June 17, 2013

Press Release

Java Detour, Gourmet Coffee Company, Announces New Funding & Major Expansion

New financing to build best-in-class franchise company in fast-growing retail coffee market.

SAN FRANCISCO, May 7, 2013 /PRNewswire/ — Java Detour, the San Francisco-based gourmet coffee franchise company, announced today the beginning of a new wave of expansion led by a highly experienced team of franchise and retail industry experts. Chief executive officer Harry R. Kraatz , together with father-and-son team Robert A. and Mark Naify , have declared their goal to build one of the world’s great specialty retail coffee brands. These executives have previously developed several publicly traded national and international retail and franchise companies. They have now combined to build Java Detour into a very competitive and proven franchise concept; one that offers potential franchisees an ideal wish-list of features including drive-thru and coffee lounge formats, and dual and tri-brand franchises.

“We have all spent years building major companies based upon maximizing store revenues and profits, so when we joined forces at Java Detour we decided to pour all of our expertise into making it the best new business opportunity possible,” saidHarry Kraatz , CEO of Java Detour.

Java Detour was founded in 1995 and was acquired last year by Harry Kraatz and Robert A. Naify . Mr. Naify is a long-standing, former member of the Forbes 400 Richest People In America and the former chief executive officer of United Artists Communications and Cable Television Inc., a 2,700-location movie theater chain.

“We built United Artists Communications into a successful company by focusing on customer service, staff training and profit maximization. Using the same approach, we believe we can grow Java Detour in the USA and worldwide to take advantage of the rapid growth in the premium coffee and beverage industry,” Mr. Naify said.

Harry Kraatz has served as CEO of three publicly traded franchise companies with over 600 locations. The third member of the team, Mark Naify , has over 30 years of retail design, management and construction experience.
“Whether a franchisee is a new single-unit owner, or an experienced multi-unit operator, we seek to add as much value as we can. We can only succeed if our franchisees thrive and grow – so our job is to give them all the assistance they need to do just that.” Mark Naify said.

In order to ensure that Java Detour’s coffee is consistently of the highest quality and freshness possible, the entire roasting and packaging process has recently been moved into a new facility in Emeryville, California. To provide franchisees with the widest choice of day-part options possible, Java Detour has also negotiated reciprocal development agreements with Mrs. Fields® and TCBY®. This means that dual- and tri-brand franchises may be built serving Mrs. Fields and TCBY products alongside Java Detour’s gourmet coffee.
Mark Naify said, “New franchisees need to know that they will get exceptional training, marketing support and expert help to find and build profitable locations. We have spent our careers delivering those kinds of services. Java Detour is where we are bringing it together in one place to create a great coffee franchise.”

About Java Detour
Established in 1995, the Java Detour brand represents world-class gourmet coffee, served in friendly and convenient locations. After a successful recapitalization, Java Detour intends to become one of the world’s great coffee retail brands, with plans to develop several hundred outlets over the next few years. Java Detour is currently seeking single-unit, multi-unit and regional franchise partners throughout the USA. International opportunities are also available.

About Excelsior J D Co., LLC
Excelsior J D Co., LLC is the corporate owner of the Java Detour brand and franchise system. The company is owned by Robert A. Naify. The Naify family were for many years the majority owners of United Artists Communications, at one time, the largest chain of movie theaters in the world. Mr. Naify is a long-standing, former member of the Forbes 400 Richest People In America and continues to develop interests in real estate and other investments, and is now focused on growing Java Detour into a world-class brand with world-class franchisees.

About Harry R. Kraatz
Mr. Kraatz, is president of a privately held franchise management consulting firm. In such capacity he has provided consulting services to numerous finance and franchising companies including Montgomery Medical Ventures, Commonwealth Associates, Westminster Capital, Liberty Travel, Swensen’s Ice Cream, Aca Joe Inc, FAO Schwarz, Zapworld.com, Worldwide Wireless, Shearson Financial Network, Inc., Java Detour Inc. and others. Mr. Kraatz has held various positions including, among others, serving as Vice Chairman of Commercial Bank of San Francisco and Chief Executive Officer of Finet Holdings Corporation.