Diversified Restaurant Holdings Exercises Purchase Option on Existing Franchise Location
Has exercised its purchase option on the building where it currently leases and operates a BWW restaurant in Brandon, Florida.
Diversified Restaurant Holdings, Inc. (OTCBB: DFRH), the owner/operator and franchisor of the unique, full-service, ultra-casual restaurant and bar, Bagger Dave’s Legendary Burgers & Fries® (“Bagger Dave’s”), and a leading franchisee for Buffalo Wild Wings® (“BWW”), announced today that it has exercised its purchase option on the building where it currently leases and operates a BWW restaurant in Brandon, Florida. DRH leased the building at 2055 Badlands Drive since December 24, 2003. The total purchase price of the building was $2.57 million and was financed by Bank of America, the U.S. Small Business Administration, seller financing, and the Company’s working capital.
“Our Buffalo Wild Wings location in Brandon is in an attractive area. We felt it was the right time to exercise our option on this property and secure the location, as this strategic move is anticipated to save the Company approximately $5,000 on a monthly basis.”
Michael Ansley, Chairman, President, and Chief Executive Officer of DRH, commented "Our Buffalo Wild Wings location in Brandon is in an attractive area. We felt it was the right time to exercise our option on this property and secure the location, as this strategic move is anticipated to save the Company approximately $5,000 on a monthly basis.”
In early June 2010, the Company announced it had signed an agreement and is moving ahead with plans to open its sixth Florida BWW store in Ft. Myers, making it the Company’s nineteenth location under its Area Development Agreement with Buffalo Wild Wings, Inc., under which it will operate a total of 38 BWW locations in Michigan and Florida by 2017.
The Fort Myers store will be the Company’s third BWW restaurant opening in 2010. In early June, DRH announced the opening of its newest BWW location in Marquette, MI, and plans for an August opening of a new BWW in Chesterfield, MI.
The Company also opened its third Bagger Dave’s location in Novi, Michigan earlier this year and is evaluating the possibility of a fourth Bagger Dave’s opening in Michigan in the fourth quarter.
