GENERATION NEXT FRANCHISE BRANDS, INC. (OTCMKTS:VEND) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry Into A Material Definitive Agreement
On May 16, 2017, the Company entered into a Manufacturing Supply
Agreement (the Agreement) with DK Engineering, Inc. (DK). The
Agreement provides for DK to provide engineering and
manufacturing services for the Companys frozen yogurt robots.
Under terms of the Agreement, DK will provide non-recurring
engineering services at a cost of $688,000 and will also then
manufacture the Companys next generation robots. DK will also
provide a 12 month warranty from the date of manufacture. It is
anticipated that the Company will purchase robots aggregating
$11.1 million prior to December 31, 2017. The Company is required
to purchase robots in advance of manufacture.
The above descriptions of the Agreement and the exhibits thereto
are qualified in their entirety by reference to the forms of such
documents attached as Exhibit 4.1 to this Current Report on Form
8-K.
Item 2.03 Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.
The disclosures set forth in Item 1.01 above are incorporated by
reference into this Item 2.03.
Item 9.01 Financial Statement and Exhibits.
(d) Exhibits.
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Exhibit No. |
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Description |
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4.1 |
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Form of Manufacturing Supply Agreement dated May 16, 2017. |
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The copies of the Agreement and Addendum filed herewith |
About GENERATION NEXT FRANCHISE BRANDS, INC. (OTCMKTS:VEND)
Generation NEXT Franchise Brands, Inc. formerly Fresh Healthy Vending International, Inc., is a franchise development company and operator of Company-owned vending machines, micro markets and frozen yogurt robots. The Company provides a portfolio of fresh, organic and all-natural snacks and drinks. The micro market provides fresh full meal options, such as salads, sandwiches and wraps. The micro market is designed for implementation in corporate environments, hotel lobbies, auto dealerships and other retail environments. The Company is focused on setting up national distribution partners to carry the consumable products required for the frozen yogurt robots. It outsources non-core functions to third-party vendors. Its services include machine manufacturing, transport, location set-up, maintenance, inventory, food management and ordering, payment processing and cash management. As of June 30, 2016, the Company and its franchisees operated over 3,000 vending machines and micro markets.
