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Business Description

OEF is a Colorado limited liability company formed on May 15, 2012. We operate under the name OE Franchise, LLC and Office Evolution and no other name. Our principal business address is 357 McCaslin Blvd, Ste 200, Louisville, CO 80027. We began offering franchises for Office Evolution Businesses in July 2012. We have not, and do not, operate any franchises like those described in this Franchise Disclosure Document or in any other line of business. We do not conduct any business other than franchising Office Evolution Businesses. We have no predecessor entities.

Prior Experience

Our parent company is Office Evolution, LLC (“OE Parent”), a Colorado limited liability company formed on January 21, 2013. OE Parent's principal business address is 357 McCaslin Blvd, Ste 200, Louisville, CO 80027. OE Parent is a wholly-owned subsidiary of our ultimate parent, Boulder Office Partners, LLC (“OE Ultimate Parent”), a Colorado limited liability company formed on December 12, 2002, whose principal business address is 357 McCaslin Blvd, Ste 200, Louisville, CO 80027. OE Ultimate Parent owns the intellectual property and trademarks for the Office Evolution franchise system and licenses them to us. OE Ultimate Parent operated Office Evolution Businesses from April 2003 to December 31, 2012, and transferred all of those businesses to our affiliate, OE Colorado, LLC (“OE Colorado”). Our parent companies have never offered franchises in any line of business and do not operate businesses of the type you will be operating. As of the date of this Franchise Disclosure Document, OE Colorado operates eight businesses similar to the type being offered in this Franchise Disclosure Document, and has operated businesses similar to the type being offered in this Franchise Disclosure Document since 2013. Our second affiliate, OE Columbus-CBD, LLC (“OE Columbus”) operated one business similar to the type being offered in this Franchise Disclosure Document beginning in 2018, but it is no longer in operation as of the Issuance Date. OE Colorado and OE Columbus do not provide products or services to franchisees and have not offered franchises in any other line of business

Business Offered

We offer franchises (“Office Evolution Franchise(s)” or “Franchise(s)”) for the use of our Office Evolution trademarks, trade names, service marks, and logos (“Marks”) for the operation of Office Evolution Businesses. Office Evolution Businesses are operated under our proprietary Office Evolution system (“System”). The System may be changed or modified by us throughout your ownership of the Franchise. You will operate your Office Evolution Business from an approved location (“Business Center”) in a specified geographic area. We currently target geographic areas in the suburbs and secondary markets that are outside of downtown central business districts. You must sign our standard franchise agreement attached to this Franchise Disclosure Document as Exhibit C (“Franchise Agreement”). You may operate one Office Evolution Business for each Franchise Agreement you sign. We offer conversion opportunities to existing independent businesses that provide services and products similar to those offered by Office Evolution Businesses (“Conversion Franchises”). Franchisees may pay also purchase an existing similar business and convert it to an Office Evolution Business (“Acquisition Franchises”). If you are purchasing a Conversion Franchise or an Acquisition Franchise, you will sign a Franchise Agreement that will include an “Addendum for Conversion/Acquisition Franchises”, which is attached to this Franchise Disclosure Document as Exhibit G-8. We also offer to select qualified persons (“Area Developer(s)”) the opportunity to sign our area development agreement (attached to this Franchise Disclosure Document as Exhibit D) (“Area Development Agreement”) and acquire the right to develop multiple Office Evolution Businesses in multiple protected search areas. When you sign a Franchise Agreement, we will grant you a temporary protected geographic search area to locate your Office Evolution Business (“Protected Search Area”). When you sign an Area Development Agreement, you will receive multiple Protected Search Areas, one for each Office Evolution Business to be developed. If you enter into an Area Development Agreement, you must sign a Franchise Agreement for your first Office Evolution Business (“Initial Franchise Agreement”) at the same time that you sign the Area Development Agreement. You will be required to sign our then-current form of Office Evolution Franchise Agreement for each Office Evolution Business that you develop under the Area Development Agreement when you begin the location search for that Office Evolution Business. For each future Office Evolution Business that you develop you may be required to sign a form of the Franchise Agreement that is different from the form of Franchise Agreement included in this Franchise Disclosure Document. Unless otherwise stated, any reference in this Franchise Disclosure Document to “you” or “franchisee” includes an Area Developer under an Area Development Agreement, and as a franchisee under a Franchise Agreement. Office Evolution Businesses are required to be opened in accordance with a specified opening schedule which is determined when you sign an Area Development Agreement or Franchise Agreement (“Development Schedule”). The duration of the Development Schedule will depend upon the number of Office Evolution Businesses to be opened, the demographics of the Protected Search Area, the market for and availability of commercial office space in the Protected Search Area and other factors. The Protected Search Area will be established based on the consumer demographics of the Protected Search Area, geographical area, city, county, and other boundaries. The Protected Search Areas for an Area Developer will generally be a larger area than a Protected Search Area for a single Franchise. Protected Search Areas under a Franchise Agreement or Area Development Agreement will terminate when you have secured a location for the Office Evolution Business or the Development Schedule date, whichever occurs first. The only territorial protections that you will receive upon termination of the Protected Search Area will be those under each individual Franchise Agreement

Initial Fees

franchise Agreement Initial Franchise Fee The “Initial Franchise Fee” for a single Office Evolution Business (Start-Up Franchise or Conversion Franchise) is $45,000. The Initial Franchise Fee is payment for all of our pre-opening assistance that we provide to allow you to open your Office Evolution Business and also offsets some of our franchisee recruitment expenses. Each Franchise Agreement will grant you the right to operate one Office Evolution Business. If you are an existing full-time employee of ours, our parents or our affiliates for at least three continuous years, and an approved candidate for an Office Evolution Franchise, your Initial Franchise Fee for a Franchise will be $10,000 for your first Franchise and $5,000 for each additional Franchise. During our last fiscal year, ended December 31, 2018, we collected Initial Franchise Fees ranging from $0 to $39,500. The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement and is nonrefundable.

Financing

We do not offer direct or indirect financing to you.

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to disclose information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, and/or affiliate-owned outlets, if there is a reasonable basis for the information, and 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 performance at a particular location or under particular circumstances. As of March 31, 2019, we had 61 Office Evolution Businesses in operation. Of these 61 Businesses, 53 were owned and managed by franchisees and 8 were owned and managed by our affiliates (“Reporting Group”).