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Smart
Energy Plants More Seeds |
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| In this
edition... |
| 1)
Smart Energy Plants a Seed |
| 2) Spicy Pickle
Surpasses the Century Mark |
 Smart
Energy Solutions (OTCBB:
SMGY) continues
to expand its footprint, this time with the help of an overseas
ally. Iveco - a major, global truck manufacturer - will be offering
the Battery Brain within its network.
Iveco
manufactures and markets small, medium, large and specialty trucks (like
fire and utility trucks) under the brand name, 'Daily'. There are 340 dealerships
all over the world, with more than 4600 service outlets spread out across
more than 100 countries. That's the network Smart Energy Solutions is tapping
into.
 I
think the real opportunity for Smart Energy here is rooted in the typical
service and ongoing maintenance within the world of delivery fleets. It's
really not like you or me going down to the local car lot and purchasing
a passenger vehicle, then using our warranty when we need to. With
Daily-brand industrial trucks (or all trucks for that matter), there's
a lot of pro-active and preventive maintenance. And, with 340 dealers and
4600 service centers, there's a lot opportunity to upgrade using
a Battery Brain - which is probably a no-brainer for most fleet managers.
Though
I don't think this particular agreement makes the Battery Brain a standard
item for all Daily trucks, I can't help but wonder if that possibility
is on the radar. It'll at least be an aftermarket option.
In
the bigger picture, this high-profile affiliation for Smart Energy's battery-saving
device is a seed - one of many recently planted.
Iveco/Daily
has a respectable presence in the North America, and it's a very
big (and growing) international name. As the chatter about the product
accelerates across borders, I think demand for the Battery Brain could
become 'viral'. All we need are just a few more seeds.
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Spicy
Pickle Hits The Century Mark |
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 If
you were impressed by Spicy Pickle's (OTCBB:
SPKL) news from Friday (which we covered in Saturday's
edition), then hold onto your hat - the second act is even
better.
One
of the things I commented on then wasn't anything the company explicitly
said. I've just been watching this company for a while, and I'm starting
to see something interesting...the franchisees seem to be embracing
this innovative restaurant, sometimes site unseen.
This
was cut straight from the previous newsletter...
"What
we're seeing are territories (multiple units) being reserved, sometimes
even before the first Spicy Pickle in the area is even in operation...Take
for instance the news from Mid-November. The company announced a lease
for a store in San Diego had been signed. But, the same franchisee had
already committed to 12 units...even before the first one was opened there.
The store that was opened in Hattiesburg, Mississippi on October 22nd?
That franchisee has committed to three stores. The Spicy Pickle that opened
in Fishers, Indiana on October 19th was the first of ten scheduled for
the area."
The point
I was making was simple - I think this above all else signals just
how big of a hit this quick-and-casual restaurant is. I'm sure the company
at the corporate level thinks the concept is great, and what consumer wouldn't
like a great meal at a great price? It's the franchisees taking the
real risk though - they're the ones shelling out the cash to open up
the stores. What does it tell you when the franchisee in San Diego commits
to 12 stores in the area before the first one is even up and running?
With
that idea in the forefront, I don't think today's announcement could have
come at a more fitting time.
Spicy
Pickle just announced a brand new franchisee has signed a ten-store
commitment in several Michigan cities. They will be the first Spicy
Pickles in the state.
That's
not the part that struck me though. It was good news, but the part
that really hooked me was something else in the press release -
this franchisee (1) has industry experience with two restaurants, (2) has
the right financial backing, and (3) had choices of dozens of other franchise
opportunities.
 It's
restaurateurs like this one who I'd consider to be an expert. And
what path did he (or she) take? Spicy Pickle. Why do you
think that is? The only reasonable answer I can come up with is
that they see the same opportunity we saw a few weeks ago - just from
the franchisee's perspective. It's a win-win though...the better the
franchises do, the better shareholders do.
In
any case, this commitment for ten stores brings the total number of
units up past the century mark. In the November 13th press release
the company expected to have between 38 and 40 opened by the end of the
year, and they had signed agreements for more than 50 more restaurants
at that time. Today's news pushes the figure up to a commitment of more
than 60, At this point there should be at least 105 units either up and
running, or on the way. And, let's not forget the 12 to 15 company-owned
restaurants we're likely to see following Friday's fund-raising news.
By
the way, if you haven't watched the video yet, I recommend you click on
the image to your right. It's a brief presentation on Spicy Pickle, and
will probably explain exactly why all these franchisees are jumping
on board.
Click
here for the Smart Energy press release. The Spicy Pickle news is below.
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Spicy
Pickle(R) Announces New 10 Store Franchise Agreement In Michigan
New Franchise
Sales Take Spicy Pickle Past the 100 Store Mark
DENVER, CO--December
17, 2007 -- Spicy Pickle(r) fast casual restaurants (OTC
BB: SPKL) today announced the sale of a multi unit restaurant development
to a new franchise developer in Michigan, increasing the total number of
franchises the Company has sold to 105.
A new franchisee
with extensive restaurant experience has entered into a franchise and development
agreement to open the first Spicy Pickle Restaurants in western Michigan.
Terry and Jean Henderson and Tiffany Cornelius will be the principals in
the new development. These new franchisees have extensive experience as
they have developed for Little Caesars Pizza, Big Apple Bagels & Qdoba
Mexican Grill in the past. The development includes Kalamazoo, Grand Rapids,
Ann Arbor, Lansing and E. Lansing, and calls for a total of ten (10) Spicy
Pickle Restaurants over the next several years.
Marc Geman, CEO
of Spicy Pickle Franchising, Inc, commented: "We are thrilled to have our
first franchisee in the state of Michigan. The state of Michigan can support
a significant number of stores, and having our first location could act
as a springboard to additional franchisees and help us penetrate other
regions within the state, particularly in the eastern part in and around
Detroit."
Mr. Geman further
commented, "Much like our very successful Boulder, Colorado and Austin,
Texas locations, the Ann Arbor and E. Lansing areas offer a similar demographic
with a high concentration of University, Medical, and Research facilities.
There is also a similar concentration in Kalamazoo at Western Michigan
University. This also marks the 16th state in which there will be a Spicy
Pickle Restaurant. The addition of this franchisee with their highly capable
staff already in place will help keep up the momentum we have established
for restaurant openings. Our real estate department has already begun a
demographic study in cooperation with the franchisee to find the first
location."
About Spicy Pickle:
Founded in 1999,
Spicy Pickle Franchising, Inc. (OTCBB:
SPKL) serves high quality meats and fine artisan breads, baked fresh
daily, along with a wide choice of eight different cheeses, twenty-two
different toppings, and fourteen proprietary spreads to create healthy
and delicious panini and sub sandwiches with flavors from around the world.
As a leading "fast-casual" concept, Spicy Pickle offers menu items that
are far beyond traditional fast food -- but without the price point of
casual dining. The hallmark of a Spicy Pickle restaurant is quality, service
and an enjoyable atmosphere. The company is headquartered in Denver, Colorado,
with franchised locations now open across 12 states and many more in development
nationwide. For more about Spicy Pickle, including franchise information
and inquiries, visit http://www.spicypickle.com.
Forward-Looking
Statements:
Certain statements
in this press release, including statements regarding the number of restaurants
we intend to open, are forward-looking statements. We use words such as
"anticipate," "believe," "could," "should," "estimate," "expect," "intend,"
"may," "predict," "project," "target," and similar terms and phrases, including
references to assumptions, to identify forward-looking statements. The
forward-looking statements in this press release are based on information
available to us as of the date any such statements are made and we assume
no obligation to update these forward-looking statements. These statements
are subject to risks and uncertainties that could cause actual results
to differ materially from those described in the statements. These risks
and uncertainties include, but are not limited to, the following: factors
that could affect our ability to achieve and manage our planned expansion,
such as the availability of a sufficient number of suitable new restaurant
sites and the availability of qualified franchisees and employees; risks
relating to our expansion into new markets; the risk of food-borne illnesses
and other health concerns about our food products; changes in the availability
and costs of food; changes in consumer preferences, general economic conditions
or consumer discretionary spending; the impact of federal, state or local
government regulations relating to our franchisees and employees, and the
sale of food or alcoholic beverages; the impact of litigation; our ability
to protect our name and logo and other proprietary information; the potential
effects of inclement weather; the effect of competition in the restaurant
industry; and other risk factors described from time to time in our SEC
reports.
Press Release
Source: Spicy Pickle Franchising, Inc. |
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