ITEM 1
THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND
AFFILIATES
A.
Terminology.
To simplify the language in
this Disclosure Document, "Company," "we," "us"
and "our" refer to Grins 2 Go, Inc., the franchisor. "You"
means the person who acquires the franchise and includes your owners if you are
a corporation or other business entity.
B.
The
Company, Our Predecessors. Parents and Affiliates.
We are a California corporation
with principal offices at 6969 Corte Santa Fe, Suite A San Diego, CA 92121. We
were organized on February 23, 2004. We do not have any predecessors,jiaxents or affiliates. We do not
currently and have not previously operated a GRINS 2 GO business, though we
reserve the right to do so in the future. We have not offered franchises in any
other line of business. We list our agents for service of process in Exhibit
A to this Disclosure Document.
C.
The
GRINS 2 GO Franchise.
We offer a mobile on location,
as well as a regional licensee franchise. The on location franchise ("On
Location Franchise") is operated from a customized GRINS 2 GO van that
allows you to take equipment on location (an "On Location Unit"). The
On Location Franchise only directly performs digitally captured portraiture and
digital print services for customers including event photography, school
photography, sports photography and commercial photography. Most other Grins 2
Go services, e.g., custom framing services and large print photograph services,
although available through an On Location Franchise, must be outsourced by the
On Location Franchise to an approved supplier listed in the Operations Manuals.
See Item 8 for more information on approved suppliers.
Our regional licensee franchise
(the "Regional Licensee") assists us in recruiting franchisees and
supporting the Grins 2 Go franchises in the region assigned to the Regional
Licensee. Regional Licensees receive a percentage of the net initial franchise
fee, royalty fee and training fee for franchisees in the region it supports.
The Regional Licensee, however, has no authority to offer, sell or negotiate
the terms of any franchise. A Regional Licensee must operate at least one On
Location Franchise until 40% of its development plan has been met.
We previously offered a
franchise for retail studio locations which offered customers digitally
captured portraiture, digital prints and custom framing services in a retail
studio location (a "Studio"). We had 2 Studios open in 2006, they are
no longer open and we no longer offer Studio franchises. The Studio franchise
is not substantially similar to the On Location Franchise or Regional Licensee.
D.
Competition.
The market for portraits,
prints and framing services currently exists. Portrait services are mostly used
by families and businesses and are mainly offered by traditional photographic
processes with turnaround time sometimes approaching several weeks. The market
for digital
Grins 2 Go FDD - 3/08 tb.us.2639071AH>J:
Michael L. Ellison - Director:
Michael Ellison has been a
Director since June 2004. He is self employed and from 1993 through 2003 was
the Senior Director of Information Technology for QUALCOMM, Inc. of San Diego, CA.
See Exhibit
J for information on Grins 2 Go Regional Licensees.
