Jreck Subs Group, Inc. Announces Letter Of Intent To Acquire Central Park USA, Inc.
PR Newswire - March 01, 2000 16:25
LONGWOOD, Fla., March 1 /PRNewswire/ -- Jreck Subs Group, Inc. (OTC Bulletin Board: JSUB), a fully reporting franchise management company, today announced a Letter of Intent to acquire Central Park USA, Inc., a 62- unit double-drive-through hamburger chain based in Chattanooga, Tennessee. Central Park USA, Inc. generates approximately $27,000,000 in system-wide sales and Jreck Subs Group, Inc. expects to realize over one million dollars of increased contractual royalty revenue.
Central Park was started in 1982 on an old (and sometimes forgotten) premise of simple operations, excellent food quality and fast service. The normal everyday price of a Central Park 1/4 lb. hamburger is only 99 cents, significantly lower than the major competitors. Central Park operates primarily in Tennessee, Georgia, Alabama, North Carolina, South Carolina, and Utah.
S. Elliott Davenport, CEO and Chairman, will stay on with Jreck Subs Group, Inc. as well as other key management personnel. Mr. Davenport stated, "We are very excited about this merger with Jreck. We believe in their business model and plan on Central Park bringing financial synergy to the company. This transaction will allow Central Park franchisees to significantly strengthen their purchasing power in everything from food to construction. Central Park franchisees will also have access to Jreck's other 12 brands, including Sobik's Subs, Li'l Dino's, and Kokopelli's Pizza to use as co-branding partners or as "stand-alone" concepts to develop in their markets. The upside potential for our franchisees is enormous."
Christopher M. Swartz, President & CEO of Jreck stated, "This acquisition is our most significant to date. Central Park adds a new concept to our family and will be one of our strongest growth vehicles. It has the best unit economics, a very strong franchise community, and will add substantial cash flow to our operations. Central Park also gives Jreck Subs Group, Inc. excellent penetration into the Southeastern markets that we have been looking for. Our franchisees will be very excited to have access to Central Park's concept. We expect substantial growth both internally as well as through new franchisees.
This press release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. For those statements, the Company claims the protection of the safe harbor for forward-looking statements provisions contained in the Private Securities Litigation Reform Act of 1995 and any amendments thereto. Such forward-looking statements by definition involve risks, uncertainties and other factors which may cause the actual results, performance achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. In particular, there is no assurance that reserves, production, pricing levels or other factors pertaining to the manufacturing and retail operations will be sustained at the expected rates or levels over time. Discussions of factors, which may affect future results, are contained in the Company's recent filings.
Under no circumstances does this press release constitute an offer to sell or a solicitation of an offer to buy the securities of the Company described in this press release in which such offer, solicitation or sale of securities would be unlawful prior to registration, qualification or filing under the securities laws of any jurisdiction.
For more information, please |
