Los Angeles, July 29, 2015 (GLOBE NEWSWIRE) -- Giggles N’ Hugs, Inc. (OTCQB: GIGL), owner and operator of family-friendly restaurants that bring together high-end, organic food with active, cutting-edge play and entertainment for children, continues to receive strong interest from franchise operators globally.
Growing demand for Giggles N’ Hugs franchise opportunities has been received from large multi-unit franchising operators and small individual franchisees, both domestically and internationally. In North America, the Company has received interest from franchise operators from Canada and from nearly every major city in almost every state in the U.S. Internationally, demand for Giggles N’ Hugs franchises has been received from operators in Europe, Latin America, the Middle East, Asia, and Australia.
“Since opening our first location in Southern California in 2008, we’ve received strong interest from franchisees seeking to take our concept into new markets,” stated Joey Parsi, founder and CEO of Giggles N’ Hugs. “While franchising has always been a component of our long-term growth strategy, we chose to establish a strong foundation for Giggles N’ Hugs by initially focusing on perfecting our experience at company-owned locations. This strategy allows us to have strong confidence in our ability to effectively replicate the full Giggles N’ Hugs experience through franchise partners.”
When the company is ready to launch the franchising initiative, we expect to receive upfront licensing fees from franchisees, in addition to ongoing royalties. Based on discussions with franchise operators and other factors, multi unit licensing fees could range from several hundred thousand dollars to millions of dollars, while ongoing royalties should typically range from 3% to 8% of gross sales.
Philip Gay, Chief Business Development Officer of Giggles N’ Hugs, stated, “Franchising represents a significant growth opportunity for Giggles N’ Hugs, with global market potential exceeding millions of dollars. With margins above 25% expected from franchise operations, this strategy provides a great complement to our core company-owned growth initiatives. Based on my extensive personal experience in senior leadership positions with several highly successful enterprises including California Pizza kitchen and Wolfgang Puck Food inc. that have benefited from franchising, I believe Giggles N’ Hugs is well-positioned for long-term success in this arena when ready to launch which we hope to be very soon.”
About Giggles N’ Hugs
Giggles N' Hugs is the first and only restaurant that brings together high-end, organic food with active, cutting-edge play and entertainment for children. Every Giggles N' Hugs location offers an upscale, family-friendly atmosphere with a dedicated play area that children 10 and younger absolutely love. We feature high-quality menus made from fresh and local foods, nightly entertainment such as magic shows, concerts, puppet shows and face painting, and hugely popular party packages for families that want to do something special.
For more information, visit www.gigglesnhugs.com
Forward-Looking Statements:
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"). Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.