1. THE FRANCHISOR''S AND
ANY PARENTS, PREDECESSORS AND |
AFFILIATES
Franchisor
Famous Dave''s of America,
Inc., the Franchisor who does business under this name, is referred to as
"Famous Dave''s." The restaurant franchise offered and sold by Famous
Dave''s is referred to in this Offering CircularDisclosure
Document as the "Famous Dave''s� Restaurant" or the |
"Restaurant." "You" means the person or entity who buys the
franchise. If the franchisee is a corporation, limited liability company,
partnership or other entity, then "you" may also mean the
shareholders, members, partners, or other owners of that entity.
We are a Minnesota
corporation formed on March 14, 1994. Our principal business address is I270I Whitewater Drive, Suite 200, Minnetonka, Minnesota 55343-4164, (952) 294-1300, | www.famousdaves.com.�� Famous Dave''s is
a publicly-traded company (NASDAQ) and our symbol is "DAVE." Our
agents for service of process are listed in the State Agency Exhibit attached
A to this Offering CirculorDisclosure Document-Parents.
Predecessors and Affiliates of Famous Dave''s We have no nacejlls^predecessors
or affiliates. Franchised Business
Famous Dave''s franchises
authentic barbecue restaurants under the name "Famous Dave''s�." A
Famous Dave''s� Restaurant features full table service in a casual, comfortable
and fun environment. All Famous Dave''s� Restaurants feature high-quality foods.
Famous Dave''s� Restaurants serve hickory-smoked spareribs, baby back ribs, beef
brisket, herb-roasted chicken, barbecue sandwiches, char-grilled burgers,
cornbread, potato salad, coleslaw, Wilbur� beans, desserts and other food and
beverage items.
Famous Dave''s� Restaurants
operate in a developed market and you will compete with local, regional and
national barbecue restaurants and other full-service and quick-service casual
restaurant chains and eating establishments.
Regulations
Specific to the Restaurant Industry
The restaurant industry is
heavily regulated. Many of the laws, rules and regulations that apply to
businesses generally have particular applicability to restaurants, especially
restaurants that serve alcoholic beverages. All Famous Dave''s� Restaurants must
comply with federal, state and local laws applicable to the operation and
licensing of restaurant businesses, including obtaining all applicable health
permits and/or inspections and approvals by municipal, county or state health
departments that regulate food and liquor service operations. Your Famous
Dave''s� Restaurant must also meet applicable municipal, county, state and
federal building codes and handicap access codes. You should consider these
laws and regulations when evaluating your purchase of a franchise.
Ml
Unless Famous Dave''s agrees
otherwise, you must serve beer, wine and other alcoholic beverages at your
Famous Dave''s� Restaurant. You must have a liquor license before you sell
alcoholic beverages at your Restaurant. The difficulty and cost of obtaining a
liquor license, and the steps for securing the license, vary greatly from area
to area. There is also wide variation in state and local laws and regulations
that govern the sale of alcoholic beverages. In addition, state dram shop laws
give rise to potential liability for injuries that are directly or indirectly
related to the sale and consumption of alcohol.
The U.S. Food and Drug
Administration, the U.S. Department of Agriculture and state and local health
departments administer and enforce regulations that govern food preparation and
service and restaurant sanitary conditions. State and local agencies inspect
restaurants to ensure that they comply with these laws and regulations.
The Federal Clean Air Act and
various state laws require certain state and local areas to meet national air
quality standards limiting emissions of ozone, carbon monoxide and particles,
including caps on emissions from commercial food preparation. Some state and
local governments also regulate indoor air quality, including limiting the use
of tobacco products in public places, such as restaurants.
Area
Development Agreement
If you meet the
qualifications established by Famous Dave''s, you may enter into an Area
Development Agreement for the development of Famous Dave''s� Restaurants in a
designated geographic area called a ''Territory." Under the Area
Development Agreement, you must develop an agreed upon number of Famous Dave''s�
Restaurants within an agreed upon period of time. You must sign a separate Franchise
Agreement for each Famous Dave''s� Restaurant you develop under an Area
Development Agreement.
Prior
Business Experience of Famous Dave''s During Last 10 Years
Famous Dave''s commenced its
franchise program in 1998, and as of December 31, 20061Q. 2007.
had -1-04120 operational franchises (see Item 20). Famous Dave''s does
not operate or offer franchises in any other line of business. Famous Dave''s
has operated Famous Dave''s� Restaurants since 1995. As of December 31, 200630.
2007. Famous Dave''s owned and operated 4444 company-owned Famous Dave''s�
Restaurants (see Item 20).
Famous Dave''s currently
operates a Famous Dave''s� BBQ & Blues Club at Calhoun Square in Minneapolis, Minnesota. This restaurant is designed as a genuine Chicago-style blues club
and features full food and liquor service and blues music entertainment. The Minneapolis location was opened on September 4, 1996. Famous Dave''s does not offer
franchises of the Famous Dave''s� BBQ & Blues Club concept.
A Famous Dave''s� Restaurant
is also located in Hayward, Wisconsin. The Hayward restaurant is owned by Grand
Pines Resorts Inc., a company wholly-owned by Mr. David W. Anderson, the former
Chairman of the Board of Famous Dave''s. The restaurant opened on May 27, 1994.
Certain proprietary products
which have been developed by Famous Dave''s, such as sauces, seasonings, rubs
and marinades are distributed in retail grocery stores throughout the country
under licensing agreements.
