to approximately 400,000 restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers, generating sales of $30.0 billion for calendar-year 2004. SYSCO's operations, supported by approximately 46,000 associates, are located throughout the United States and Canada and include broadline foodservice distribution companies, specialty produce and custom-cut meat operations, Asian cuisine foodservice distributors, hotel supply operations and chain restaurant distribution subsidiaries. For more information about SYSCO visit www.sysco.com.
About Franchise Capital Corporation
Franchise Capital Corporation is a Business Development Company pursuant to Section 54 of the Investment Company Act of 1940. The company currently has five operating, synergistic investments holdings: Kokopelli's Mexican Grill Franchise Company, LLC; Cousin Vinnie's Franchise Company, LLC; Kirby Foo's Asian Grill Franchise Company, LLC; Comstock Jake's Franchise Company, LLC; and Fathom Business Systems, Inc., all of which are engaged in business related to restaurant franchise development.
Safe Harbor Statement: The statements in this release that relate to future plans, expectations, events, performance, and the like are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Actual results or events could differ materially from those described in the forward-looking statements due to a variety of factors, including those set forth in the company's report on Form 10-KSB for fiscal year 2004 filed with the Securities and Exchange Commission.