House Doctors is an Ohio limited liability company that was organized on May25, 2012 as HD Acquisition Enterprises LLC On June 29, 2012, we (that is, H D Acquisition Enterpnses LLC) changed our name to Saltire Brands LLC Our principal business address is 400 Techne Center Drive, Suite 400, Milford, Ohio 45150 We do business under the name HOUSE DOCTORS.
Parents and Affiliates: We do not have any parent or affiliate companies Predecessors: We have one predecessor, H D Franchising Systems, LLC (“HDFS”), whose pnncipal business address is 575 Chamber Drive, Milford, Ohio 45150 Saltire Brands purchased the franchise assets of HDFS as of June 14, 2012 These assets included the House Doctors fi^chise agreements and related agreements held by HDFS at that time We did not assume any liabilities of HDFS except for obligations under certain agreements (such as franchise agreements) accruing on or after June 14, 2012 HDFS offered House Doctors franchises of the same type that we are offenng, but, upon the sale of assets to us, HDFS IS no longer m that business HDFS offered these House Doctors franchises since 1997 HDFS never offered franchises in any other line of business, but HDFS had and, to our knowledge, still does have, an affiliate, the HomeTeam Inspection Service, Inc (“HomeTeam”) that franchises home inspection services HDFS has offered these home inspection franchises since 1992 We do not offer home inspection franchises Historic information provided m this disclosure document about HDFS was provided to us by HFDS
We offer franchises to operate a business under the trade name HOUSE DOCTORS (or HOUSE MEDIC m certain markets) in a specified territory (“Territory”) As a House Doctors franchisee, you will provide residential and commercial property maintenance, repair, and remodeling services You will offer services such as carpentry, painting, drywall installation and repair, and wall papering, for example You will offer your services to businesses and to the general public, particularly homeowners and owners of residential rental properties, through direct mail advertising and through referral sources such as real estate agents, relocation companies, and mortgage lenders You will compete with specialty contractors (such as painters and carpenters) as well as other home repair seryices m the same geographic area, including those that may be franchised by other national franchise companies You must be prepared to follow all of our standards and specifications for the quality of the services you will provide, customer relations, vehicles and employee uniforms Unless your franchise is located in a southern state with mild winters, you may expenence a decline m sales dunng the months of December, January and February. House Doctors does not operate businesses of the type being franchised Our business activities consist of selling and supportmg franchises that offer residential and commercial property maintenance, repair, and remodeling services We have begun offering franchises of this type since 2012 We have never operated any franchises We have never offered franchises m any other business.
License Fee and Territory Fee: You must pay an Initial License Fee of $19,900 and a Temtory Fee of $39,900 (All dollar figures are in U S currency) We reserve the right m our discretion to charge a higher or lower Territory Fee if the Territory granted is greater or smaller than the usual size of a Temtory (the usual size is approximately 60,000 qualified households) We anticipate that the increase or decrease, if any, would be $0 66 per qualified household Both fees are entirely non-refundable and are uniform for all franchises currently being offered Both fees become part of our general funds with no limit on their use You must pay the License Fee and the Territory Fee in a lump sum when you sign the franchise agreement VetFran Discount: We participate in the Veterans Transition Franchise Initiative, also known as “VetFran ” VetFran is a voluntary effort of International Franchise Association members to encourage franchise ownership by veterans of the U S military by offering financial incentives If you are a honorably-discharged U S military veteran and otherwise meet the VetFran requirements, we will discount the License Fee by $3,500
We do not offer direct or indirect financing, except as described below We do not guarantee any of your notes, leases or obligations. In some cases, we will provide interim financing for payment of the initial franchise fee for a franchisee that has applied for or is getting long-term financing from a bank (usually in the form of an SBA loan) or a retirement plan The obligation to pay us will be evidenced by a promissory note in the form of Exhibit P (the “Note”) The amount financed may range from $30,000 to $50,000 The full amount of the amount loaned will be due when the franchisee receives the long-term financing or a date certain specified m the Note, whichever is earlier We will not charge interest, except upon default, after default, the interest rate will be 18% per year, or (if lower) the highest rate permitted by applicable law The Note may be prepaid without penalty Upon default (a) we may accelerate the obligation to pay the entire amount due, (b) franchisee may be required to pay court costs and attorneys' fees incurred in collectmg the debt, and (c) we may terminate the franchise agreement In the Note, the franchisee is required to waive notice and the right to a jury trial. If you seek to obtain financing that is assisted by the U S Small Business Admimstration (“SBA”), the SBA may require House Doctors and you to enter into an addendum to the Franchise Agreement in a form specified by the SBA That current form we use is attached as Exhibit R Franchisor may, in its discretion, refuse to agree to this addendum, with the result that SBA-assisted financing will not be available to the franchisee.
The FTC's Franchise Rule permits a franchisor to disclose information about the actual or potential financial perfonnance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and the information is included m the disclosure document Financial performance information that differs from that included in Item 19 may be given only if (1) a franchisor provides the actual records of an existing outlet you are considenng buying, or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about performance at a particular location or under particular circumstances Actual results vary from business to business and we cannot estimate the results of any particular franchisee The below financial performance representation is an histone representation about the franchise system's outlets