Generation Next Announces February 2019 Results
Company Books Additional 41 Franchise Commitments for $2,238,000 in Deferred Revenues and Secures 47 New Locations for its Franchisees and 19 Degrees Fund
SAN DIEGO, CA - March 04, 2019 // GLOBE NEWSWIRE // - via NEWMEDIAWIRE - Generation NEXT Franchise Brands, Inc. (OTCQB: VEND) announced its monthly report to stakeholders for the month of February today. The report is part of a continued effort announced last month to keep all Company stakeholders better informed of key operating metrics and in a transparent environment.
Key highlights and metrics for February:
*Booked 41 new Reis & Irvy’s franchise commitments worth $2.2 million in deferred revenue (averaging $319,745 per franchise sale and $54,585 per robot sold).
*Monthly revenue of $228,000 resulting from the installation of 6 robots at an average of $38,000 revenue recognized per robot.
*Secured 47 new locations for Reis & Irvy’s kiosks.
*In January, Generation Next announced the launch of 19 Degrees Corporate Service LLC (“19 Degrees”) to provide Reis & Irvy’s robots to locations outside of existing franchise territories and provide a structure to investors to own robotic frozen yogurt vending kiosks operated by the Company in return for passive income. In February, the 19 Degrees subsidiary:
- Added 22 units of 19 Degrees which resulted in the Company collecting $291,000 of investment to be used for the purchase and installation of robots.
- Secured seven new locations for 19 Degrees.
- As of February 28th, the Company has: sold a total of 57 units of 19 Degrees, resulting in $1.0 million invested; secured 78 locations which are scheduled for installation between April and June 2019.
“We’ve received positive reports from our franchisees and locations about the performance of Reis & Irvy’s during February,” said Nick Yates, CEO of Generation Next Franchise Brands. “Our engineering solutions and manufacturing improvements are having the impact we expected. Our month-over-month results will continue to improve as we finish upgrading existing kiosks and gradually increase the pace of our new robot installations.”
Generation Next and its franchisees discovered defects in the first batch of kiosks assembled and installed during the second half of calendar year 2018, resulting in a production halt that persisted until late February, when the Company resumed kiosk production and began upgrading existing kiosks with redesigned hardware and software. February installation numbers were negatively impacted as a result of this production halt.
Yates recently received this note from a Houston franchisee regarding the upgrades:
“Nick, Improvements have been observed in recent testing of the 0.71 software, along with Stoelting firmware updates, on one of our machines with a history of HVB Errors. We have been monitoring consistencies and temperature cycles as compressors cool the cylinders and then the hoppers, all working as would be expected. The units do not seem to be over-working, as they were in the past. This appears to be a good collaboration between Stoelting and ReThink. Thanks!
Michael and Michelle Bingham”
From March through June 2019, the Company estimates it will install an additional 100 to 150 robots bringing the total robots installed for the fiscal year ended June 30, 2019 to between 290 and 340 with annual revenue recognized of $11.0 to $12.9 million. From July to December 2019, Generation Next expects to install 600 to 800 additional robots and recognize between $22.8 and $30.4 million in revenue.
For more information, visit the Reis & Irvy’s website at www.reisandirvys.com or call Toll-Free (888) 902-7558.
Generation NEXT Website: www.gennextbrands.com
About Generation NEXT Franchise Brands, Inc.
Generation NEXT Franchise Brands, Inc., based in San Diego, California, is a publicly traded company on the OTC Markets trading under the symbol OTCBB: VEND. Generation NEXT Franchise Brands, Inc. is parent company to Reis and Irvy’s Inc and 19 Degrees Corporate Service LLC
About Reis & Irvy’s, Inc.
Reis & Irvy’s, Inc. is a subsidiary franchise concept of Generation NEXT Franchise Brands, Inc. (VEND). Launched in early 2016, the revolutionary Reis & Irvy’s Vending Robot serves seven different flavors of frozen yogurt, ice cream, sorbets and gelatos, a choice of up to six custom toppings and to customers within 60 seconds or less at the point of sale. The unique franchise opportunity has since established itself as a high-demand product and currently showcases a franchise network both domestically as well as internationally.
About 19 Degrees Corporate Service, LLC
19 Degrees Corporate Service, LLC is a Company-managed portfolio that will consist of Reis & Irvy’s kiosks situated at high-value locations in markets where Reis & Irvy’s does not have independent franchisees. Members of 19 Degrees Corporate Service, LLC generally will not participate in the operations of the LLC. Routine stockings, service, and cleaning of the robotic kiosks will be performed by trusted independent service providers under contract with the Company and its subsidiary. Any net cash proceeds from the kiosks will be distributed to the members on a quarterly basis, providing an opportunity for passive income. Member ownership units in the LLC will be issued under the registration exemption Rule 506(c) of Regulation D of the Securities Act of 1933 and will be available only to accredited investors. Interested accredited investors who qualify can contact our CEO Nick Yates at firstname.lastname@example.org for more information.
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.
Cautionary note on forward-looking statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, statements concerning our future financial performance, including statements regarding: our ability to generate revenue and recognize deferred revenue; our ability to timely launch delivery and installation of our frozen yogurt robots; and our ability to grow our franchising and licensing divisions and launch our corporate-owned and direct sales platforms. The Company bases these forward-looking statements on its current expectations, estimates and projections about future events and the industry in which it operates using information currently available to it. Actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Forward-looking statements are identified by words such as “believe,” “anticipate,” “propose,” “expect,” “intend,” “plan,” “will,” “may,” “estimates,” variations of such words and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Factors that could cause actual results to differ from those implied by the forward-looking statements contained in this press release are set forth in our filings with the Securities and Exchange Commission (SEC), including our most recent Annual Report on Form 10-K for the year ended June 30, 2018, our Quarterly Reports, and our Current Reports on Form 8-K. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated and the Company is under no obligation (and expressly disclaims any such obligation) to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
SOURCE Generation NEXT Franchise Brands, Inc.