RCI Announces First Bombshells Franchise Agreement

HOUSTON, December 23, 2020 – RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced the signing of the first Franchise Development Agreement for Bombshells Restaurant & Bar. Terms call for the opening of three locations over five years in San Antonio, TX, and the right of first refusal for three more locations in Corpus Christi, New Braunfels, and San Marcos, also in Texas.

The agreement was signed with a newly formed entity established by six Houston-based private investors who have extensive experience in retail and hospitality, as well as multiple other industries. This experience includes franchise management and restaurant ownership.

With the San Antonio agreement, Bombshells will be in the four largest cities in Texas. The brand currently has 10 company-owned locations: eight in the Houston area and one each in Dallas and Austin. Bombshells recently announced plans for 10 more company-owned locations, initially targeting additional units in Houston and Dallas and 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."

Eric Langan, Chairman, President & CEO of RCI Hospitality, said: "We always wanted our first franchise agreement to be with a multi-unit operator that has deep industry knowledge and experience. We are extremely impressed with the skills, resources, and overall resume of our first franchise group. We believe in their ability to help build Bombshells into a sizeable chain."

David Simmons, RCI Management's Director of Restaurant Operations, said: "We have spent more than seven years carefully developing a successful and repeatable concept. 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." Visit http://www.bombshellsfranchise.com to inquire about business opportunities.

About Bombshells

Bombshells Restaurant & Bar is a fast-growing, military-themed casual dining chain with a focus on sports and fun. The restaurants come alive with their large, hangar-like interiors, outside patios, Bombshells Girls with military inspired uniforms, big flat screen TVs, DJs, and energetic atmosphere. Attracting singles, couples, and families, the concept does a strong lunch, dinner, and late night business, featuring a scratch kitchen and an extensive food and drink menu. Visit http://4bombshells.com or http://www.rcihospitality.com.

Forward-Looking Statements

This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company's actual results to differ materially from those indicated in this press release, including, but not limited to, the risks and uncertainties associated with (i) operating and managing a restaurant business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) the impact of the COVID-19 pandemic, and (vii) numerous other factors such as laws governing the operation of restaurant businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2020 as well as its other filings with the U.S. Securities and Exchange Commission. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

Media & Investor Contacts

Gary Fishman and Steven Anreder at 212-532-3232 or gary.fishman@anreder.com and steven.anreder@anreder.com