Here is an alternative opinion to the UBS Op Lease misunderstanding.
The UBS analyst involved needs to get into the real world.
RFG holding the head lease is a major plus!!!!!
Holding the head lease means RFG can protect the site if a franchisee goes broke.
And guess what, franchisees do go broke.
What happens when they go broke? The world does not end.
RFG just goes and gets a new franchisee and the store keeps running.
If the franchisee holds the lease directly and the franchisee goes broke, guess what could happen.
The landlord puts the leasehold out to market and RFG may lose the site.
As a RFG shareholder I want RFG to protect as many sites as possible.
RFG has been managing lease and site issues for many years and they are experts. Let's leave it to the experts.
The UBS analyst that wrote this research is not business savvy at all.
RFG Price at posting:
$4.80 Sentiment: Buy Disclosure: Held
