LAWSON Announces Mega Franchise Agreement With Shinsengumi Honbu

2008/01/24

LAWSON, INC. today signed a Memorandum of Understanding regarding a business alliance with Shinsengumi Honbu K.K. and agreed to conclude a mega franchise agreement by the end of February. Under the franchise agreement, Shinsengumi Honbu's "Shinsengumi" and "Just Spot" convenience stores will take the LAWSON name.

This is a mega franchise agreement because convenience stores operated by Shinsengumi Honbu will convert to LAWSON stores. Both LAWSON and the franchisee Shinsengumi Honbu will be responsible for management guidance, and their respective roles will be set forth in the franchise agreement.

This agreement will wed the IT/distribution systems and product expertise underpinning LAWSON's nationwide chain of convenience stores with such proprietary Shinsengumi Honbu know-how as in-store food preparation. The agreement's goal is to enhance LAWSON's Tokyo-Metropolitan area expansion strategy and to promote growth by Shinsengumi Honbu operates stores.

After the two companies conclude the Mega Franchise Agreement, the 45 "Shinsengumi" and "Just Spot" stores operated by Shinsengumi Honbu will take the LAWSON name; this process will be completed by the end of May 2008. As the franchisor, LAWSON will provide management guidance to Shinsengumi Honbu's "convenience store operating division" as well as sales advice to Shinsengumi Honbu operated stores. Future expansion by Shinsengumi Honbu will not be limited to a particular area, and opening their stores will be determined after discussions between both companies regarding local characteristics and other matters. LAWSON and Shinsengumi Honbu plan to open a pilot store by mid-February as a step toward implementing today's agreement.

Outline of LAWSON, INC.
Company: LAWSON, INC.
Head Office: East Tower, Gate City Ohsaki,11-2, Osaki 1-chome, Shinagawa-ku, Tokyo
President and CEO: Takeshi Niinami
Established: April 15, 1975
Capital: 58,506,644,000 yen
No. of employees: 3,131 (Non-consolidated)
Main businesses; Operation of franchised chain of LAWSON convenience stores
No. of stores: 8,597 (As of December 31, 2007)

Outline of Shinsengumi Honbu K.K.
Company: Shinsengumi Honbu K.K.
Head Office 6F, Empire Bldg. 2-23-1, Hachobori, Chuo-ku Tokyo
President: Kozo Hagiwara
Established: April 23, 1982
Capital: 310 million yen
No. of employees: 60
Main businesses:
Operation of franchised chain of "Shinsengumi" and "Just Spot" convenience stores; and restaurant chain
No. of stores: Convenience store business: 45 (to be converted to LAWSON stores)(34 Shinsengumi stores, 11 Just Spot stores)
Ready-made meal business: 23 Tokyo Chubo stores; 18 Tokyo So-Ya Kitchen and other stores
Restaurant business: 10 restaurants, chiefly grilled beef (yakiniku), run by subsidiaries

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