Think yourself lucky '95663769' that you don't have to deal with the devil 'in-car-n-eight', even if you do have to deal with the devil 'between-seven-nine'.Quote:
quote:Originally posted by winner69
Question 766679 ...
This is exactly the question that Graeme Bulling put to the board at the 2003 AGM. They wouldn't give a straight answer, but responded thus:Quote:
quote:
I take it RBD would have had to front up with some dosh for the new franchise agreements on 44 KFC stores ... and some more dosh next May for the other 33 KFC stores and all the PH stores.
Any ideas how much? ... wasn't stated in the announcement
"We have given careful consideration to how we might meet Mr Bulling's wish for shareholders to know the impact of franchise fee renewals on the Company going forward, without compromising commercial sensitivity and confidentiality of franchise agreements.
We do not disclose per store franchise renewal fees that form part of (any negotiated) arrangements. But shareholders may take as a reference point, the renewal fees disclosed for the original purchase of 122 stores from Pepsi i.e. NZ$55,000 per store adjusted by New Zealand CPI from 1997 top the renewal date in 2007."
I have already covered this issue on page 6 of this thread under the heading:
"Medium Term Effect: PH/KFC Franchise Renewals and KFC refurbishment program."
In that posting I said:
"In addition to the ‘physical rebuilding’, 80 odd KFC stores need their franchises renewed in 2007 (including the 40 just committed to by Restaurant Brands in advance this year). We can add to this total some 40 Pizza Hut stores. At my estimated renewal rate of $80,000 per store, this requires an incremental capital commitment of $9.6m. That equates to an extra (annual) interest bill of $770,000."
766679 (or SNOOPY for those that must use alphabetics)