ITEM 1.����������������� THE��
FRANCHISOR�� AND�� ANY�� PARENTS,�� PREDECESSORS AND
AFFILIATES
To simplify the language in this Disclosure Document,
the words "we", "our", "us" or "Golf
Etc." refer to Golf Etc. of America, Inc., the franchisor of this
business. "You" and "your" refer to the person who buys the
franchise; whether you are a corporation, limited liability company or other
business entity. If you are a corporation, limited liability company or other
business entity, certain provisions of this Disclosure Document also apply to
your owners and will be noted.
The Franchisor
We were incorporated in Texas on August 14, 1994. Our principal business address is 2201 Commercial Lane, Granbury, Texas 76048. We do business under our corporate name, the name "Golf Etc. of
America" and our registered service mark, "Golf Etc.�". We have
offered franchises since November 1995.
We franchise the right to
operate a retail shop that sells golf equipment and accessories and performs
club repair and maintenance services for the public. The franchise or
franchised business does business under the trade name Golf Etc. and also uses
our other related trademarks, service marks and logos (our "Marks").
The franchise typically requires between 2,500 to 4,000 square feet of shop
space for the display of merchandise, and testing, fitting and repairing clubs.
The franchise also includes our distinctive Golf Etc. shop finish-out services,
completely packaged, including color scheme, fully installed with merchandised
inventory, supplies, signage, displays, fixtures and equipment (our
"Indicia"). You also receive access to our communication network,
network of suppliers, advertising and marketing methods, knowledge and
experience in performance of the repair services of golf equipment and retail
sales of golf-related merchandise, (our "System").
Our
Predecessors and Affiliates
Beginning in 1993, before Golf
Etc. was incorporated, the original owners individually offered a licensee
program providing finish-out services and the right to use the "Golf
Etc." trademark. After our incorporation in 1994. and up until 1995, Golf
Etc. also offered the license program. These licensees sell golf equipment and
accessories and repair services at retail to the public under arrangements
similar to the franchise in this Disclosure Document. The licensees did not
receive our training or the same advisory assistance or other rights we offer
with a franchise. The principal business address of the predecessor company is
710 Highway 377 East, Granbury, Texas 76048.
Golf Etc. has offered
franchises for "Golf Etc." shops since November 1995. In May 2000,
the last remaining licensee converted to Golf Etc.''s franchise program. A list
of Golf Etc''s franchisees is included in Exhibit C of this Disclosure Document.
Golf Etc. has neveroffered franchises in any other line of business. We are in
the process of starting an on-line catalogue business for furnishings, home
decor and fitness products. Other than offering franchises for Golf Etc. shops,
assisting our franchisees, furnishing our franchisees with shop finish-out services,
and our on-line catalogue business we are planning to launch, we are not
engaged in any other line of business. You are not required to participate in
our on�line catalogue business in any way. Golf Etc. has no affiliates.
You will target your products
and services to the golfing public, especially to intermediate and advanced
golfers. You may have to compete with other stores or shops, including golf
specialty shops, pro shops, franchised operations, national chains, and
independently owned retail stores selling golf equipment and apparel, related
merchandise and repair services or similar products and services. Changes in
local and national economic conditions and population density may affect this
industry and are generally difficult to predict. You will face other normal
business risks that could have an adverse effect on your business, including
changes in supply and demand, new technologies and competition from
internet-based organizations that provide information and some related products
or services. Your sales may be affected by seasonality factors. The market for
these products and services is moderately competitive and presently
experiencing growth particularly among women and juniors in the 14 to 21 year
old segments.
Golf Etc. is not aware of any
industry specific laws or regulations, however, laws that generally affect any
business will affect the franchised business. These may include safety,
environmental and employment regulations. The laws in your state or municipality
may be more or less stringent. You are advised to examine these and other laws
before purchasing a franchise. You must comply with all applicable laws and
regulations. You alone are responsible for complying with all applicable laws
and regulations despite any advice or information that we may give you.
Agents for Service of Process
Our
agents for service of process are listed in Exhibit B to this Disclosure
Document.
