Bahrain doesn't matter.
If it doesn't happen, and I don't think it will, it will be just another notch in the belt for Parsi's propensity to overpromise and underdeliver. It will be another black eye on his ability to run a publicly traded company. Parsi might have learned his lesson about what toxic financing can do to a share structure, but just as important is being able to read people and determine their intentions.
If an LOI is not binding, then what is the harm in signing it? It gives a quick PR boost, and either party can walk away later without any harm. Parsi should insist that all LOI's be binding, and if the other party fails to deliver, there is a breakup fee involved. Maybe it means the LOIs don't get signed but is that any worse than having them signed and backed out on?
Does it seem weird to anyone that Giggles first two locations would be Los Angeles and Bahrain? Why not expand domestically, then internationally?
But going back to my first point, Bahrain doesn't matter. It's a small territory that brings in at most $1M/year in revenues from two locations. The $250k or so initial fee would be enough to open zero stores here in the US.
Bahrain's only purpose is to show that Parsi is serious about and capable of expanding his business to new areas. That's it. And I don't believe that Giggles is any less likely to expand just because Bahrain doesn't materialize. It might take time. But the Yelp reviews and celebrity customers and all that are proof that demand is there. It takes money. Money is easy to find, if you know how. If Parsi doesn't know how, the squeeze is on before he hands the company over to someone who does. He's in this too with 26M shares.
