ITEMI
THE FRANCHISOR AND ANY PARENT, PREDECESSORS
AND AFFILIATES
To simplify the language in
this Franchise Disclosure Document, "Dingo," "we," "our," and "us" refers to Dingo, Inc., the
U.S. Franchisor. Dingo does business as "Bark Busters." "You" means the. person,
corporation, partnership or other business entity that buys the franchise, the
Franchisee. If you are a business entity, "You" includes your owners.
Our Predecessor
Who Ya Gonna Call Bark Busters
Pty. Ltd. ("Australian
Bark Busters") granted our predecessor, Dingo Enterprises, L.L.C. ("Dingo
Enterprises"), a Colorado limited liability company, the master
license ("Master
License") to offer Bark Busters franchises ("Bark Busters Franchises") in December 1999, for all
states in the United States except Montana, Oregon, Idaho and Washington. Dingo
Enterprises was formed on June 27, 2000 and Dingo Enterprises principal
business address is 250 West Lehow Avenue, Suite B, Englewood, Colorado 80110. Dingo Enterprises offered Bark Busters Franchises in the United States, except in the states noted above, from August 2000 through December 2000. Dingo
Enterprises did not offer franchises in any other line of business.
Dingo
Dingo, Inc. is a Colorado corporation formed in January 2001. Dingo Enterprises assigned its Master License
to offer Bark Busters franchises ("Bark Busters Franchises") in the United States to us in January 2001. Dingo''s principal place of business is 250 West Lehow Avenue,
Suite B, Englewood, Colorado 80110. In December 2001, we acquired the rights to
offer Bark Busters Franchises in the states of Montana, Oregon, Idaho and Washington from Australian Bark Busters. Dingo is now the exclusive Franchisor of
Bark Busters Franchises in the United States. In December 2003, the master
franchise relationship between Dingo and Australian Bark Busters was terminated
by mutual termination of the Master License. In its place, Dingo and Australian
Bark. Busters entered into a new license agreement ("License
Agreement") which granted Dingo the exclusive right to use the intellectual
property ("License")
owned by
Australian Bark Busters to offer Bark Busters Franchises and provide products
and associated services to franchisees operating throughout the United States. Dingo''s registered agents for service of process are in Exhibit D.
Dingo grants franchises in the
United States for the operation of businesses which provide dog obedience and
behavioral training, related pet education and support services, and the sale
of related pet care products ("Bark Busters Business"). Dingo operated its own Bark
Busters Business in Denver, Colorado, since January 2001, but sold the
franchise rights to its territory in December 2001. We do not engage in any
other type of business activity or offer franchises under any other trademark,
tradename or system. However, our Master License grants the exclusive right to
operate and franchise dog walking and pet sitting services at the customer''s
home ("Petsitting
Franchise"). The Petsitting Franchise is not offered through this Franchise
Disclosure Document.
The Business
We license you to use the
trademarks ("Proprietary
Marks") of
and to operate a Bark Busters Business. A Bark Busters Business provides
individualized dog training specifically designed to address general obedience
and behavioral problems and structured to take place in the homes of
residential customers; related group training, including a proprietary four
week "puppy school" for training multiple dogs; ongoing customer
support services (collectively the "Bark Busters Services"); and proprietary Bark Busters
Products (as defined in ITEM 8) designed to support customers in their ongoing
training efforts, all through a uniform system consisting of high standards of
service, use of quality products, and in accordance with the business format
created and developed by Australian Bark Busters ("System").
The success of a Bark Busters
Business is highly dependent on the daily involvement of you or your principal
owner. You or your principal owner must participate in the operation of the
Bark Busters Business on a daily basis and you may not delegate these duties to
any other employee. (See ITEM 15). Therefore, we do not offer opportunities
for you to own more than one franchise at the present time, but we may change
this policy at any time. You will use a vehicle for transportation to and from
the locations where the training will take place.
Regulations
Certain states and local
jurisdictions may have enacted laws, rules, regulations, and ordinances that
apply to animal care in general or specifically to dog training. These
regulations may establish certain standards, specifications, and requirements
that must be followed by you. You should investigate whether there are any
regulations and requirements that may apply in the geographic area in which you
are interested in locating your franchise, and you should consider both their
effect and cost of compliance. We also require your compliance with all
provisions of the USA Patriot Act and Executive Order 13224. You should retain
an attorney in your geographic area to fully review the legal ramifications of
engaging in the Bark Busters Business offered by this circular.
Market Competition
The Bark Busters Business
model presently focuses on serving residential customers who own dogs in urban,
suburban, and rural areas. You may have to compete with other businesses
including franchised operations, national chains, and independently owned companies
offering dog training and education services to residential and commercial
customers, such as other dog training companies, dog obedience companies,
grooming and pet companies, dog boarding kennels, kennel clubs, and some
veterinary offices that provide canine training. The market for dog training
services is competitive. You will also face other normal business risks that
could have an adverse affect on your business. These include industry
developments, such as pricing policies of competitors, and supply and demand.
Another risk factor is our dependence on key personnel, the loss of whom could
have an adverse affect on us. Our ability to fulfill our obligations under our
Franchise Agreement depends in part on our present and future financial condition.
Litigation risks also exist, including future litigation that may not be
foreseeable.
