Heidi’s Yogurt Sells Rights for Franchises in Florida

Concorde Capital Ltd. Inc., a 6-month-old company in Miami, said it has signed an agreement with Orange County-based Heidi’s Franchise Corp. to open and operate 40 Heidi’s Frogen Yozurt Shoppes in Southern Florida within four years.

After several weeks of negotiation, Heidi’s Franchise Corp., a wholly owned subsidiary of Heidi’s Frogen Yozurt of Laguna Hills, sold the franchise rights for southern Florida to Concorde, a blind-pool holding company, in exchange for 3.9 million shares, or 10%, of Concorde’s stock and $400,000 in cash, said Brian L. Pallas, executive vice president of Heidi’s.

Concorde, which will convert into an operating company later this year to run the stores, sold newly issued common stock to raise $1 million to buy the franchise and establish the initial stores, said Patrick J. McEnany, president of Concorde.

“We saw the market was good for frozen yogurt here,� McEnany said in a telephone interview. “Heidi’s Yogurt was doing well in California, and we think it can do the same here.�

$100,000 Per Outlet

Each Florida store will probably cost about $100,000 to establish, said McEnany.

The frozen yogurt market in Florida is similar to that in Southern California, Pallas said.

“There are young, affluent, health-oriented people in Florida who are looking for an all-natural, nutritional dietary equivalent to ice cream, “ Pallas said.

Zenith owns seven Heidi’s Frogen Yozurt Shoppes, 44 franchised stores and has sold 90 franchises, half of which should be operational later this year. Last year, revenues from all the stores totaled $20 million, Pallas said. He would not disclose the privately held company’s earnings.

Heidi’s was founded five years ago by 32-year-old Heidi Miller, a former gymnast and body builder.