THE FRANCHISOR AND ANY
PARENTST4TS PREDECESSORS AND AFFILIATES
The Franchisor and any
Parents.4ts Predecessors and Affiliates
The Franchisor is Monkey
Shine Franchising, LLC. For ease of reference, Monkey Shine Franchising, LLC is
referred to as "we", "us" or "MSF" in this Offering CircularDjscMureJQp^mgnt.
We will refer to the person who buys the franchise as "you"
throughout this Offering CirculnrDjsalQSuxe Document. If
the franchisee is a corporation, partnership or limited liability company,
certain terms of the Franchise Agreement also apply to the owners and will be
noted.
We were formed on January 5,
2007 as a Colorado limited liability company. Our principal business address
and that of our affiliate and predecessor companies is 7100 E. Belleview
Avenue, Suite 305, Greenwood Village, Colorado 80111. We presently do
business under the name Monkey Shine Franchising, LLC and the trademark MONKEY
SHINE. Our agents for service of process are listed on Exhibit A.
Grease Monkey Franchising,
LLC ("GMF"),
a Colorado limited liability company, was formed on January 3, 2006. GMF has been the
franchisor of GREASE MONKEY Center franchises since April 2006. Grease Monkey
International, Inc. ("GMI"), a Colorado corporation, that
was incorporated on September 28, 1978, was the franchisor of the GREASE MONKEY
franchise system from approximately September 1978 through March 2006. GMI is
our predecessor and an affiliatoGMI and GMF are affiliates. GMI
is owned by Grease Monkey Holding Corporation ("GMHC") incorporated in Utah on April 19, 1976. GMI remains the franchisor of all GREASE MONKEY franchises granted
before April 2006. We have no parent company. GREASE MONKEY Center franchises are offered by separate Offering CirculnrDjsclosure
Document.
Under Development Services and Management Agreements
dated April 1, 2007 between GMI and MSF, GMI will, on our behalf and at our
direction, provide development and ongoing assistance to our franchisees and
otherwise fulfill certain of our duties under the Franchise Agreements. GMI
will also provide services to us relating to the sale of franchises. We pay GMI
fees for the services provided. Although GMI may provide certain services to
you, we are responsible to make sure that all services we promise to perform
under the Franchise Agreement are performed in compliance with the Franchise
Agreement.
The Franchise
We offer franchises for the
operation of car wash facilities ("MONKEY SHINE Facilities" or "Facilities") under our service mark
"MONKEY SHINE" and other trademarks, service marks, logos and
identifying features (the "Marks") using our proprietary
licensed methods of doing business ("Licensed Methods"). Each MONKEY SHINE Facility
offers the general public automobile and light truck washing services through
one or a combination of the following formats: (1) in-bay automatic car washes
in single and multiple bay configurations which use touchless and friction
washing technologies ("Automatic Car Wash" or "Automatic"); (2) express tunnel car wash
operations in single and multiple bay configurations in both touchless and
friction washing technologies ("Express Tunnel Car Wash" or "Express Tunnel"); and (3) self-service car
washes in multiple bay configurations where the customer washes their vehicle
using wand technology ("Self-Serve Car Wash" or "Self-Serve"). A MONKEY SHINE Facility may
be configured to include one or any combination of the above car wash formats.
In addition, vacuums are available for customer use and selected
automotive products are offered for sale through vending machines.
OFFERING GlRCULAflDISCLOSUKE
DOCUMENT
57025-0420/I.EOAU4074034 1 57025-0420/LEGAL14136594.1
The Express Tunnel Car Wash format_T�guires
full time attendants to manage the Facility, perform customer service and
sales. and_provide general maintenance ancLupkeep. The Express Tunnel Car Wash
also has fixed hours of operation. Automatic Car Wash and Self-Serve Car Wash
Facilities are open 24 hpJjr.S_a_dayj._unJfiS�_zoning or other restrictions
prevent 24 hour operation. In addition. Automatic and Self-Serve car wash
Facilities are typically unattended, although a part time employee is required
to provide general maintenance and upkeep and to collect customer payments.
Generally, car viash-eiiuipment maintenance is pxavidecLhy the
manufacturer or other third parties for each of the three
You must operate your MONKEY SHINE Facility according
to our standards and specifications and sign our standard franchise agreement ("Franchise
Agreement") and related documents identified in this Offoring CiroulnrDisclosure
Document. A copy of our Franchise Agreement is attached to this Offoring
CircularDjsjdo^K_DQCunieDt as Exhibit B. Your right to use
our Marks and Licensed Methods is granted solely for the operation of your
MONKEY SHINE Facility.
We also offer a "Conversion
Franchise" if you own a car wash facility that is currently open and operating and
meet our other requirements. The buyer of a Conversion Franchise ("Conversion
Franchisee") must sign, in addition to the Franchise Agreement, the
Amendment to MONKEY SHINE Facility Franchise Agreement (Conversion) ("Conversion
Amendment"). A copy of the Conversion Amendment is attached to this
Offering CiroularDjsclosure Document as Exhibit
C. Unless otherwise noted in this Offering CiroularDjsjdo^KJ^^ment,
the conditions of operating a Conversion Franchise are the same as other
franchises. We grant you a Conversion Franchise only if you agree to convert
all of your car wash facilities to MONKEY SHINE Facilities. See Item 5 for
further discussion of the conversion program.
Market and Competition
Although the market for car
wash services is highly fragmented, it is well established and highly
competitive. You will be marketing your services to automobile and light truck
owners. You will experience competition from regional and national car wash
businesses as well as from local independent car wash businesses. You will also
experience competition from automobile dealers, fuel centers, big box centers
and other businesses which offer car" wash services in addition to their
principal business operations. You may even experience competition from other
MONKEY SHINE Facilities in the vicinity of your Facility.
Regulations
There are some federal laws and regulations which will
likely apply to your operation of a car wash business. Generally, you must
comply with the Resource Conservation and Recovery Act of 1976 (42 U.S.C. �6901
et. seq.); the Clean Water Act of 1977 (33 U.S.C. �1251 et. seq.); the Clean
Air Act (42 U.S.C. �7401 et. seq.); the Comprehensive Environmental Response
Compensation and Liability Act (42 U.S.C. �9601 et. seq.); the Occupational
Safety and Health Act (29 U.S.C. �651 et. seq.) and the Toxic Substance Control
Act (7 U.S.C. �136 et. seq.)_and_similar federal, state and local laws
and regulations. Other federal laws_and_rggulations. may apply to the discharge
and disposal of wash wastewater, sludge and hazardous materials generated by
the operation of your car wash business and the management of storm water.
There may also be some state and local laws and regulations specific to your
Facility which may require you to obtain a permit and otherwise comply with
their terms and laws and regulations applicable to the discharge and disposal
of wash wastewater, sludge and hazardous materials generated by the operation
of your car wash business and the management of storm water. You should
familiarize yourself with these laws and with other federal, state or local laws
of a more general nature which may
57025-0420/I.EOAU4074034 1 57025-0420/LEGAL14136594.1 affect the operation of your
Facility. You should consult with vour attorney on this subject, especially
Ifigarding-State and local laws, rules and regulations that mav
affect the operation of your MONKEY SHJNE Facility at your
particular location.,,, It is also your responsibility to comply with
employment, worker''s compensation, insurance, corporate, taxing-and,
environmental^zoning. licensing kwsanoLaU Piher-appJu:citMeJaw^
Business
Experience
We have offered franchises since April 5, 2007. GMI
offered GREASE MONKEY Center franchises from approximately September 1978
through March 2006, when it ceased offering franchises. GMI continues to
operate GREASE MONKEY Centers and to be the franchisor for all franchises
granted prior to April 2006. GMI offered MONKEY SHINE Facility franchises in
conjunction with GREASE MONKEY Center franchises from approximately April 1998
to March 2001. GMF has offered GREASE MONKEY Center franchises since April
2006. Since our business is limited to operating as a franchisor, we do not
currently operate a Facility of the type to be operated by you. Except as
noted, neither we nor our affiliates or predecessor have offered franchises in
any other lines of business.
