Generation Next Franchise Brands CEO Provides an Update on Technical Improvements, Recent Kiosk Sales Statistics and 19 Degrees Corporate Service LLC

San Diego, CA, Jan. 24, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Generation Next Franchise Brands (OTCQB: VEND):

Dear Shareholder,

Over the past few weeks, our operations team in partnership with the developers at Stoelting, Rethink, e2c, and Nayax have made tremendous improvements in the reliability and operation of the Reis & Irvy’s kiosk. We’ve seen less soft-serve errors reported, a decrease in credit card payments being declined, and an increased ability to operate unattended.

To give you some insight into how these improvements have impacted sales across the network, please see the following sales highlights over this past week and weekend:

Total Sales for 1/14 – 1/20

11,015 cups sold 

$52,097 in total sales 

Top Performers:

Henry B. Convention Center – 816 cups sold 

Children’s Hospital of Philadelphia – 355

Edora Pool Ice Center – 272

House of Sports – 255

East Portland Community Center – 248

Weekend Update (Fri, Sat, Sun)

6,560 total cups sold

$31,652 in total sales

Top Performers:

Henry B. Convention Center – 801 cups sold 

Edora Pool Ice Center – 219

Mission Concepcion Sports – 202

HyVee Arena – 158

House of Sports – 138

East Portland Community Center – 130

Mid America Sports Center – 130

Children’s Hospital of Philadelphia – 123

Icebreakers Café – 119

Canton Ice House – 116

Friday the 18th

Our biggest day of sales to date.

2,015 total cups sold

$9,383 in total sales

Top Performers (Friday):

Henry B. Convention Center – 270

Children’s Hospital of Philadelphia – 52

Deaconess Hospital – 49

Ice Den Chandler – 47

Tinker Air Force Base – 46

Edora Pool Ice Center - 45

Saturday the 19th

Improving on our previous sales record:

2,691 total cups sold

$13,184 in total sales

Top Performers:

Henry B. Convention Center – 340

Mid America Sports Center – 105

Edora Pool & Ice Center – 90

Mission Concepcion Sports – 83

Canton Ice House – 70

Newseum – 70

House of Sports – 63

Liki Tiki Village Resort – 59

Loveland Laser Tag – 57

Mason Community Center – 55

HyVee Arena – 53

Jordan Creek Mall – 49

Christown Spectrum Mall – 45

Icebreaker’s Café -43

River Valley Mall – 42

East Portland Community Center – 41

Mall Del Norte – 40

Sunday the 20th

1,854 total cups sold

$9,085 in total sales

Top Performers:

Henry B. Convention Center – 191

Mission Concepcion Sports – 116

HyVee Arena – 105

Edora Pool Ice Center – 84

Icebreaker’s Café – 61

House of Sports – 56

East Portland Community Center – 51

Mall Del Norte – 50

Christown Spectrum Mall – 47

Children’s Hospital of Philadelphia – 44

Please see below a letter from local San Antonio franchisee Joey Buccellato, who operates a kiosk at the Henry B. Gonzalez Convention Center. This past weekend, his kiosk broke a record for sales achieved with a total of 816 sales made in less than three days of operation.


I would love to tell you about an event I attended this weekend at the Henry B. Gonzalez Convention Center.  PAX South is an annual gaming convention that is held in San Antonio each year and usually draws crowds of 25-35 thousand people per day for a three-day event. Young and old flock to this convention to sample newly developed games, play trading card games like Magic, and try out the multitude of new gaming gear before it hits the market.  

This was also a great venue for the Reis & Irvy's Froyo kiosk.  The high-tech robotics, animated cartoon, and tasty frozen yogurt treat was exactly what these folks were looking for.  Each day from the time the doors opened until 14 hours later when the doors closed there was a constant line at the Reis & Irvy's kiosk.  Often times conventioneers waited 30 and 40 minutes to order their froyo treat and never a complaint was heard all day long. Day one netted 270 vends with cylinder recovery, consistency, and portion sizes all on target.  Day two astounded us with a record 340 sales, again with no issues.  Day three concluded with 191 sales and the only reason we didn't do more is because we ran out of product two hours before closing time. Our three-day total was 801 vends! 

Robo 1, as she is called, was a true "Beast".  She managed to do all that work and still entertain and put smiles on so many faces.  Most people that stepped up to purchase from our kiosk had a cell phone in hand to video and upload to Snapchat, Twitter, and Facebook as well as share with their family and friends. 

If I were allowed one complaint it would be that approximately four feet up the kiosk, I had to constantly wipe finger and forehead prints off the glass where some of the customers felt they needed to be that close to the action to enjoy the experience.  

If you have any feedback for me it would be greatly appreciated.

Thank you

Joey Buccellato

KLN Vending Solutions


19 Degrees Corporate Service, LLC

We have secured a total of 65 locations for the new 19 Degrees Corporate Service,LLC (“19 Degrees”). In the last week, 40 units of the LLC have been purchased by franchisees looking to switch over to the passive opportunity. Some franchisees have offered their equipment which is already operating in the field, which the fund will take over immediately. Some franchisees have offered locations already secured but not yet installed to the fund. This is helping the fund grow organically. As long as there are no other franchisees close in distance to the locations provided or secured by the company, then it makes nothing but sense for us to get kiosks installed and continue to grow this brand. 

If any prospective investors would like more information on the fund, I have emails drafted that offer the following;

·      Operating documents

·      List of 65 locations by category, foot traffic, and geography. 

The best way to become educated is to peruse the docs then set up a call with me for Q&A.  

A brief overview of how this works.

Dannon will be providing marketing and promotional assistance to all the units operated by 19 Degrees as well as producing for us an aseptically packaged liquid frozen yogurt consumable that does not require any refrigeration. Dannon will also be working with us to promote flavor profiles, host sampling events and market the product for the sake of maximizing sales at each of the locations we install. CSA Service Solutions will be operating each kiosk placed anywhere within the US and we are working towards a bundled package with them allowing for a flat-fee per unit. Yesterday Dannon and CSA spent the day in our office planning the execution of this new model. We are incredibly excited to take advantage of the locations we secure in territories that don’t have franchisees close enough to operate.  We will also have a “franchisee first” policy for all locations secured in-house. 

We selected the name “19 Degrees” because it is the optimal temperature for serving frozen yogurt and we believe that we have found the optimal model for advancing our innovative automated retail technology while reducing risk and maximizing returns to investors.

Investors will receive membership Units in the LLC. The number Units issued by the  LLC will equal the number of robotic soft serve vending kiosks (“Robots”) that the  LLC owns. Net Cash Receipts from all Robots will be distributed to the holders of Units based on the number of Units held on a quarterly basis. All Unit holders must be accredited investors.

To conclude,

Getting the technology perfect, having the best people committed to building it, building in volume, and securing the best real estate are the keys to our long-term growth.  We have seen what happens when we install a kiosk that operates without failure and within a top tier location. It’s incredible! More of that is the our top priority. In order to achieve this, we have spent the last couple of months reevaluating many of our relationships so we can provide all shareholders with a clearer and much more conservative path in 2019. 

I have also brought in some C-Level consultants who I will introduce to you all in the coming weeks. These are operational professionals with very successful track records of assisting small companies like ours and taking them to the next level. 

 Early next week, the Company also expects to issue a follow-up statement regarding its supply chain which will include production estimates through August 2019 and an explanation about why deliveries have been slower than previously anticipated.

As always, thank you all for your support


CEO / Chairman


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