New structure will allow investors to own robotic
frozen yogurt vending kiosks operated by the Company in return for
passive income
SAN DIEGO, CA -- January 08, 2019 -- InvestorsHub NewsWire --
Generation Next Franchise Brands, Inc. (“Company” or “Generation
Next”) announced today the launch of 19 Degrees
Corporate Service LLC, a new investment vehicle
for its network of current and future robotic soft serve vending
kiosk owners.
19 Degrees Corporate Service,
LLC will initially launch with 48 secured
locations strategically placed throughout the country. Each robotic
vending kiosk contributed to the investment fund as a single unit
will receive their pro rata share of profits on a quarterly
basis.
The advantages to the kiosk owners are as follows:
- The switch from active to passive income;
- A more even distribution of revenue (i.e. a smaller piece of a
bigger pie with lower risk). Each kiosk will be one of many,
thereby leveling out revenue fluctuations, variability in location
performance, and seasonality concerns;
- Faster installation of kiosks, as owners are now not tied to a
small geographic circumference;
- A “no hassle” maintenance program provided by CSA Servicer
Solutions https://www.csa-service.com/ that includes
spare parts, consumables and cleaning supplies on each technician’s
vehicle;
- A nationwide on-site flavor promotion plan managed
by Dannon, the Company’s exclusive provider of
consumables;
- Dannon is currently developing specifically for this program an
aseptic packaging line meaning no need for refrigeration in
vehicles or on site; and
- Access to a newly designed back-office portal that will allow
members of the fund to remotely access each kiosk’s sales
performance in “real time”, as well as a plethora of software
features used to guide the fund’s performance.
To date, approximately 90 of the Company’s Reis & Irvy’s
franchisees have expressed interest in joining the program,
representing over 300 kiosks that could potentially be added to
this fund. Furthermore, the company has identified and secured the
first 48 locations in areas the company does not have franchisees
that consist of the following categories: entertainment venues,
military bases, malls, hospitals, government facilities,
educational institutions, family fun centers, corporations and
casinos. Some notable locations that will be receiving kiosks in
February to kick start the program are Fort Gordon Military Base in
Augusta GA, Paradise Cinema IMAX in Memphis TN, Great Lakes
Crossing Mall in Auburn Hills MI and Ellis Hospital in Schenectady
NY.
The Company will receive a service fee on gross receipts equal
to 12%, as well as an administration fee of 1.5% of gross
receipts.
“We love the idea of having highly trained, professional
technicians provided by CSA Service Solutions operating the
equipment efficiently and taking advantage of the economies of
scale available,” said Nick Yates, CEO of Generation Next. “Dannon,
our exclusive supplier of frozen consumables will be promoting
flavors at the locations owned by the new 19-Degrees fund which we
believe will result in each location producing the higher revenues.
In some ways this was a no-brainer, there are franchisees that want
to represent the Reis & Irvy’s brand in the field and there are
some franchisees that prefer a business opportunity that is less
hands-on. This new passive income program allows us to cater to
both, something I believe both our franchisees and shareholders
will appreciate. This will help us accelerate the installation of
kiosks and sooner recognize the approximately $53 million of
deferred revenues currently sitting on our books.”
The legal structure will be that of a Limited Liability Company
(“LLC”), whereby each member will receive their portion of LLC
taxable income allocation through the issuance of a Schedule K-1.
Separately, the Schedule K-1 provides the Members the amount of
cash and property distributions made to the Member, as well as a
roll-forward of each Member’s capital account. Furthermore, the
Company will file composite state returns, with required
withholdings, where applicable, with the members filing in
additional states.
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. Under Rule 506(c), general
solicitation of offerings is permitted, however, purchasers in a
Rule 506(c) offering must be “accredited investors.” The SEC
defines the term "accredited investor" in Rule 501(a). Generally,
individuals are considered accredited investors if they have a net
worth greater than $1 million (excluding their primary residence)
or incomes in excess of $200,000 in the last two years with the
expectation of the same in the current year (or $300,000 with a
spouse).
This press release does not constitute an offer to sell nor a
solicitation of an offer to purchase any securities in any
jurisdiction in which such an offer or solicitation is not
authorized and does not constitute an offer within any jurisdiction
to any person to whom such offer would be unlawful. The offering of
securities will only be made solely pursuant to a Private Placement
Memorandum, which will be made available to interested
investors.
The securities offered will not be and have not been registered
under the Securities Act of 1933, any state securities laws or the
securities laws of any other jurisdiction and may not be offered or
sold in the United States or the United States persons absent
registration or an applicable exemption from registration
requirements of the Securities Act is available.
For more information, visit the Reis & Irvy’s website
at www.reisandirvys.com the Generation Next website
at www.gennextbrands.com, or call Toll-Free (888)
902-7558.
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 Generation NEXT
Vending Robots.
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 and internationally.
This information is not intended as an offer to sell, or the
solicitation of an offer to buy, a franchise. It is for
informational 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," "estimate," 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.