Jamba, Inc. Continues to Accelerate Move to Asset-Light Model with Refranchising of Additional Stores in California
Jamba Sells Twenty-One Stores to Existing Franchise Partners as Refranchising Initiative Continues to Advance Ahead of Schedule
EMERYVILLE, Calif - (BUSINESS WIRE) - April 28, 2015 - Jamba, Inc. (NASDAQ:JMBA) a leading health and wellness brand and leading retailer of freshly-squeezed juice cited an acceleration of its move to an asset-light model with the announcement today of two refranchising deals representing twenty-one stores in California markets. The refranchising was reached with existing Jamba franchise partners; Hoss Tabrizi will own seven stores in the Orange County / Los Angeles market, and Scott Maltz will own fourteen stores in Peninsula / San Francisco market.
“We are excited with the progress we continue to make in our refranchising efforts,” stated James D. White chairman, president and CEO of Jamba. “And we are pleased to extend our partnership with two existing franchisees as we move ahead on the Company’s commitment to an asset light model. These and recent deals position us well to reach our goal of generating $30 - $40 million of cumulative cash proceeds from refranchising in 2015.”
Earlier this month the Company announced its entry into an agreement for the refranchising of 100 Company-owned stores to Vitaligent, LLC. The two deals announced today are part of an accelerated program through which the Company expects to generate between $55 - $75 million of cash proceeds in 2015 in the aggregate. Jamba is on track to close Phase II of its accelerated refranchising initiative by year end and moving the franchise to company model to 90/10%.
Founded in 1990, Jamba, Inc. is a leading restaurant retailer of better-for-you, specialty beverage and food offerings, which include great tasting, whole fruit smoothies, fresh squeezed juices and juice blends, hot teas, and a variety of food items including hot oatmeal, breakfast wraps, sandwiches, Artisan Flatbreads™, baked goods, and snacks. As of December 31, 2014, there were 862 Jamba Juice store locations globally. Jamba is a proud sponsor of “Team Up for a Healthy America” in the fight against childhood obesity and encourages fans to join the Team Up community of celebrities, athletes, and other leaders committed to getting kids active and involved at www.myhealthpledge.com. Fans of Jamba Juice can find out more about Jamba Juice's locations as well as specific offerings and promotions by visiting the Jamba Juice website at www.JambaJuice.com or by contacting Jamba's Guest Services team at 1-866-4R-FRUIT (473-7848).
This press release 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 the Company’s 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 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. 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, Inc.
Dir. Corporate Communications