SAN DIEGO, CA--(NewMediaWire - Jan 27, 2017) - GENERATION
NEXT FRANCHISE BRANDS (OTCQB: VEND)
Dear Generation NEXT (OTCQB: VEND)
Shareholders;
The New Year is often a time of inward reflection on the
developments of the past year, with ambitious goal setting for the
coming year ahead. I am pleased to say that 2016 was a year of
game-changing transformation and tremendous progress for the
Company. We believe that the last two quarters of 2016 have
uniquely positioned the Company and the brand for long-term
success.
I would first like to thank all of the shareholders for their
continued support of the Company. We greatly appreciate the
confidence you place in Generation NEXT's business model,
management, and mission. As we move forward, I believe we will
continue to capitalize on our momentum and create increased
shareholder value especially from our new Reis & Irvy's Froyo
Robot concept. For a video of our Froyo Robot in action, please see
the following:
Testimonial Video
https://vimeo.com/160788415
Our low investment Reis & Irvy's franchise can be purchased
for $160,000. This compares to the average initial franchise
investment of $520,000 across 3,500 brands, according to Brandon
Gaille, marketing expert and blog master. Our franchise includes a
minimum of four robots, location procurement services, consumable
supply distribution and fulfillment from Honey Hill Farms, via U.S
foods and Sysco, training at the headquarters of our development
partner Lancer Corporation, which also provides logistics support
in the form of delivery, installation and technical support as well
as marketing initiatives provided in the form of in-store flavor
promotions among other initiatives.
We look forward to 2017 and developing more successful
relationships with our franchisees, shareholders, partners, and
associates.
Significant Achievements in 2016
- Signed an exclusive license deal for the Robofusion technology
in February 2016.
Upgraded the license deal to include exclusive distribution rights
for North America in May 2016.
Booked our first Reis & Irvy's Froyo robot in April 2016.
Booked our 100th Froyo
Robot in July 2016.
Booked our 250th Froyo
Robot in September 2016.
Booked our 500th Froyo
Robot in December 2016.
Signed an exclusive Development Agreement with Lancer Corporation
for the development of the next generation Froyo Robot
-- http://finance.yahoo.com/news/generation-next-franchise-brands-appoints-130000749.html.
Selected Spaceman USA as our certified Froyo beverage machine
supplier -- http://www.spacemanusa.com/.
Selected Honey Hill Farms as our premium Froyo and frozen fruit
supplier -- http://thehoneyhillfarms.com.
Selected Hartfiel Automation as our robotics technology partner
-- http://www.hartfiel.com/.
Changed our name to Generation NEXT Franchise Brands, which now
owns both Fresh Healthy Vending and Reis and Irvy's. representing
over of 350 combined franchisees;
The Company raised $300,000 in debt capital.
Acquired Robofusion, Inc. U.S. utility patent number 8,989,893;
U.S. design patent number D647,926; and U.S. patent application
numbers 20140120235 and 20160242434 in December 2016
-- http://finance.yahoo.com/news/generation-next-franchise-brands-acquires-130000368.html.
From April 2016 through December 2016, the Company generated over
$16,500,000 in franchise bookings for our new Froyo Robot (recorded
as deferred revenues until Robots are installed) and over $19
million in total franchise bookings.
-
Please note that all franchise bookings are recorded as deferred
revenues on our consolidated balance sheet, which as of September
30th, 2016
aggregated $14.6 million. Once the Company commences delivery of
the Robots, the deferred revenues will be recognized as actual
revenues on a pro-rata basis.
Overview of 2017 Goals and Milestones
We expect 2017 to be a busy year for development of our next
generation Froyo Robot, continued sales expansion, both
domestically and internationally, and increased corporate
operations and location procurement services throughout the
U.S.
We plan to continue positioning ourselves as a developer and
market leader of robotic vending machine concepts by focusing and
delivering upon the following objectives:
- Completing development of our next generation Froyo Robot --
The Robot will include a smaller footprint, NSF certification, UL
listing, telemetry alerts for temperature fluctuations, proximity
sensors for lights and music, a patent-pending self-cleaning
dispensing system and a 3G modem for cellular transmission of
data.
Booking our 1,500th Froyo
Robot and 500th franchisee.
Launching our corporate-owned operating model and partnering with a
national retail chain.
Initiating our international Master License program.
Turning cash flow positive.
Generating positive reportable net income.
Increasing the strategic nature of our Company's Board of Directors
with industry expertise.
Seeking up to an additional $10-$20 million in investment
capital.
Introducing the market to our next robotic vending concept
supported by additional patent applications.
-
In closing, we believe that we are uniquely positioned for the
challenges ahead and look forward to executing on our evolving
business model. Again, we thank all of our shareholders for their
continued support and look forward to an exciting and prosperous
2017.
Sincerely,
Arthur S. Budman
CEO
For more information on the revolutionary Froyo Robots, visit
the Reis & Irvy's website at reisandirvys.com. To learn more
about Generation NEXT Franchise Brands or its family of brands,
including Reis & Irvy's, Fresh Healthy Vending or 19 Degrees,
please visit www.gennextbrands.com or call toll free
888-902-7558.
This information is not intended as an offer to sell, or the
solicitation of an offer to buy, a franchise. It is for information
purposes only. No Reis & Irvy's franchises will be sold to any
resident of any state until the offering has been exempted from the
requirements of, or duly registered in and declared effective by,
such state and the required FDD (if any) has been delivered to the
prospective franchisee before the sale in compliance with
applicable law. Currently, the following states in the United
States regulate the offer and sale of franchises: California,
Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York,
North Dakota, Oregon, Rhode Island, South Dakota, Virginia,
Washington, and Wisconsin. If you reside in one of these states, or
even if you reside elsewhere, you may have certain rights under
applicable franchise laws or regulations.
Generation NEXT Franchise Brands
Generation NEXT Franchise Brands, based in San Diego,
California, is a publicly traded company on the OTC Markets trading
under the symbol: VEND. Generation NEXT Franchise Brands is parent
company to Fresh Healthy Vending LLC, the market's leading
healthy-choice vending machine franchise, Reis and Irvy's, Inc.,
the world's first robotic frozen yogurt vending robot and 19
Degrees, a corporate-focused frozen yogurt kiosk brand. The Company
hosts over 350 active franchisees throughout the United States,
Canada, Puerto Rico and the Bahamas, and continually looks to
partner with like-minded entrepreneurs who share its vision.
Cautionary note on forward-looking statements:
Except for historical information contained in this release,
statements may constitute forward-looking statements regarding
assumptions, projections, expectations, targets, intentions or
beliefs about future events that are based on management's belief,
as well as assumptions made by, and information currently available
to, management. While the Company believes that expectations are
based upon reasonable assumptions, there can be no assurances that
goals, results and strategy will be realized. Numerous factors,
including risks and uncertainties, terms and availability of
financing, may affect actual results and may cause results to
differ materially from those expressed in forward-looking
statements made by the Company or on its behalf. In addition to
statements, which explicitly describe risks and uncertainties,
readers are urged to consider statements labeled with such terms as
"believes," "belief," "expects," "intends," "feels," "anticipates,"
"proposes," "proposed," or "plans" to be uncertain and
forward-looking. More detailed information on these and additional
factors that could affect Generation NEXT's actual results are
described in Generation NEXT's filings with the Securities and
Exchange Commission, including its most recent Form 10-Q for the
quarterly period ended September 30, 2016, and its annual report on
Form 10-K for the fiscal year ended June 30, 2016. All
forward-looking statements in this news release speak only as of
the date of this news release and are based on Generation NEXT's
current beliefs and expectations. Generation NEXT undertakes no
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by law.