More asset-light model aims to position smoothie chain for growth
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Jamba Juice is expanding its refranchising effort with the goal of becoming a 90-percent-plus franchised brand by the end of fiscal 2015, parent company Jamba Inc. said Monday.
The company previously pledged to become 80-percent franchised, moving to a more asset-light model as Jamba Juice rolls out its fresh juice platform, which has helped bolster same-store sales.
“We are pleased to announce our plans for the further acceleration of our refranchise initiative, which would result in the company being a 90-percent-plus franchise-to-company-owned model by the end of this year,” said James White, Jamba Inc.’s chairman, president and CEO. “The initial phase of our refranchising initiative has proceeded quickly and efficiently and generated a tremendous amount of interest, giving us a high level of confidence that our goal of 90-percent-plus is achievable. We reaffirm our belief that transitioning Jamba to an asset-light model will allow us to enhance our growth initiatives while driving down expenses, which positions us well for long-term growth.”
The company estimated that expanding refranchising would generate between $55 million and $75 million in cash proceeds this year.
Earlier this month, Jamba announced an agreement to sell 100 company-owned units in California to existing franchisee Vitaligent LLC for $36 million. As of the fourth quarter ended Dec. 30, Jamba operated or franchised 868 units worldwide, including 263 company-owned and 543 franchised units in the U.S., and 62 franchised locations internationally.
The smoothie chain’s same-store sales for the fourth quarter rose 4.9 percent systemwide, including a 4.2-percent increase at company-owned locations and a 5.4-percent increase among franchised units.
Contact Lisa Jennings at [email protected].
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