Diedrich Coffee Announces Mutual Termination of 50-Unit Franchise Development Agreement

Diedrich Coffee Inc., the nation's second-largest specialty coffee retailer, Monday announced the mutual termination of a Franchise area development agreement that called for the development of 50 Diedrich Coffee brand coffeehouses in the state of Connecticut and various counties in Massachusetts and New York.

With the termination of this agreement, a total of four franchise area development agreements remain in effect. The four agreements call for the development of 214 franchised coffeehouses, with three of the 214 presently open and operating. Currently, two of these four remaining area developers have not met their agreed upon development schedules.

Diedrich Coffee is in discussion with these franchise area developers to resolve these issues.

Diedrich Coffee is the nation's second-largest retailer in the specialty coffee market with annual systemwide revenues in excess of $150 million through 381 retail locations in 38 states and 10 foreign countries. The company's primary brands are Diedrich Coffee brand coffeehouses and Gloria Jean's Coffees, the nation's leading chain of mall-based coffee stores.