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Business Description

We do business under the name “EAGLERIDER.” We were formed on November 9, 1998 as a California corporation. Our agents for service of process are listed on Exhibit A to this Disclosure Document. We are a wholly-owned subsidiary of EagleRider Holding, Inc. which, in turn, is a wholly-owned subsidiary of EagleRider Holdings, LLC. EagleRider Holding, Inc. and EagleRider Holdings, LLC, parent companies of EagleRider, Inc., share our principal business address and were formed when Main Post Partners acquired a majority interest in us in February 2016. We have no predecessors. We have two affiliates that provide services to our franchisees. One affiliate is EagleRider Finance, LLC (“EF”), a Minnesota limited liability company formed on August 8, 2007 that helps our franchisees obtain financing or itself provides financing to our franchisees.

Prior Experience

The other affiliate is J.C. BroMac Corporation (“BroMac”), a California corporation formed on July 22, 1992 which also does business as “EAGLERIDER SALES.” BroMac purchases, sells and leases current model year Harley-Davidson® motorcycles for the purpose of ultimately renting or allowing our franchisees to rent such Harley-Davidson® motorcycles to customers of EAGLERIDER Outlets under our EAGLERIDER Rental Program and purchases and sells other motorcycles and vehicles for the purpose of allowing our franchisees to rent such motorcycles and vehicles to EAGLERIDER customers. Additionally, BroMac lends motorcycles to franchisees for short-term use in return for a share of the revenue they generate. BroMac operated 136 EAGLERIDER Outlets in the United States as of December 31, 2018. Our principal place of business, which we share with EF and BroMac, is located at 11860 South La Cienega Boulevard, Hawthorne, California 90250.

Business Offered

We offer franchises for the operation of businesses specializing in (1) the rental of certain classes of motorcycles designated by manufacturer and vehicle type (including, if you qualify and are approved by us, current model year Harley-Davidson® touring and cruiser motorcycles (“H-D Motorcycles”)), (2) the rental of other vehicles designated by manufacturer and vehicle type (collectively, “Other Vehicles”), (3) the organization of motorcycle tours and road trips, and (4) the sale of related apparel and merchandise (“EAGLERIDER Outlets” or “Outlets”). On May 4, 2017, our affiliate, BroMac, entered into a Motorcycle Rental, Marketing and Supply Agreement with Harley-Davidson Motor Company, Inc. (the “Supply Agreement”) which allows BroMac to purchase and provide H-D Motorcycles to EAGLERIDER Franchisees for use in our EAGLERIDER Rental Program. EAGLERIDER Outlets operate using our distinctive business format, systems, methods, procedures, designs, layouts, advertising, promotional and marketing methods, and operational standards and specifications (together, the “Licensed Methods”). We franchise the operation of Outlets under our trade name and service mark “EAGLERIDER” and other logos, trademarks, service marks and commercial symbols (together, the “Marks”).

Initial Fees

When you sign the Franchise Agreement, you must pay us an initial franchise fee of $8,000. The initial franchise fee includes the fee for any one (1) Rental Vehicle Class. The initial franchise fee allows you to obtain a basic license to use our proprietary computerized reservations and booking software, compatible with a rental fleet of up to 100 vehicles (“EAGLERIDER Rental Management System”).

Financing

If you are approved to offer H-D Motorcycles as a Rental Vehicle Class at your Outlet, you are required to sign the Lease Agreement – Month to Month, which is included as Exhibit C to this Disclosure Document. Under the lease, you must pay a $200 per vehicle documentation fee in advance. The lease requires you to pay for shipping, titling, registering and insuring the vehicles, unless you make separate arrangements to pick up the vehicles and to pay any sales taxes. If you commit a material default under a lease, EF may terminate it. If a payment under the lease is late by ten days or more, it is subject to an administrative fee of $35 per vehicle

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 in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.