We were organized as a limited liability company in Texas on September 29, 2017. Our principal business address is 2324 N. Robinson Drive, Waco, Texas, 76706. We do business under our company name and the names “Border Magic Franchising” and “Border Magic”. We have offered franchises since October 1, 2017, and have never operated a business of the type described in this disclosure document. Our agent for service of process is disclosed in Exhibit H of this disclosure document. We have no parent company. We acquired the majority of our assets from Mogavero Investments, LLC (“Mogavero Investments”) as part of a reorganization that took place on September 29, 2017. Mogavero Investments acquired all BORDER MAGIC-related assets from Border Magic, LLC, in a sale that took place in December 2015.
Border Magic, LLC offered franchises from 2002 until December 2015, and had approximately 38 BORDER MAGIC franchises and 57 BOULDER DESIGNS franchises at the time of the sale. Except for these brands, Border Magic, LLC never offered franchises in any other line of business. Border Magic, LLC had a principal business address at 1503 Co. Rd. 2700N, Rantoul IL 61866. Mogavero Investments offered BORDER MAGIC and BOULDER DESIGNS franchises from December 2015 until its reorganization in September 2017 and, during that time, sold approximately 25 BORDER MAGIC franchises and 65 BOULDER DESIGNS franchises. Except for these brands, Mogavero Investments never offered franchises in any other line of business. Mogavero Investments shares our principal business address at 2324 N. Robinson Drive, Waco, Texas, 76706. Our affiliate, Boulder Designs Franchising, LLC (“Boulder Designs”) has been franchising the operation of BOULDER DESIGNS franchises since September 2017. BOULDER DESIGNS franchises provide high-quality custom landscape boulders and business signage for domestic, commercial, and industrial consumers. It has never offered franchises in any other line of business. Boulder Designs shares our principal business address at 2324 N. Robinson Drive, Waco, Texas 76706.
We grant franchises to qualified persons or business entities for the operation of businesses providing high- quality custom concrete curbing, trim, and edging under the service mark “BORDER MAGIC” and other related logos (collectively referred to as the “Marks”). We refer to these businesses as “BORDER MAGIC Businesses.” We refer to the BORDER MAGIC Business that you will operate as the “Franchised Business.” You will operate the Franchised Business in accordance with our standards, methods, procedures and specifications, which We refer to as our “System” and which are more particularly described in our Franchise Agreement.
When you sign the Franchise Agreement, you will pay us a $43,500 Initial Franchise Fee, which is fully earned and nonrefundable upon payment. We currently offer the following discounts: ? We currently offer a $2,500 discount to veterans who have received a discharge (other than dishonorable), as well as any active-duty personnel. If the franchisee is a corporation, limited liability company, or other legal entity, the veteran participant must maintain at least a 51% ownership interest in the entity to qualify for this discount. To apply for this discount, you must provide us a copy of your active duty I.D. or form DD-214, reflecting your military status, before the Franchise Agreement is signed. If you qualify for this discount, you will pay a $41,000 Initial Franchise Fee. ? We currently offer a discount to franchisees who are acquiring franchise rights for more than one BORDER MAGIC Business or a combination of both BORDER MAGIC and BOULDER DESIGNS Businesses at the same time. o If you qualify for this discount, you will pay a $43,500 Initial Franchise Fee for the first franchise, a $38,500 Initial Franchise Fee for the second franchise, and a $41,000 Initial Franchise Fee for the third and each additional franchise acquired. o If you acquire more than one franchise, you will pay Monthly Franchise Fee of $296.25 (representing a 25% discount on the Monthly Franchise Fee of $395) for each franchise acquired, regardless of the number of units purchased. Equipment and Supplies Package When you sign the Franchise Agreement, you will also pay us $6,750 to purchase a BM2000 machine, and $37,750 to purchase a trailer, necessary equipment, marketing, and initial supplies. This amount is fully earned and nonrefundable upon signing this Agreement. These figures do not include shipping costs, which are your responsibility.
We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation.
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) a 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 franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income you should report it to the franchisor's management at 2324 N. Robinson Drive, Waco, TX 76706, [email protected], (877) 892-2954, the Federal Trade Commission, and the appropriate state regulatory agencies.