Baristas Coffee Company, Inc. (BCCI)

[BobSinCA]

If you're right, it's not being followed:

Looks to me they are using the franchise agreement that included the Sports Bar. Apparently the only part of the agreement that was canceled was the part about the Pavilion.

The company's 10-K, filed last week, says this about that agreement:

The parties mutually agreed to not pursue this agreement (BobS note: the agreement highlighted included franchise terms) with BMOC, and neither party has any further obligations as of the date of this filing.

The original May franchise agreement required a franchise to open within six months, which clearly did not happen (though if a NEW agreement was signed in Q4 after the November filing, which must have happened for revenue to be taken, the April opening would qualify).

The original agreement gave BMOC a 'pass' on the first franchise fee, as reported in the 10-K, but that pass is not obvious from the three franchise fees taken to revenue in the fourth quarter which seem to reflect the first three mall spots (but not the one involving the late-blooming tactical purchase of the three adjacent spots in the fourth mall). Also, the company said in the 10-K that the first ten franchises would bring $250K in franchise fees, which also suggests to say the first franchise fee is NOT free.

Net: they are clearly not using the SAME franchise agreement, though there could well be many parallels. Only possibility, is same agreement but subsequent amendments, and then we are parsing words.

Wish BCCI would publish the BMOC agreement in effect, as they published the original. Would certainly like to know if BMOC's $25K/month national franchise advertising commitment from the initial agreement is in place.