Jamba Implements Refranchising Strategy In Utah, California

Jamba, the owner and franchiser of Jamba Juice stores, will sell 12 more restaurants to franchise operators, with the sale of 10 stores in Salt Lake City, Utah, to Blended Star, headed by Daljit and Pam Hundal, and two stores in Southern California, to RPM Foods, headed by Pouya Moalej and Michael Razipour. The sale of the Utah outlets to the Hundals, includes a development commitment to further expand the Jamba Juice brand.

These refranchising transactions add to the sale of 35 outlet locations in Arizona, Oregon, and California, which were already completed. After the completion of nearly one-third of the refranchise store sales, the company is heading towards accomplishing its target of refranchising up to 150 company-owned store locations by the end of 2010.

Mr Hundal said: “Pam and I currently run an 18 unit franchise operation. We were looking for ways to diversify and expand and were truly impressed with the Jamba culture, product innovation, and their management teams focus on growing the brand. We felt Jamba was the right opportunity in which to invest our capital and we are very happy to be a part of the Jamba franchise family.”

Mr Razipour said: “I own five other franchise operations and I’ve always wanted to own a Jamba Juice. This is an exciting time for us. We like how Jamba promotes a healthy, active lifestyle in its brand positioning and offerings. Everyone is trying to follow a trend of being ‘healthier for you’, but Jamba is already ahead of that curve with their better-for-you offerings.”

Thibault de Chatellus, senior vice president of global franchise and development at Jamba Juice, said: “We purposely structured our refranchise packages to enable prospective franchise operators to qualify for small business loans through the SBA program. That strategy, along with the continued progress against our Blend plan growth initiatives that are transforming the company, is paying off.

“We are attracting the right kind of investors to the brand and we expect continued success with the remaining locations, many of which are in varying stages of completion.”

James White, president and chief executive officer of Jamba, said: “I am exceptionally proud of the work accomplished by this team since announcing our intent to refranchise these stores last May. The Jamba brand has always been about inspiring and simplifying healthy living.

“Our focus on product innovation and brand relevance in the healthy living space, makes Jamba a noteworthy investment opportunity for potential franchisees.”