BODY BALANCE FOR PERFORMANCE - FDD UFOC ITEM 1 Detail
ITEM 1. THE FRANCHISOR,
AND ANY PARENTS, ITS PREDECESSORS AND
AFFILIATES
The
Franchisor
To simplify the language in
this offering circular, the words "We", "Us",
"Our", etc. mean the franchisor, Body Balance for Performance, Inc.,
a Pennsylvania Corporation, which was formed in January 2003 when we purchased
the trademark and franchise rights for BODY BALANCE FOR PERFORMANCE� program
centers ("Centers") from Our predecessor Body Balance for
Performance, LLC. We are offering the franchises described in this
franchise offering circular ("franchises"). Our predecessor
offered franchises in this line of business from 1998 until we acquired the
business from it in January 2003. "You" or "Your" mean the
person, corporation or partnership buying a | franchise from Us.
|�������������� Our principal
business address and telephone number are701 East Elm St, Suite A,
Conshohocken Pennsylvania, 19428; telephone (800) 473-6211. Our
agent for service of process is David Ostrow at the same address. (Our
predecessor''s address was 280 East Magnolia Boulevard, Burbank, California 91502).
Our predecessor developed a
golf-specific marketing program with Paul Callaway, PT, the first Director of
Physical Therapy on the PGA Tour ("Mr. Callaway"). This program was
originally intended to be added to existing services being provided by physical
therapists, medical practitioners and chiropractors at their clinics and has
now been expanded into other areas, as described below.
We do
business only under the name BODY BALANCE FOR PERFORMANCE and | under no other
name. Neither We nor Our predecessor have offered franchises in any
other line of business.�� Neither we nor our predecessor have conducted
business in any other line of business.
We have one company owned
center and have been operating this center continuously since January, 2003.
One of Our owners, David Ostrow has owned and operated a Center in Exton, Pennsylvania since 1996. He has been the National Clinical Training Director for the
BODY BALANCE FOR PERFORMANCE system (the "System") since August 2001.
His Centers have consistently been in the top 3 Centers in the country for 5
years, with top honors for 3 consecutive years in 1999-2001. Our other owner,
Neil Chasan has owned a Center in Bellevue, Washington since July 2001 and has
also developed Total Conditioning for Golfers� and the Swing Reaction System�,
which are golf conditioning services for health clubs.
As of March 15, 2008 We have 35
franchise locations (current or planned) throughout the United States.
MuitiuFO05(l-i)BB, Page
6
The Business Being franchisee!��������������������������������������������������������������������������������������������������������������������� ,.--( Deleted: License
- ( Deleted: License
A franchisee!
Center will offer the golf-specific physical evaluation and customized
performance enhancement program (the "Program") developed by Mr. Paul
Callaway and his associates at Survival Strategies, Inc. ("SSI"). The
Program focuses on injury prevention and the evaluation and correction of
underlying physical causes for golfers'' swing problems.
The Program may be used either
as part of an existing business or practice or as the primary or only service
being offered at the Center.� Each Center will employ the techniques, forms,
and procedures which We have developed. Each Center will employ certain
equipment as well. We will provide each franchisee with materials and
training for _.--{Deleted: License opening a Center and will provide guidance and support
in operating under the System.
Thef ranchises Being Offered - Summary���������������������������������������������������������������������������������������������������� .---(Deleted: License
Our franchise Agreement (Exhibit
A) authorizes You to open and operate a Center .. -{Deleted: License
(Your
"Center"), either as part of an existing business or separately, and
grants You
exclusive solicitation rights to a certain geography ("Territory")
which You and We agree
upon as part of thef ranchise. Your Territory will be listed on Schedule
B attached to Your ,...--{Deleted: License
franchise Agreement (the
"Territory").������������������������������������������������������������������������������������������������������������ ..-■■-] Deleted: License
As a franchisee, You
must focus Your marketing efforts for Your Center in Your ..--{Deleted: License Territory.� You may only market Your
Center in your Territory in which Your Center is located. We will review the
Territory with you prior to each renewal of this Agreement, and You and We may
modify the Territory at the time of renewal. We will not amend your Territory
without Your prior consent.
You
and other franchisees may sell Our proprietary products and services to
the .Deleted: License public generally so long as You or the other franchisee
do not intentionally, directly or ( Deleted: license indirectly, solicit business from outside of Your
territory.
Thef ranchise Agreement
has an initial term of five (5) years (the "Term") beginning ..--(Deleted: License on the date You begin operating
Your Center hereunder.� Upon payment by You of a $100.00 annual renewal fee,
Yourf ranchise Agreement will be automatically renewed for ....-{Deleted: License" additional terms of one year
each unless either We or You give written notice of non�renewal at least sixty
(60) days prior to the end of then current year.
The same terms of thef
ranchise Agreement will apply during each renewal except .,--{Deleted: License for any modification as may be
agreed upon in the renewal agreement and that after Your f ranchise
Agreement has been in effect for five years, We may substitute Our then
current�� . (Deleted: License form of franchise Agreement for the existing
agreement, except that You will not have to....---{ Deleted: License pay another Initial Fee and the
rate of the Royalty Fee will not be increased above 10%.
We will allow You upon Your
written request to open two (2) additional Centers to service Your Territory
under Your franchise Agreement if You are not in default of any _...--{Deleted: License
MultiUFO05(i-i)BB, Page
7
I material provision of Your franchise Agreement.
You will not have to pay an additional Initial Fee for the second or third
Center, but You must fully comply with, and pay for,
| additional training at the
rates then charged by Us for new franchisees. You will also have to pay
the Royalty Fee on all Services provided in each Center in your Territory.
We intend to offer BODY BALANCE
FOR PERFORMANCE programs for other sports, such as skiing, tennis, equestrian
and bowling. We will offer You the right of first refusal to include each
additional program at Your Center(s) for no initial fee and You agree to 1)
attend and pay the then current fees for the training courses for such
programs, 2) obtain any additional equipment and supplies and 3) pay royalties
on revenues from the additional program. If You are not eligible for or elect
not to accept the offer, We may offer the new program to another Center in Your
market area, but Your rights to continue the golf program at Your Center will
continue in full force and effect.
We may, on occasion, offer you
the right to become a Developer under a development agreement
("Development Agreement'') which grants you the right to establish and
operate one or more outlets in a specified area ("Development Area").
A Developer will sign a separate franchise agreement for each Outlet in
accordance with a development schedule set forth in the Development Agreement.
Our Development Agreement is attached to this Offering Circular as Exhibit G.
Miscellaneous
We emphasize staffing each
Center with well-trained, efficient and extremely personable employees who will
provide courteous and thoughtful service to the public. A Center typically has
a total of 3 to 5 employees.
I* Deleted: License
I Deleted: license
You
will be responsible for obtaining all necessary permits, franchises and
approvals�� ,{Deleted: license ) to operate Your Center, which
may include physical therapy, chiropractic or a similar
professional franchise, as required by the law of the
state where Your Center is located.����� ..--{Deleted: license )
The Program is offered
primarily to persons who play the game of golf, which at this time is a market
which continues to develop increased public interest. As a result, the golf
services and/or products business and physical training business may become
more competitive. The ability of each Center to compete is based on a variety
of factors, including, but not necessarily limited to, location demographics,
capitalization, experience and diligence of the franchisee.
Your operation of the Center
may subject You to regulation by governmental
authorities and/or professional associations, depending on where the Center is
located and
the type of services you intend to provide at the Center. The purpose of Our
Program is to
improve golf performance rather than correct physical conditions or provide
other healing
services. Depending on Your circumstances, state law may require You or Your
employees
to obtain and maintain a professional franchise in order to operate Your
Center.������������������������������ ...--{ Deleted: license
|