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Noble Roman's Inc. reported its results for the fourth quarter and full-year ended Dec. 31, 2012. Included was a nearly 32 percent increase in royalties and fees from nontraditional franchises in Q4.
Additionally, take-n-base royalties and fees increased nearly 10 percent in Q4.
"Operationally, we continued to expand our take-n-bake offering in the fourth quarter, appearing at trade shows and driving interest in both the grocery-based model and our stand-alone franchises. This progress directly led to expansions of both models during the early part of 2013, with further growth expected as we move through the year," said Paul Mobley, chairman and CEO.
For the full year, ongoing royalties and fees from nontraditional franchises increased 8.8 percent, or $352,177, compared to 2011, while ongoing royalties and fees from take-n-bake increased 17.2 percent, or $200,818, compared to 2011.
The company has entered into agreements with seven different franchise groups for 11 stand-alone take-n-bake locations. The company's stand-alone take-n-bake pizza program features the chain's popular traditional Hand-Tossed Style pizza, Deep-Dish Sicilian pizza and SuperThin pizza with a choice of three different sauces and numerous topping options and Noble Roman's breadsticks with spicy cheese sauce. Additional menu items include fresh salads, cookie dough, cinnamon rounds, bake-able pasta and more.
"Existing and potential franchisees are embracing this fastest growing segment of the pizza industry with our high quality, great tasting pizza offerings adapted for the take-n-bake pizza market and recognize the economics of opening a smaller, more affordable and more efficient to operate facility," Mobley said.
Also in 2012, the company signed franchise/license agreements for 39 new nontraditional locations other than grocery stores, including 12 locations with Huck's, a 110-unit convenience store chain located in five states. Management is in discussions with several other convenience store chains and has signed 12 more such agreements from Jan. 1, 2013 through March 12, 2013.
Since the company introduced take-n-bake pizza in grocery store chains in late 2009, the company has signed agreements for approximately 1,500 grocery store locations to operate the take-n-bake pizza program and has opened the take-n-bake pizza program in approximately 1,075 of these locations.
At present, the company has distribution agreements with 11 primary distributors strategically located throughout the U.S. The distribution agreements require the primary distributors to maintain adequate inventories of all products necessary to meet the needs of the company's franchisees and licensees for weekly deliveries to the franchisee/licensee locations plus the grocery store distributors in their respective territories.
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