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Tuesday, April 14, 2015 4:50:38 PM
Baristas CEO Barry Henthorn incorrectly characterized BMOC's theme for their mall locations, Freeman (BMOC exec) said.
Although, I have some sympathy for his problem: he now has a 'split brand': 'risque' drive through coffee kiosks, and 'family friendly' mall eateries featuring a speciality soup. How do you do national advertisements for franchisees for this brand, as Mr. Lehr has committed ($25K/month)?
IMO, if the latter model is successful, the former -- significant money losers -- may fade away, particularly if there are no franchisees interesting (haven't been so far; and the closest thing to one, a JV in SW FL, over a year ago announced a third store which never happened).
Would sure be nice to know the financial terms of the BMOC deal; the initial BMOC deal -- signed, then noted as 'defunct' -- was non-specific about ongoing royalties, which is where the money hopefully will be (BCCI has published that opening ten franchises will result in a franchise fee profit of only $75K, or less than .00025/share). Perhaps there will be information in the 10-K, due tomorrow (but likely delayed, small company financials frequently are, and BCCI's have always been).
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