100th franchise Sold in US!!!!!!! 100 Victims

This gives you an idea of what they were offering and how many people they sucked in!

VTL sells its 100th franchise in the United States
Kiwi technology transforming a traditional American business
Auckland, 14 March 2007 – New Zealand-listed vending machine franchising company VTL Group Ltd (NZX: VTL) has reached a milestone with the sale of 100 franchises in the United States under the 24seven vending machine franchise brand.
The US franchised 24seven vending routes normally sell for $US254,000 each. They are created from the trading stock of sited machines acquired by VTL Group from established vending machine operators, which have been converted to VTL’s proprietary technology prior to being franchised as ‘going concern’ routes.
Group chairman Gary Stevens says VTL’s technology is the key to converting marginal vending businesses into profitable owner-operated franchises.
“We’re delighted to have sold our 100th 24seven franchise to an operator in Miramar, Florida.“Our 24seven vending machines automatically report their sales so that our franchise operators know what lines are selling, what needs restocking and when machines need servicing. VTL’s technology transforms the profitability of vending machine businesses by providing a total management system, which maximises sales and reduces operating costs. It also introduces greater accountability and best-practice standards within the vending industry. This allows us to convert an old-style and mature business to our technology and franchise platform and create a
dynamic, modern franchise that provides profitable opportunities for owner-operators.
“Proof of this is the fact that some franchises have been on-sold to new owners at higher prices.” He says VTL is continuing to build its stock of sited machines through the acquisition of service routes from local US companies.
“Our acquisition of Nor-Cal Beverages, Inc., in November 2006 delivered us more than 20 routes which we will sell down as franchises in the Northern Californian region over the next 12 months. More recently we have just completed negotiations to acquire the vending routes of Arctic Vending
in California.” Mr Stevens says the 24seven vending machine franchise model generates revenue from the sales of franchise businesses, plus on-going revenue streams through the collection of monthly monitoring fees and sales royalties.
VTL Group sold its first 24seven franchise in the US in July 2003. The company also has sixty nine 24seven operators within Australasia.
In the US, Service America’s core business has been restructured and the sale of non-core assets is expected to be largely concluded before the end of the financial year. Seconded CEO John Hotchin has installed a strong franchising culture and a consistent level of franchise sales is being achieved. As a result, Service America delivered a small operating surplus in the six months to 31 December 2006, which was well ahead of last year and slightly ahead of forecast. Service America has some 37,000 vending machines on some 10,000 sites under its control in
North America, the equivalent of more than 400 franchises, including the routes franchised to date. Mr Stevens said the recognition of the value being added by VTL’s business and technology platform in the US has seen the strengthening of the company’s balance sheet by $US7.3 million 2 with the introduction of two Boston-based cornerstone shareholders, Mr John Halpern and Mr
George Denny III, who paid $US1 (approximately $1.45) a share last month to each acquire a 9.95% shareholding in the company.
He said that this week the company has announced it is renewing its share buy-back programme to acquire approximately 1.5 million ordinary shares, over the next 12 months. VTL’s previous buyback programme saw it acquire shares on market at an average price of 64.7c each. These were later sold to Mr Halpern and Mr Denny at USD$1 (approximately NZD$1.45)each, resulting in the company making a capital profit of $839,250.

About VTL Group Limited
VTL Group Limited (NZX:VTL) is a global franchisor, with its franchised brands represented internationally including Australasia, North America, UK and Europe. VTL Group’s franchise model is supported by a complete management system including its leading-edge proprietary technology and financing. The company’s primary growth strategy for 24seven® and Shop24™ is based around purchasing quality electronic vending equipment for 24seven or the manufacturing of its Shop24
units, installing proprietary control technology and building a network of franchised
owner/operators.
For more information, please contact:
Gary Stevens, Chairman, VTL Group Limited, +64 21 981 874, gary.stevens@vtlgroup.com