EMERYVILLE, Calif. --(BUSINESS WIRE)-- Jamba, Inc. (NASDAQ: JMBA) announced today the sale of 12 additional restaurants to experienced franchise operators, with the sale of 10 stores in Salt Lake City, Utah, to Blended Star, LLC, whose principals are Daljit and Pam Hundal, and two stores in Southern California, RPM Foods Inc, whose principals are Michael Razipour and Pouya Moalej. The purchase of the Utah restaurants by Mr. and Mrs. Hundal, includes a development commitment to further expand the Jamba Juice brand. These sales reflect the Company's continuing progress against its strategic refranchising initiative.
"We purposely structured our refranchise packages to enable prospective franchise operators to qualify for small business loans through the SBA program," stated Thibault de Chatellus, senior vice president, global franchise and development, Jamba Juice Company. "That strategy, along with the continued progress against our BLEND plan growth initiatives that are transforming the company, is paying off. We are attracting the right kind of investors to the brand and we expect continued success with the remaining locations, many of which are in varying stages of completion."
"I am exceptionally proud of the work accomplished by this team since announcing our intent to refranchise these stores last May," said James D. White, president and chief executive officer, Jamba, Inc. "The Jamba brand has always been about inspiring and simplifying healthy living. Our focus on product innovation and brand relevance in the healthy living space, makes Jamba a noteworthy investment opportunity for potential franchisees."
Since announcing their refranchising initiative, Jamba has successfully been able to attract and engage experienced, multi-unit franchise operators to the brand—those that are established with the brand as existing franchise store owners as well as operators who are expanding their franchise portfolio through the acquisition of a Jamba outlet.
"I own five other franchise operations and I've always wanted to own a Jamba Juice. This is an exciting time for us," stated Mr. Razipour. "We like how Jamba promotes a healthy, active lifestyle in its brand positioning and offerings," added Mr. Moalej. "Everyone is trying to follow a trend of being 'healthier for you', but Jamba is already ahead of that curve with their better-for-you offerings."
"Pam and I currently run an 18 unit franchise operation. We were looking for ways to diversify and expand and were truly impressed with the Jamba culture, product innovation, and their management teams focus on growing the brand," commented Mr. Hundal. "We felt Jamba was the right opportunity in which to invest our capital and we are very happy to be a part of the Jamba franchise family."
These refranchising transactions build on the sale of 35 restaurant locations in Arizona, Oregon, and California, completed since the refranchising initiative was announced.
With close to one-third of the refranchise store sales complete, the company is well on its way towards achieving its goal of refranchising up to 150 company-owned restaurant locations before the close of 2010.
Jamba was assisted in the close of this sale by the Praetorian Group, franchise transaction specialists. For information on the Company's refranchising initiative, contact the Praetorian Group at 1-888-358-3325 or www.praetoriangroup.net.
Jamba, Inc. (NASDAQ: JMBA) 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 better-for-you food and beverage offerings, including great tasting fruit smoothies, juices, and teas, hot oatmeal made with organic steel cut oats, wraps, salads, sandwiches, and California Flatbreads™, and a variety of baked goods and snacks. As of October 6, 2009, Jamba Juice had 742 locations consisting of 488 company-owned and operated stores and 254 franchise stores.
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.