We were formed in 2003 as a California corporation and converted on February 5, 2013 into a Nevada corporation Our principal business address is 751 W Warm Springs Rd #100, Henderson, NV 89011 We operate under our corporate name, “Nutrishop” and no other name We have no predecessors required to be included m this Item If we have an agent m your state for service of process, we disclose that agent in Exhibit B
We grant franchises for stores operating under the ‘ Nutrishop” name and other trademarks, service marks, and commercial symbols (collectively, the “Marks”) For reference purposes in this Disclosure Document, we collectively refer to all businesses using the System (defined below) and the Marks as “Nutrishop Stores,” and we call the Nutrishop Store that you will operate the “STORE ” Nutrishop Stores offer sports nutrition, dietary supplements, vitamins, weight loss products and related food items (collectively, “Nutrition Products”), promotional items bearing the Marks (e g, apparel, clothing, shaker cups and sports items) that are intended to be given away or sold to customers for advertising purposes (“Promotional Items”) and other products and goods (the Nutrition Products, Promotional Items and other products and goods collectively referred to as the “Goods”) utilizing the System Nutrishop Stores operate using our business formats, methods, procedures, signage, designs, layouts, standards, specifications and Marks (the “System”), all of which we may improve, further develop or otherwise modify at any time If you acquire a franchise, you operate your STORE according to the System The STORE will operate from a retail outlet we approve (the “Approved Location”) We have never conducted business in this or any other line of business or offered franchises in any other line of business We began offering franchises for Nutrishop Stores in July 2018 We previously granted licensees (“Licensees”) licenses for the right to operate Nutrishop Stores (“Licensed Businesses”) The first license agreement we entered into with a Licensee was signed in November 2003 The license agreement that the Licensees signed is different from the Franchise Agreement We no longer offer licenses for Licensed Businesses Although Licensees will not be required to do so, we anticipate that the majority or all ofthe Licensees will convert their Licensed Businesses to Nutrishop Store franchises by signing our form of Franchise Agreement and the Existing Licensee Rider to Nutrishop Retail Store Franchise Agreement (a from of which is attached as Exhibit F-1) Our affiliate, Nutrishop Franchising, LLC (“Nutrishop Franchising') has offered franchises for Nutrishop Stores m New York since April 2019 We do not offer franchises for Nutrishop Stores in New York Nutrishop Franchising s principal business address is 751 W Warm Springs Rd #100, Henderson, NV 89011 Nutrishop Franchising has never conducted the type of business Nutrishop Store franchisees operate and has never offered franchises in any other line of business Nutrishop Franchising does not currently provide products or services to our franchisees Our affiliates. Global Nutrition Group, Inc (“Global Nutrition”), Stance Supplements LLC (“Stance”), The Shaker Cup Company, LLC (“Shaker Cup”) and Source well Nutrition, LLC (“Sourcewell”) are manufacturers of certain Goods (e g , Nutrition Products and Promotional Items) The principal business address of Global Nutrition, Stance and Sourcewell is the same as ours Shaker Cup's principal business address is 27762 Antonio Parkway, LI-242, Ladera Ranch, California 92694 None of these affiliates have ever conducted the type of business Nutrishop Store franchisees operate and none have ever offered franchises in this or any other line of business Each of Global Nutrition, Stance, Shaker Cup and Sourcewell will sell their products to our affiliate, NS Nutrition Distribution, LLC (‘ NS Distribution”), for distribution to our franchisees NS Distribution is currently the only designated supplier of Promotional Items that you sell (as opposed to Promotional Items that you give away) and certain Nutrition Products You must enter into the Product Distribution Agreement with NS Distribution (a form of which is attached as Exhibit EL under which you must purchase an initial inventory (unless you are a Licensee that is converting your Licensed Businesses to a Nutrishop Store franchise) and ongoing supply of Goods to sell in your STORE If you are a Licensee, you will also enter into the Existing Licensee Rider to NS Nutrition Distribution Product Distribution Agreement (a form of which is attached as Exhibit F-2I NS Distribution's principal business address is the same as ours NS Distribution has never conducted the type of business Nutrishop Store franchisees operate and has never offered franchises in this or any other line of business We have no parents Other than Global Nutrition, Stance, Shaker Cup, Sourcewell and NS Distribution, we have no affiliates who currently provide products or services to franchisees of Nutrishop Stores and, other than Nutrishop Franchising, we have no affiliates who currently offer franchises in any lines of business
Your STORE will be located at the Approved Location in a specific geographic territory (the “Territory”) and will offer Goods to the general public throughout the year and compete with other stores selling nutritional products The primary targeted customer base for Nutrishop Stores are health-conscious adults, generally in the age range of 18 to 55 years old, although people of all ages may be customers Historically, Nutrishop Stores' sales have been the strongest during the first and second quarters ofthe year The nutritional supplement market is well developed Your STORE will compete with independent, regional, and national chains offering similar products, including specialty stores, mass merchandisers, convenience stores, drug stores and grocery stores that sell similar products Some competitors may be well established In addition, various companies throughout the United States offer, by mail order, Internet, or catalog sales, products which are similar to those you will offer from your STORE The storage, offer, and sale of many products m your STORE will be subject to certain federal, state and local laws and regulations, which may include rules and regulations of the U S Food and Drug Administration (‘FDA”), the Consumer Product Safety Commission the Federal Trade Commission (‘FTC”), the Environmental Protection Agency the US Department of Agriculture, as well as local health departments There may be other local laws and regulations which are not mentioned in this Disclosure Document The FDA and FTC rules and regulations may constrain the advertising or representations you can make about certain products offered for sale at your STORE or prohibit you from selling certain products, in some cases because of statements on their labels or advertising associated with them You must submit all advertising to us for approval before you use them You also must comply with existing laws, regulations, and ordinances that apply generally to all businesses, such as the Americans with Disabilities Act, federal wage and hour laws and state law equivalents, the Affordable Care Act, the Occupational Safety and Health Act, anti-terrorism and anti-corruption laws (such as the Patriot Act and the Foreign Corrupt Practices Act), and data protection and privacy laws (such as credit card protection under the U S Fair and Accurate Credit Transactions Act, or “FACTA”) You should investigate these laws that may apply to the food service and beverage service industry and to all businesses m general
If we grant you a franchise for a Nutrishop Store, then when you sign the Franchise Agreement you must pay us a non-recurring initial fee (the “Initial Fee”) in the amount of $20,000 The Initial Fee will be waived for Licensees that are converting their Licensed Businesses to Nutrishop Store franchises and will be reduced to $15,000 for Licensees that are signing a Franchise Agreement for a second or subsequent Nutrishop Store franchise The Initial Fee is fully earned by us when paid and is not refundable under any circumstances, except as provided below in this Item 5 Except for Licensees that are converting their Licensed Businesses to Nutrishop Store franchises, the Initial Fee is uniform as to all franchisees currently purchasing a franchise for a Nutrishop Store You may be eligible to receive a refund of your Initial Fee (less costs we incur) if your Designated Manager cannot complete initial training to our satisfaction prior to opening your STORE, we terminate your Franchise Agreement (at our option), and you sign and submit to us a release of claims in a form we prescribe
We and our affiliates do not offer direct or indirect financing neither we nor our affiliate will 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 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 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 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 by contacting Biyon McLendon, our President, at 751 W Warm Springs Rd #100, Henderson, NV 89011, and (775) 831-1435, the Federal Trade Commission, and the appropriate state regulatory agencies