Rights to region's Ben & Jerry's offered as holder cools on idea.ICE cream, anyone? Ben & Jerry's Inc. of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , which holds development rights for the ice cream maker's scoop shops in 12 California counties, has put its franchise up for sale. "The principals have been at it since 1988," said Dick Israel Israel, in the Bible Israel (ĭz`rēəl, ĭz`rāəl) [as understood by Hebrews,=he strives with God], according to the book of Genesis, name given to Jacob as eponymous ancestor of the Hebrews, the chosen people of God. , president of investment banking firm Dick Israel and Partners, which is handling the sale. "They are feeling burnt out with this particular facet facet /fac·et/ (fas´it) a small plane surface on a hard body, as on a bone. fac·et n. 1. A small smooth area on a bone or other firm structure. 2. of the franchise world and they would like to move on, maybe even move out of state at some point." A call to Max Gitnick, co-founder of Manhattan Manhattan, indigenous people of North America Manhattan (mănhăt`ən), indigenous people of North America of the Algonquian-Wakashan linguistic stock (see Native American languages). Beach-based Ben & Jerry's Inc. of California, was not returned. Formed in 1988, the company developed more than 50 Ben & Jerry's ice cream shops and sold all but six in a region stretching from Orange County to Alameda Alameda (ăləmē`də, –mā`də), city (1990 pop. 76,459), Alameda co., W central Calif., on an island just off the eastern shore of San Francisco Bay; settled 1850, inc. as a city 1884. County. The existing stores, which typically generate more than $300,000 in annual revenues, are not included in the package. Israel said the preference would be selling the rights to all 12 counties to a single buyer. The asking price is in the "substantial seven-figures," said Israel, who declined to disclose specifics. The development rights held by Ben & Jerry's of California set no limits on how many parlors can be developed, Israel said. "It's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have only governed gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. by basic, good business sense as to how close they should be," he said. Offering packages are expected to go out by the end of this week. A deadline for completing a sale has not been set. "In general, there has been a tremendous uptick Uptick A transaction occurring at price above its previous transaction. In order for an uptick to occur, a transaction price must be followed by an increased transaction price. in enthusiasm for all of the franchise concepts in this sector, and of course Ben and Jerry's has always had very high name visibility," said Don DeBolt, president of the International Franchise Association in Washington, D.C. "The market is going to determine the price on this, and I think the market in California for an ice cream concept is going to be much stronger." DeBolt said a seven-figure price tag is fairly high for development rights only, but having 50 units in those counties where the rights are up for grabs contributes to the value. "Considering what they probably originally paid for them, that's a huge value increase," said DeBolt. "It speaks a lot for the brand. If you've already got 50 stores out there contributing to an advertising fund to promote the brand, you will have higher brand recognition than if you go into an area where there had been no Ben & Jerry's stores." Staff reporter Rebecca Flass can be reached at (323) 549-5225, ext. 230, or at rflass@labusinessjournal.com. |
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