Cosi Inc. has announced that it has sold 13 restaurants in the Washington, D.C., market to Capitol C Restaurants for $8.4 million. The restaurants will operate under a franchise agreement between the parties. Additionally, Capitol C will open six additional Cosi restaurants in the District of Columbia. Capitol C is led by Richard Pawlowski, principal and chief executive officer.
Under the terms of the Asset Purchase and Sale Agreement, $6.4 million of the purchase price was paid in cash at closing, $1.4 million is to be paid pursuant to a three-year note and the balance of $0.6 million is being held in escrow subject to the satisfaction of certain conditions.
"We are pleased to have a franchisee of Richard's caliber join the Cosi system," James Hyatt, Cosi's president and CEO, said in a news release. "He is a seasoned operator and developer who fully understands the D.C. market. As we continue to operate 11 company-owned restaurants in the greater Washington, D.C., area, we look forward to working together with Richard and his team to further develop the brand in this market."
