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Coffee franchise set to acquire US operation

Sarah Stowe

Franchise coffee chain Gloria Jean’s Coffees International is to acquire the franchising rights for the US operation.

Nabi Saleh, executive chairman of Gloria Jean’s Coffees International, is a principal in the US master franchise Praise International North America, which will purchase the US franchise operation.

Saleh said “The acquisition of the franchising rights in the US and the US retail operations of Gloria Jean’s Coffees is the next step in the expansion of the Gloria Jean’s Coffees brand and franchise business.

“Since 1998 we have seen exponential growth in our retail business in Australia and other countries. We see a great potential in the North American market.”

The sale of the US network includes 102 franchise and company-owned locations across 24 states. The purchase price is approximately US$3.1 million. Included in the sale is a five-year roasting agreement and rights to use the Gloria Jean’s Coffee brand names across the wholesale business channels.

Gloria Jean’s Coffees in the US is being sold by Diedrich Coffee. President and chief executive of Diedrich, J. Russel Phillips, said “In looking at Gloria Jean’s International’s results as a franchisor, their commitment to each franchisee and the Gloria Jean’s brand, Praise International North America was the obvious successor and is in the best position to serve our Gloria Jean’s franchise community.

“With more than 1,000 locations across 35 countries worldwide, Gloria Jean’s Coffees International is one of the largest, most experienced franchise coffee companies in the world,” he said.