Odd Burger Signs Letter of Intent with Franchise Investment AG to Develop up to 50 Locations in the U.S. and Europe
Odd Burger Corporation (TSXV: ODD) (OTCQB: ODDAF) (FSE: IA9), one of the world's first vegan fast-food chains and the first to go public, today announced that it entered into a Letter of Intent (LOI) with Franchise Investment AG and its parent venture capital division, Angelpreneur AG (collectively the "Developers") to develop up to 50 new Odd Burger restaurant locations in the State of Florida and in the combined territory of Germany, Switzerland and Austria (the region of "DACH") over a period of 8 years.
The Developers are a Swiss-based franchise and investment firm with over 25 years of franchise experience and over 40 experts and investors on their team. The group is led by Farshad Abbaszadeh, who founded German Donar Kebab (GDK) in 2012. GDK now operates over 100 locations in the UK, Europe, North America and the Middle East and is rapidly expanding around the world. For more information about Angelpreneur AG visit www.angelpreneur.com.
"The opportunity to bring vegan fast food to a global audience is exciting for us," says Farshad Abbaszadeh, CEO of Angelpreneur AG. "Odd Burger brings an efficient model and a delicious and sustainable food experience."
"We are excited to work with Farshad and his team towards realizing our vision of global change in the fast-food industry," says James McInnes, co-founder and CEO of Odd Burger.
The terms of the LOI provide that the Developers will purchase the Area Development Rights for 25 locations in the State of Florida and the Master Franchise Rights for 25 locations in "DACH". Locations in Florida will be opened and operated by the Developers using their existing operational team in the State of Florida. The LOI provides the Developers will franchise locations in DACH, leveraging their existing franchise network and operational team in that region. The Developers also retain the right of first refusal to purchase additional territories in the EU region, as they become available.
The terms of the LOI also provide for franchise fees of US$20,000 per unit sold, royalties of 5 percent, and an advertising fund fee of 2.5%. If locations are sub-franchised, then the LOI provides that royalties and other franchise fees are to be allocated two-thirds to the Developers and one-third to Odd Burger. The LOI is non-binding and the obligations of the parties under the LOI are subject to the satisfaction of certain conditions, including the execution of a definitive franchise agreement and compliance with applicable franchise registrations and disclosures.
For more information about starting a franchise with Odd Burger or for information about territory development, applications can be submitted on the Company's website: https://oddburger.com/pages/franchise-apply