Jamba Juice 2008 Annual Report Download - page 120
Download and view the complete annual report
Please find page 120 of the 2008 Jamba Juice annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130 -
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
 |
 |
Table of Contents
On August 22, 2007 a fourth revision to JJC’s policy was made which increased the national marketing fund contribution to 2.5 percent on Net sales
and reduced the JJC approved local marketing spending correspondingly to 2 percent of Net Sales.
The policy terms are subject to change at any time at JJC’s sole discretion and JJC may perform audits as deemed necessary to ensure the spending is
timely and relates to bona fide marketing activities. Pursuant to the Amendment discussed in Note 1, national marketing fund contributions are deferred
retroactively from January 1, 2003 until the earlier of the time that the Company maintains positive cash flows for four consecutive quarters or June 30, 2008,
at which time the deferred contributions become payable over a 12 month period and include interest based on the Company’s prevailing rate, as calculated
quarterly.
At December 11, 2007 and December 12, 2006, unpaid marketing fund contributions in the amount of $39,000 and $455,000, respectively, were
included in accrued liabilities. As of December 11, 2007 and December 12, 2006, the Company was in compliance with these marketing requirements. During
2007 and 2006, the Company incurred approximately $187,000 and $170,000, respectively, of marketing fund contributions, which are included in
marketing and promotion expense on the accompanying statements of operations.
The Company entered into a lease agreement with a third-party to lease blender equipment for its store operations and is charged 2.0 cents per blended
beverage sold. In 2007 and 2006, blender charges incurred were approximately $43,000 and $40,000, respectively, which is included in store operating
expenses, other in the accompanying statements of operations.
The Company leases its store locations under operating leases expiring through 2015. Most of the leases provide for renewable option periods. In 2007
and 2006, total lease expense approximated $721,000 and $605,000. In conjunction with the deferred tenant allowance discussed in Note 2, lease expense in
2007 and 2006 was offset by amortization of approximately $20,000 and $18,000, respectively, and reflected under occupancy expenses.
The future minimum rental commitments under these leases were approximately as follows:
Fiscal year ending December,
2008 $602,000
2009 608,000
2010 609,000
2011 631,000
2012 623,000
Thereafter 1,606,00
In addition to the amounts above, the Company is responsible for common area maintenance costs, real property taxes and additional rents, based on
revenues, pursuant to certain store leases.
120