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Pizza Magia International LLC is ready to move on now that a three-year-old legal challenge came to an end in mid-June.
New stores are planned, and additional financing is being sought, according to Pizza Magia CEO Dan Holland.
But Holland admits that the company's growth was slowed by the lawsuit filed by competitor - and Holland's former employer - Papa John's International Inc.
If it had not been for the lawsuit, "I think we would certainly be much further along," said Holland, a former president of Papa John's who left the company in 1995. "It has obviously had an impact on our growth."
It's unclear to what extent Pizza Magia will have to make changes in its operations as a result of a consent judgment, entered, in U.S. District Court June 17, because no parties involved are allowed to comment publicly on the specifics of the court action and settlement agreement.
Pizza Magia regroups and grows
The still-fledgling pizza company led by former Papa John's executives is clearly in regroup mode, which includes:
* building equity to increase the number of company-owned stores;
* taking on new franchisees who might have been hesitant to come on board while the lawsuit was pending;
* and doing its best to differentiate itself from other pizza industry players.
Pizza Magia, which currently has 28 franchised and 12 company-owned stores, plans to open 15 to 20 new franchised locations by the end of 2003.
Holland said the company also has development agreements with current and new franchisees to open another 75 stores over the next three years.
In the Louisville market, Holland said, planned growth in 2004 includes a location on Hikes Lane and others in Southern Indiana, Shepherdsville, Mount Washington and Bardstown.
"We are very excited about having the lawsuit behind us," said Holland, also former owner of several Papa John's franchises.
Capital sought to fund additional stores
Holland said Pizza Magia also is attempting to raise $2 million in additional capital from local investors. The company is owned by a group of shareholders, Holland being the largest one, said Scott R. Sager, vice president of marketing and franchise sales for Pizza Magia.
Holland said the company would use the money to maintain the optimum percentage of...