A Canadian franchisee is in the process of selling all of its 232 Yum! Brands restaurants in Ontario and British Columbia. The Priszm Income Fund operates most of Canada’s KFC, Taco Bell and Pizza Hut restaurants.

According to The Canadian Press, Priszm is selling its units to a European franchisee of Yum! Restaurants International for about $46.4 million (or about $46 million in U.S. dollars).

The deal is expected to close by the end of February. The purchase price may change by that time.

Priszm’s decision came after a review of its operations to sell assets to meet liquidity needs. The company will also meet its franchise upgrade requirements with money from the sale.

Priszm also announced that it will extend franchise agreements for 70 Yum! restaurants through Jan. 15. The company has until that date to pay its contributing fee, which was withheld to save cash ahead of the traditional sales decline at KFC units during winter months.

Although Priszm announced during the summer that it would focus on sales growth, the fund has struggled with same-store sales. It had also agreed to upgrade 75 of its restaurants during 2010, which would have cost at least $15 million.

Prior to this agreement, Priszm operated more than 400 quick-service outlets in seven provinces throughout Canada.

Related Content

User Comments – Give us your opinion!
Products & Services

iiX Custom Points Program

http://global.networldalliance.com/new/images/products/custompoints.gif

1423/iiX-Custom-Points-Program

POS health test: do a quick check

http://global.networldalliance.com/new/images/products/1288.png

1288/POS-health-test-do-a-quick-check

Granbury Websites

http://global.networldalliance.com/new/images/products/6815.png

6815/Granbury-Websites

Social Security Number (SSN) Verification

http://global.networldalliance.com/new/images/products/SSN_employmentsearch.gif

1426/Social-Security-Number-SSN-Verification

See the latest in restaurant POS

http://global.networldalliance.com/new/images/products/1926.png

1926/See-the-latest-in-restaurant-POS

HAND-PINCHED STYLE® Sausage and Beef Toppings

http://global.networldalliance.com/new/images/products/6785.png

6785/HAND-PINCHED-STYLE-Sausage-and-Beef-Toppings

Digital Menu Boards

http://global.networldalliance.com/new/images/products/6681.png

6681/Digital-Menu-Boards

Hardware

http://global.networldalliance.com/new/images/products/4553.png

4553/Hardware

Cured Meats

http://global.networldalliance.com/new/images/products/6791.png

6791/Cured-Meats

Leapfrog POS App

http://global.networldalliance.com/new/images/products/4559.png

4559/Leapfrog-POS-App

Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.