$16

Business Description

Pinot's Palette Franchise LLC, a Texas limited liability company (“we” or “us” or “our” or “Pinot's Palette Franchise LLC”), is the franchisor. We and our parent and affiliates have our principal place of business at 10333 Harwin Drive, Suite 265, Houston, Texas 77036. We were formed on May 5, 2010. We conduct business under the name and mark “Pinot's Palette” and related names, marks and slogans.

Prior Experience

We have no predecessors. Pinot Holdings LLC, a Texas limited liability company formed January 29, 2016, is the parent of us and our affiliates, Pinot's Palette LLC, Pinot Technology LLC, Pinot Fund LLC and Paint and Sip Supply, LLC (as each is described below). Our affiliate, Pinot's Palette LLC, a Texas limited liability company formed May 5, 2010, is the parent to Pinot's Palette Studio 3 LLC, a Texas limited liability company formed March 8, 2011, a wholly owned subsidiary that operate a studio of the type being franchised. Pinot's Palette Studio 3 LLC operates a Pinot's Palette studio at 12343 Kingsride Lane, Houston, Texas 77024, which opened October 2012. This affiliate pays the same royalty fee, email account fee and technology fee, as well as makes the same advertising contributions, as franchisees pay.

Business Offered

We are offering franchises for studios that operate under the name “Pinot's Palette,” (each a “Pinot's Palette Studio”). Each Pinot's Palette Studio is established and operated using the format and system we developed (the “System”), and operate at retail locations displaying our interior and exterior trade dress. Pinot's Palette Studios feature and operate under the Proprietary Marks (as described below). Pinot's Palette Studios offer customers entertaining artistic classes, including painting classes, with the opportunity to enjoy food, wine or other beverages. Our upscale interior trade dress is designed to make Pinot's Palette Studios welcoming, comfortable, and easily identifiable for customers. All products and services offered for sale at a Pinot's Palette Studio are subject to our approval.

Initial Fees

When you sign the Franchise Agreement you must pay us an initial franchise fee of $22,500 for a One Room Studio and an initial franchise fee of $27,500 for a Two Room Studio (the “Franchise Fee”). In the event you sign an Area Development Agreement to develop multiple Pinot's Palette Studios or you simply choose to concurrently execute upfront two or more Franchise Agreements to develop Pinot's Palette Studios, the Franchise Fee for your second and subsequent One Room Studios will be $17,500, and the Franchise Fee for your second and subsequent Two Room Studios will be $22,500.

Financing

Whether we will extend Financing, as well as the amount of financing that we choose to extend, will vary depending upon the availability of funds, your creditworthiness and the market conditions in your area. If we provide financing to you, you must submit monthly financial information to us, such as an income statement, balance sheet, and supporting documents, as we periodically specify and in the formats we specify.

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.