ITEM 1
THE FRANCHISOR and an^y parents
-tfy PRF.nRCFXSORS, AND AFFILIATES
To simplify the language in
this offering oirculardisclosure document,
"we", "us", "our" or "SARAH" means
SARAH Adult Day Services, Inc., the franchisor. "You" means the
person or entity who buys the franchise. If you are a corporation,
partnership or other entity "you" includes your
owners. Youraji entityT your owners must sign
our "Guaranty and Assumption of Obligations" attached as Exhibit E to
this offering oirculardisclosure document.
We are an Ohio corporation
formed on October 5, 1998. Our principal business address is 800 Market Avenue
North, Canton, Suite 1230, Ohio 44702. We operate under the SARAH name and
the trademarks described in Item 13 (the "Marks"). If we have an
agent in your state for service of process, we disclose that agent in Exhibit
A. We began offering franchises in January 2000.
Our affiliate, SARAH Adult
Day Care Centers, Inc. ("SarahCare") incorporated in Ohio in November 1984. Its principal business address is the same as ours. SarahCare
currently operates 2 SARAH Businesses located in Stark County, Ohio (collectively, the "AffiHate-Owned Businesses"). The first Affiliate-Owned
Business has been in operation since February 1985 and the second
Affiliate-Owned Business commenced operation in April 2004. We do not have any
predecessors or other affiliates.
We grant franchises for the
operation of a business that provides health-care related services and
companionship for older adults, aged 60 and above, and for adults aged 18-60
who are in need of health-related care and supervision under the SARAH and
other Marks. A SARAH Adult Day Services, Inc. business (a "SARAH
Business") provides non-medical care for elderly individuals and others in
need of health-related care and supervision who desire compassionate care and
stimulating activity in a secure, structured environment. We provide service
that offers an effective solution for individuals who are in need of support
services in order to continue living in their communities. We grant franchises
to persons or entities who meet our qualifications for the right to operate a
SARAH Business under the terms of our Franchise Agreement. If you acquire a
SARAH Business, you must operate it in accordance with our standards, specifications
and operating procedures and sell the products and services we authorize and
approve utilizing our'' business standards and specifications and the Marks (the
"System").
We also offer options to
obtain franchises to develop and operate up to three SARAH Businesses under the
form of development agreement attached as Exhibit F (the "Development
Agreement"). If you sign a Development Agreement, you will receive a
territory (the "Territory") in which to establish individual franchises
under separate franchise agreements. The development schedule in the
Development Agreement ("Development Schedule") will specify the dates
by which you must open each SARAH Business.
A SARAH Business is typically
managed by an Executive Director who has a Bachelor1^ Degree in
gerontology or a related field or a professional license and has at least 2
years experience in direct participant care giving and 2 years supervisory
experience. Employees
SARAH :007 l.[|-(->G2(fflHiLDil of a SARAH Business
usually include an activity director with related experience in gerontology and
activity programming, a nursing staff, nursing assistants and activity
assistants with appropriate qualifications and experience to conduct the day to
day operations of a SARAH Business.
We anticipate that
competition in the marketplace will come from other local, regional, and
national adult care businesses, religious organizations, governmental agencies,
health care organizations, and sole proprietors offering similar adult care
services.
There may be state and local
regulations and licensing requirements that apply specifically to the industry
in which SARAH Businesses operate. Please check with your state Department of
Aging, Area Agency on Aging, and Health and Human Services, and any other
department that might regulate this industry.
With respect to California
locations, adult day care and adult day support centers must be licensed by the
California Department of Social Services and it is your sole responsibility to
obtain this license before opening for business (although you should anticipate
some delays in the licensure process, which we estimate will not exceed 1-2
months). We recommend that you consult with the Department of Social Services
regarding licensure and that you review California Code Title XXII (see http://www.dss.cahwnet.gov/ord/ccrtitle22_715.htm
and scroll down to "Adult Day Care Facilities") to understand the
obligations and standards for licensure. We will provide advice and guidance to
you in meeting these licensing requirements, but will refund the initial fee to
you if, after exercising your best efforts, you are unable to obtain the
license. Wc also recommend that you focus on geographical areas where private
payers are prevalent because no government funding is available for the
services you will provide. We do not recommend that you seek to operate adult
day health centers or Alzheimer day care resource centers because licenses for
such operations are currently unavailable in California.
