TORONTO, ONTARIO--(Marketwired - Feb. 22, 2017) - SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") is pleased to announce that Parisco Cafés LLC ("PCL"), a New York limited liability company, has formally indicated in writing that it intends to purchase five SPoT Coffee franchise cafés. PCL intends to build the first two SPoT franchise cafés this year, with construction commencing in May, 2017. The three remaining franchises will be built to commence operations in 2018, with construction of the first starting no later than September, 2017.
PCL has agreed to pay SPoT the standard franchise fee of USD 30,000 for each franchise café. Accordingly, USD 60,000 will be paid on or before March 31, 2017 for the first two franchise cafés. A USD 30,000 deposit will be paid on or before May 1, 2017 for the remaining three franchise cafés. The balance of USD 60,000 will be paid in three equal installments of USD 20,000 on September 1, 2017, February 1, 2018 and June 1, 2018 respectively.
PCL plans to build all five of the SPoT café franchises in line with SPoT Coffee's franchise strategy to expand along the Saratoga Springs, New York to Hartford, Connecticut corridor. SPoT's franchise and real estate teams have identified communities that fit the Company's key demographics, and are presently engaged in sourcing locations that meet SPoT's criteria and PCL's approval.
Ms. Megan Burns-Moran, Vice President of Franchising, stated: "Our franchise marketing campaign, highlighted by our participation in the 2017 New York/New Jersey Franchise Expo, has produced the PCL opportunity, as well as other prospective opportunities that we are presently negotiating. I look forward to reporting to our shareholders on our final franchise agreement with PCL by the first week of March. I will also be reporting on other franchise sales as they are finalized."
About SPoT Coffee
SPoT Coffee trades on the TSX Venture Exchange under the symbol SPP. SPoT designs, builds, operates and franchises community oriented cafés and express cafés in New York State. SPoT's community cafés provide its customers with the highest quality service, signature made-to-order meals and award-winning micro-roasted coffee. Each SPoT café is distinctively designed to suit its local neighbourhood, creating a warm and friendly gathering place for the community. SPoT's commercial business focuses on the sale of roasted coffee beans to food service and grocery chains, business offices and third party resellers such as universities and hospitals.
Forward Looking Statements
Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. In particular, forward-looking information in this press release includes, but is not limited to, the potential use of proceeds of the financing that is the subject of this release. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. Except as required by applicable securities laws, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.