Company makes progress toward goal to be 90-percent franchised by fiscal year end
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Jamba Inc. has signed two deals with existing operators to refranchise 21 Jamba Juice locations in California, the company said Tuesday.
The Emeryville, Calif.-based company has agreed to sell seven Jamba Juice units in Orange County, Calif., to Hoss Tabrizi, who partially owns the locations through a joint venture with the company. Once the deal is complete, he will be sole owner.
Another 14 units in the San Francisco area will be sold to franchisee Scott Maltz, which will bring the total number of Jamba Juice units he owns to 30.
The move is part of an ongoing plan to move to an asset-light model, with the goal of becoming 90-percent franchised by the end of the fiscal year, said James White, chairman, president and CEO of Jamba Inc.
“We are excited with the progress we continue to make in our refranchising efforts,” White said. “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.”
The agreements position the company well to reach its goal of generating $30 million to $40 million in cumulated cash proceeds from refranchising this year, he added.
Earlier this month, the company said it reached an agreement to sell 100 corporate 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.
Contact Lisa Jennings at [email protected]
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