Business Description

The Franchisor is EMS Fitness Franchising, LLC, a Colorado limited liability company. For ease of reference, EMS Fitness Franchising, LLC will be referred to as “we,” “us,” “our,” “FITtec Franchise” or “EMS Fitness.” We will refer to the person or entity that buys the franchise as “you,” “your” or with similar pronouns. If you are a corporation, certain provisions of the franchise agreement also apply to your owners and will be noted. We are a Colorado limited liability company, formed on June 21, 2017. We do business as “EMS Fitness Franchising, LLC” “FITtec Franchise” or “EMS Fitness.” Our business address is 3151 Walnut Street, Boulder, Colorado 80301, (720) 996-1802. We sell franchises for the operation of a Business known as “FIT tec.” We operate no other business activities. We have never offered franchises in this or in any other line of business. We began offering franchises in August of 2018.

Prior Experience

Our FITtec Affiliate that has been in business such July of 2014 operates a studio that is substantially similar to the one being offered here. This Franchise Disclosure Document (FDD) describes the terms and conditions for which we currently offer franchises to new franchisees. As the needs of the market change, we will occasionally offer franchises under different terms and conditions.

Business Offered

We grant qualified persons (each referred to as a “Franchisee”) the right to own and operate a Business that offers unique electro-muscular stimulation (EMS) training (EMS Training) using our stateof-the-art proprietary training techniques and EMS equipment (EMS Equipment) in a beautifully appointed fitness studio (Studio). Each client receives a one-on-one personal fitness program that is delivered by a fully trained and certified trainer (EMS Trainer). Through our proprietary methods, a workout that usually takes 90 minutes per session is reduced to only 20 minutes per session. The Business is characterized by our: proprietary and protected Marks; distinctive exterior and interior Business design and trade dress; uniform guidelines, specifications, and procedures for operations; procedures for quality control; proprietary back office electronic and POS equipment; and advertising and promotional programs, among others. We also deliver to you proprietary training, marketing help, designs, advertising help and other pre-opening and post-opening services. Taken together all of this is referred to as the “System” which may be changed, improved, and further developed by our Affiliates or us.

Initial Fees

You must pay an initial franchise fee of $35,000 (IFF) for the license to operate a single Business. The IFF is due at the time that you sign the Franchise Agreement. The first 5 franchises sold will pay an IFF of $25,000. Units 6 through 10 will be sold with an IFF of $30,000. You will also pay us $1,000 for the “Technology Startup Fee” which is used to create your landing page on our website, and $1,500 which is the first 3 months of the “Technology Maintenance Fee” (at $500 per month) which is used for the continued maintenance of your landing page. Before you open, your “Principal Operator” “ Designated Manager,” you and any other person that wishes to deliver EMS Training to Clients must complete initial certification training (Initial Certification Training) and pay an approved vendor, an Affiliate or us the then-current “Initial Certification Fee,” that now is $250 per person. We will collect $500 to cover two certifications. The “Principal Operator” is the person designated by a business entity to operate the business from day to day. The “Designated Manager” is the person that has received our training and is authorized to operate the Business from day to day. The Designated Manager need not be an equity holder. No person can deliver EMS Training without first obtaining Initial Certification Training. You and one additional person must complete “Franchise Training” to our satisfaction. If you fail to complete such training, we have the right to terminate the Franchise Agreement (though all restrictive covenants, including non-competition covenants will remain enforceable) and we will refund 50% of the IFF. The IFF and all other costs and fees identified above are uniform, payable in one lump sum and except as stated are not refundable under any circumstances. You pay our Affiliates or us no other fees or payments for services and goods before you open.

Financing

Our Affiliate and we offer no financing arrangements, directly or indirectly to you. Our Affiliates and we will not guarantee your notes, lease, or any other obligation. Our Affiliates and we do not receive any direct or indirect payments or other consideration from any person for the placement of any financing that you may need. The Small Business Administration (SBA), has issued us an “SBA Franchise Identifier Code” of 83470. Though this identifier does not in any way serve as a direct or indirect guarantee of any loan, note, lease or other obligation by an affiliate or us, the fact that we have this identifier may help you streamline the SBA-loan-guaranty process. As part of the SBA procedure, we may be asked to amend the Franchise Agreement in order to meet the SBA's then-current regulations. Though we have no obligation to sign such an amendment and may refuse to do so for any reason or no reason at all, we have received from the SBA, an amendment to our Franchise Agreement, the terms of which are currently acceptable to us. We reserve the right at any time in the future and without any notice to any franchisee or you to refuse to sign an SBA amendment, even if we have previously approved of its language. If however, we have signed such amendment, and if the SBA loan is then made to you, we will rescind such amendment. The current form of the SBA amendment is found at Exhibit 8 to the Franchise Agreement.

Franchisee Revenue and Profit

We do not make any representations about a franchisee's or regional developer's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Shaun Bezuidenhout at EMS Fitness Franchising, LLC 3151 Walnut Street, Boulder, Colorado 80301, (720) 996-1802, the Federal Trade Commission, and the appropriate state regulatory agencies.