The San Francisco company signed a deal - albeit a non-binding one - with International Franchise Inc., which is based in Nova Scotia.
Jamba didn't give many details, but the company, which had an accumulated deficit of $345.5 million at the end of its most recent quarter, has pinned its hopes on selling franchises across the northern border.
Last year, Jamba sold its company-owned stores (it had 432 of them as of July 13, but has made deals to sell some since) around the United States in a process it calls "refranchising."
It did not estimate the amount of money it might make from expanding into Canada. International Franchise would get exclusive Canadian rights to the Jamba Juice franchise, according to Jamba chairman, president and CEO James White, if the deal closes.
International Franchise mainly works in the frozen yogurt and ice cream markets and does business in 32 nations.
Jamba Juice charges a $25,000 franchise fee, plus royalty and advertising fees. The company estimates a minimum franchise investment of $350,000 is required.
from Western Investor, January 2011
