Jamba, Inc. (NASDAQ:JMBA; NASDAQ:JMBAU; NASDAQ:JMBAW) today announced the launch of a refranchising initiative that is expected to involve up to 150 Jamba Juice store locations primarily outside of California. The Company expects many of the refranchising transactions to also include a development agreement.
"I am pleased to announce this refranchising initiative which, given the high level of interest in the Jamba brand, should accelerate our growth and presence outside of our core California markets," stated James D. White, President and Chief Executive Officer, Jamba, Inc. "Refranchising will also allow us to better focus our operational resources to company owned stores in California to improve efficiencies and performance."
The Company has engaged the Praetorian Group to spearhead this refranchising initiative. The Praetorian Group has a successful track-record with major refranchising programs. The Company expects the refranchising program to be completed in a twelve to eighteen month timeframe, depending on market and other conditions. The Company anticipates transaction proceeds and cash flow from operations will be used to pay down its existing debt and help fund future growth.
"With a continued disciplined effort on expense reduction, a commitment to a customer-first 'operationally focused' service culture across all Jamba Juice stores, building a retail food capability across all day-parts, and enhancing our consumer products licensing platform, our revitalization is well underway," continued Mr. White.
The Company is committed to strategically growing the Jamba brand and refranchising is one component of a broader plan for achieving that goal. The Company has already experienced significant recent success with non-traditional store franchise growth in venues such as airports and schools and expects to soon leverage the skills, local restaurant knowledge and entrepreneurial spirit of franchisees to accelerate its traditional store development outside of California. The Company's current research shows there are potential opportunities for at least 2,700 stores in the United States.
I think it is a good start. Let it fly and fly till it reach its destination -success.
Jamba juice may be able to realized their plan on developing skills and the refranchising may become as effective as expected.
Posted by: Skye @ operational restructuring | 02/28/2011 at 07:59 PM