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Development Agreements
12 Months Ended
Jan. 03, 2012
Development Agreements [Abstract]  
Development Agreements

2. DEVELOPMENT AGREEMENTS

The Company's wholly owned subsidiary, Jamba Juice Company, has entered into multi-unit license agreements with area developers to develop stores in certain geographic regions. Under typical multi-unit license agreements, the area developer generally pays one-half of the initial nonrefundable fee multiplied by each store to be developed as a nonrefundable development fee upon execution of the multi-unit license agreement. The agreements are generally for a term of 10 years. Each time a store is opened under the multi-unit license agreement, the Company credits the franchisee one-half of the initial fee paid as part of the development fee and the franchisee is required to pay the remaining one-half of the initial fee. As of January 3, 2012, there were 32 stores operating under a current multi-unit license agreement. In addition, the Company has entered into and will continue to enter into development agreements in connection with its franchising activities in the United States and at international locations. In connection with its domestic franchising efforts through fiscal 2011, fifteen area developers have contractual commitments to open 78 Franchise Stores over the next one to ten years. In connection with our international efforts, as of January 3, 2012, three developers have contractual commitment to build 301 stores and stations over the next ten years.

The Company generally executes franchise agreements for each store that establishes the terms of its arrangement with the franchisee. The franchise agreements typically require the franchisee to pay an initial, non-refundable fee and continuing fees based upon a percentage of sales. Subject to the Company's approval and the franchisee's payment of a renewal fee, a franchisee may generally renew the franchise agreement upon its expiration.

Franchise revenue consists of royalties and fees from our franchisees. The Company recognizes initial fees received from a franchisee as revenue when it has performed substantially all initial services required by the franchise agreement, which is generally upon the opening of a store. The Company recognizes continuing royalties based upon a percentage of franchisee revenues as earned. The Company is not required to contribute capital as part of multi-unit license agreements or franchise agreements.

Deferred franchise revenue is included in other long-term liabilities on the consolidated balance sheets and as of January 3, 2012 and December 28, 2010 and includes $0.7 million and $0.5 million, respectively, relating to non-refundable development fees and initial fees paid by franchisees whose stores have not yet opened. In addition, deferred franchise revenue as of January 3, 2012 and December 28, 2010 includes $0.7 million and $0.6 million, respectively, relating to non-refundable international development fees.