RCI Announces Bombshells Franchise Agreement for the State of Alabama

Rhea-AI Summary

RCI Hospitality Holdings, Inc. (Nasdaq: RICK) has signed its second franchise development agreement for Bombshells Restaurant & Bar, aiming to open three locations in Alabama over the next five years, starting with Huntsville. This partnership is with entrepreneur Jerry Westlund, who owns multiple hospitality venues across the South. RCI currently operates 11 Bombshells in Texas, generating over $60 million in sales in the past year. This franchise expansion marks a significant step for RCI as it seeks to grow its brand outside Texas.

Positive

• Signing of the second franchise agreement for Bombshells Restaurant & Bar.
• Plan to open three new locations in Alabama over five years.
• Partnership with experienced operator Jerry Westlund enhances growth potential.
• Current operations in Texas have generated over $60 million in sales.

Negative

• None.

HOUSTON, May 5, 2022 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced the signing of the second franchise development agreement for Bombshells Restaurant & Bar. Terms call for the opening of three locations over five years in Alabama, the first being in Huntsville.

The agreement was signed with a newly formed entity established by hospitality entrepreneur Jerry Westlund of Nashville, who owns 30 nightclubs, bars and restaurants in 12 states, many of them in the South.

Mr. Westlund, Managing Partner of BMB Huntsville LLC, said, "We're proud to be the first to bring the Bombshells military-themed, restaurant-sports bar concept to Alabama, home to Redstone Arsenal, Fort Rucker, Maxwell Air Force Base, and more than 400,000 men and women who have served our country. Bombshells attracts singles, couples, and families, including millennials. With its large, distinctive design, you can't miss it."

Eric Langan, Chairman, President & CEO of RCI Hospitality, said, "We always wanted our first franchise agreement outside of Texas to be with an operator that has deep industry knowledge and experience and a location that would have deep appreciation for the Bombshells concept. We believe Jerry and Alabama are perfect for Bombshells."

David Simmons, RCI Management's Director of Restaurant Operations, said, "We have spent nine years carefully developing a successful and repeatable concept. Today's agreement is another major step forward for our brand, company, and every person involved in our march to bring Bombshells to new markets across America."

RCI subsidiaries own 11 Bombshells in Texas with more under development. Sales for the 12-months ended in March 2022 totaled more than $60 million. The first franchised location is expected to open soon in San Antonio.

Media Note: High resolution photos are available.

About Bombshells

Bombshells Restaurant & Bar is a fast-growing, military-themed casual dining chain with a focus on sports and fun. The restaurants come alive with their large, hangar-like interiors, outside patios, Bombshells Girls with military inspired uniforms, big flat screen TVs, DJs, and energetic atmosphere. Attracting singles, couples, and families, the concept does a strong lunch, dinner, and late night business, featuring a scratch kitchen and an extensive food and drink menu. Visit http://4bombshells.com, http://www.bombshellsfranchise.com or http://www.rcihospitality.com.

Forward-Looking Statements

This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company's actual results to differ materially from those indicated, including, but not limited to, the risks and uncertainties associated with (i) operating and managing restaurant businesses, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) the impact of the COVID-19 pandemic, and (vii) numerous other factors such as laws governing the operation of restaurant businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2021, as well as its other filings with the U.S. Securities and Exchange Commission. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

Media & Investor Contacts: Gary Fishman and Steven Anreder at 212-532-3232 or gary.fishman@anreder.com and steven.anreder@anreder.com

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SOURCE RCI Hospitality Holdings, Inc.; Bombshells Restaurant & Bar

FAQ

What is the latest franchise agreement by RCI Hospitality Holdings?

RCI Hospitality has signed a franchise agreement to open three Bombshells Restaurant & Bar locations in Alabama over five years.

Who is the franchise partner for Bombshells in Alabama?

The franchise partner is Jerry Westlund, a hospitality entrepreneur with extensive experience.

When is the first Bombshells location expected to open in Alabama?

The first Bombshells location is set to open soon in Huntsville, Alabama.

How much revenue did RCI Hospitality generate from Bombshells in the last year?

RCI generated over $60 million in sales from Bombshells in the 12 months ending March 2022.

What is the significance of the new franchise agreement for RICK investors?

The agreement marks a key expansion opportunity for RCI, potentially increasing revenue and brand presence outside Texas.