Jamba Juice Announces Completion of Refranchise Initiative With Sale of 41 Stores in Mid-West Market
Completion Results in Asset-Light, Less Capital Intensive Business Model
EMERYVILLE, Calif., Apr 18, 2011 (BUSINESS WIRE) -- Jamba Juice (NASDAQ: JMBA), today announced the completion of its refranchise initiative, originally announced in May 2009, with the sale of 41 stores in the Chicago/Minneapolis markets to J J Maa, Inc. The Company was successful in completing the sale of 173 stores, exceeding the original goal to refranchise up to 150 stores primarily outside of California. In conjunction with several of the refranchise transactions, development agreements for an aggregate of 52 additional new Jamba Juice stores were entered into as well as commitments to refresh and refurbish select mature stores.
"To have exceeded our goal is a significant accomplishment. I could not be more proud of the entire team. Refranchising these stores will allow us to better focus our operational resources on our Company-owned stores in California and New York and improve efficiencies and performance. It also creates a business shift to an asset-light business model that is less capital intensive," stated James D. White, chairman, president, and chief executive officer, Jamba Juice Company. "We were able to find new or existing highly qualified and successful franchisees who wanted to be a part of the Jamba team. We welcome all of our new franchisees into the system and look forward to working with them in their respective markets."
The Company believes that the completion of the refranchise initiative better positions Jamba for accelerated growth, will increase brand presence and market share, will provide the Company with greater overall margins, and reduce capital outlays.
About Jamba, Inc.
Jamba, Inc. is a holding company and through its wholly-owned subsidiary, Jamba Juice Company, owns and franchises JAMBA JUICE(R) 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(TM), and a variety of baked goods and snacks. As of April 18, 2011, Jamba Juice had 744 locations consisting of 308 Company-owned and operated stores and 436 franchise stores. For the nearest location or a complete menu, visit the Jamba Juice website at www.jambajuice.com or call 1-866-4R-FRUIT (473-7848).
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 projections 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, the possibility that the parties may not reach agreement with respect to the final terms of a definitive agreement relating the proposed arrangements described above as well as the other factors 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.
SOURCE: Jamba Juice