TORONTO, ONTARIO – SPOT COFFEE (CANADA) LTD announced this week that it has executed a License Agreement (“LA”), with Mr. Keith Bernard, to grant him a license (“License”) for the operation of SPoT Orchard Park.
Concurrent with the LA, the Company, via its wholly owned subsidiary, SPoT Coffee Buffalo Inc., has entered into a purchase and sale agreement pursuant to which it has agreed to transfer its 60% shareholding interest in SPoT Coffee Orchard Park LLC to Mr. Bernard, who presently owns 40% of the shares of SPoT Coffee Orchard Park LLC, for the return of capital contributed from SPoT in the amount of $100,000.
In addition to earning ongoing monthly licensing fees in the form of a percentage of the cafe’s gross revenue, SPoT will also derive revenue from its exclusive supplies of its roasted coffee, specialty foods and other SPoT branded products. This LA is an interim agreement which precedes the launch of SPoT’s franchise program.
Upon successful completion the franchise registration by the Company in the State of New York, SPoT Orchard Park will convert to a franchise cafe. This License Agreement is subject to final approval by the TSX Venture Exchange.
The Company is also pleased to announce that it is the recipient of the 2014 Business Community Beautification Award, which was presented to SPoT by the Board of Directors of the Orchard Park Chamber of Commerce.
This award recognizes SPoT’s contribution to the enhancement of the Orchard Park business community and acknowledges SPoT as an important asset to the town of Orchard Park, New York.
“We are excited to begin the franchising process with this interim agreement. This represents a major step in the right direction for the Company as we begin to move to a franchise system,” commented Anton Ayoub, President of SPoT Coffee. “We are very proud of our award from the Orchard Park Chamber of Commerce.
We thank the Orchard Park Chamber of Commerce for this honorable and distinguished recognition. SPoT Orchard Park is a perfect example of the seamless way a SPoT cafe can blend into its community and, simultaneously, stand out as an exemplary local business.”
Source: press release
