ITEMI
THE FRANCHISOR AND ANY PARENTS, PREDECESSORS
AND AFFILIATES
To simplify the language in
this Franchise Disclosure Document, "we," "us," or
"our" means Handyman Matters Franchise Corporation, the Franchisor.
"You" means the person, corporation, partnership or other entity that
buys the franchise. If a corporation, partnership or other entity is the
Franchisee, "you" also includes the Franchisee''s owners in certain
situations.
The Franchisor.
We are a Colorado corporation
that was incorporated in August 22,2000. We do not do business under any other
name. Our principal business address is 12567 West Cedar Drive, #150, Lakewood, Colorado 80228. Our agents for service of process are disclosed in Exhibit A.
We are a franchising company
that sells and grants franchises for the operation of businesses (a
"HANDYMAN MATTERS Business") using the name "HANDYMAN
MATTERS." We are not engaged in any other type of business activity.
Our parent company, Handyman
Matters, Inc. ("HMI") is a Colorado corporation incorporated on March
3, 2000. It has another subsidiary, Handyman Matters Operating Company, Inc.
("HMOC"), a Colorado corporation that was originally formed as
Handyman Express LLC ("HELLC") on January 23, 1998 and then converted
to a corporation and renamed on July 24, 2000. HMOC is not currently active.
Our principals also operated another company named Handyman Express Boulder,
LLC ("HE-Boulder"), a limited liability company formed on September
11, 1998. HE-Boulder was merged into HMOC on August 3, 2000. HMOC and before
its operation, HELLC and HE-Boulder, owned and operated eight businesses which
are similar to the franchised business being offered that operated in
California and Colorado. HMOC sold those businesses in 2001 and 2002 to
franchisees of ours. HMOC, HELLC and HE-Boulder may be deemed predecessors of
ours. The principal address for HMI and HMOC is the same as ours.
We have been offering HANDYMAN MATTERS Businesses since
February 2001.
The Business.
We franchise to you or
authorize you to operate a HANDYMAN MATTERS Business under the mark Handyman
Matters� and related service marks, trademarks and trade names
("Marks"). A HANDYMAN MATTERS Business provides handyman and
remodeling (design build) services and sales to residential and commercial customers
by operating under a uniform system consisting of high standards of service,
use of quality products, and the business format created and developed by us
and our predecessors (the "Handyman Matters System"). These handyman
services include carpentry, plumbing, electrical, drywall, painting, roofing,
flooring and any other miscellaneous repairs, remodels and services to
residential and commercial clients.
The franchise that we offer
grants you a Territory of approximately 125,000 households, with each territory
generally delineated by zip codes. All Territories include the businesses in
the Territories. We also award Conversion Franchises to persons who are already
operating a handyman business.
When you obtain a franchise
from us, we license to you the right to use our Marks and the Handyman Matters
System within an exclusive territory that will be assigned to you
("Territory"). You are required to pay us the initial fees discussed
in ITEM 5 of this Disclosure Document, and sign our standard franchise
agreement ("Franchise Agreement") prior to operating your HANDYMAN
MATTERS Business. A copy of our Franchise Agreement is attached to this
Disclosure Document as Exhibit B.
We retain the right, in our sole
and absolute discretion, to award, or not award, a HANDYMAN MATTERS Business to
any prospective franchisee, regardless of the stage of the franchise award
process, costs expended by the prospective franchisee or otherwise.
There are specific regulations
pertaining to this industry. You must become knowledgeable of, and comply with,
all applicable local and national uniform building codes, including plumbing,
structural and electric codes and regulations. You may be required by local and
state authorities to obtain certain permits, registration or licenses to
operate a HANDYMAN MATTERS Business.
In certain circumstances, your
activities as a Handyman Matters Franchisee may require you to be in compliance
with various state or local contractor''s licensing and related requirements
(which may include bonding, insurance or other requirements) and could require
you, and/or your personnel to obtain general contractors and/or other licenses.
State and local requirements vary significantly in this regard (and can change
over time, sometimes without notice) and we strongly urge you to research the
applicability of all legal requirements, and consult with local and state
agencies and/or your attorney, before signing any binding documents, paying any
amounts or making any other commitments to purchase a HANDYMAN MATTERS
Business. These laws, and their interpretations could materially affect your
ability to do business in your designated Territory. The National Association
of Remodeling Industry publishes a "Summary of State Contractor Licensing
Laws," which we strongly suggest you review, although we make no
representation as to the completeness or accuracy of that (or any other)
publication because we did not prepare it. In addition, while we may pass on to
you information we have received, it is your sole responsibility to investigate
the rules and regulations that apply within your Territory (as defined in ITEM
12 below) before purchasing your HANDYMAN MATTERS Business.
Market Competition.
The HANDYMAN MATTERS Business
presently focuses on serving residential and commercial customers in urban and
suburban areas. The market for handyman and remodeling services is well
developed. You may have to compete with other businesses, including franchised
operations, national chains and independently owned companies offering handyman
and remodeling services to residential and commercial customers. The sales of
the services are not seasonal.
