PHOENIX, March 22, 2005 (PRIMEZONE) -- Franchise Capital Corporation (OTCBB:FCCN) Chief Executive Officer Bradford Miller today released a statement reviewing the company's activities and milestones since its conversion to an investment fund and an overview of management's expectations for its investment portfolio in the current fiscal quarter.
In his statement, Mr. Miller commented, "Since the company's conversion to an investment fund in January, a move that was designed to allow Franchise Capital Corporation to properly capitalize its subsidiary operations and grow the value of its assets, we have embarked upon an effort to build a synergistic portfolio that includes emerging and undervalued franchise concepts and related businesses. We initiated this effort by focusing our attention on our current holdings, specifically Kokopelli's Mexican Grill Franchise Company, LLC.
"One of the primary goals for our Kokopelli subsidiary was to attract interest from qualified franchisees to bring this unique fast-casual restaurant to high volume retail centers and other high traffic commercial locations across the United States. We have experienced success thus far entering into development deals for Kokopelli franchises in the greater Phoenix market, the Toledo and Northeast Ohio market and in the state of Nevada. There are now over 30 Kokopelli's Mexican Grill restaurants planned as a result of these agreements with several scheduled to open this year including the first one in the coming weeks. We still continue to seek opportunities to expand the Kokopelli brand further in targeted markets coast-to-coast. Each franchise restaurant is expected to generate up to $60,000 or more per year for the franchise company on an on-going basis from royalties, which will help fuel the company's growth and increase the value of Franchise Capital Corporation's investment.
"In addition to the Kokopelli subsidiary, we expect to fully develop and launch franchises of our other portfolio investments: Cousin Vinnie's Franchise Company, LLC, Kirby Foo's Asian Grill Franchise Company, LLC, and Comstock Jake's Franchise Company, LLC. The Fathom Business Systems, Inc. portfolio investment will provide point of sale technology for the company's subsidiary franchises.
"Our agreement with the Beilman Wensing Group (BWG), the premier procurement service company specializing in the U.S. food industry, to help negotiate and monitor purchasing agreements with major food and supply distribution vendors is expected to be the first in a number of potential agreements anticipated to solidify the supply-side for our present and future franchisees and maximize their revenue potential. The largest expense for a business in the restaurant industry is food, which can be between 22 and 35 percent of sales, depending upon the concept. The program BWG provides can reduce that expense by up to 10%, which translates into thousands of dollars in savings annually for each restaurant. That creates financially stronger franchisees, which are more likely to purchase and build additional restaurants, including other concepts within our portfolio.
"As we go forward in the next quarter, I foresee significantly greater sales of franchises for our Kokopelli brand across the country. This is expected to enhance the value of our investment and provide growth at a manageable pace. It will also provide the momentum the brand needs to accelerate its growth at or better than its business plan projections."
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.