Big Shoes to Fill

NexCen Brands Inc. (New York) has entered into a 20-year agreement to open at least 100 Athlete’s Foot stores over the next 14 years.

NexCen is the parent company of The Athlete’s Foot (Norcross, Ga.), which it acquired out of bankruptcy in 2006 for $51 million. The agreement is with TAF Mid-America Enterprises Inc., a domestic and international Athlete’s Foot franchisee.

The minimum projected 100 stores would mark a 16 percent increase over Athlete’s Foot's current worldwide store base, and represents an estimated $22 million in franchise fees, royalties and advertising contribution for NexCen over the next 20 years.

“I have always believed in the power of the [Athlete’s Foot] brand – its level of credibility on a global scale as well as its relevance in local communities,” said TAF MAE ceo John Park, who currently owns 31 Athlete’s Foot stores in the United States and holds the master franchise agreement for South Korea that operates in excess of 40 stores. “I am particularly inspired by the new leadership of NexCen Brands, which is committing extraordinary resources to the growth of [Athlete’s Foot]. There is no question that NexCen is dedicated to providing tools to promote the success of franchise owners like me.”

“John's deep understanding of the urban fashion environment, and his proven track record of successfully franchising [Athlete’s Foot] stores gives us full confidence that he will deliver unparalleled customer service and product selection in any new market he enters,” said NexCen president and ceo Robert D'Loren. “We have aggressive plans to grow the [Athlete’s Foot] footprint globally in coming years and this is an excellent first step.”

The agreement with NexCen will grant TAF-MAE the exclusive rights to operate a premium athletic footwear and apparel store under the Athlete’s Foot brand. TAF-MAE will roll out its new stores in primarily urban locations within the U.S., with the first store expected to open in fall 2007.

Earlier this summer, NexCen launched a global re- branding effort for Athlete’s Foot, including a new modular merchandising system, new in-store design, a modernized company logo and a line of TAF branded apparel.