Easyhome Ltd. (TSX:EH), a provider of financial and other services to high-risk borrowers, has sold its U.S. franchise business for $4.9 million to its U.S. master franchisor, Easygates LLC.
Previously, Easyhome and Easygates split the royalties associated with the U.S. franchise network. Under the terms of the sale agreement, Easygates has acquired from Easyhome its rights to receive its share of those royalties.
"The sale of our U.S. franchise business to Easygates is consistent with Easyhome's strategic objectives of focusing on the Canadian marketplace by growing our Easyfinancial consumer finance business and continuing to improve the profitability of our Canadian leasing business," president and CEO David Ingram said in a statement announcing the deal on Wednesday.
Easyhome Ltd. focuses on cash- and credit-constrained consumers through two divisions. Easyhome offers household furnishings, appliances and home electronic products to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. Easyfinancial provides consumer loans as an alternative to traditional banks and payday lenders.
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