Diedrich to Open in Kentucky, Tennessee

Diedrich Coffee Inc., stepping up its nationwide expansion effort, said Tuesday it has signed a franchise agreement to open 50 coffeehouses in Kentucky and Tennessee.

Financial terms of the arrangement with Cumblerland Coffee Co. were not disclosed.

The latest agreement give Irvine-based Diedrich five franchise pacts to open as many as 422 stores over the next five to seven years. Last week, the company signed a similar agreement with a franchise company to open 80 shops in the Los Angeles area.

Darrell Sheffer, a principal of Cumberland Coffee, spent more than 30 years helping develop the Kentucky Fried Chicken concept as a corporate operator and franchisee in five states, including Kentucky and Tennessee. He is currently developing a number of Magic Dragon Chinese restaurants in Kentucky.

Ronald Sheffer, another principal of Cumberland, owns and operates a number of convenience stores and food plazas in Kentucky.