Happy Belly Food Group's iQ Food Co. QSR Signs 10-Unit Area Development Agreement in Atlantic Canada

Rhea-AI Summary

Happy Belly Food Group (OTCQB: HBFGF) has signed a significant area development agreement to open 10 new franchised locations of iQ Food Co. across Atlantic Canada's provinces. This expansion follows Happy Belly's 100% acquisition of iQ Foods in September 2024 and brings the total iQ Foods locations under development to 75 units across Atlantic Canada, British Columbia, Alberta, and Ontario.

iQ Food Co., a premium healthy eating brand, specializes in nutritious bowls, smoothies, sandwiches, soups, and salads. The company strategically positions its locations in urban and central business districts, serving health-conscious customers and offering catering services. Happy Belly's total portfolio now includes 626 units under development agreements across all its emerging brands, with plans for further expansion in late 2025 and 2026.

Positive

• Expansion to 10 new franchised locations in Atlantic Canada
• Total portfolio reaches 626 contractually committed retail franchise locations
• iQ Foods acquisition was completed debt-free and cash-flow positive
• Strategic positioning in premium healthy eating market with strong brand recognition

Negative

• Significant execution risk in managing rapid expansion across multiple provinces
• Heavy reliance on area development agreements for future growth

Toronto, Ontario--(Newsfile Corp. - August 28, 2025) - Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company"), a leading consolidator of emerging food brands is pleased to announce that it has signed as of August 27^th, 2025, an area development agreement for the provinces of Nova Scotia, New Brunswick, P.E.I, Newfoundland and Labrador (together the "Atlantic Provinces"). The contractual agreement will deliver 10 new franchised locations of iQ Food Co. ("iQ Foods"), serving a variety of delicious and wholesome food options such as healthy bowls, smoothies, sandwiches, soups, and salads, along with other flavorful clean-eating dishes that the whole family can enjoy.

Happy Belly 1

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With this addition, our emerging brand portfolio now has 626 units under development agreements, clearly setting the path forward for several years of predictable organic growth for Happy Belly.

"Our accelerated expansion of the iQ Foods business is a testament to our execution, capabilities and the untapped potential we identified in the brand prior to acquisition. Following the completion of our 100% acquisition of iQ Foods on September 18, 2024, on a debt free and cash-flow positive basis, we have moved quickly to identify growth opportunities for the brand. Today, we take another significant step forward with the signing of an area development agreement to open 10 new franchised locations across Atlantic Canada, bringing our total units under area development agreements for iQ Foods to 75 across not only Atlantic Canada, but British Columbia, Alberta and Ontario," said Sean Black, Chief Executive Officer of Happy Belly.

"iQ is an emerging brand and disruptor in Canada's premium healthy eating market, strategically positioned in urban and central business districts. It serves thousands of health-conscious customers from local businesses and is expanding its catering services to reach an even larger audience in densely populated downtown areas. This strategic approach has built strong brand recognition and fostered a loyal customer base, driven by word-of-mouth and, most importantly, satisfied customers."

Happy Belly 2

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"Atlantic Canada has seen a surge in demand for nutritious, wholesome dining options among its health-conscious population, driven by active individuals and families who prioritize fitness, wellness, and balanced living. Its vibrant coastal cities boast dynamic dining scenes where consumers seek innovative, flavorful meals that align with their pursuit of healthier lifestyles. With an emerging economy and high standard of living that further support premium dining experiences, making Atlantic Canada an ideal setting for those who refuse to sacrifice taste for health. In this environment, iQ's offering of delicious, nourishing bowls, smoothies, sandwiches, soups, and salads perfectly meets the needs of families and individuals looking for quality, clean-eating options."

Happy Belly 3

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"We currently have 626 contractually committed retail franchise locations from area developers across all emerging brands in the Happy Belly Food Group portfolio including those in development, under construction or already open. We are working to actively expand this pipeline significantly in the back half of 2025 & 2026 with our disciplined approach to growth.

"We are just getting started," said Sean Black.

Happy Belly 4

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About iQ Food Co.
iQ is a flagship brand in Canada's premium healthy eating market and is strategically located in urban and central business districts. iQ serves a variety of delicious and wholesome food options such as healthy bowls, smoothies, sandwiches, soups, and salads, along with other flavorful clean-eating dishes that the whole family can enjoy. iQ caters to thousands of health-conscious customers from local businesses, while expanding into catering services to service an even greater audience in downtown densely populated areas. This strategy has fostered strong brand recognition and a loyal customer base driven by word-of-mouth and, most importantly, satisfied customers.

Franchising
For franchising inquiries please see www.happybellyfg.com/franchise-with-us/ or contact us at hello@happybellyfg.com.

About Happy Belly Food Group
Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company") is a leader in acquiring and scaling emerging food brands across Canada.

Happy Belly 5

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Sean Black
Co-founder, Chief Executive Officer

Shawn Moniz
Co-founder, Chief Operating Officer

FOR FURTHER INFORMATION, PLEASE VISIT:
www: www.happybellyfg.com or email hello@happybellyfg.com
If you wish to contact us please call: 1-877-589-8805

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

Cautionary Note Regarding Forward-Looking Statements

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to the Company within the meaning of applicable securities laws. Forward-Looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include the future performance of Happy Belly and her subsidiaries. Forward-Looking statements are based on the opinions and estimates at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. There are no assurances that the business plans for Happy Belly described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on www.sedarplus.ca.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/264274

FAQ

How many new iQ Food Co. locations will Happy Belly (HBFGF) open in Atlantic Canada?

Happy Belly will open 10 new franchised locations across Nova Scotia, New Brunswick, P.E.I, Newfoundland and Labrador through an area development agreement signed on August 27th, 2025.

What is the total number of Happy Belly Food Group's units under development?

Happy Belly Food Group has 626 contractually committed retail franchise locations across all its emerging brands, including those in development, under construction, or already open.

When did Happy Belly acquire iQ Foods?

Happy Belly completed the 100% acquisition of iQ Foods on September 18, 2024, acquiring the company on a debt-free and cash-flow positive basis.

What type of food does iQ Food Co. serve?

iQ Food Co. serves healthy bowls, smoothies, sandwiches, soups, and salads, along with other clean-eating dishes, targeting health-conscious customers in urban and central business districts.

How many total iQ Foods locations are under development agreements?

iQ Foods has 75 locations under development agreements across Atlantic Canada, British Columbia, Alberta, and Ontario.