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Business Description

Image Studios 360 Franchise, LLC is a Utah limited liability company that was formed on September 11, 2014. Image Studios 360 does business under the name “Image Studios 360.” Our principal business address is 551 West 400 North, Suite 101, Salt Lake City, Utah 84116. Our agents for services of process in the states where we do business or plan on doing business are listed on Exhibit A to this Disclosure Document. We have offered franchises since April 2015. We have never offered franchises in any other line of business. Image Studios 360 is not engaged in any other type of business activity

Prior Experience

Image Studios 360 Franchise, LLC has no parent companies or predecessors. Our affiliate IS360 TM, LLC is a Utah limited liability company that was formed on September 11, 2014. It owns the Image Studios 360 names and marks and has licensed the use of these names and marks to us. Its principal business address is 2865 S State St, South Salt Lake, Utah 84115. Image Studios 360 has no other Affiliates currently in operation. We have not operated Image Studios 360 salons which are similar to the franchise being offered to you.

Business Offered

We offer franchises for Image Studios 360 Salons in accordance with the terms of our Image Studios 360 Franchise Agreement (the “Franchise Agreement”). A copy of the most recent Franchise Agreement is attached to this Disclosure Document as Exhibit C. If you enter into an Image Studios 360 Franchise Agreement, you will be trained and authorized to operate an Image Studios 360 Salon using the Marks according to our system standards, featuring individual turn-key salon studios in a salon mall setting using our innovative build-out system and methods of operation, marketing and promotion (collectively the “System”). We reserve the right to change or otherwise modify the System and add, modify, or delete any of our designs, operational processes, or services at any time in our sole discretion. You will operate your salon at, and only at, a location approved by us, and you will not receive any guaranteed territory outside of the protected radius surrounding your salon, or any exclusive rights for operation of an Image Studios 360 Salon at any other location or within any other territory. Throughout this document, your franchise business will also be referred to as your “Salon” or your “Location.” As a franchisee, you will typically purchase or lease existing building space ranging from 3,500 to 9,000 square feet and convert or remodel the purchased or leased space into individual size salon studios that are typically 10 feet by 12 feet in size. These individual studios are then leased to independent salon professionals. As a franchisee, you will provide general salon management, maintenance inside the studios and common areas, wireless internet, some marketing/branding and a web page for each salon professional in our online salon directory, organizing social events for the salon professionals at your location, educating and training your salon professionals on how to use the technology we have put together to assist them in running their salon business, and providing them information and follow up with each salon professional about our marketing programs and tools how they can participate in them. Each salon professional is a tenant of yours who is an independent business owner and will be responsible to schedule their own appointments and operate their individual salons. Your tenants are also required to obtain their own business, health department, and other professional licenses from relevant state professional licensing boards, where required and depending on the types of services they offer. We also offer, to qualified applicants, the opportunity to develop additional units by purchasing the right to develop two (2) additional franchises at the time you sign your first Franchise Agreement. You will be required to sign a Development Agreement (“DA”) at the same time you execute the Initial Franchise Agreement and you will be required to develop these additional units within a fixed time period. (See Exhibit D of the DA) You must sign our then-current franchise agreement for each additional unit opened under the terms of the DA. These franchise agreements may not be the same as the initial Franchise Agreement that you will sign. We also may offer franchises for Image Studios 360 Salons in foreign countries. We anticipate that master franchise relationships will be established and that the financial terms and the nature and scope of the master franchise relationship will be negotiated.

Initial Fees

Franchise Fee The Initial Franchise Fee is $49,750 and is due and payable when you sign the Franchise Agreement (the “Franchise Fee”). The Franchise Fee is payment to us for the right to use the Image Studios 360 Marks and System in the development and operation of your Salon. The Franchise Fee also covers the cost of certain services that we and/or our Affiliates may provide to you before your location opens, such as training and support and marketing materials. This Franchise Fee is fully earned upon payment and is non-refundable. If you currently own and operate an existing Image Studios 360 franchisee and you are now purchasing the rights to open and operate additional franchise(s), you may be eligible to pay a reduced Franchise Fee. The amount of the reduced Franchise Fee is determined as follows: if you currently own and operate a single Image Studio 360 salon, you can purchase additional units at $35,000 each; if you currently own and operate between three and five Image Studio 360 salons, you can purchase at $25,000 each; if you currently own and operate six or more Image Studio 360 salons, you can purchase at $20,000 each. To be eligible to purchase additional franchises and to pay the reduced Franchise Fee as outlined above, you and your affiliates must be fully compliant under all agreements with us and in good standing, you must qualify financially to open the additional franchised salon(s), and you must pay to us the entire reduced Franchise Fee up front for each franchise when you sign the relevant Franchise Agreement. If you do qualify and commit to purchase additional franchise(s), you will be required to sign our then-current Franchise Agreement for each franchise purchased

Financing

Neither Image Studios 360 nor any agent or Affiliate of ours offers direct or indirect financing. We do not guarantee your note, lease, or other obligation

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchisee 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.