Jamba, Inc. Continues Move to Asset-Light Model with Refranchising of Additional Stores
May 26 2015 - 8:30AM
Business Wire
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
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.”
About Jamba
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).
Forward-Looking Statements
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150526005314/en/
ICRDara Dierks, 203-682-8200investors@jambajuice.comorJamba
JuiceMike Fuccillo, 510-596-0100, X-7Dir. Corporate
Communicationsmfuccillo@jambajuice.com
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