Friday 27th July 2007
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The company has raised its $8 million minimum, however more than a third of that is made up with money from the burger franchises founders.
Total applications from 2380 investors was $5.25 million and the balance of $2.75 million has come from founders Chris Mason and Josef Roberts.
Chairman Peter Brook said that although it was the minimum amount of equity sought, the company had flexibility as to its capital requirements.
It would use the new capital to secure prime locations and undertake preliminary fit-out work. It would be able to recycle that capital as it on-sold these stores to franchisees who would pay 100% of the costs associated with their store. Franchisees also pay up-front and on-going royalty fees to BurgerFuel.
In Australia where BurgerFuel already has one franchised store, the company would use the same franchise model as New Zealand to expand.
It would, however, own and operate its proposed store in Sydney's Kings Cross, which was due to start construction shortly. That store would be beneficial as a training facility and would also provide additional revenue to the company. It is located directly under the iconic Coke sign, at the entry to Kings Cross.
Brook said that the IPO process had spurred interest in the brand both nationally and internationally and that BurgerFuel would also look to roll out stores in other countries with local partners, thereby reducing the requirement for capital investment.
BurgerFuel opened in Queen Street two weeks ago and so far that operation had the highest store turnover in the system. It's due to open its second Tauranga store and a Napier store shortly, bringing total store numbers to 24.
BurgerFuel Worldwide (BFW) will list on the NZAX on July 27.
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