Feb. 16, 2004
MEMPHIS, Tenn.—A filing with the Securities and Exchange Commission on Feb. 16 shows the Back Yard Burger chain still might pair up with Pizza Hut outlets in future cobrand deals.
According to the filing, under the terms of a development agreement drawn up in 2002 between BYB and Yum! Brands, parent of Pizza Hut, Yum has the right to use BYB's trademarks in connection with the establishment and operation of up to 10 BYB outlets as part of multi-brand units with Pizza Hut, Taco Bell and/or KFC units. The agreement granted Yum an option to cobrand up to 500 additional BYB stores under certain conditions.
As of the agreement's December 2003 expiration deadline, Yum had not exercised its option, but since entered into a non-binding term sheet which contemplates that the agreement would be amended to provide Yum the right to license and sublicense the BYB concept and trademarks in connection with the establishment and operation of up to 500 stand alone and multi-brand outlets.
Yum currently owns one hamburger brand, A&W All American Foods, but has yet to grow it aggressively.