GENERATION NEXT FRANCHISE BRANDS, INC. (OTCMKTS:VEND) Files An 8-K Other Events
Item 8.01 Other Events.
February 18, 2019, Generation Next Franchise Brands, Inc. (“Company”) reported a change in delivery forecast of its robotic self-serve vending kiosks.
| · | During the remainder of the Company’s fiscal year 2019, which ends June 30, 2019, the Company estimates it will install an additional 100 to 150 robots bringing the total robots installed for the fiscal year 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 of revenue for the first two quarters of the Company’s fiscal year 2020. |
In order to improve field performance and uptime of its kiosks in the field, the Company paused deliveries to resolve design and engineering issues. During the pause the Company began retrofitting and repairing existing kiosks. Recent improvements and retrofits of the kiosks has resulted in improved performance and uptime of robotic kiosks in the field. Following the completion of any necessary engineering and design modifications, the Company will institute a design freeze and resume deliveries. This pause and resumption of kiosk delivery will impact its previous delivery forecasts.
The Company intends to continue to manufacture and deliver robotic kiosks through its current manufacturing partner and has entered into a memorandum of understanding with Wisconsin-based Stoelting Foodservice (a division of the Vollrath Company, LLC) (“Stoelting”) under which Stoelting and Company will negotiate terms for Stoelting to provide manufacturing and engineering services for the Reis & Irvy’s premium soft serve robotic vending technology.
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.
