Late in April, Golden, Colorado-based Good Times Restaurants Inc. entered into a Membership Interest Purchase Agreement for all of the membership interests in Bad Daddy’s International LLC. Upon completion of the purchase, Bad Daddy’s International will become a wholly owned subsidiary of the Good Times Restaurants. Bad Daddy’s owns all of the member interests in four restaurants in North Carolina, a portion of the member interests in three other restaurants in North Carolina, the license for the Bad Daddy’s Burger Bar in the Charlotte airport, the intellectual property associated with the Bad Daddy’s Burger Bar concept and 52 percent of the member interests in Bad Daddy’s Franchise Development LLC which has granted franchises for two Bad Daddy’s restaurants in South Carolina and Tennessee and licensed rights to the company for its restaurants in Colorado. As a result of the purchase, Good Times Restaurants will acquire all of these rights and interests. The value of the transaction is $21-million. A typical Bad Daddy’s full service restaurant is approximately 3500 to 4000 square feet with an enclosed patio. Based on average annual restaurant sales of approximately $2.7-million, for restaurants open more than 15 months, Bad Daddy’s Burger Bars generate average sales per square foot of over $770. Good Times Restaurants operates and franchises about 37 Good Times Burgers & Frozen Custard, a regional chain of quick service restaurants located primarily in Colorado, in its wholly owned subsidiary, Good Times Drive Thru Inc. Good Times provides a menu of high quality all natural hamburgers, 100 percent all natural chicken tenderloins, fresh frozen custard, fresh cut fries, fresh lemonades and other unique offerings. It also owns and operates Bad Daddy’s Burger Bar restaurants as a licensee through its wholly owned subsidiary, BD of Colorado LLC and had planned to franchise Bad Daddy’s Burger Bar restaurants through its 48 percent ownership of Bad Daddy’s Franchise Development LLC. The Bad Daddy’s menu features a chef driven menu of gourmet signature burgers, chopped salads, appetizers and sandwiches with a full bar and a focus on a selection of craft microbrew beers.
Good Times Restaurants Inc. – 601 Corporate Circle, Golden, Colorado 80401 (303/384-1400 [email protected] , www.goodtimesburgers.com)