U-Swirl, Inc. Acquires Josie's Frozen Yogurt
October 02 2013 - 8:28AM
Marketwired
U-Swirl, Inc. (OTCQB: SWRL) today announced that its wholly-owned
subsidiary, U-SWIRL International, which operates and franchises
self-serve frozen yogurt cafés, has acquired the business assets of
Josie's Frozen Yogurt, LLC. The acquisition of all intellectual
property and worldwide franchise and license rights includes the
rights associated with 11 currently operating Josie's Frozen Yogurt
stores. The stores are located in Arizona, Indiana, Nevada, Ohio,
Texas, South Carolina and Virginia. While financial terms of the
transaction were not disclosed, Josie's will be entitled to an
earn-out if certain milestones are achieved.
U-Swirl, Inc. is majority-owned by Rocky Mountain Chocolate
Factory, Inc. (Nasdaq Global Market: RMCF).
"The completion of this acquisition increases the size of
U-Swirl's store base by 14%, to a total of 90 units in 25 states,"
noted Rico Conte, Chief Executive Officer of U-Swirl, Inc. "We are
delighted to have the opportunity to work and share best practices
with another budding frozen yogurt brand. Josie's store management
team includes many well-seasoned franchisees, several of which have
experience at nationally recognized franchise organizations such as
Subway and Panhandlers' Pizza. Our immediate goals are to identify
the potential for increased savings, offer enhanced support
services and execute on cost-reduction strategies throughout the
Josie's franchise network."
"We are pleased to welcome Josie's Frozen Yogurt to the U-Swirl
family of frozen yogurt brands as we continue to expand our
competitive footprint within the $6 billion away-from-home frozen
desserts market," continued Conte. "The self-serve frozen yogurt
market is extremely fragmented, and we believe consolidation is
necessary for the future success of the industry. U-Swirl intends
to play an important role in this process as we pursue economies of
scale through both organic growth and an aggressive acquisition
program."
About U-Swirl, Inc.
U-Swirl, Inc. is an operator and franchisor of self-serve frozen
yogurt cafés that operate under the following names: U-SWIRL Frozen
Yogurt, Aspen Leaf Yogurt, Yogurtini, Gracie Bleu, and Josie's
Frozen Yogurt. The cafés offer frozen yogurt in 20 non-fat and
low-fat flavors, including tart, traditional, and no-sugar-added
options, along with fresh sorbet. Approximately 70 toppings such as
fresh fruit, sauces, candies, and granola are available to
customize each serving of yogurt to the customer's individual
taste.
The table below details the number of stores operating under
each brand:
------------------------------------------
U-Swirl
------------------------------------------
Company-Owned Stores 6
------------------------------------------
Franchise Stores 28
------------------------------------------
Aspen Leaf Yogurt
------------------------------------------
Company-Owned Stores 6
------------------------------------------
Franchise Stores 9
------------------------------------------
Yogurtini 28
------------------------------------------
Gracie Bleu 2
------------------------------------------
Josie's Frozen Yogurt 11
------------------------------------------
------------------------------------------
Total 90
------------------------------------------
In January 2013, the Company acquired frozen yogurt café assets,
franchise rights and certain other assets from Rocky Mountain
Chocolate Factory, Inc. (Nasdaq Global Market: RMCF) in exchange
for a 60 percent controlling ownership interest in the Company,
certain warrants and notes payable.
U-Swirl, Inc. is headquartered in Henderson, Nevada, and its
common stock trades on the OTCQB under the symbol "SWRL." As of
September 30, 2013, the Company and/or its franchisees and
licensees operated 90 self-serve frozen yogurt cafés in 25 states.
Additional information on U-Swirl, Inc. is available on the
Internet at www.u-swirl.com.
About Rocky Mountain Chocolate Factory,
Inc.
Rocky Mountain Chocolate Factory, Inc., headquartered in
Durango, Colorado, is an international franchisor of gourmet retail
chocolate stores and a manufacturer of an extensive line of premium
chocolates and other confectionery products. As of September 30,
2013, the Company and its franchisees operated 355 stores in 42
states, Canada, Japan, South Korea and the United Arab Emirates.
The Company's common stock is listed on The Nasdaq Global Market
under the symbol "RMCF." Additional information is available on the
Internet at www.rmcf.com.
Rocky Mountain Chocolate Factory, Inc. also owns a majority
interest in U-Swirl, Inc.
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements". These statements involve risks and uncertainties, and
the Company undertakes no obligation to update any forward-looking
information. Risks and uncertainties that could cause cash flows to
decrease or actual results to differ materially include, without
limitation, seasonality, consumer interest in the Company's
products, general economic conditions, consumer and retail trends,
costs and availability of raw materials, competition, market
conditions, and future business decisions, all of which are
difficult or impossible to predict accurately and many of which are
beyond the Company's control. Readers are referred to the Company's
periodic reports filed with the SEC, specifically the most recent
reports which identify important risk factors that could cause
actual results to differ from those contained in the
forward-looking statements. The information contained in this press
release is a statement of the Company's present intentions, beliefs
or expectations and is based upon, among other things, the existing
business environment, industry conditions, market conditions and
prices, the economy in general and the Company's assumptions. The
Company may change its intentions, beliefs or expectations at any
time and without notice, based upon any changes in such factors, in
its assumptions or otherwise, and it undertakes no obligation to
revise or update publicly any forward-looking statements for any
reason. The cautionary statements contained or referred to in this
press release should be considered in connection with any
subsequent written or oral forward-looking statements that the
Company or persons acting on its behalf may issue.
For Further Information, Please Contact U-Swirl, Inc. (702)
586-8700 or via email at Email Contact
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