GOLD BRANDS INVESTMENTS LIMITED - Gold Brands Secures Franchising Deal With UK-Based Casual Dining Group

Gold Brands Secures Franchising Deal With UK-Based Casual Dining Group

GOLD BRANDS INVESTMENTS LIMITED
Incorporated in the Republic of South Africa
Registration Number: 2015/168426/06
Share code on the JSE: GBI
ISIN: ZAE 000212791
(“Gold Brands” OR “GBI” or “the Company”)

06 Ferbruary 2017

GOLD BRANDS SECURES FRANCHISING DEAL WITH UK-BASED CASUAL DINING GROUP (“CDG”)


Introduction

Shareholders are advised that Gold Brands has entered into heads of terms agreements, with 
CDG appointing GBI as its exclusive partner for the development of CDS Branded Restaurants 
in the Territory of South Africa.


Terms

GBI will pay CDS £50 000 (fifty thousand pounds) by way of development/ up-front fee for the 
territory. The development fee will be payable on the signing of the International Development 
Agreement (“IDA”) and

   (a) GBI will pay CDS a Royalty fee of 6% of top line sales (net of VAT and Other sales 
       taxes) and
   
   (b) The GBI will pay CDS a Restaurant opening fee of £15 000 (fifteen thousand pounds) on 
       the opening of each CDS Restaurant 

Should the GBI sub franchise any of the new stores, then the GBI will pay 50% of the fees as 
outlined above.

GBI will complete initial market research in the territory as specified and approved by CDS.


Background information on CDG

CDG is the operator of nearly 300 UK mid-market restaurant brands including Café Rouge, Bella 
Italia and Las Iguanas, and is one of the UK’s leading, most established and fastest-growing 
restaurant groups. It is home to some of the most successful and recognisable all-day dining 
brands. 

  • Las Iguanas
    - Is a South American based restaurant brand which draws on the colour palette of the 
      tropics, fresh and homely food and a vintage Latin culture. There are currently 55 
      operating restaurants in the UK.

  • Café Rouge
    - Café Rouge was launched in London back in 1989. Today, Café Rouge is the only established 
      French casual dining brand in the UK.
    - Now with over 90 restaurants in the UK, and a newly opened site in Dubai, UAE, the brand 
      serves six million meals each year. 

  • Bella Italia
    - A contemporary Italian dining experience, with over 110 restaurants, and more opening all 
      the time, serving authentic Italian food coupled with generous portions means that Bella 
      Italia has the formula for success.

  • Belgo
    - Belgo is famed for its huge selection of Belgian beers and its range of mussel dishes. 
      There are currently 6 company owned stores operating in the UK serving 300,000 customers 
      every year.
 

Rationale

CDG will appoint the GBI as its exclusive Franchisee for the development of CDG Branded 
Restaurants in the Territory of South Africa. 

The proposed franchise business for the territory would be operated and maintained by the GBI 
with strict adherence to the CDG’s business model. 

This is a long-term strategic decision that ultimately benefits GBI as being part of a global 
and world-class brand will provide access to a host of global resources including best operating 
practices and new products.


Conditions Precedent

The transaction is subject to the finalization and execution of the IDA by no later than 31 July 
2017.


Johannesburg
06 February 2017
Corporate and Designated Adviser
River Group






Date: 06/02/2017 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.