ITEM 1.����� THE FRANCHISOR, ITS PREDECESSORS, AND
AFFILIATES
To simplify the language in this offering circular,
"Velocity Sports Performance" means Velocity Sports Performance
Franchise Systems, LLC, the franchisor. "You" means the person who
buys the franchise. If the purchaser of the franchise is a partnership, corporation,
or other entity, "you" includes the franchisee''s owners, who must
guarantee the performance of franchisee''s obligations to Velocity Sports
Performance. Unless otherwise defined, all initially capitalized terms
appearing in this Offering Circular have the meaning ascribed to them in the
Franchise Agreement attached as Exhibit A.
Franchisor''s Corporate Information
Velocity Sports Performance is a Georgia limited
liability company organized on April 15, 2002, and does business
under the name Velocity Sports Performance. Velocity Sports Performance''s
principal business address is 3666 N. Peachtree Road, Chamblee, Georgia 30341.
Velocity Sports Performance''s agent for service of
process is listed on the Acknowledgment of Receipt on the last page of this
Offering Circular.
Predecessors and Affiliates
Velocity Sports Performance does not have a predecessor
nor any affiliates that are offering franchises in any line of business or
providing products or services to Velocity Sports Performance franchisees.
Franchisor''s Business
Velocity Sports Performance is involved in the business
of granting Velocity Sports Performance franchises to qualified franchisees.
Velocity Sports Performance may operate a business similar to the franchise
being offered to you. Velocity Sports Performance is not involved in any other
business activities.
A franchise grants you the right to own and operate a
Velocity Sports Performance Franchised Business conducted according to a
distinctive and innovative system for sports-performance training, that is
suitable for athletes of all ages and skill levels�from beginners to elite
amateur and professional athletes. This training is focused on improving speed,
power, agility, flexibility, coordination, and cardiovascular endurance. The
Franchised Business operates under the service mark Velocity Sports Performance. The system''s distinguishing
characteristics include: proprietary sports-performance-training programs and
operational systems (including uniform standards and procedures for business
operations); training in the operation, management, and promotion of the Franchised
Business; advertising and promotional programs; customer development and
service techniques; and other technical assistance.
Although the sports-performance training offered by the
Franchised Business is suitable for people of all ages, the core market is the
student-athlete between the ages of 8 and 18. Professional and elite amateur
athletes, adult recreational athletes, and persons interested in occupational
training and special events constitute a secondary market. The Franchised
Business may experience seasonal fluctuations in business volume, but business
occurs throughout the year.
General Market and Competition
Velocity Sports Performance
believes that the general market for the services offered by the Franchised
Business is
I
developing. There are local and
regional companies providing a range of sports-performance training services in
multi-purpose sports centers, as well as others coupled within existing
businesses and organizations, usually operating in hospitals, rehabilitation
centers, and health clubs. In some cases, sports performance training is
conducted at off-site, remote locations.
Industry Regulations
Some states and municipalities have bonding
requirements for business that sell memberships or presell training such as the
type your Franchised Business offers; they may also have liability-insurance
requirements for health-clubs that may apply to the Franchised Business. Except
for these laws and regulations, Velocity Sports Performance is not aware of any
regulations specific to the Franchised Business.
Laws and regulations vary widely from place to place.
Accordingly, you should consult an advisor in your area to determine all applicable
laws and regulations.
Prior Business Experience
Velocity Sports Performance has not itself conducted a
business of the type you will operate. However, a company related to Velocity
Sports Performance, namely VSP Roswell, LLC (formerly Velocity-Marietta, LLC),
has been operating a sports-performance training center since May 1999.
Velocity Sports Performance began offering Velocity Sports Performance
franchises in June 2002. Velocity Sports Performance has never offered
franchises in any other line of business.
