Monday, December 26, 2005
Ultimate Franchise Systems, Inc.
This one deserves its own entry:
UFSM (sec), 585 franchised restaurants and 40 weight loss clinics in the US. The only one I recognize is Piccadilly Restaurants and these guys only own 1% of it.
That's right, fourteen days. The 10-K says, "The goodwill associated with this transaction was deemed to be impaired and was expensed during the quarter ended June 30, 2004."
How could anyone invest in a business where they pay $610,377 to buy a business for $1,319,154 more than its [negative] book value only to declare the value as worthless 14 days later?
not interested
UFSM (sec), 585 franchised restaurants and 40 weight loss clinics in the US. The only one I recognize is Piccadilly Restaurants and these guys only own 1% of it.
- "Central Park" 100%
- "Obee's Soup & Subs" 100% (recent acquisition, see below)
- "New York Burrito" 59%
- "Flamers" 25%
- "Jreck Subs" 20%
- "Li'l Dino" 20%
- "Sobik's Subs" 19%
- "Mountain Mike's" 18%
- "Weight Loss Forever" 18%
- "Uncle Al's Famous Hot Dogs" 13%
- "SeaWest" 10%
- "Piccadilly's" 1%
14 days!
That's right, fourteen days. The 10-K says, "The goodwill associated with this transaction was deemed to be impaired and was expensed during the quarter ended June 30, 2004."
How could anyone invest in a business where they pay $610,377 to buy a business for $1,319,154 more than its [negative] book value only to declare the value as worthless 14 days later?
not interested
// posted by Bruce @ 6:30 PM 
Comments:
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Not a good move either way you look at it, to be honest it never sounded like one of the restaurants in Piccadilly and I didn't think it amount to much. That said I'd never seen their website until today, what a shambles.
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