You Move Me was formed on September 12, 2012 and we will conduct business under that name. We are wholly owned by Tracksuit Movers (USA) Inc., a Canadian corporation. The same principles that own Tracksuit Movers (USA) Inc. also own our affiliate, Tracksuit Movers, which was incorporated on September 6, 2012. Tracksuit Movers owns the System and related marks, including the mark “You Move Me,” and licenses them to us for our exclusive use and sublicensing in the United States. We do not currently have and have not during the ten-year period immediately before the close of our most recent fiscal year, had any predecessors. However, Andrew Wilson as well as Josh Herron and Tyler Staszak, who operated moving business in Tulsa, Oklahoma and Kansas City, Kansas, respectively, under the name Easy Moves, assisted us in developing the You Move Me concept by sharing their knowledge and many years of experience in the moving industry, and consulted with us during the beginning stages of our franchise operations. Mr. Wilson, Mr. Herron and Mr. Staszak became our first franchisees when they converted their two existing moving businesses to You Move Me franchises.
We are in the business of selling commercial and residential moving and packing franchises in the United States. We have no other business activities. Our principal business address, which is the same as that of Tracksuit Movers (USA) Inc. and Tracksuit Movers, is 301 – 887 Great Northern Way, Vancouver, BC, Canada, V5T 4T5. We do not have a business address in the United States. Our affiliate, O2E Brands Inc. (“O2E Brands”), is a British Columbia, Canada Company incorporated on April 15, 2014 with a principal place of business at 301 – 887 Great Northern Way, Vancouver, BC, Canada, V5T 4T5. O2E Brands provides shared franchise services, such as marketing, human resources, business technology, legal and finance to all franchised brands founded by the co-founder of You Move Me, Brian Scudamore, including to the You Move Me system. Our agents for service of process are disclosed in Exhibit D to this disclosure document.
We grant franchises to qualified candidates in the United States for the operation of franchises (each a “Franchised Business”) using the System and identified by the name You Move Me and have offered these franchises since 2012. We have not offered franchises in any other line of business, we have no other business activities and have not operated businesses of the type being franchised. Our affiliate company, Tracksuit Movers, does not have any prior business experience, nor do they offer franchises in any line of business in the United States. Other than as stated above, we have no predecessors or affiliates offering franchises in any line of business, or providing products or services to our franchisees. The System Brian Scudamore, our founder and CEO, in conjunction with our other principals, has developed a unique method for operating and franchising a moving business (the “System”). The System includes You Move Me FDD 2 4824-6118-6447.1 proprietary software, brand development, training, marketing programs and access to the exclusive service of the Sales Center, as well as the mark “You Move Me” and related registered and unregistered marks (collectively, the “Marks”). Tracksuit Movers manages the Sales Center in in Toronto, Ontario, with overflow agents located as necessary in Vancouver, British Columbia, which receives telephone and web based orders and acts as a “point of sale” contact for each customer. The Sales Center schedules all appointments, maintains a detailed client database, conducts follow-up calls with all customers to gauge customer satisfaction and provides you with detailed reports so that you may more effectively manage the Franchised Business. We leverage a national Sales Center, operate a sophisticated web-based dispatch system, and provide you with a comprehensive training program and ongoing business coaching and support.
The initial franchise fee is $20,000 for one sub territory. Additional subterritories are $12,000 each. The minimum initial investment is two sub territories. Territories will generally consist of two or three subterritories, but we may offer more or fewer subterritories if, in our sole discretion, circumstances so require. For example, there may be areas with larger populations that will support more than three subterritories. The initial franchise fee of $32,000 for the first two subterritories is payable to us in a lump sum when you sign the Franchise Agreement. The fee for additional subterritories, if any, is payable to us on the due date mutually agreed upon and stated in the Franchise Agreement. Each portion of the initial franchise fee is fully earned upon receipt and there are no refunds under any circumstances. The initial franchise fee paid by franchisees in the year ending December 31, 2018 was $40,000.
We do not offer financing at this time. We do not guarantee any debts, leases or other obligations for you. While not obligated to do so, we may, in our discretion, introduce you to third party financing sources that may, if you meet their qualifications, supply financing options for items required as part of the initial investment. We and our affiliates do not receive any consideration from introductions to third party financing sources.
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. You Move Me FDD 29 4824-6118-6447.1 HISTORICAL FINANCIAL PERFORMANCE INFORMATION the financial performance information provided in this Item 19 is a historic financial performance representation about all of the franchises existing in our franchise system for the relevant period based upon financial information those franchisees reported to us. The following charts provide information regarding the Gross Revenue for franchised businesses in the United States and Canada. Canadian operations and operations in the United States are substantially similar. There are no characteristics of the Canadian outlets that differ materially from outlets being offered in the United States. The charts below reflect total and average Gross Revenue for each of the first 3 years franchised businesses and conversion franchised businesses were operated. For purposes of these charts, franchisees are grouped into franchised businesses open between 12 and 24 months, franchised businesses open longer than 24 months, and franchisees that converted existing businesses to franchises, and in the case of system wide figures for all of North America include franchised businesses that were in existence for at least 1 day in the specified calendar year. Unless otherwise specified, “Gross Revenue” means the actual gross revenues invoiced to consumers for products and services less taxes collected and credits or refunds given in accordance with the Franchisor's refund policy. We have provided you with information to help you make a more informed decision about our franchises. The actual numbers you experience will vary depending upon several factors, including competition, management and market demographics. You should conduct your own research to assist you in preparing projections for your own Franchised Business. The average is calculated by adding all figures up and dividing by the number of figures counted. The median is calculated by placing all figures being counted in order of ascending or descending value and finding the middle figure in the list. If there is an even number of figures, the median is calculated by adding the middle two figures and dividing by two. 2. The number of franchises column includes the number used to calculate the averages for each calendar year. 3. Foreign exchange rates have not been applied to the figures in the charts. USA charts are reported in USD and Canadian charts are reported in CAD. The actual numbers you experience will vary depending upon several factors, including your individual abilities, competition, management, marketing demographics, and the number of trucks you operate in the territory. Some franchises have earned this amount. Your individual results may differ. There is no assurance you will earn as much. The financial performance representations do not reflect the costs of sales or operating expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. The best source of cost and expense data may be from franchisees and former franchisees, some of whom may be listed in Exhibit A. Written substantiation for the financial performance representation will be made available to you upon reasonable request.