DP Poland has announced the sale and sub-franchising of four corporately owned stores in Krakow to VKF Group, a Polish company established and led by new Domino’s sub-franchisee Wojtek Fronczyk.
Fronczyk spent the last 10 years in the UK managing Domino’s Pizza stores, during which time he was awarded ‘Supervisor of the Year 2014’ before becoming an area manager. He move back to Poland this summer and joined the Polish Domino’s team as area manager for Krakow.
He opened Krakow’s fifth Domino’s Pizza store in November 2016 under a management contract with DP Polska SA.
For the year ended 31 December 2015 the 4 corporate stores being sold recorded an EBITDA loss of PLN197k equivalent to £34k, at an exchange rate of PLN5.77:£1. Total consideration payable to DP Poland for the transactions is the net book value of PLN1,794k, equivalent to £347k at an exchange rate of PLN5.17:£1.
Proceeds from the transactions will be settled in cash and used to fund the working capital of the company. Following this sale DP Poland will have 13 corporately managed stores and 19 sub-franchised stores.
DP Poland chief executive Peter Shaw said: “We are delighted that VKF Group, led by sub-franchisee Wojtek Fronczyk, has acquired our four corporate stores in Krakow. Wojtek has worked as a highly successful Domino’s Area Manager in the UK and I am impressed by the impact he has already made working with us in Krakow since this summer. Extending sub-franchising is key to our expansion plans and I look forward to welcoming more sub-franchisees to more cities in the future.”
At 9:28am: (LON:DPP) DP Poland share price was +0.38p at 56.63p
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