Under the terms of the binding letter of intent, Chubby Group—known for its Chubby Cattle chain—will assume operational control of the sites in four phases over the coming year. GEN will retain ownership of three restaurants, which will serve as hubs for research, development, and staff training. The company expects to finalize the transition within 30 days, keeping the right to collect operating profits from each location until the handover is complete.

Beyond the cash component, GEN will receive a term note that it plans to list as a balance sheet asset, with an option to convert the unpaid balance into Chubby Group equity at a $1.5 billion valuation. This restructuring aims to slash GEN’s $160 million in lease liabilities. Chief Executive David Kim stated that the transaction effectively monetizes their physical footprint while allowing shareholders to double down on the company’s high-growth consumer goods segment.