Healthy Fast Food Opens Third U-SWIRL Frozen Yogurt Store in the Las Vegas Market

2009-04-15
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  • Healthy Fast Food Company Announces Strategy to Grow its U-SWIRL International Subsidiary, Anticipates Greater Revenue Opportunities and Reduced Costs

    Healthy Fast Food, Inc. (OTCBB:HFFI) announced it has opened a second company owned U-SWIRL Frozen Yogurt store in the Las Vegas market. The new store is located at 7595 West Washington Avenue and opened on April 8th. U-SWIRL is a self-serve frozen yogurt concept where guests can choose as many yogurt flavors and toppings as they like, and then pay by the ounce for their creations.

    Healthy Fast Food acquired the worldwide rights to the U-SWIRL Frozen Yogurt concept in September 2008. The Company intends to franchise the self-serve yogurt café into a national chain in addition to operating company owned stores. The first company owned U-SWIRL store located at 305 North Nellis Boulevard, recently opened on March 24th. The original franchise U-SWIRL store located at 790 Coronado Center is getting ready to celebrate its one year anniversary in April. The Company anticipates additional locations being announced shortly, with plans to have up to 10 stores by the end of 2009.

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    The Company also announced it will focus its resources on growing its wholly owned subsidiary, U-SWIRL International, Inc. Based on the financial results to date at the existing U-SWIRL Frozen Yogurt locations the Company anticipates greater revenue opportunities as well as reduced costs as compared to its EVOS restaurants. According to market research publisher Packaged Facts, the frozen dessert market in the U.S. is expected to grow by more than $4 billion to a total of $27.6 billion by 2012 with frozen yogurt being one of the fastest growing segments.

    Hank Cartwright, CEO of Healthy Fast Food, commented, 'There are tremendous growth opportunities in the frozen yogurt market. The performances of the existing U-SWIRL locations have significantly exceeded our expectations, therefore we have decided to concentrate on growing our U-SWIRL concept. U-SWIRL is proving to be a very efficient and highly profitable store model despite this challenging economic environment.'

    U-SWIRL recently launched its franchise program to roll out the concept nationwide in those states in which U-SWIRL is qualified to offer franchises. The estimated initial investment for a U-SWIRL franchise is $350,000 to $455,000, exclusive of real estate costs. Franchisees pay an initial franchise fee of $15,000 for a single unit or $15,000 plus $5,000 times the minimum number for an area development agreement. The minimum number is the number of stores the Company determines should be opened in the development area. Franchisees pay a 3% royalty on weekly net sales and may pay an additional 2% to support national and regional advertising efforts, once the system has grown to a sufficient size to warrant these efforts. Franchisees are required to dedicate at least 1% of net sales to local advertising.

    Under the U-SWIRL system, each store must conform to a standard of interior design, featuring a distinctive and comfortable décor. All goods sold by franchisees must be purchased through U-SWIRL or through U-SWIRL's approved suppliers that have met U-SWIRL's specifications and standards. Specifically, the yogurt sold in U-SWIRL stores must meet the criteria established by the National Yogurt Association for live and active culture yogurt.

    'We are in the process of terminating our relationship with EVOS USA, Inc., as we have not been satisfied with the operating results of our EVOS restaurants. We plan to operate our two restaurants with new branding after we have formally terminated our relationship with EVOS,' Mr. Cartwright said.

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