Champps Entertainment, Inc. Enters into Partnership Agreements with Field Management
14 June 2006 - 12:57AM
Business Wire
Champps Entertainment, Inc. (NASDAQ:CMPP), owner and operator of 50
company-operated and 13 franchised/licensed Champps restaurants
nationwide, announces that the company has entered into Managing
Partner Bonus Agreements with nine of its General Managers and into
Market Partner Bonus Agreements with two of its Directors of
Operations. The General Managers selected for partnership have been
among the top performers for the sports bar restaurant chain. Each
has purchased a portion of the cash flow of the restaurant they
currently operate and will subsequently earn 5% of the incremental
cash flow for the next seven years, and the opportunity to earn a
large lump sum payout at the end of the term of their agreement
based on performance. The new Managing Partners include Amy Adams
in Addison, TX; Brian James in Las Colinas, TX; Tim Klunk in
Lennox, OH; Kevin O'Hare in Indianapolis; Tom McCabe in Westlake,
OH; Donny Feinberg in King of Prussia, PA; and James Rennie in
Lansing, MI. Market Partner Agreements provide similar
opportunities for financial gain for the two Directors of
Operations, Stan Ryback in the Northeast and Joe Gainor in the
Midwest. Each Director has purchased a portion of the cash flow in
the restaurants in their regions and will subsequently receive 3%
of cash flow for the next seven years and the opportunity for
significant financial gain at the end of the term of their
agreements based on the performance of the restaurants. CEI
believes the partnership program will increase profitability for
the company and has identified several additional candidates to
whom it plans to offer partnership agreements. Safe Harbor
Statement Certain statements made in this press release are
forward-looking statements based on management's current experience
and expectations. These forward-looking statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve certain
risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Such
forward-looking statements include statements regarding our
strategic initiatives; new management team members; improved
profitability and cash flow; revenues; stock compensation expenses;
and restaurant openings, among others. Among the factors that could
cause future results to differ materially from those provided in
this press release are: the ability of the Company to open and
operate additional restaurants profitably, the ability of the
Company to successfully implement our strategic initiatives to
improve revenues and profitability, the ability of the company's
new management team to implement new strategic initiatives
successfully; the impact of intense competition in the casual
dining restaurant industry, the Company's ability to control
restaurant operating costs, which are impacted by commodity prices,
minimum wage and other employment laws, fuel and energy costs,
consumer perceptions of food safety, changes in consumer tastes and
trends, and general business and economic conditions. Information
on significant potential risks and uncertainties that may also
cause such differences include, but are not limited to, those
mentioned by the Company from time to time in its filings with the
SEC. The words "may," "believe," "estimate," "expect," "plan,"
"intend," "project," "anticipate," "should" and similar expressions
and variations thereof identify certain of such forward-looking
statements, which speak only as of the dates on which they were
made. The Company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise. Readers are cautioned
that any such forward-looking statements are not guarantees of
future performance and involve risks and uncertainties, and,
therefore, readers should not place undue reliance on these
forward-looking statements.
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