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Business Description

HOB'S agent for service of process is Robert Hickey at 299 Marsh St, San Luis Obispo, CA 93401 further, the agent is disclosed m the acknowledgment of receipt. Item 23 of this Franchise Disclosure Document HOB IS a franchising company which sells and grants franchises for the operation of Outlets known as House of Bread Bakery Cafe Furthermore, HOB franchising Inc offers House of Bread Juniors and Brew House as additional sales revenues to existing franchise owners By separate agreement, HOB may offer Multi-Unit Franchise Agreement HOB has one franchise company owned store that is called House of Bread Bakery Cafe, which operates a senior bakery cafe House of Bread Bakery Cafe is the concept being offered by HOB However, House of Bread Franchising Inc and House of Bread Bakery Cafe are two completely separate entities and House of Bread Bakery Cafe does not assume any legal obligations of House of Bread Franchising Inc HOB IS not engaged m any other type of business activity HOB franchises or authorizes you to use the trademarks of and to operate a House of Bread Bakery Cafe A House of Bread Bakery Cafe franchise provides specialty bread products and sandwiches through a uniform system consisting of high standards for service, use of quality ingredients, and under the business format created and developed by HOB A House of Bread Bakery Cafe caters not only to the health conscious consumer but also to people who are most concerned with flavorful baked goods and sandwiches The House of Bread junior concept is a smaller location where only the cinnamon rolls are baked on the premises The bread that is sold at the junior store is baked at the senior House of Bread location The Brew House concept within a House of Bread, is small pub area, with a few beers on tap, and shared seating with House of Bread The Brew House also has high end micro-brews sold to go The idea is to create a synergy of sales between the Brew House and House of Bread, people having a sandwich and will want a high end beer and vice versa You will have to compete with other franchised operations, national chains and independently owned companies offering freshly baked bread and sandwiches hob's brother sister corporation, House of Bread Bakery Cafe, has operated a bread store outlet which is similar to the franchised business being offered since November 11,1996 HOB has been approved for franchising House of Bread franchises since 1999 HOB does not sell franchises m any other lines of business House of Bread Bakery Cafes must comply with the local county health department regulations

Prior Experience

HOB IS a franchising company which sells and grants franchises for the operation of Outlets known as House of Bread Bakery Cafe Furthermore, HOB franchising Inc offers House of Bread Juniors and Brew House as additional sales revenues to existing franchise owners by separate agreement, HOB may offer Multi-Unit Franchise Agreement

Business Offered

HOB franchises or authorizes you to use the trademarks of and to operate a House of Bread Bakery Cafe A House of Bread Bakery Cafe franchise provides specialty bread products and sandwiches through a uniform system consisting of high standards for service, use of quality ingredients, and under the business format created and developed by HOB A House ofBread Bakery Cafe caters not only to the health conscious consumer but also to people who are most concerned with flavorful baked goods and sandwiches The House ofBread junior concept is a smaller location where only the cinnamon rolls are baked on the premises The bread that is sold at the junior store is baked at the senior House ofBread location The Brew House concept within a House ofBread, is small pub area, with a few beers on tap, and shared seating with House ofBread The Brew House also has high end micro-brews sold to go The idea is to create a synergy of sales between the Brew House and House ofBread, people having a sandwich and will want a high end beer and vice versa You will have to compete with other franchised operations, national chains and independently owned companies offering freshly baked bread and sandwiches

Initial Fees

The initial franchise fee of $35,000 includes all fees and payments to the Franchisor for services or goods received FROM the franchisor BEFORE the franchisee's business opens “Initial fee” includes all fees and payments whether in lump sum or installments

Financing

HOB does not offer direct or indirect financing HOB does not guarantee your note, lease or obligation However, HOB does offer assistance m obtaining SBA approved lenders, loan packaging, equipment sources and financing

Franchisee Revenue and Profit

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 m this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances We have the bakeries that have been open for the full 2018 The number of outlets that are included is six, which includes all the franchised units and the San Luis Obispo House ofBread The San Luis Obispo House ofBread is the company owned store, which is why it is named Also, there is a complete profit and loss of that store Each franchisee and each market has different characteristics such as education, experience, and market population There are no guarantees that you will achieve the below operating ratios The financials are driven by location, market and primarily the manager of the bakery A new franchisee's individual financial results may differ from the results stated m this section Written substantiation for the financial performance representations will be made available to prospective franchisee upon reasonable request