MTY to acquire Yogen Fruz Canadian franchise rights
There are presently 177 Yogen FruzTM franchised full stores and non-traditional franchised Yogen FruzTM stores in Canada.
02/02/06 MTY is pleased to announce that it has reached an agreement with Yogen Fruz Canada Inc. (YFC), the owner and franchisor of the Yogen FruzTM frozen dessert retail chain, to acquire the exclusive master franchise rights to franchise Yogen FruzTM throughout Canada for a period of 20 years, plus an option to renew for a further 10 years.
In consideration, MTY has agreed to pay YFC $3.0 million in common shares of MTY at a price of $4.11 per share (or a total of 729,927 shares). The shares will be subject to escrow restrictions as permitted by regulatory authorities.
There are presently 177 Yogen FruzTM franchised full stores and non-traditional franchised Yogen FruzTM stores in Canada.
Commencing the closing date, MTY shall appoint YFC to manage, supervise and further develop the Yogen FruzTM franchising business in Canada for a two year transition period.
The agreement is subject to formal master franchise agreement and regulatory acceptance.
