Flip Flop Shops

7524 Old Auburn Road

[email protected]

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Flip Flop Shops Franchise Company, LLC was organized as a Delaware limited liability company on August 24, 2007. Their principal business address is 5990 Sepulveda Boulevard, Suite 600, Sherman Oaks, California 91411. They began to offer franchises on October 9, 2007.

We offer qualified applicants franchises for Flip Flop Shops Stores that operate under the Flip Flop Shops System (the "System"). The System includes distinctive exterior and interior design, decor, and color scheme; furnishings; uniform standards, specifications, policies and procedures for operations; quality and uniformity of the products and services offered; procedures for inventory, management and financial control; training and assistance; record keeping and reporting; and advertising and promotional programs, all of which may be changed, improved, and further developed by us periodically. You must operate your Flip Flop Shops Store under the Marks and use other trade names, service marks, trademarks, logos, and other symbols we designate (or may later designate) in writing for use in the System. Additionally, in certain circumstances, we offer qualified franchise applicants the right to operate a Common Area Shops ("Common Area Shops"), which measures between 150 to 500 square feet and is built in the shape of a flip flop, in retail shopping centers and other suitable locations. Unless otherwise indicated, references to Flip Flop Shops Stores or Stores including Common Area Shops. The Franchise Agreement (Exhibit B to this disclosure document) gives you the right to establish and operate I Store at a specified location. The location of the Store will be in the non-exclusive Designated Area described in the Franchise Agreement. The size of the Designated Area will vary depending on local market conditions and other factors. The Designated Area will be determined before you sign the Franchise Agreement. We may require your current and future Principals (as defined in the Franchise Agreement) to sign a Guaranty and Assumption Agreement ("Guaranty"), guaranteeing your performance and binding themselves individually to certain provisions of the Franchise Agreement, including the covenants against competition and disclosure of confidential information, restrictions on transfer and dispute resolution procedures. Those of your Principals who are not required to sign the Guaranty will each sign a Confidentiality Agreement and Ancillary Covenants Not to Compete, with Principal's undertakings, in the form attached to the Franchise Agreement. You must designate an "Operating Principal" under the Franchise Agreement. Your Operating Principal is the main individual responsible for your business. If you are an individual, you will be the Operating Principal. If you are not an individual, you must designate someone who meets our requirements and whom we approve to be your Operating Principal. Your Operating Principal must have and maintain at least 10% ownership interest in you. Your Operating Principal will sign the Guaranty. The person or entity signing the Franchise Agreement is the "Franchisee." In this disclosure document, the terms "Principals" and "Operating Principal" and "you" and "your" include the Franchisee under the Franchise Agreement unless we have noted otherwise.