ITEMI
THE
FRANCHISOR, ITS PREDECESSORS AND AFFILIATES
Educational Outfitters
Franchising, LLC, ("EOF") a Tennessee limited liability company, is
offering you the opportunity to operate an "EDUCATIONAL OUTFITTERS"
business in accordance with the terms described in this Offering Circular.
Prospective Franchisees in Texas will be offered the opportunity to operate the
business under the trade name and mark "ACADEMIC OUTFITTERS". To
simplify the language in this Offering Circular, the terms, "We",
"Us", or "EOF" means Educational Outfitters Franchising,
LLC, the Franchisor, (but not EOF''s officers, directors, agents or employees).
"You" means the person who buys a franchise from us. If you are a
corporation, partnership or other entity, "you" includes your owners,
officers and directors, and our Franchise Agreement will apply to your owners,
officers and directors. Unless otherwise indicated, the terms "Franchised
Business(es)" or "Franchised Store(s)" or "Store(s)"
mean a franchised Educational Outfitters Store(s).
The Franchisor and its
Affiliate.
We are a Tennessee limited liability company which began franchising in November 2002. We do
business under the name Educational Outfitters Franchising, LLC, and the mark
"EDUCATIONAL OUTFITTERS�" everywhere except Texas where we and you
will use the mark "ACADEMIC OUTFITTERS". An affiliated company,
Educational Outfitters, LLC, has opened and operated Educational Outfitters
Stores since 1999. These stores are developed by EOF and then are sold to
franchisees. The affiliate operates a Store in a similar manner to the
Franchised Business described in this Offering Circular and follows all of the
operational terms and conditions contained in the Franchise Agreement. None are
currently being operated by the affiliate. The affiliate has not offered and
does not offer franchises in any line of business.
The principal business and
mailing address of EOF and its affiliate is 8002 E. Brainerd Road, Chattanooga, Tennessee 37421. The telephone number is (423) 499-5052. EOF''s agents for
service of process are disclosed in Exhibit B.
Franchisor''s Business. EOF offers and sells franchises
for Educational Outfitters Stores. These Stores specialize in the retail sale
of school uniforms and dress code apparel, athletic team uniforms, career
apparel, work uniforms and embroidery services. EOF is not engaged in any other
business. EOF may also own or operate similar businesses.
EDUCATIONAL OUTFITTERS Franchise Program. Under the Franchise Agreement
(the "Franchise Agreement") which is Exhibit C to this Offering
Circular, EOF offers qualified purchasers the right to establish and operate
from a single location (the "Location" or "Franchised Location")
within a specified Territory (the "Exclusive Territory") a Franchised
Business and to use in connection with the operation of the Store, the
EDUCATIONAL OUTFITTERS name and identity, EDUCATION OUTFITTERS� service marks,
trademarks, unique methods of presentation and Store operations, and a
confidential manual of business practices and policies (the EDUCATIONAL
OUTFITTERS "System") for an initial term of 10 years (subject to
renewal in Item 17). Under a Franchise Agreement, you are entitled to establish
additional locations ("Satellite Stores") within the Exclusive Territory with no additional franchise fees payable upon execution of a Satellite
Store Addendum. Satellite Store operations are thereafter governed by the terms
of the Franchise Agreement. In Texas the franchised business is operated under
the trade name and mark "ACADEMIC OUTFITTERS". The rights granted to
you under the Franchise Agreement collectively constitute the "Franchise
or "Franchised Business". (See also Item 13 regarding Marks).
Selected Franchisees will enter
into a Development Agreement which will give them the right and obligation to
develop more than one EDUCATIONAL OUTFITTERS Store in a defined geographical
area in accordance with a predetermined development schedule. If you will
develop more than one
EDUCATIONAL OUTFITTERS Stores,
you must first enter into a Franchise Agreement for your first Franchise, and
then, once a site is selected for that Store and approved by EOF, you sign a
Development Agreement for the development of future sites. You will be required
to enter into separate Franchise Agreements for the operation of the future
sites as Stores.
The Franchise Agreement gives
you the right to operate the Franchised Business under the name and mark
"EDUCATIONAL OUTFITTERS�" and other marks designated by EOF (all
referred to as the "Marks") (see also Item 13 regarding Marks). You
must operate in accordance with the System''s standards and procedures
designated by EOF and in accordance with EOF''s Daily Operations Manual (the
"Manual"), within a specified Territory (see Item 12 for details).
The market for EDUCATIONAL
OUTFITTERS Stores is developing and includes parents of school-aged children in
private, parochial and public schools (K through 12 grades) and members of the
general public. The volume of school uniforms sales is seasonal in that it is
greatest in the late summer and early fall, when parents and other customers
purchase school uniforms for a new school year. Thus, most school uniforms
sales occur from June through January. We also offer career wear and uniforms
to businesses and organizations, promotional products, embroidery services and screen
printing (under our service mark "CUSTOMLOGO OUTFITTERS"). We focus
sales efforts on these other products and services, such as team uniforms, from
February through May.
In addition to laws and
regulations that apply to businesses generally, the Franchised Business is
subject to federal, state and local occupational safety and health regulations,
Equal Employment Opportunity Laws and Americans with Disabilities Act rules and
regulations. Some jurisdictions may choose to regulate vigorously these and other
laws which may adversely affect your ability to obtain the proper permits
needed in order to open an EDUCATIONAL OUTFITTERS Franchised Business.
If you open an EDUCATIONAL
OUTFITTERS Store, your competition will include other businesses offering
similar products and services to the general public, other retail specialty
stores, retail mail order companies, internet-based businesses, department
stores and other retail locations. It is generally expected that the Franchised
Business will be occupied in a strip shopping center.
Prior Business Experience of
Franchisor, Its Predecessor and Its Affiliates. We are engaged in the sale of
franchises to operate an EDUCATIONAL OUTFITTERS Store. EOF has offered
franchises of this type since November 2002. See Item 20 ("List of
Franchised Businesses") for the number of franchisee locations open for
business as of December 31, 2007 and Exhibit K for the current list of
franchisees.
