ARC Group Acquires Yobe Frozen Yogurt Franchise

ARC Group, Inc. (OTCQB: ARCK), the owner, operator and franchisor of the Dick's Wings & Grill concept, today announced that it has entered into a non-binding letter of intent to acquire Yobe Frozen Yogurt.

Yobe is a leading self-serve yogurt franchise with 34 locations spread throughout Florida, Georgia, Louisiana and New Jersey. Of the 34 locations, 15 consist of traditional retail sites and the remaining 19 consist of islands and end caps located in convenience stores. Yobe has also recently created a new vending machine concept that is set to launch in the near future. Yobe generated approximately $900,000 in revenue and vendor rebates during 2016.

"Our proposed acquisition of Yobe is significant because it represents an expansion of our business into a new segment of the quick service restaurant market," stated Richard W. Akam, Chief Executive Officer of ARC Group, Inc. "Yobe is a proven and successful brand that provides a variety of options beyond traditional company-owned and franchised locations, such as convenience store islands and end caps that require a minimal investment by the store owner. These additional sales channels can provide ARC Group with additional revenue sources that have high growth potential in our current markets and additional states."

ARC Group is expected to acquire Yobe for $1.4 million along with a $900,000 earn-out payment tied to Yobe's performance during the first two years post-closing. The acquisition is expected to close within the next 90 days and be funded through a combination of cash and debt. The closing is contingent upon, among other things, the execution of a definitive purchase agreement and the acquisition of suitable financing by ARC Group.