THE FRANCHISOR. AND ANY
PARENTS. PREDECESSORS AND AFFILIATES The Franchisor is Breadsmith Franchising, Inc., a
corporation organized under the laws of the State of Wisconsin. To simplify the
language in this Disclosure Document, Breadsmith Franchising, Inc., will be
referred to as "we," "us," or "BFI."
"You" means the person who buys the franchise. If you are a
corporation, limited liability company, or partnership, "you"
includes the stockholders, members or partners of that entity.
BFI was incorporated on
September 21, 1993. We do business as BREADSMITH. We do not do business under
any other name. Our principal business address is 409 East Silver Spring Drive,
Whitefish Bay, Wisconsin 53217.
BFI offers and sells
franchises that allow franchisees to operate a BREADSMITH retail store, and to
service bulk and wholesale bread accounts. We have offered franchises since September
1993. Until 1999, the focus of our system was to establish and operate retail
stores. In 1999, we began changing our focus from a bread store to a
"bread company" that operates retail stores and develops and services
bulk and wholesale accounts. We started developing national and regional
wholesale accounts that our stores could service, and encouraged our
franchisees to develop bulk and wholesale accounts in their local markets.
We are not engaged in any
other business. We have never offered franchises for any other type of
business. We do not operate any company-owned stores, but we have affiliated
companies that operate company-owned stores and service wholesale accounts. The
affiliated company is Breadsmith Inc. and it''s address is 418 East Silver
Spring Drive, Whitefish Bay, WI 53217 We use the store operated by the
affiliated company as our training and research and development facility. The
first of these stores opened in June 1993.
We do not have any predecessors. We also do not have
any affiliates with whom you will do business, or who are offering franchises
in any line of business.
The franchises we are offering
will allow you to operate one or more premium European-style bread stores in a
specific territory and to sell breads to bulk and wholesale accounts in that
territory. BREADSMITH bakeries feature a wide assortment of premium quality
fresh, hearth baked breads, hearth baked products, food products, and other
complementary items. We also have special confidential recipes and techniques
we allow you to use in your BREADSMITH business. You will sell only the
highest-quality baked goods using BFI-taught baking processes in an efficient
open-kitchen concept, with a generous sampling program in your store.
There are two or three
distinct markets your business will serve. Your retail store will sell directly
to the customer. This customer includes all consumers, but particularly middle
and upper income level consumers. Your stores will compete with other
businesses that sell fresh baked goods, including grocery stores. The wholesale
market consists primarily of grocery stores to whom you can sell breads on a
wholesale basis. The market for bulk sales consists of restaurants and country
clubs that purchase baked goods to serve to their customers. In these markets,
you will be competing with other bread producers who sell their products to
restaurants and through grocery stores and other retail outlets.
Your business must comply with
laws and regulations that apply generally to all small businesses, including
zoning regulations, labor regulations, and minimum age and minimum wage laws.
In addition, because you are baking fresh bakery products, there will be laws
in your area specific to the preparation
and serving of foods, and
specific to occupational, health and safety standards that you will have to
meet. There are also laws in several states regulating the weight of loaves of
bread sold in that state and federal and state laws regulating the labeling of
these products. You should check your state for these and other requirements.
It is your responsibility to comply with any and all laws, rules and
regulations applicable to your business.
Our agents for service of
process are listed in Exhibit A to this Document.
