ITEM 1
THE FRANCHISOR AND ANY
PARENTS, PREDECESSORS, AND AFFILIATES
To make it easier to read this
Disclosure Document, the words "Franchisor," "we,"
"our" and "us" means Americlnn International, LLC.
"You," "your" and "yours" means the person or
entity which buys the Americlnn� franchise. If the buyer of the franchise is a
corporation, general partnership, limited partnership, limited liability
partnership, limited liability company, joint venture or other entity, the term
"you," "your" and "yours" also includes the
individual owners of those entities.
To fully understand all of
your and our rights and obligations to each other, you must still carefully
review the actual agreement that you will execute. These will control if there
is any dispute between us.
The Franchisor, its Parent and Affiliates
The Franchisor is a Minnesota limited liability company which was organized on December 22, 1993. We are
currently doing business under the names "Americlnn International,
LLC," "Americlnn International," and "Americlnn". Our
agents for service of process are listed on Exhibit E.
Our parent entity is Northcott
Hospitality International, LLC, a Minnesota limited liability company
("NHI").
We do not have any affiliates
which are currently offering or which have previously offered franchises in any
line of business or, except for Three Rivers Hospitality, LLC (f/k/a Americlnn
Management, LLC) ("Three Rivers Hospitality") and Nelscott
Construction Development, LLC ("Nelscott Construction"), which are
providing products or services to our franchisees. However, we or one of our
affiliates may, in the future, offer Northcott Inns & Suites� franchises
which will authorize the franchisees to construct, own and operate lodging
facilities which may be similar to and, depending upon their location, may
compete with your Americlnn . See Item 12 of this Disclosure Document.
We are in the
business of developing, offering and selling franchises for a system of lodging
facilities operated under the names "Americlnn�", "Americlnn
Lodge & Suites�", "Americlnn Hotel & Suites�" and
"Americlnn Motel & Suites�". When you sign your Franchise
Agreement with us, you will designate whether you intend to build an
Americlnn�, Americlnn Lodge & Suites�'' Americlnn Hotel & Suites� or
Americlnn Motel & Suites� (unless specified otherwise, the references to an
"Americlnn�" throughout this Disclosure Document apply to any types
and configurations of Americlnns� offered in this Disclosure Document).
Our affiliate, Three Rivers
Hospitality, was formed in January of 1995 for the purpose of providing
management and operation services for a fee to motel and hotel owners,
including Americlnn� franchisees. As of December 31, 2007, Three Rivers
Hospitality had entered into Management Agreements for the management and
operation of 47 independently owned lodging properties, of which 34 were
Americlnns�.
You are not required to enter
into a Management Agreement with Three Rivers Hospitality for the management or
operation of your Americlnn�. Three Rivers Hospitality has managed and operated
independently owned lodging properties pursuant to management agreements since
September 1995.
Our affiliate, Nelscott
Construction, was formed in August 2001 for the purpose of providing
construction services to Americlnn� franchisees. As of December 31, 2007,
Nelscott Construction had completed construction of 12 independently owned
Americlnns� and had entered into contracts for the construction of three
additional Americlnns�. You are not required to enter into a construction
contract with Nelscott Construction for the construction of your Americlnn�.
Nelscott Construction has served as a general contractor to Americlnn�
franchisees since August 2001.
Our principal business address
and the principal business address of NHI, Northcott Company, Three Rivers
Hospitality and Nelscott Construction is 250 Lake Drive East, Chanhassen, Minnesota 55317. Neither NHI, Northcott Company, Three Rivers Hospitality nor Nelscott
Construction has ever offered or sold hotel or motel franchises of the type to
be operated by you.
Our Business Experience
We do not currently operate
any Americlnns� of the type being franchised. However, our affiliate, Northcott
Company, has operated Americlnns in the following locations from the dates
indicated:
Location�������������������������������������������� Date
Opened
Bemidji, Minnesota����������������������������� December 21, 1990
Worthington, Minnesota��������������������� February 2,1992
Chanhassen, Minnesota�������������������� February 27, 1998
In addition, on June 16, 2007,
Northcott Company became the sole beneficial owner of the Americlnn� located in
Kearney, Nebraska. Northcott Company and some of our other affiliates have
also periodically made investments in a number of other Americlnns�.
We
have been involved in franchising Americlnns� since January 1,1994. Neither we
nor any of our parents, predecessors or affiliates have offered or sold
franchises in any other lines of business.
The Franchise Business
Americlnns� are businesses
that offer distinctive, high quality lodging services to the general public.
Americlnns� are available in different sizes, generally between 40 and 150
rooms, to meet the needs of a particular marketplace. If you own and operate an
already existing motel or hotel that meets our quality standards, we may permit
you to convert your motel or hotel into an Americlnn�. The description,
qualifications and specifications for each type of Americlnn� are contained in
our Minimum Design Standards Manual and are periodically changed by us.
All Americlnns , regardless of
type, must have an exercise room and a recreation room/area containing a pool
and whirlpool that has been approved by us. In addition, the guest rooms in all
Americlnns� must have a minimum width of 14 feet unless otherwise approved by
us in writing.
All guest rooms, regardless of
the name designation of your Americlnn�, must have two telephone jacks and one
data jack in the prescribed locations.
Americlnns� are generally
located on major interstate highways or in communities with populations in
excess of 5,000, as well as in suburbs of larger metropolitan areas. The market
for your services will depend upon the location of your Americlnn� as well as
its size and other features. You will offer services to a broad range of the
traveling public and will also seek customers and business referrals from the
local community and will solicit business from conventions and tour and travel
groups.
Competition
The businesses with which you
will have to compete, as an Americlnn� franchisee, include national chains and
franchises, as well as independently owned hotels and motels offering similar
facilities to the same customers. The market for hotel and motel services is
highly developed in many locations and the lodging industry is very
competitive. Your ability to compete in your market will depend upon certain
factors, including the location of your Americlnn�, the location of competing
lodging properties, your financial and managerial capabilities, general
economic conditions and other factors. Depending upon the location of your
Americlnn�, your sales may be seasonal.
Industry Specific Laws and
Regulations
Americlnns� are subject to
laws and regulations which apply to all businesses, generally, and it will be
your obligation to investigate those laws and regulations and abide by them. In
addition, you will need to investigate and abide by all federal and state laws
regarding the operation of motels and hotels, including those laws relating to
the liability of innkeepers, the posting of room rates, the registration of
guests, and the accessibility to and use of motels and hotels by persons with
disabilities. You will also be required to comply with laws and regulations
regarding food storage, handling and preparation. You will also need to
investigate and determine the existence of local laws and regulations which may
apply to your Americlnn�, and which may affect the cost to you of constructing
and/or operating your Americlnn�.
