NexCen Brands, Inc. signed a 20-year deal with TAF Mid-America Enterprises, Inc., a domestic and international franchisee of The Athlete's Foot for the last 17 years, to open a minimum of 100 additional TAF stores over the next 14 years. The minimum projected 100 stores marks a 16% increase over TAF's current worldwide store base, and represents an estimated $22 million in franchise fees, royalties and advertising contribution for NexCen over the next 20 years.
The agreement with NexCen will grant TAF-MAE the exclusive rights to operate a premium athletic footwear and apparel store under the TAF brand. TAF-MAE will roll out its new stores in primarily urban locations within the U.S., with the first store expected to open in fall 2007.
“I have always believed in the power of the TAF brand-its level of credibility on a global scale as well as its relevance in local communities,” said John Park, CEO of TAF-MAE who currently owns 31 TAF stores in the U.S. and holds the master franchise agreement for South Korea that operates over 40 stores. “I am particularly inspired by the new leadership of NexCen Brands, which is committing extraordinary resources to the growth of TAF. There is no question that NexCen is dedicated to providing tools to promote the success of franchise owners like me.”
“We are thrilled that John has recognized NexCen's commitment to the future of TAF and has chosen to invest in our vision,” commented Robert W. D'Loren, president and CEO of NexCen Brands. “Our intent is that franchise owners like John benefit from the best-in-class resources we leverage across our brands. Our efforts in branding, merchandising, marketing, public relations, trend-spotting and operational support are all geared toward helping our franchise owners perform at the highest level to build a win-win result for us, our franchisees, vendor partners and customers.”