Jamba, Inc. Continues Move to Asset-Light Model with Refranchising of Additional Stores
Jamba Sells Nine Stores to Existing Franchise Partner; Announces Plans to Complete Additional Sales by the Close of the Third Quarter; Refranchising Initiative Continues to Advance Ahead of Schedule
EMERYVILLE, Calif. - (BUSINESS WIRE) - May 26, 2015 - Jamba, Inc. (NASDAQ:JMBA), a leading health and wellness brand and leading retailer of freshly-squeezed juice, announced today the completion of a refranchising deal for nine stores in California. The refranchising transaction was reached with existing Jamba franchise partner, Blended Star Norcal. Inc. Jamba expects to close six to seven additional refranchising transactions by the end of the third fiscal quarter of 2015, involving approximately 90-100 stores for expected additional proceeds between $22 million and $25 million. Also, Jamba expects to close the refranchise for 100 stores to Vitaligent by the end of the second quarter of fiscal 2015.
The company has completed the refranchising of 34 Company-owned stores since the beginning of 2015 and announced the refranchising of 100 Company owned stores to Vitaligent. The completed deals include the transaction of nine stores announced today, the 21 stores to Hoss Tabrizi and Scott Maltz in April in addition to four Company-owned stores that were refranchised during the first quarter of 2015.
“We are excited with our continued progress in our refranchising efforts and are still fully on track to close Phase II of our accelerated refranchising initiative by year end, reaching our goal to move to a franchise to company-owned store ratio of 90%/10%,” stated James D. White chairman, president and CEO of Jamba. “We are well positioned to reach our goal of generating between $60 million and $70 million of cumulative cash proceeds from refranchising in 2015.”
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