Mattress Firm To Buy Franchisee’s Five Birmingham-Area Stores
Retailer Mattress Firm said it plans to buy five of its local stores from a Birmingham franchisee for an undisclosed sum.
The mattress retailer has signed a letter of intent to buy the stores from Blue Ocean Waters LLC, which began opening local retail locations in 2007.The acquisition brings Mattress Firm’s corporate-owned stores total to 530 in 44 markets in 21 states, said a news release.
Logo from Mattress Firm.
Papa John’s Shares Are Down After Franchisee Loan Plan
Shares of Papa John’s International Inc. fell nearly 4 percent Thursday,
a day after the pizza-delivery company said it will provide loans and offer some cost and royalty rate relief to its franchisees.
After the regular session closed Wednesday, the Louisville, Ky., company said it would provide loans to help “operationally strong” franchisees so they can acquire “troubled” franchise groups.
The fast-food chain said it would convene a “lender’s summit” to bring together regional banks and other lenders to explain its business model in a bid to expand credit to franchisees.
Logo from Papa Johns.
Subway Franchisee Forced To Recall Prop. 8 Donation
On Monday, Subway, the second-largest fast food chain in the world, repudiated the action of one of its franchise owners who used the corporate name when contributing $2,500 to the campaign that ultimately banned gay marriage in California.
In a letter to the Subway franchisee in Merced, Calif., the company wrote: “While we understand that as an individual you have a right to your personal beliefs and freedom of association, when you use the Subway trademark it reflects on the entire Subway brand. … Further [the franchise agreement] states that you agree to ‘not use the Trademark in a manner that degrades, diminishes, or detracts from the goodwill of the business associated with the Trademark’ and ‘to promptly change the manner of such use if requested to do so by us.’”Subway got wind of the franchise agreement violation last Friday from a gay blogger, who found the contribution on a list of ‘Yes on 8’ contributors compiled by the Human Rights Campaign. Mike Rogers, 45, of Blogactive.com threatened to rally a major boycott of Subway sub-shops if his demands weren’t addressed: repudiating the gift, adding ‘sexual orientation and gender identity’ to the company’s nondiscrimination policy and giving an equal gift to the other side.
Logo from Subway.