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Microcap & Penny Stocks : CCAA- Fully Reporting
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To: Jim Bishop who wrote (29)6/9/2000 2:08:00 PM
From: Due Diligence  Read Replies (3) of 72
 
Just got off the phone with Mr. Cala. Said he needs to leave Sunday for Italy, instead of next Tuesday. Asked him to elaborate about the Gourmet Coffee/Bakery/Mill. He really responded positively. The Mill and 8 locations have 5 mil. in sales. The new Mill will allow CCAA to export wheat and related bakery products both to Europe and internationally; primarily to USA and Japan while providing employment to hundreds. He already has had two top management people join the company to assist in the franchise, design, and construction efforts.

Being familiar with the food franchises in my earlier corporate life am remembering the structure of some of these type of operations. Here's some thoughts open for discussion.
1- With CCAA being the franchisor for the gourmet coffee/bakery cafes, they will reap upfront fee (revenues) as each franchise is signed. The amount depending on the number of locations. Very profitable.
2- The construction costs for a location is normally beared by the franchisee. Constanza comes to mind. LOL.
3- With CCAA not only being the franchisor, but the supplier of products, it will generate a royalty percentage of the sales and additionally, revenues from supplying the product to each location. Royalties = Bottom line Profits
4- Due to what we've already seen via news releases and Mr. Cala background in the hospitality area has convinced me the locations will be first-rate and very consumer oriented.

Why am I thinking a "Starbucks and Krispy Kreme combined"?
Dreaming again, I guess.

calacorporation.com

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