Happy Belly Food Group's iQ Food's QSR Announces the Signing of a Franchisee and Real Estate Location for the City of Toronto

Rhea-AI Summary

Happy Belly Food Group has announced a new franchise agreement and secured a location for iQ Food Co. in Toronto's Avenue and Lawrence area. The location, set to open in Q3 2025, will be operated by an experienced multi-unit franchisee who currently runs several Heal Wellness restaurants. Since acquiring iQ Food Co. in September 2024, Happy Belly has expanded from 4 to 7 locations, appointed Randall Papineau as President of Emerging Brands, and secured area development agreements for 65 new locations across Canada (20 in Alberta, 25 in Ontario, 20 in British Columbia). The company expects to double system sales within 12 months of acquisition. Happy Belly currently has 551 contractually committed retail franchise locations in various stages of development.

Positive

• Significant expansion from 4 to 7 locations within first year of acquisition, representing 75% unit growth
• Secured major development agreements for 65 new locations across three provinces
• Strategic location in high-traffic Toronto area with proven multi-unit franchisee
• On track to double system sales within 12 months of acquisition
• Large pipeline of 551 contractually committed retail franchise locations

Negative

• None.

Toronto, Ontario--(Newsfile Corp. - June 18, 2025) - Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company"), a leader in acquiring and scaling emerging food brands across Canada is pleased to announce the signing of a new franchise agreement and the securing of a prime real estate location in Toronto's Avenue and Lawrence area. This milestone marks the third brand within our portfolio to become operational in this high-potential neighborhood. The upcoming location is expected to open in late Q3 of this year and will be led by a seasoned multi-unit franchisee who currently owns and operates several Heal Wellness restaurants across Toronto. The brand launching at this site will be iQ Food Co. ("iQ"), a Toronto-based QSR concept known for its vibrant selection of nourishing, clean-eating dishes-including healthy bowls, smoothies, sandwiches, soups, and salads-crafted to appeal to a wide range of tastes and lifestyles.

Happy Belly 1

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"Our rapid expansion of the iQ Food's brand reflects both our strong execution capabilities and the significant untapped potential we saw in the concept prior to acquisition," said Sean Black, Chief Executive Officer of Happy Belly. "Since completing our 100% acquisition of iQ on September 18, 2024-at which time the brand operated four locations-we have acted swiftly to scale the business. Key milestones include the appointment of Randall Papineau, former VP of Growth and Operations at FRESH Restaurants, as President of Emerging Brands; opened a location in partnership with Oliver & Bonacini at the Queen's Cross food court in CF Toronto Eaton Centre; and the signing of three area development agreements to fuel nationwide growth. These agreements will bring a combined total of 65 new iQ locations to Canada-20 in Alberta, 25 in Ontario, and 20 in British Columbia. This momentum affirms our confidence in the brand and positions iQ for sustained national expansion."

Happy Belly 2

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"Today marks a significant milestone with the first franchise agreement signed under our 65-unit area development plan for iQ. This will mark the seventh (7^th) iQ location to open and operate this year, representing a 75% increase in unit count and putting us on track to double system sales within just 12 months of acquiring the brand. It reflects our commitment to growing iQ through disciplined, organic expansion, with a clear focus on key urban markets across Canada. iQ has firmly established itself as a leader in the premium healthy eating category, strategically located in high-density urban and business districts. With a strong and growing base of health-conscious customers-ranging from downtown professionals to local residents-the brand is also scaling its catering services to extend its reach. This strategy continues to drive brand awareness, customer loyalty, and sustained word-of-mouth growth."

Happy Belly 3

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"As we enter the second half of 2025, our focus remains on accelerating growth through organic development and targeted acquisitions. With a growing pipeline of restaurants across Canada, we expect to announce new projects in the coming months as we secure additional franchise partnerships and premium real estate. These efforts mark meaningful progress toward our goal of building a disciplined, scalable growth platform. Happy Belly currently has 551 contractually committed retail franchise locations-spanning planning, construction, and operational-and we continue to expand this pipeline into 2025 and 2026 by aligning with the right partners and sites."

We are just getting started.

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 4

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Sean Black
Chief Executive Officer

Shawn Moniz
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/255969

FAQ

How many iQ Food Co. locations will Happy Belly Food Group (HBFGF) open through its development agreements?

Happy Belly has secured agreements to open 65 new iQ locations across Canada - 20 in Alberta, 25 in Ontario, and 20 in British Columbia.

What is the current expansion status of iQ Food Co. under Happy Belly Food Group?

Since acquisition in September 2024, iQ has grown from 4 to 7 locations, representing a 75% increase in unit count, with plans to double system sales within 12 months.

Who is the new President of Emerging Brands at Happy Belly Food Group?

Randall Papineau, former VP of Growth and Operations at FRESH Restaurants, was appointed as President of Emerging Brands.

How many total franchise locations does Happy Belly Food Group have in development?

Happy Belly currently has 551 contractually committed retail franchise locations in various stages from planning to construction and operation.

Where is the new iQ Food Co. location in Toronto opening?

The new iQ Food Co. location is opening in Toronto's Avenue and Lawrence area, expected to launch in late Q3 2025.