Printer Friendly

SONIC CORP. CONCLUDES LICENSE NEGOTIATIONS

 OKLAHOMA CITY, Oct. 7 /PRNewswire/ -- Sonic Corp. (Nasdaq-NNM: SONC), the Oklahoma City-based publicly held parent company of the restaurant operator and franchisor of Sonic Drive-Ins, announced today that it had concluded negotiations with its franchisees concerning a new license agreement to which its franchisees have an option to convert.
 Stephen Lynn, chairman and chief executive officer of Sonic Corp., reported that, "We have concluded negotiations that have been conducted for 14 to 15 months and have each made a number of compromises. Our franchisee representatives have worked hard with us on this task, a task that is always difficult in any franchise organization, and I believe we have reached a fair and balanced result."
 Lynn went on to say that the company has now distributed franchise disclosure documents to its franchisees reflecting the terms of the new agreement, and he anticipates completing the distribution of actual license agreements in the next few days.
 The new license agreement offers an additional number of years beyond existing license agreements and also fixes a royalty rate and protected trade area for that extended period of time. These are terms that would otherwise be negotiated at the end of a franchisees' existing license term and may not be the same as those negotiated under the new agreement.
 "The decision to convert to this license agreement will be made by the individual franchisee on a store-by-store basis, depending on what is best for them and their partners," said Lynn. "No franchisee has to covert their drive-ins to this new agreement. If they don't, they will continue operating under their existing license agreement for the remainder of its term and would convert to the license agreement available at that time."
 Because of the individual decision of whether to convert, Lynn stated that it would be entirely speculative to say how many stores may convert. "Anyone stating the number of drive-ins that will convert is guessing at best. We'll just have to wait until November when the process is completed and see how our individual franchisees have decided for each of their drive-ins," Lynn said.
 -0- 10/7/94
 /CONTACT: Clifford Hudson, 405-236-2016, or Lewis B. Kilbourne, 405-232-4334, both of Sonic/
 (SONC)


CO: Sonic Corp. ST: Oklahoma IN: RST SU: LIC

LD-JB -- DV003 -- 2370 10/07/94 16:05 EDT
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 7, 1994
Words:383
Previous Article:SYMIX SYSTEMS, INC. EXPECTS SHORTFALL IN RESULTS FOR FISCAL FIRST QUARTER
Next Article:AMERICA FIRST REIT ANNOUNCES PROPERTY ACQUISITION
Topics:

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters