Jamba Juice 2007 Annual Report Download - page 5

Table of Contents
Jamba Breads, Jamba Pretzels and packaged snacks: Most of our locations offer a combination of breads, pretzels and packaged snacks. Each of
these items is made only with natural ingredients and offers customers a complement to Jamba smoothies and juices.
Jamba Merchandise: Most of our stores carry a limited supply of related merchandise, including books and smallwares. This is not a core component
of revenue but contributes to the overall store experience.
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We have grown our concept and brand through company owned and operated stores (“Company Stores”) and franchise locations (“Franchise Stores”).
As of January 9, 2007, there were 595 Jamba Juice locations consisting of 373 Company Stores and 222 Franchise Stores operating in 23 states, the District
of Columbia and the Bahamas. Except for the single Bahamas franchise location, we have no other international locations. Of the 595 locations, 329 are
located in California, of which 272 are Company Stores. We lease the real estate for all of our Company Stores.
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We generally characterize our stores as either “traditional” or “non-traditional” locations. Traditional locations are characterized as a business premise
that exists primarily as a Jamba Juice store, excluding any non-traditional location. Traditional stores average approximately 1,400 square feet in size and are
designed to be fun, friendly, energetic, and colorful to represent the active, healthy lifestyle that we promote. These stores are located either in major urban
centers or in suburban strip mall centers. As of January 9, 2007, there were 512 traditional Jamba Juice store locations.
Non-traditional locations are characterized as a Jamba Juice store located within another primary business or in conjunction with other businesses or at
institutional settings such as colleges and universities, schools, shopping malls, supermarkets and airports. As of January 9, 2007, there were 83 non-
traditional Jamba Juice store locations.
All Jamba Juice stores are designed to provide a highly interactive Jamba experience to attract customers, including the enticing aroma of fresh fruit,
vegetables, and wheatgrass, the high-energy sounds of whirring blenders, and team members calling out greetings. The construction and color scheme
employed at the stores provide a bright and cheerful “marketplace” theme with colors that embody our commitment to fresh and healthy juices, smoothies, and
other energizing products. Additionally, stores focus on the “theater” aspect of smoothie making by providing an environment in which all food preparation is
conducted behind glass and in the open for customers to watch as the juices and smoothies are made with all-natural ingredients. The layout offers a casual
bar-type atmosphere using interior stools and exterior tables and chairs. Glass cases display baked goods and shelving in front of cash registers and allow for
the sale of prepackaged healthy snack items.
Our typical costs to construct a Company Store range from approximately $300,000 to over $500,000 in major metropolitan areas such as New York,
but range from approximately $300,000 to $450,000 outside of such major metropolitan areas.
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Our franchising program is currently conducted via (i) traditional store venues such as single store franchises to a franchisee, (ii) franchises granted for
non-traditional store venues and (iii) exclusive multi-unit license agreements in which the franchisee develops and operates a specified number of stores within
a specified period of time within a specified geographic area, which we call area development agreements.
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