Emeryville, Calif.--(BUSINESS WIRE)--Jamba, Inc. (NASDAQ:JMBA; NASDAQ:JMBAU; NASDAQ:JMBAW) today announced the launch of a refranchising initiative that is expected to involve up to 150 Jamba Juice store locations primarily outside of California. The Company expects many of the refranchising transactions to also include a development agreement.
"I am pleased to announce this refranchising initiative which, given the high level of interest in the Jamba brand, should accelerate our growth and presence outside of our core California markets," stated James D. White, President and Chief Executive Officer, Jamba, Inc. "Refranchising will also allow us to better focus our operational resources to company owned stores in California to improve efficiencies and performance."
The Company has engaged the Praetorian Group to spearhead this refranchising initiative. The Praetorian Group has a successful track-record with major refranchising programs. The Company expects the refranchising program to be completed in a twelve to eighteen month timeframe, depending on market and other conditions. The Company anticipates transaction proceeds and cash flow from operations will be used to pay down its existing debt and help fund future growth.
"With a continued disciplined effort on expense reduction, a commitment to a customer-first 'operationally focused' service culture across all Jamba Juice stores, building a retail food capability across all day-parts, and enhancing our consumer products licensing platform, our revitalization is well underway," continued Mr. White.
The Company is committed to strategically growing the Jamba brand and refranchising is one component of a broader plan for achieving that goal. The Company has already experienced significant recent success with non-traditional store franchise growth in venues such as airports and schools and expects to soon leverage the skills, local restaurant knowledge and entrepreneurial spirit of franchisees to accelerate its traditional store development outside of California. The Company's current research shows there are potential opportunities for at least 2,700 stores in the United States.
Jamba, Inc. (Nasdaq: JMBA) (Nasdaq: JMBAU) (Nasdaq: JMBAW) is a holding company and through its wholly-owned subsidiary, Jamba Juice Company, owns and franchises JAMBA JUICE® stores. Founded in 1990, Jamba Juice is a leading restaurant retailer of healthy lifestyle food and beverage offerings, including great tasting fruit smoothies, juices, teas, hot oatmeal made with organic, steel cut oats, and baked goods. As of April 21, 2009, JAMBA JUICE had 732 locations consisting of 499 company owned and operated stores and 233 franchise stores.
The Praetorian Group are franchise transaction specialists and have extensive experience structuring and negotiating business transactions, valuation of business enterprises, divestures, equity placement and commercial loan structuring. The firm has sold over 3,000 franchised units and has successfully completed re-franchising programs for many well known QSR's.
This press release (including information incorporated or deemed incorporated by reference herein) contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projects as well as the current beliefs and assumptions of our management. Words such as "outlook", "believes", "expects", "appears", "may", "will", "should", "anticipates", or the negative thereof or comparable terminology, are intended to identify such forward looking statements. Any statement that is not a historical fact, including estimates, projections, future trends and the outcome of events that have not yet occurred, is a forward-looking statement. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore actual results may differ materially and adversely from those expressed in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed under the section entitled "Risk Factors" in our reports filed with the SEC. Many of such factors relate to events and circumstances that are beyond our control. You should not place undue reliance on forward-looking statements. The Company does not assume any obligation to update the information contained in this press release.