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The ticker is a shell. I don't think it makes any sense to look at the financials of UHLN for the big picture here.
The owner is just a regular guy. The franchise commitment blew up to over 350 in under two years. He will prob keep a portion of the royalty fees and get shares. In return he doesn't have to run the business at all, and Sal and his team take this to the next level. Which he may or may not have been able to do.
Look at Nathans Famous Restaurants. They have 279 locations and their market cap is 262 million.
We have 350 commitments and will probably get a lot more. It's blowing up. If the owners get a 150 million shares and our market cap gets there or surpasses it they are looking at close to 100 million dollars, plus whatever percentage of the royalty fees they keep.
It would take him a long, long time, and a lot of hard work to make 100 mil profit off of the franchises, and he may not have the knowledge to do it. (He admitted as much in the PR). Instead he gets to sit back, do whatever he wants, collect royalties and watch the stock price go up. Win/Win.
JMO
Nathans Famous restaurants (hotdogs) made 12 mil in net income before taxes last year and has a 262 million market cap. Their revenues have been about even over the last three years (about 100 mil which doesn't include revenues from franchise restaurants, only the royalty fees). They have 140 corporate stores and 139 franchises according to their 10k.
https://nathansfamous.com/
I like Graingers concept better, I don't think it's a stretch to compare our future to them.
IMO.
The o/s hasn't changed so it's not a share selling scam. You're saying all these extremely successful people are risking it all to buy and sell shares in a pump and dump?
It's ridiculous and you know it.
Thanks great find. I think there's a good chance our fee is higher now, that was when they were just starting out with a few stores. Maybe maybe not but either way I see potential millions in profit with no debt and a fast growing company.
By the way Subway's franchise royalty fee is 12.5%. So there is hope for ours being 10%. I based my conservative estimate earlier on us getting 4% and the owner/co founder keeping 2%, I could have easily been wrong by half.
It's crazy that in just under 2 years they got 350 franchise commitments. It's truly a great cheap way for people to own a business who always have wanted to. And evidently large ownership groups love it as well.
The profit margins are high with the cheap ingredients, low staff requirements and small space. Sal has proven he can move franchises and the demand here is huge. 350 commitments in LESS than two years. Who knows what this could really turn into? 2000 stores? There was another franchise that had lowish start up costs, cheap ingredients and could fit in small spaces, Subway. They have 42,000 stores.
I think it got over the owners head which is one of the reasons they need Sal/ are selling.
Either way, even with my conservative estimate we are looking at 3 million in profit in our first year with the stores planned (58). More if there are corporate stores. No sub penny stock with 3 million in profit and no debt with our SS should be anywhere near this price.
At .01 we would be trading at profit alone, you have to multiply revenues in the restaurant industry by at least 10 for a growth company like this, what do you multiply profit by?
JMO, everyone do your own DD.
They say that's how much it costs to open the restaurant. 150 to 250k. Which is what makes it so attractive, it can fit in small spaces.
Most initial franchise fee's are no where near that high. Ufood grill's is only 30k, for hot dog places I'm thinking more like 10 to 20, correct me if you think I'm wrong but I don't think there is any chance our initial fee is 150k.
This post is incorrect too though, it's not 17 million revenue it would be 17 million net profit. Big difference. Most restaurants would have to do 150 million in revenues to make that kind of profit. Also I'm not sure where you're getting the 116 million in revenue from 58 stores, we're not sure how much they'll make.
Good news is we don't take on any debt to make that profit.
The royalty fee probably isn't that high, and you forgot the initial franchise fee for each store, which is probably anywhere from 10 to 25k.
If we open the 350 stores committed that would be 3.5 to 8 million profit alone not including royalty fee's.
We wouldn't own the stores we are getting royalty fees. Which is good because we don't have to go into debt to set the stores up and royalty fees are based on gross revenues not profits.
So it's all net profit for us.
Also the float isn't 58 million it's 294 per the T/A. 315 mil o/s.
We don't own the stores we get royalty fees. Just as good, net profit and no debt.
OW#P had hard shakes like this too, I know because one got me :(
No, the SS hasn't changed in months and when we call tomorrow it will be the same.
Check the principles involved. Sal Rincione is a big deal, check out his wife,
http://www.smithtownmatters.com/article-archive-chronological/2013/4/11/st-james-resident-samantha-goldsmith-red-mango-franchisee-re.html
Greg George is the co founder of Charlies and works with Samantha (Sal's wife) at a company with 3 or 4 employees including the former CEO of charlies at Emerging Franchises. Greg also is buddies with Sal as evidence of their linkedin activity. Seriously, look at it, I wouldn't be surprised if they hang out.
Check Gregs facebook post confirming the merger,
https://www.facebook.com/wemakeshithappen/
You really think all these hugely succesful people are involved in a share selling scam where the O/S hasn't changed for months?
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=132644414
It wasn't just rising phoenix, Greg George himself commented on the post.
https://www.facebook.com/wemakeshithappen/
That's true, but the co founder just said on facebook that terms have been reached, that's all I'm saying.
https://www.facebook.com/wemakeshithappen/
Terms have been reached, check the comments, notice Greg George comments himself as well, co-founder.
https://www.facebook.com/wemakeshithappen/
This ticker is basically a shell.
This is just my opinion but I think the current owner is sort of a regular guy if you read his backstory. Graingers has blown up and he needs help taking it national. He will probably keep a portion of the royalty fees and get some preferred shares and in return charlie graingers grows exponentially. Another words he may be over his head and by handing the reins over to this group he actual increases his chances of making more money. He also makes that money while not having to run the business or deal with the day to day. They are probably hoping for thousands of locations eventually.
They may have also promised to acquire other business (ufood grill maybe) as part of the deal to increase the value of the stock. The original PR said this was the first of many acquisitions.
Do your own DD and make your own decisions.
Hey you were asking about Samantha Goldsmith the other day. That is Sal's wife,
Samantha Goldsmith is now Samantha Rincione,
Check her twitter handle,
https://twitter.com/SamGoldsmith111
She is the one who works with Greg George, co founder of Charlie Grangers, at emerging franchises, (along with the former CEO Jason Nista)
https://www.linkedin.com/search/results/people/?facetCurrentCompany=%5B%226450528%22%5D
Also note that same co founder's other company posted the news on it's facebook page on Friday with the title "Charlie Graingers being acquired"
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=132675379
The co founder, (Greg George) and Sal are good buddies on Linkden, they comment on each other's posts all the time.
This is just my opinion but I think the current owner is sort of a regular guy if you read his backstory. Graingers has blown up and he needs help taking it national. He will probably keep a portion of the royalty fees and get some preferred shares and in return charlie graingers grows exponentially. Another words he may be over his head and by handing the reins over to this group he actual increases his chances of making more money. He also makes that money while not having to run the business or deal with the day to day. They are probably hoping for thousands of locations eventually.
They may have also promised to acquire other business (ufood grill maybe) as part of the deal to increase the value of the stock. The original PR said this was the first of many acquisitions.
Do your own DD and make your own decisions.
Wow, amazing. Maybe this is another sticky.
And you saw this right?
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=132675379
Maybe you didn't read it through but that was evidence for it being very real, not the opposite.
Samantha Goldsmith is now Samantha Rincione, Sal's wife,
Check her twitter handle,
https://twitter.com/SamGoldsmith111
She is the one who works with Greg George, co founder of Charlie Grangers, at emerging franchises.
https://www.linkedin.com/search/results/people/?facetCurrentCompany=%5B%226450528%22%5D
I guess maybe you guys already figured that out.
Thanks
Can we maybe sticky this? I want to make sure everyone sees it and don't want to post it all the time.
DD on Sal Rincione's connection to Charlie Graingers and link to Graingers co-founder posting acquisition news on facebook.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=132674940
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=132675379
UHLN New DD
Co-founder of Graingers posted the news from Friday on Facebook
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=132675379
Connection between Sal Rincione and Graingers
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=132674940
Co-founder of Graingers posted the news from Friday on Facebook
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=132675379
Connection between Sal Rincione and Graingers
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=132674940
Could be, their descriptions are very similar, but I think the main takeaway is that one of the co-founders of Charlie Graingers and Sal Rincione are close business associates. So close that Sal's wife works at a company with both Greg and only a few other employees (one of them being the former CEO of Grainger's Jason Nista). If you look at their linkden activity they like and comment on each other's posts, and often are the only ones commenting on each other's posts. I wouldn't be surprised if they hang out.
Also the cherry on the cake, one of Greg's other companies facebook pages posted the news from Friday with the title "Charlie Grainger's being acquired"
https://www.facebook.com/wemakeshithappen/
Worth noting that it's his wife not his daughter that works with Greg.
I want to make sure everyone sees this one too,
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=132675379
And I don't know if you saw my other post but one of the founders posted the PR from Friday on one of his other companies facebook pages with the title "Charlie Graingers being acquired"
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=132675379
That's what the contacts within the company on Friday said, but, they were just the "franchise information" contacts from the website. Earlier in the day it seemed like one of them knew nothing about it and then when I called he said he had just gotten out of a meeting about it.
The PR did include that quote from the founder. Your guess is as good as mine.
Also, take a look at another company founded by Graingers co founder Greg George, Rising Phoenix Group.
https://www.linkedin.com/in/personalbrandme/?locale=de_DE
Check out their facebook page, first post, that's our PR from Friday, guess he didn't think it was too "forward looking",
https://www.facebook.com/wemakeshithappen/
Also, check out their "about" page, it list's a Jason@emergingfranchises.com, my guess is this is Jason Nista, schoolmate of Greg George, and former CEO of CharlierGraingers until April of this year.
https://www.facebook.com/pg/wemakeshithappen/about/?ref=page_internal
Read the post this is linked to for the connection between Sal Rincione and Emerging Franchises. So now it looks like there are three employees there, Greg George, Jason Nista and Samanth Rincione, daughter (wife maybe?) of Sal Rincione.
I found the connection between Sal Rincione and Charlie Graingers.
Sal's daughter works with one of the founders of Graingers Greg George at a company called Emerging Franchises. They are the only two employees!
https://www.linkedin.com/company-beta/6450528/
https://www.linkedin.com/search/results/people/?facetCurrentCompany=%5B%226450528%22%5D
Since Greg resigned from Graingers in April,
https://www.linkedin.com/in/personalbrandme/
It looks like they were looking for someone to take over operations, Sal is perfect with his experience.
I think we did find out, they are selling the company/ going public and per the PR Sal Rincione is taking over operations. Evidently still in negotiations but it looks like this is the route they are taking.
Another piece of DD,
Both the CEO and other founding member of Charlie Graingers left the company in April of this year, looks like something happening no?
https://www.linkedin.com/in/jasonnista/
https://www.linkedin.com/in/personalbrandme/
He gave it a shot. In the interview here he mentions they thought they were reinventing the ashtray. Smokeless tobacco is a 7 billion market. I have a feeling this guy is independently wealthy. He also mentions in the interview he races formula one cars. Not a regular guy hobby.
See Rains post below.