Cookie Man Franchise powers Allied Brands Profits
ALLIED Brands says the international expansion of Cookie Man Franchise and its new franchise services arm will help drive its forecast 20 to 33 per cent profit increase.
The Broadbeach company, behind the Australia franchise chains of Baskin Robbins, Cookie Man Franchise, Kenny's Cardiology, Villa and Hut, Awesome Water and Awesome Entertainment, expects to post a profit of between $6.6 million and $7.2 million this financial year.
At yesterday's annual general meeting, the company also announced international basketballer Shane Heale would promote Baskin Robbins, while champion lifesavers Dean Mercer and Reen Corbett would become brand ambassadors for Awesome Water. Allied Brands has signed heads of agreements for two international country licences for Cookie Man Franchise and was in advanced stages of negotiation with a third country licence. Cookie Man Franchise already has 55 stores in India, 15 in China, 13 in Greece and one in Singapore.
Chief executive officer Shane Radbone said the rising profit would stem from the introduction of its franchising services arm, the growth of the Villa and Hut network, the growth in sales of Baskin Robbins, and international interest in Cookie Man Franchise. The franchising services arm had been set up to help those with businesses who wanted to franchise them but do not know how. The arm looked set to contribute $500,000 to the company's bottom line, said Mr Radbone. He said this year's purchase of the Bay Swiss stores was its first move under the new arm.
The Bay Swiss stores will be transformed into Villa and Hut and sold as franchises. "We see this as a potential growth market," said Mr Radbone. "We have the ability to target a number of small to medium businesses." The company was optimistic about strong retail growth over Christmas, with sales figures looking strong.
The positive outlook follows a tough year for the group, affected by fluctuating currencies and the global financial crisis. Earlier this year, the company posted a profit of $2.9 million for the last financial year, well below expectations and almost half the 2008 result.
