GRILLiT, Inc. announced that the company has executed an option agreement granting the exclusive right to a master franchise agreement for the State of California. The agreement calls for the total purchase price of $125,000 cash, plus the right to receive a 4% royalty commitment on all gross revenues, and a $12,500 up front fee for each franchised location established in California. The company has already received $75,000 cash for the purchase of the exclusive option, with the remaining balance of $50,000 due upon the company completing the final franchise eligibility requirements for the State of California, which it expects to conclude within the second quarter of 2014.

The option purchase agreement was executed on April 1, 2014. The company will recognize the $75,000 payment as revenue in the second quarter of 2014.