ITEM 1
THE FRANCHISOR AND ANY PARENTS. ITS PREDECESSORS
AND AFFILIATES
To simplify the language in
this Offering Circular Disclosure Document.
"Company," "we," "us" and "our" refer
to Robeks Franchise Corporation. "You" means the person who buys the
franchise and includes your owners if you are a corporation or other business
entity.
The
Franchisor
We are a California
corporation incorporated on June 15, 2000, as a wholly owned subsidiary of
Robeks Corporation. Our principal business address is 1230 Rosecrans Avenue,
Suite 400, Manhattan Beach, CA 90266; (310) 727-0500; www.robeks.com. We do business under the name
"Robeks/'' We have no predecessors. Our parent company, Robeks
Corporation (our "Retail-Affiliate Par en t"L
a California corporation, was formed on January 10, 1996, and shares the same
principal business address as our company. Qur-Retai 1-Affiliate-selIs
the
The ROBEKS^-Nutritional-Boosts-ond-other-proprietary
ingredients and branded products to our franchisees.
Weolsorefer-to-our-Retail
Affiliate in this OfferingCiroularas
our"Produot Affiliate."
Our Retoil Affiliate
concept was formedcreated to capitalize on the growing demand
for nutritious foods including blended fruit smoothies and freshly squeezed
juices, healthy foods, and nutritional supplements resulting from heightened
consumer focus on the nutritional value of foods they eat. Consumers
increasingly want healthy and portable alternatives to traditional "fast
food" options. Blended-to-order fruit smoothies, freshly squeezed juices
and a complimentary line of nutritious foods satisfy that niche.
Our Retail-AfFiliate�aierjt
developed, owned and operated 30 robeks
stores
over the first 5 years of its history in order to develop the Robeks� brand, operating system,
product lines and store development specifications and criteria. Following the
development of the franchise program, the Retail AffilioteQjir_jp_ar.gnt sold robeks�
stores to
franchisees in order that we and our affiliates could primarily focus on
franchise support. As of December 31,200^6;-the-Retail-Affiliate
operates no200?..pur. Parent operated one Robeks� stores.
We have been selling Store
franchises since January 2001. From January 2002 until December 2006 we also
offered Regional Director franchises to
RegJonaJJ^r^clojs. If you wi-H-open your Store in a Regional Director''s
Territory, you will be serviced by sueh�the Regional Director. See Item
II. We have been offgrjn.fi atea
development agreements since April 2007. As of December 31, 20062007.
there were 445-133 robeks�
franchised
stores open and 333J, Regional Directors in operation. We do not own and
operate businesses of the type being franchised. Neither we nor our affiliates
have offered franchises in any other line of business.
Exhibit A lists our agents for service of process.
The ROBEKSjgj Franchise.
Robeks� stores feature freshly
prepared juices and blended-to-order fruit smoothies made from freshly-squeezed
and concentrated fruit juices, fresh and frozen fruits, and frozen dairy
ingredients, all according to our recipes. robeks� stores also feature robeks� Nutritional Boosts, a proprietary line of premium
nutritional supplements, which customers may add to their blended-to-order
smoothies as well as purchase in packaged form for at-home consumption. Our
menu promotes our smoothie recipes that feature one or more Robeks� Nutritional Boosts designed
to help achieve specific nutritional objectives, (like fat burning, muscle
building, memory enhancement, and improved immune response), or specific
dietary goals (like fiber and daily essential vitamins and minerals). robeks� stores also offer a broad selection of food products
that are consistent with our overall retail focus on healthy lifestyle
products. To distinguish robeks�
stores
from other smoothie/juice bars, our store design is upscale and contemporary
with high-quality finishes and an energetic, upbeat environment. Our store
image reinforces our commitment to premium, natural food products for a
discriminating clientele.
Robeks� Store-Franchise-:-You are required to operate
your Robeks� store under the name Robeks� and other marks as we
designate (the "Marks"). You will enter into a Franchise Agreement
with us (Exhibit B), which requires you to operate your Robeks� store under the Robeks� system ("System").
The System is characterized by the business methods and standards for food
handling, preparation, presentation and storage; operating procedures; display
and merchandising; marketing and advertising; and customer service, all of
which we may change. While the Franchise Agreement is a contract between you and
us, we may delegate the performance of our duties to the Regional Director
whose territory covers your store location. We also offer certain incentive
programs such as the "3-Pack" arrangement for franchisees who commit
to develop multiple stores. See Item 5 for more information.
Area
Development Agreement
If qualified, you may enter
into an Area Development Agreement for the development of a prescribed number
of Robeks� stores in a designated geographic area called the
"Territory." Under this arrangement, you must develop a specified
number of Robeks� stores in the Territory within a given period of
time, depending upon the population of the area, its market potential and other
factors described in Item 12. Generally, an Area Development Agreement will
require a minimum of five Stores in the Territory. You must sign a separate
Franchise Agreement for each Store you open under the Area Development
Agreement.
The Market
and Competition.
Robeks� stores serve the general
public. We believe the market for nutritionally oriented fruit smoothies,
freshly squeezed juices, health-oriented foods and nutritional supplements in a
quick service environment is viable, competitive and developing. robeks� stores operate year-round, although in seasonal
climates sales may fluctuate during the year, with stronger sales during warmer
weather months. Your competitors will include other restaurants, juice bars and
businesses selling health food products, smoothies, juice, frozen yogurt and
products similar to those that Robeks� stores sell, as well as other food service
businesses, including grocery stores.
Specialized
Industry Laws.
Your robeks� store is subject to laws and regulations affecting
businesses generally. These laws include tax regulations, labor laws, business
licensing requirements, laws relating to site selection and building
construction, such as the American Americans With
Disabilities Act, and laws regulating the storage, preparation, labeling and
sale of food to the public. Laws affecting businesses generally also include
restrictions against smoking in public places, the public posting of notices
regarding health hazards, fire safety and general emergency preparedness laws,
rules regarding the proper use, storage and disposal of waste, insecticides and
other hazardous materials, and standards regarding employee health and safety.
As a food service business, you will be subject to laws setting sanitation
standards and forbidding false or misleading nutritional claims and other types
of false advertising, and may be subject to special requirements pertaining to
the use of equipment involved in the preparation of frozen, blended, juice
extraction, heated and other types of food products. Current law regards our
line of Robeks� Nutritional Boosts line as dietary supplements. The
Federal Food & Drug Administration classifies dietary supplements as a food
and restricts sellers from making claims of any kind about the health benefits
of the supplements.
Except as we describe, we are
not aware of any industry specific regulations applicable to the sale of health
food products, smoothies, juice, frozen yogurt and products similar to those
that Robeks� stores sell. You should investigate all general laws
in evaluating the franchise. It is your sole responsibility to obtain and keep
in force all necessary permits required by public authorities.
