To simplify the language in
this ^Disclosure Document. "V2K" means V2K Window Fashions, Inc., the
franchisor. V2K. may also be referred to as "we" or with references
to "our." "You" or "your" means the person(s) or
business entity that buys the franchise. If "you" is a business
entity, "you" includes the owners of the business to the extent the
owners of the business guaranty or otherwise agree to perform or be bound by
the obligations of the business entity.
V2K does business under the
names V2K Window Fashions, Inc., "V2K Window Decor & More" and
"V2K. Window Fashions." V2K does not do business under any other
name.
The principal business address
of V2K is 13949-West Colfax Avenue, Suite 250, Lakewood, Colorado 80401. V2K''s agents for service of process are disclosed in Exhibit B.
V2K was incorporated July 24,
1996 in Colorado as Vision 2000 Window Fashions, Inc. ("Vision
2000"). In July 1999, the name of the corporation was changed to its
present name. Since March 31, 2006, V2K has been a wholly-owned subsidiary of
V2K International, Inc. ("V2K International"^ and thus V2K
International is the parent company of V2K. V2K. International was
incorporated in Colorado on March 13, 2006. The principal business address of
V2K International is the same -as V2K.''s address. -
V2K. does not have any
predecessors, but does have two affiliates that sell or mav sell products to
franchisees. V2K. Manufacturing, Inc. ("V2K Manufacturing"), and
V2K Technology, Inc. ("V2K Technology").
V2K Manufacturing was
incorporated in Colorado on September 21, 1994 as Drapery Workroom by TLC,
Inc., and was independent of V2K until the stock was acquired by V2K. effective
January 1, 2004. On February 10, 2004, the company changed its name to its
present name. On March 31, 2006, V2K. transferred its stock in V2K.
Manufacturing to V2K International. The principal business address of V2K.
Manufacturing is -the same as V2K''s address. Until October 2007.
V2K Manufacturing ^operated a workroom for the production of soft window
coverings sold exclusively to V2JC for resale to V2K. franchisees, and it
mav be a supplier to V2K. franchisees in the future.
V2K. Technology was
incorporated in Colorado on June 30, 2006. The principal business address of
V2K Technology is the same as V2K.''s. V2K. Technology owns software that it
licenses to V2K, which V2K. sub-licenses to you and other V2K. franchisees, and
which V2K may sub-license to other parties. V2K Technology also provides
computer systems support to V2K and to you and other V2K franchisees.
^ V2K grants franchisees the
right to operate a custom decorative window treatment business using the
franchise version of proprietary software of V2K or V2K Technology. V2K may in
the future expand its franchisees'' businesses to include other home and
business furnishings, but is not obligated to do so. V2K has established a
unique system relating to the operation of a custom window treatment business,
which has been incorporated into the V2K franchise system (the
"System"). "Window Treatment" is the industry term to
describe every type of window covering and decoration, including blinds, drapes
and all accessories related to the window coverings and decorations. A copy of
the V2K Franchise Agreement is attached to this -Disclosure Document as Exhibit
C.
The business to be conducted
by you is the sale and installation of window treatments, including draperies,
fabrics, drapery hardware, bedroom ensembles, blinds, shades and other related
merchandise, installation and services. You must use the V2K Window Fashions�
software, or other proprietary software of V2K or its affiliates (as specified
from time to time by V2K), and the computer system provided by V2K. to you, and
operate your business under the V2fC trademarks, service marks, trade dress and
other proprietary marks. You will meet with customers in their homes or
offices; and using your laptop computer, you will provide a full presentation
at the point of sale. The presentation will include showing samples, quoting
prices and completing the customer order. Purchase orders and work orders
utilizing the V2K software will be completed and processed from your office.
You will need extensive training and ongoing education in current market trends
to operate the V2K business. V2K provides mandatory basic training and may have
additional mandatory and/or optional training. You must purchase the supplies
and materials used in your business from suppliers approved by V2K.
You will be responsible for a
specific geographic area (your "Area of Primary Responsibility"). You
will be limited to soliciting business in your Area of Primary Responsibility,
but you may offer your services wherever you obtain leads or referrals.
The general markets for the
products and services you will offer are the consumer and business markets for
the window treatment and accessory products for homes and offices. The markets
for your services are well developed and highly competitive. Sales of vour
products and services are not seasonal. You will have substantial
competition, which ranges from major retail department, furniture and
decorative dealers to other franchisors and small in-home retail businesses.
You must compete with a variety of interior decorating professionals and a
variety of vendors of window treatments and accessories. You will offer the
advantage of being able to complete the sale in one visit while offering custom
designs and fabrics that can be selected by the customer in the customer''s own
home or office.
Some states require that
window covering business owners have contractor''s licenses. You are responsible
for checking the laws of the state in which your business is located to see if
you need to be licensed. Otherwise, the industry is not subject to any specific
regulations, except compliance with local, state and federal laws generally
applicable to a retail business. You must be knowledgeable of, and comply with,
all applicable laws and requirements.
-V2K commenced selling
franchises in 1997.- As of the date of this Disclosure Document. V2K does
not operate anv businesses of the type to be operated bv vou. although it mav do
so in the future, such as when operating a franchise that is in default
or in other circumstances, V2K has not in the past operated a window
coverings outlet similar to the type of outlet to be operated by you.
-From August 2006 to July
2007r
V2K. had a wholly-owned subsidiary, -Window Fashions Franchise. LLC
f"WFF"1. which operated in Denver, Colorado a business of the
type being franchised. -WFF was sold in 2007r and is no longer an affiliate
of V2K.
V2K presently does not have
any other business activity, but may operate its own hard product fabricator
company and/or be a supplier to you either directly or through an affiliate.
^As of the date of this
Disclosure Document, neither V2K Manufacturing nor V2K Technology operates a
business of the type to be operated by you, nor do they offer franchises in any
line of business; but they mav do so in the future.
&������� V2K has not in
the past offered franchises in anv other line of business.
