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SEC Filings

8-K
COSI INC filed this Form 8-K on 02/13/2017
Entire Document
 


17.          On November 28, 2016, the Franchisee Parties filed a Limited Opposition to Debtor’s Motion for (1) Order Establishing Bidding Procedures and Granting Related Relief and (2) Order Approving Sale of Substantially All Assets Free and Clear of All Liens, Claim, Encumbrances and Interest and Granting Related Relief [Dkt. No. 440] (the “Cure Objection”).  In the Cure Objection, the Franchisee Parties asserted: (i) a cure claim in the amount of $365,533.00 with respect to the Debtors’ proposed assumption and assignment of the FC MFA and (ii) that the Panama MFA could not be assumed and assigned.4

18.          Cosi disputes the allegations set forth in the Cure Claim and the Cure Objection.
 
19.          On or about November 22, 2016, Cosi sent the Franchisee Parties a Notice of Default (the “Notice of Default”) based on the Franchisee Parties’ failure to pay certain fees due to Cosi under the MFAs.

20.          The Franchisee Parties dispute the Notice of Default.

21.          Cosi and the Franchisee Parties have engaged in extensive negotiations and now wish to consensually resolve all of the disputes and claims among them, including all claims set forth in the Cure Claim, as set forth herein and in the Settlement Agreement.

Summary of the Settlement Agreement5

22.          The Settlement Agreement provides that:
 
 
a.
within three (3) business days of the execution of the Settlement Agreement, Fast Casual shall pay Cosi unpaid royalty fees, marketing fees, and franchise fees due under the MFA (the “Unpaid Fees”) in the amount of $21,664.58, which amount represents all Unpaid Fees owing for the fiscal December 2016 period as of January 21, 2017 (the “Measurement Date”);
 
b.
Cosi waives its right to administrative fees and interest or other charge or fee on the Unpaid Fees;
 

4
The Franchisee Parties have also filed Proofs of Claim in the Cosi, Inc. case.  On or about December 28, 2016, Fast Casual filed a Proof of Claim in the amount of $365,533.00.  See Claim No. 113-1.  Also on or about December 28, 2016, Fast Casual Panama filed a Proof of Claim in the amount of $34,380.50.  See Claim No. 114-1.

5
The description set forth in this section is only a summary.  For the full terms of the Settlement Agreement, the Debtors direct parties in interest to a copy of the Settlement Agreement filed contemporaneously herewith.
 
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