ITEM 1
THE FRANCHISOR, AND ANY
PARENTS, PREDECESSORS AND AFFILIATES
The Franchisor is Kennelwood
Franchise Systems, LLC, a Missouri limited liability company. For ease of
reference, Kennelwood Franchise Systems, LLC will be referred to as "us,"
"we", "our" or the "Company." When we use "you" or "your" in this disclosure document,
it means the person, partnership, limited liability company or corporation who
buys the Franchise. If you are a corporation, partnership or limited liability
company, "you" and "your" also mean the shareholders of the
corporation, partners of the partnership or members and managers of the limited
liability company and their spouses, where applicable, who must sign the
personal guaranty.
The Company only does business
under the name "Kennelwood Franchise Systems, LLC". The Company was
formed on May 15, 2007 and has no predecessor. Our principal business address
is 1875 Lackland Hill Parkway, St. Louis, Missouri 63146, and our agents for
service of process are listed in Exhibit B to this disclosure document.
Kennelwood Village, Inc. ("KVI") is the parent corporation of
the Company. KVI was incorporated in Missouri on May 24, 1973 under the name
Kennelwood Pet Villages, Inc. ("KPVI"). KVI only does business under
the names "Kennelwood Village, Inc." and "Kennelwood Pet
Resorts". KVI''s principal business address is 1875 Lackland Hill Parkway, St. Louis, Missouri 63146.
Kennelwood Licensing, LLC ("Licensing") is an affiliate of the
Company. Licensing owns the service mark Kennelwood Pet ResortsSM
and on May 15, 2007, granted a world-wide, non-exclusive, perpetual license to
the Company to grant franchises using that name and service mark. Licensing''s
principal business address is 1875 Lackland Hill Parkway, St. Louis, Missouri 63146.
The franchise offered is for a
business, operating at a location within a specified geographic territory, that
provides upscale pet boarding vacations, day care, grooming and retail sales
services identified by the Proprietary Marks (a "Franchised Resort")
and offers
canine and feline boarding, day care and grooming services, and promotes retail
sales of specialized brand name pet products, including grooming products, pet
apparel products, pet toys and specialty foods, (collectively, the "Services") all in accordance with our
System and our Franchise Agreement, which you must sign. "System" means a unique, specially
developed method of operating a business offering the Services under the
Proprietary Marks using our proprietary interior design, decor, color scheme,
fixtures, equipment, operating methods, accounting methods, canine training
techniques, merchandising techniques, uniform product and service quality
standards, procedures for management, employee training, marketing plans and
advertising materials, as they may be changed, improved, modified and further
developed by us or our affiliates from time to time. "Proprietary Marks" means the Kennelwood Pet
ResortsSM trade name and service mark, the logos adopted for that
name and mark and any other trade names, service marks, trademarks and logos as
we may now or in the future require you to use with offering the Services at
your Franchised Resort.
A copy of the Franchise Agreement
is attached as Exhibit C to this disclosure document. A separate
Franchise Agreement must be entered into for each Franchised Resort you
operate.
Though the market for pet
kennel businesses is developed, we believe the market for upscale pet service businesses
is still developing. You will market your Franchised Resort to canine and
feline owners who live and/or work in your specified territory. Your Franchised
Resort will compete with other national, regional and local chains, some of
which have franchised operations, and privately operated businesses.
Franchisees must comply with
all kennel licensing regulations imposed by city, county and state agencies.
You must also comply with all local zoning ordinances concerning the operation
of a kennel, and with all state and federal laws and regulations concerning
public accommodations, accessibility by persons with disabilities, health and
safety, and rules and regulations under the Equal Employment Opportunity
Commission, Occupational Safety and Health Act and the Environmental Protection
Agency. As a franchisee, you must comply with all laws and regulations which
are currently in existence and which may later be adopted. You should consult
with your own legal counsel to determine the applicability of these and other
laws and regulations to the operation of your Franchised Resort.
We require each of our
franchisees to also comply with the American Boarding Kennel Association''s
rules and regulations. We have a confidential operations manual (the "Confidential
Manual") that describes these standards and directs you to the applicable
guidelines.
The Company''s only line of
business is offering Franchised Resort franchises. We have offered Franchised
Resort franchises since July 1, 2007. We do not currently operate a business
similar to the one you will operate, but we may do so in the future. KVI
(described elsewhere in this Item 1) has operated a similar business for over
34 years and currently operates 6 facilities similar to the Franchised Resort
franchises offered by the Company. Neither the Company nor its affiliates have
ever offered franchises in any other line of business. Neither KVI nor
Licensing offers franchises in any line business.
