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Microcap & Penny Stocks : Restaurant Teams International, Inc.-RTIN -- Ignore unavailable to you. Want to Upgrade?


To: Howard C. who wrote (3130)4/16/2000 11:53:00 AM
From: Perry M.  Read Replies (2) | Respond to of 3351
 
If someone has already given their thoughts on this on RB I guessed I missed it. I was wondering that since RTIN gets the rights to a few states and first right of refusal on S.C. does that mean they get to sell franchises to others who will put up the necessary resources to build and operate stores or does it mean that they have to fund each individual franchise. If they have to fund each store then the extra 500K+/- in the deal won't go far. Can they sell franchises and build their own stores if they want also? Sort of like McDonalds? This could really affect the growth rate of new franchises at least in RTIN's territory.

I've been following the Kripsy Kreme story in the midwest and the way I understand it is that an individual gets rights to a region and then can sell franchise rights to investors who build and operate the franchise. Construction costs per unit are in the 800K to 1.1 million range. The franchisee must have reserve funds matching construction cost plus a few other items.

Here's hoping they've been busy lining franchise partner.

Good luck.