20 Jan 2014

BurgerFuel plans on staying in the black

11:36 am on 20 January 2014

BurgerFuel intends to keep its books in the black, even though it now has the backing of a couple of the highest flyers in the global fast food business.

Last week, BurgerFuel said a company owned by the Subway founders, Fred DeLuca and Dr Peter Buck, is taking a 10% stake with an option to go to 50% within the next eight years.

The agreement will see nearly $6 million flow into BurgerFuel's coffers from the issue of new shares to the US-based company, Franchise Brands.

The remaining nearly $2.2 million of the purchase price goes to BurgerFuel's founders who have also committed to supplying Franchise Brands with additional shares in future.

BurgerFuel chief executive Josef Roberts says the company does not anticipate the money will be needed for a lot of capital investment.

He says as a franchise brand BurgerFuel utilises the franchisees for the initial capital costs and it invests in supporting the brand.

Mr Roberts says eventually the company is likely to be able to access more franchisees than it ever could growing organically.