Jamba Juice Plans to Have More Franchised Locations

Jamba Inc., the owner of the restaurant chain Jamba Juice, is planning on selling nearly 40% of its company owned stores to Vitaligent LLC, a franchisee group that already owns Jamba Juice stores in the St. Louis area. This entails the sale of 100 stores in California, and the value of this sale is estimated at $36 million. Jamba’s CEO, James White, has stated that the majority of the proceeds will go toward purchasing back a sizable amount of Jamba shares. The sale of these stores was advocated by two new board members, Engaged Capital LLC and JCP Investment Management LLC, who are in favor of cutting costs and disposing of underperforming stores in order to do so.

The strategy being undertaken is to go from 70% of Jamba Juice’s being operated by an outside franchisee to 90% by 2016. This strategy is not something that is unprecedented in the restaurant chain industry. Restaurant chain heavyweights McDonald’s, Burger King, and Wendy’s are all moving toward more franchising. The reasoning behind this approach is so these companies can rely more heavily on steady royalties and licensing to generate income rather than remain dependent on volatile revenues from owned and operated locations.

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Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

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