Business Context and Reporting Period
Company: Muscle Maker, Inc. (Note: Request metadata listed "Sadot Group Inc.", but the filing identifies the issuer as Muscle Maker, Inc., trading as GRIL on Nasdaq).
Filing Type: Form 8-K (Current Report)
Date of Report: October 25, 2021
Reporting Period: The filing reports on a specific event occurring on October 25, 2021, regarding a new international expansion agreement.
Key Financial Metrics
This filing is a Current Report (8-K) and does not contain comprehensive financial statements, revenue, profit, cash flow, or debt metrics for the period. The only specific financial figures disclosed relate to the new Master Franchise Agreement:
- Upfront Payment: $150,000 payable upon execution of the agreement.
- Per-Unit Fee: $20,000 payable upon execution of each individual franchise agreement.
- Recurring Royalty: $1,000 per month for each restaurant opened.
Liquidity, margins, and total debt figures are not provided in this document.
Material Changes
The primary material change is the entry into a Master Franchise Agreement between Muscle Maker Development International LLC (MMDI), a wholly-owned subsidiary, and Almatrouk Catering Company – OPC (ACC).
- Scope: Exclusive rights to develop up to 40 "Muscle Maker Grill" restaurants in the Kingdom of Saudi Arabia (KSA).
- Term: December 31, 2030.
- Operational Structure: MMDI will not own or operate restaurants in KSA. ACC is solely responsible for development, sales, marketing, operations, distribution, and training.
Guidance, Outlook, and Risks
Outlook: The agreement targets the development of 40 restaurant locations in Saudi Arabia over the next decade.
Contingencies: ACC is required to cause its franchisees to open the agreed-upon restaurants during specific development periods within the Term. Failure to meet these development milestones could impact future royalty revenue.
Risks: The filing notes that the summary is qualified in its entirety by reference to the full Master Franchise Agreement (Exhibit 10.1). As an emerging growth company, the registrant may face different regulatory reporting requirements.
Investor Verification Checklist
- Verify the full terms of the Master Franchise Agreement in Exhibit 10.1 for specific development milestones and termination clauses.
- Confirm the financial stability and track record of the partner, Almatrouk Catering Company – OPC (ACC).
- Review subsequent filings to track the actual number of franchise agreements executed and restaurants opened in KSA.
- Monitor the company's cash flow to ensure the $150,000 upfront payment was received and properly recognized.