I passed by this store yesterday. Looks pretty large for a start-up. I'd suspect you're right about the Frenchie's connection. I didn't even realize Frenchie's had closed, though!

Regarding the quality of the bikes, I think it can't hurt to open a store that sells affordable bikes that are just a step above XMart models. This might attract more people to bike commuting and provide more incentive for families and individuals to give bicycling a shot. There's a small, high-end bike store in downtown Syosset that attracts fanatics from everywhere, but regular cyclists like me can't even buy a tire tube there.