Papa Murphy’s Announces Refranchising and Development Agreement With New Franchise Owner in Denver Market
February 22 2017 - 4:11PM
Experienced Multi-unit Operator Purchases
Six Stores; Commits to Build Three Additional Stores over the Next
Three Years
Papa Murphy’s Holdings, Inc. (NASDAQ:FRSH) announced today that
Barren Troy Holdings has agreed to acquire six Company-owned stores
in the Denver, CO market, including three developed under the
Company’s Pre-Sale Development Program, and commits to build three
additional stores in the market over the next three years.
Papa Murphy’s is focused on driving franchisee
growth and profitability through several key initiatives. Following
the Company’s strategy to raise awareness in underpenetrated
markets by deploying capital to accelerate unit growth, in this
next phase of its strategic plan the Company is seeking experienced
well-capitalized operators to acquire stores and continue building
units to achieve full market penetration. The cash flow generated
from refranchising is expected to be used to reduce leverage.
“We are pleased to welcome Barren Troy Holdings
to the Papa Murphy’s family,” said Jean Birch, Board Chair and
interim Chief Executive Officer for Papa Murphy’s. “A successful
refranchising starts with the right people. Barron Troy Holdings’
extensive experience in a franchise business and proven record of
operations excellence and growth makes them an ideal franchise
owner for Papa Murphy’s. We look forward to a long and successful
relationship with them, and look forward to pursuing similar
refranchising transactions in the coming months.”
Barren Troy Holdings is a management and holding
company that owns and operates eleven Meineke Car Care franchises
in Colorado. The group has steadily expanded since purchasing their
first four stores in 2010. Meineke Car Care offers total automotive
service and repairs to vehicles of all makes and models with
superior customer experience.
“We are very excited about the Papa Murphy’s
brand, their unique approach to pizza, the low cost of ownership
and the endless opportunities for multi-unit growth,” said Ryan
Tracy, CEO of Barren Troy Holdings. “Plus, buying existing stores
in our home market allows us to jump in quickly, while the
opportunity to continue to grow both inside as well as outside of
the Denver market is exciting for our long-term goals.”
Birch continued, “We are confident that, as we
execute on our refranchising strategy, focus on our asset-light
franchise business model and prudently manage costs, we can create
sustainable long-term value for franchise owners and all
shareholders.”
For additional information on Papa Murphy’s
franchise opportunities and current development incentives, please
visit http://www.papamurphysfranchise.com/.
FORWARD-LOOKING STATEMENTSThis
news release, as well as other information provided from time to
time by Papa Murphy's Holdings, Inc. or its employees, may contain
forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially from those
anticipated in the forward-looking statements. You can identify
forward-looking statements by the fact that they do not relate
strictly to historical or current facts. These statements may
include words such as “guidance,” “anticipate,” “estimate,”
“expect,” “forecast,” “project,” “plan,” “intend,” “believe,”
“confident,” “may,” “should,” “can have,” “likely,” “future” and
other words and terms of similar meaning in connection with any
discussion of the timing or nature of future operating or financial
performance or other events.
Forward-looking statements in this press release
include statements relating to the Company’s expectations for the
construction of additional stores in the Denver, CO market,
generating cash flow from refranchising, the anticipated use of
such cash, and expected future results of operations. Although the
Company believes any forward-looking statements are based on
reasonable assumptions, you should be aware that many factors could
affect our actual financial results and cause them to differ
materially from those anticipated in any forward-looking
statements. Please refer to the risk factors discussed in the
Company’s annual report on Form 10-K for the fiscal year ended
December 28, 2015 and quarterly reports on Forms 10-Q for the
fiscal quarters ended March 28, 2016 and September 26, 2016 (each
of which can be found at the SEC’s website www.sec.gov); each such
risk factor is specifically incorporated into this press
release.
Any forward-looking statement made by the
Company in this press release speaks only as of the date on which
it is made. The Company undertakes no obligation to update any
forward-looking statement, whether as a result of new information,
future developments or otherwise.
ABOUT PAPA MURPHY’SPapa
Murphy's Holdings, Inc. (NASDAQ:FRSH) is a franchisor and operator
of the largest Take ‘n' Bake pizza brand in the United States,
selling fresh, hand-crafted pizzas ready for customers to bake at
home. The company was founded in 1981 and currently operates more
than 1,575 franchised and corporate-owned fresh pizza stores in 38
States, Canada and United Arab Emirates. Papa Murphy's core purpose
is to bring all families together through food people love with a
goal to create fun, convenient and fulfilling family dinners. In
addition to scratch-made pizzas, the company offers a growing menu
of grab 'n' go items, including salads, sides and desserts. Order
online today at www.papamurphys.com.
Media Contact:
Christine Beggan, ICR
papamurphys@icrinc.com
203-682-8329
Investor Contact:
Alexis Tessier, ICR
papamurphys-ir@icrinc.com
877-747-7272
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