Jreck Subs Group Inc. (Longwood , FL) signed an agreement to acquire Kokopellis Pizza Co. International Inc., Kokopellis Pizza. Kokopellis, a franchiser based in Fairfax, VA, has expanded into the Washington D.C. and Atlanta markets with what Jreck sees as an innovative pizza delivery concept.
Jim Metcalf, CEO of Kokopellis sees "a whole world of opportunity opens for us. The Jreck franchisee base is large and experienced. We are certain we offer a great co-branding choice as well as a new option for experienced food operators." He sees the deal as a key to expansion for both companies.
The acquisition is expected to be completed in the next 30-45 days. Jreck is continuing the expansion of its system and brands and wants now to compete with existing national leaders Dominos and Papa Johns.
Indications are that Jreck will continue to acquire established franchises, minimizing its financial risk by avoiding ownership of individual units. The company acquires franchises and consolidates administration functions (accounting, marketing, legal, etc.) and plans to continue cross-branding two or three concepts in a single location, enabling franchisees to increase sales and customer traffic.
Jreck currently represents seven distinct brands (Mountain Mike's Pizza, Seawest Sub shops, Little King, Li'L Dino Deli and Grill, Lox, Stocks & Bagels, Sobik's Subs and Jreck Subs. 1999 system-wide sales are expected to top the $100 million mark.