ROOSTERS - FDD UFOC ITEM 1 Detail
ITEM 1
THE FRANCHISOR,AND ANY PARENTS. PREDECESSORS AND
AFFILIATES
For ease of reference in this disclosure document, the
franchisor is referred to as "we," "us" or "our," and the person who is
considering the franchise or R�gional development agreement is
referred to as
"you" or "your."
If you are
a legal entity, certain provisions of the franchise agreement and related
agreements apply to your shareholders, officers, directors, members or
partners. These provisions are noted.
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The Franchisor
The franchisor is Roosters m.G.C., LLC, a Texas limited liability company formed on January 30,
2007. We are the surviving entity from a merger with our predecessor (see
below). Our principal business address is Anderson Arbor Shopping Center, Phase 111. 13343 US Hwy .
183 n�
Suite ,215, Austin, TX 78750. We do business under our corporate
name and under the trade name Roosters
men''s Grooming Center. We do not do business or intend to do business under
any other name. Our agents for service of process are listed in Exhibit J.
We have been in the business
of selling franchises for the operation of men''s grooming centers since our
organization and have operated a business of the type described in this
disclosure document since our organization. We do not offer franchises in other
lines of business.
Deleted: 310 West Main Street. Round Rock, Texas 78664. We operete-eurdo.
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Our Parents, Predecessors
and Affiliates
Our predecessor, Roosters
M.G.C., Inc. ("RMGCI") was incorporated in Michigan on July 25, 2002,
and was merged into us on January 30, 2007. RMGCI operated a business of the
type described in this disclosure document from 1999 until the date of the
merger, when the business was transferred to us. RMGCI offered franchises from
August 2002 until December 2006.
We have no parents or affiliates. The Franchise
We offer franchises for the
operation of a Roosters Men''s Grooming Center business providing personal
grooming services for men, including haircuts, shaves, nail shaping and
massages (each, a "Center" or "Franchised
Business" or "Franchise")
operated
under our trademarks, trade names, service marks and commercial symbols
(collectively, "Proprietary Marks,''), and using our distinctive operating procedures and
standards ("System").
The
distinguishing characteristics of a Center include distinctive exterior and
interior design, decor, color scheme, fixtures and furnishing, methods, uniform
trade dress standards, procedures for management control, training and
assistance and advertising and promotional programs, all of which may be
changed, improved and further developed by us.
If approved by us, you will
have the right to sign a franchise agreement (".Franchise Agreement")
for the
establishment and operation of a Center in a geographic area designated in the franchise
Agreement ("Designated Marketing Area").
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[ Deleted: franchise
agreement
[ Deleted: franchise agreement ( Pejeted:1
:0907
,______ We alsojjffer to qualified
individuals and entities an area development agreement ("Area
Development Agreement") which awards the Area
Developer the right to open and operate an agreed number of Centers
within an agreed geographic area ("Development Territory") at the times described in
the development schedule.
______ Area Developers must
pay a development fee, and reduced franchise fees for each
Center
developed under the Development
Schedule. Area Developers must pay the development fee, the franchise fee for
their first Center, and a deposit on subsequent Centers at the time of signing
the Area Development Agreement. Area Developers will sign the most current
franchise agreement as thev open subsequent Centers but will have the benefit
of the franchise fee and royalty fee structure as reflected in the franchise
agreement for their first Center ("Original Fee Terms'').
Deleted: We also offer to qualified
individuals and entities a development agreement {"Development Agreement") which awards
the right lo open an agreed number of Centers within an agreed geographic area ("Development Territory") at
the limes described in the development schedule. If you are a developer, you will also sign a separate franchise
agreement for each Center thai you agree to open. Unless otherwise noted, the terms of each type of offer
are the same.!
Regional Development
We also offer
to qualified individuals and entities a regional development agreement ("Regional
Development Agreement'') which awards the Regional Developer the right lo open
and operate, either itself or through, franchisees
solicited by Regional Developer and consented to by us, an agreed number of
Centers within an agreed geographic area ("Development Territory") at
the times described in the development schedule. If you are a Regional.
Developer, you will also assist us in rendering certain services
(including training, opening assistance and ongoing supervision) to
those franchisees within your Development Territory. As compensation for these
services, the Regional Developer receives a portion of fees paid by franchisees
located in the designated Development .Territory., Regional
Developers must own and operate at least one Roosters Center in the Development
Territory which shall serve as a prototype, pilot store ("Pilot Store''*).
The Pilot Store shall also serve as a training facility unless a training
center already exists within the Development Territory. No Regional
.Development Agreements were awarded as of March 28. 2008.
Competition
Your Center will compete with
other similar unisex hair salons and barber shops. The market for the products
and services you offer is well-developed and includes the general public.
Industry-Specific
Regulations
You must comply with all
local, state and federal laws and regulations that apply to operation of your
Center, including health, sanitation, insurance, discrimination, employment and
sexual harassment laws. Some states regulate barber, cosmetology and personal
grooming by statutes with which you must comply. Most locations require a
barber cosmetology establishment license and vendor''s license in order to
operate the business. These licenses must be maintained in good standing. State
and local agencies inspect barber and cosmetology establishments to ensure that
they comply with these laws and regulations.
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The Federal Clean Air Act and
various state laws require certain state and local areas to meet national air
quality standards limiting emissions of ozone, carbon monoxide and particles,
including hair coloring and perming solutions. Some state and local governments
have also adopted proposals that regulate indoor air quality.
Health regulations as well as
other state and local specific safety and workplace regulations may impact the
types of safety training, safety devices and safety equipment you must make available
to or be required to offer to your employees. These can vary from jurisdiction
to jurisdiction and specific inquiry should be made with your state and local
authorities.
Advertising is regulated by
the Federal Trade Commission. We are not presently aware of any other
regulations or special permits required for you to operate your Center,
however, specific inquiry should be made with your state and local authorities.
You should consult with an attorney concerning these and other laws and
ordinances that may affect your operations.
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