We do business under the name “UBUILDIT”, and under our corporate name. Our principal business address is 3209 South Broadway Suite 227, Edmond, Oklahoma, 73013-4063. Our agents for service of process are listed in Exhibit D. We also may offer over the Internet home improvement information, books, stock home plans, construction calculators, construction materials, loans, insurance, and real estate sales. We do not engage in any other business activities. We have not previously conducted a business of the type you will operate, but our manager is the owner and operator of several franchised “UBuildIt” business, noted above. Our business system is derived from the business experience of our manager and employees and our predecessor, described above and in Item 2. We have not offered franchises in other lines of business, and do not now intend to do so. We have no other predecessors or affiliates that have offered franchises for the same or similar businesses or other lines of business or who intend to do so.
UBuildIt Holdings, LLC is an Oklahoma limited liability company formed on March 15, 2011 that has offered these franchises since May 1, 2011 as its sole business operation. We purchased our name and certain contract rights effective May 1, 2011 from UBuildIt Corporation, formerly UBuildIt Franchise Corporation, which was formed on December 22, 1997 in Kirkland, Washington. UBuildIt Corporation's sole business was to offer and administer franchises of the kind offered by this Disclosure Document from 1998 to 2009; it was dissolved in 2011 and has no current business address. We do not operate any businesses of the kind being offered ourselves. However, Braudrick Construction, LLC, an Oklahoma limited liability company formed in September 2006, is owned by Bob Braudrick, our controlling member and owns and operates several UBuildit franchised businesses. It has done business under the trade name “UBuildIt” at our address since May 2006, and through a sole proprietorship as an independent home construction company as “Braudrick Construction” since 1995. Kirby Marketing, LLC, an Oklahoma limited liability company formed on December 15, 2016, currently provides local marketing plans and services to franchisees. Bob Braudrick is its controlling member. We have no parent entities and have had no other predecessors or affiliates in the last ten years. None of our predecessors or affiliates has offered franchises in this or any other line of business except as noted above.
We offer a franchise of a system of guiding consumers to manage their residential construction projects. You will operate a “UBuildIt” business under a license to use our business system, know-how, and trademarks. You will act as a consultant to coach homeowners and prospective homeowners to act as their own general contractors. The consulting services are customizable to meet clients' needs within our standards. You may, for example, help to find and evaluate land, evaluate goals and set budgets, recommend subcontractors or procure subcontractor bids, and make ongoing site visits from beginning to end of a client's construction project. A franchise gives you the right to operate from only a single location, but you may enter into agreements for more than one franchise. You will market your services to homeowners and prospective homeowners wishing to build or remodel homes by acting as their own general contractors. Clients tend to be middle-to upper-income. Business tends to increase during the spring, and to decrease correspondingly in the winter. You will have to compete with national and local businesses offering similar services. Your competition will also include general contractors who perform residential construction, construction management companies, and remodeling services. Your own efforts and skills as a business owner are needed, but do not guarantee that you will succeed. There can be no guarantee of your success as there exist both typical and special business risk factors, including changing market conditions; competition; cost of supplies, equipment, real estate, lending issues and improvements, capital, and labor; your own health and continuity of your management; continuation of sources of supply; quality and availability of labor; availability of financing; regulations or delays that may impair your or your clients' ability to secure building permits in your area; recession or depression locally, nationally, or internationally; wars; strikes; emergencies; natural and manmade disasters; litigation; and liability and casualty losses. Other risks may affect your business. These include industry developments, such as pricing policies of competitors, state licensing and bonding requirements, and supply and demand.
You pay an initial fee of $35,000 for each franchise. The initial franchise fee and option fee are payable in full when you sign the Franchise Agreement or Option Agreement, as applicable. In California, Washington, and elsewhere if required by state law, we will defer payment until we have met our pre-opening obligations to you and you are open for business (see Exhibit F - State Addenda). Option: In states in which we are not required to defer receipt of fees, we may offer you an option to be awarded a UBuildIt franchise, on the terms set forth in the Option Agreement at Exhibit H. Under the Option Agreement, you have three months to enter into a Franchise Agreement for a franchised business within two miles of a location designated in the Option Agreement. For the option, you pay a nonrefundable fee of $5,000, which is credited toward your initial franchise fee. Refundability and Financing : The initial franchise fee and option fee are not refundable. We do not offer financing.
We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation to any third party.
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets if there is a reasonable basis for the information, and if the information is included in the Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if (1) the franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances. We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchise outlets. We do not authorize our employees or representatives to make any other such representations orally or in writing. If you are purchasing an existing outlet, however, you may be given the actual records of that outlet. If you receive any other financial performance information or projections your future income, you should report it to our management by contacting Bob Braudrick, 3209 South Broadway Suite 227, Edmond, Oklahoma, 73013-4063, 866-UBuildIt; the Federal Trade Commission; and the appropriate state regulatory agencies.