Jamba Launches Refranchising Initiative

Jamba, Inc. announced the launch of a refranchising initiative that is expected to involve up to 150 Jamba Juice store locations primarily outside of California.

According to a release, 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," said 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 company noted that 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 White.

Jamba, Inc. is a holding company and through its subsidiary, Jamba Juice Company, owns and franchises Jamba Juice stores.

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