RCI Hospitality Holdings has signed its first franchise agreement for the development of its military-themed casual dining chain Bombshells Restaurant & Bar.

The agreement was signed with a newly company founded by six Houston-based private investors.

Speaking on the franchise deal, RCI Management Restaurant Operations director David Simmons said: “Today’s agreement is a monumental step for our brand, company, and each person involved in the development of Bombshells. It is also the first step in our quest for more multi-unit operators to expand Bombshells into new markets.”

It will see opening of three new locations in the next five years in San Antonio, Texas.

Also, the agreement includes the right of first refusal for three additional locations in Corpus Christi, New Braunfels, and San Marcos, also in Texas.

The San Antonio agreement will expand the brand’s presence to four major cities in Texas.

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Bombshells currently has eight locations in the Houston area and one each in Dallas and Austin owned by RCI.

The brand recently divulged plans to set up ten more company-owned locations. This include additional units in Houston and Dallas as well as new sites in South Florida.

Nick Mehdi, the member of the investor group who will manage the San Antonio franchise, said: “We believe Bombshells is a significant entry into the market for modern sports bar restaurants. It appeals to singles, couples, and families, including millennials; does a strong lunch, dinner and late-night business; and with its large, distinctive design and outdoor patio, has demonstrated its ability to do well and operate safely through the pandemic.”

Last year, RCI Hospitality reported total revenues of $47m for the third quarter period ending 30 June 2019, an increase from $42.6m for the same period the year before.