Abdulla Fouad Group executives Hamad Albuali (left) and Faisal Abdulla Fouad sign the deal with Josef Roberts. Photo / Supplied
Burger Fuel hopes to nail down a site for an outlet in Dubai within the next six weeks, a year after announcing it had signed a deal in the emirate.
The NZAX-listed company recently signed its second international master licensing agreement in the Middle East with partners in Saudi Arabia
and Bahrain.
Burger Fuel executive director Josef Roberts said it was hoped to have more than 20 outlets operating in the region in the next few years.
It had planned to have its Dubai store open by the end of last year but the city state, with its reliance on property development, tourism and financial services, had been hit hard by the global economic crunch.
"We would have liked to have been open earlier but you've got to take the recession into account. They went through a meltdown as well. Priorities change but it's to our advantage because rents are much cheaper and the sites are opening up."
It was crucial to get the first site right in each of the Middle Eastern countries.
"Rather than rush up and open, we've taken our time to get it right."
Burger Fuel's agreement in Saudi Arabia is with the Abdulla Fouad Group, a major Saudi Arabian corporation based in the eastern province of Dammam.
As master franchisee Abdulla Fouad Group will pay for construction and operational costs. Through its licensing agreement Burger Fuel Worldwide will support the brand and earn up-front territory fees and on-going royalties of around 5 per cent to 6 per cent based on store turnover.
Burger Fuel says the Saudi group is ranked in the top 100 companies in Saudi Arabia.
Burger Fuel's shares, issued at $1 in 2007 after a campaign aimed at its younger clientele, have traded between 20c and 65c in the past 12 months. They were last trading at 38c.
