In a property lease agreement, isn’t it the tenant that pays the landlord? Well, not always, it seems, since landlords are paying Giggles N’ Hugs, Inc. (OTCQB: GIGL) substantial sums to occupy their premises. Of course, Giggles N’ Hugs will still be paying rent, but the company is considered such a valuable tenant that the owners of the premier properties it occupies are willing to invest in it. They do so by providing upfront cash to finance construction of Giggles N’ Hugs’ restaurants, play areas and other amenities. These payments have totalled $1,554,770 in all and cover all three of the company’s current locations.
Giggles N’ Hugs restaurants can be found at Westfield Mall in Century City on Santa Monica Boulevard in Los Angeles, at Westfield Topanga Shopping Center in Woodland Hills, Canoga Park, and in the Glendale Galleria. The Century City location has received $590,000 from landlord Westfield Corporation (OTC: WEFIF), the Topanga facility has received $489,770 (also from the Westfield Corporation) and Glendale Associates has paid $475,000 to the Glendale Galleria outlet.
Giggles N’ Hugs is courted because mall owners expect the company will drive family foot traffic, and family foot traffic is the lifeblood of malls. Giggles N’ Hugs’ unique upscale offering is novel and exciting. The company operates family-friendly restaurants with play areas for children 10 years and younger. The restaurants also feature daily live entertainment and shows. The design of the restaurants is intended to create a fun, casual, family atmosphere where children can interact with parents and each other and where everyone enjoys freshly prepared, organic, nutritious and reasonably priced meals. The company was founded by Joey Parsi in 2010 after he and his wife, Dorsa, realized there were no eating places that catered to the special needs of parents with young children.
Apart from the restaurants and play areas, the company plans to license its brand to market clothes, toys, a frozen food line, and vitamin water for kids. The company also offers an innovative drop off program, which allows parents to drop off their kids for up to three hours while they shop.
Giggles N’ Hugs is in good hands. Parsi is its driving force and present CEO. Back in the 90s, he was an investment advisor at Lehman Bros. Then, he served as senior vice president at Sutro and Company, the pedigreed investment management and brokerage firm founded in 1858. Thereafter, he spent two years, 1996 to 1998, at Prudential Securities (NYSE: PRU). In 1998, he founded Barron Chase and raised more than $30 million in funding for nine separate companies before liquidating the business and joining TD Waterhouse (NYSE: TD).
If Westfield Corporation and Glendale Associates are willing to bet on Giggles N’ Hugs, it must be something more than the macaroni and cheese with real cheddar or the chicken littles made with real chicken breast it has on the menu. Giggles N’ Hugs is giving back to young parents the good times dining out they once had before tying the knot. Now that can’t be a bad thing.
For more information, please visit www.gigglesnhugs.com
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