ATLANTA, July 1, 2002 (PRIMEZONE) -- Cinnabon(r), Inc. a subsidiary of AFC Enterprises, Inc. (Nasdaq:AFCE), today announced the completion of a deal with JRM Bakeries LLC to convert 47 company-operated bakeries in Seattle, Chicago, Ohio, Kentucky, Tennessee and Indiana markets to franchise ownership. JRM Bakeries also signed an agreement to open an additional 45 bakeries over the next five years.
"The conversion of these markets is in keeping with AFC's business strategy to grow the brand through franchising," said Chris Elliott, interim president of Cinnabon. "As the category leader, our approach is to accelerate the growth of the brand by franchising with top partners like JRM."
JRM Bakeries is an affiliate of JRM Group LLC, a Cleveland-based holding company operated by entrepreneur and business developer Michael Wager, who has more than 20 years of business development experience and Joseph Uhl, formerly a director of business development for Church's Chicken(tm) and Popeyes(r) Chicken & Biscuits. Wager will serve as CEO. Uhl will serve as COO.
"We chose JRM as our franchise partner because of their mix of operational experience, passion for the brand and business experience," said D'Wayne Tanner, vice president of new business development for Cinnabon.
Wager says he is pleased to become a Cinnabon franchisee. "We selected Cinnabon because it's a strong brand, has outstanding franchise support and spectacular growth opportunity," said Wager.
JRM Bakeries LLC is an affiliate of JRM Group LLC, an Ohio-limited liability company organized to acquire and develop Cinnabon bakeries. The Company owns and operates 47 Cinnabon bakeries, located in the states of Illinois, Indiana, Kentucky, Ohio, Tennessee and Washington; JRM has five Cleveland-Akron area locations. The Company has more than 500 employees.
JRM signed an agreement to develop 50 additional bakeries in its franchise development territories, which include the states in which it has existing operations as well as the state of West Virginia. JRM Group is a Shaker Heights, Ohio-based private equity firm owned by Michael Wager and Joseph Uhl. JRM Group owns and manages quick service restaurant ("QSR") concepts.
Cinnabon is the worldwide leader in the cinnamon roll bakery category. As of April 21, 2002, the company operated and franchised 565 bakeries worldwide. The bakeries are located in 43 states, Puerto Rico and 17 other countries. Founded in Seattle, Wash., in 1985, Cinnabon bakeries are traditionally located in high-traffic venues such as shopping malls, airports, train stations and travel plazas. The bakeries typically are located in 500- to 1,500-square-foot areas. Cinnabon bakeries have built a reputation for serving fresh, aromatic, oven-hot cinnamon rolls made with premium Indonesian cinnamon and topped with sweet, rich, cream cheese-based frosting. Cinnabon had system-wide sales of approximately $205.5 million in 2001 and can be found on the World Wide Web at www.cinnabon.com.
AFC Enterprises, Inc. is the franchisor and operator of 3,896 restaurants, bakeries and cafes in the United States, Puerto Rico and 30 foreign countries under the brand names Church's Chicken(tm), Popeyes(r) Chicken & Biscuits, Cinnabon(r), Seattle's Best Coffee(r) and Torrefazione Italia(r) Coffee. AFC's primary objective is to be the world's Franchisor of Choice(r) by offering investment opportunities in highly recognizable brands and exceptional franchisee support systems and services. AFC Enterprises had system-wide sales of approximately $2.6 billion in 2001 and can be found on the World Wide Web at www.afce.com.
Forward-Looking Statements. Certain statements in this release, and other written or oral statements made by or on behalf of AFC or its brands, are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the cost and availability of our principal food products, increased energy costs, labor shortages or increased labor costs, our ability to franchise new units and expand our brands, our and our franchisees' ability to successfully operate existing units and open new units, changes in consumer preferences and demographic trends, competition, general economic, political and regulatory conditions and the risk factors detailed in our Annual Report on Form 10-K for the year ended December 30, 2001 and the other documents we file with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, since those statements speak only as of the date they are made.