Smoothie King

9797 Rombauer Rd., #150 Dallas, TX 75019

[email protected]

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Smoothie King Franchises, Inc. is a Louisiana corporation incorporated on May 5, 1987. The corporation was originally incorporated under the name Original California Smoothie Bar Franchise Inc. On April 6, 1989, the name of the corporation was changed to Smoothie King Home of the Muscle Punch Franchises, Inc. On January 2, 1997, the name of the Corporation was changed to Smoothie King Franchises, Inc. Effective as of January l, 1997, Smoothie King became a subsidiary of Smoothie King Systems, Inc (SKSI) . On July 6, 2012, SK USA, Inc. purchased SKSI. SK USA is controlled by Smoothie King Korea, Inc., formerly known as Smoothies Korea, Inc. As a result, Smoothie King Korea, SK USA and SKSI are Smoothie King Franchises, Inc’s parent companies. Smoothie King’s principal business address in the United States is 3900 N. Causeway Blvd, Suite l300, Metairie, LA 70002. Smoothie King has been offering franchises since May 1988.

We offer Smoothie King® franchises for the operation of a Unit. You must enter into a Franchise Agreement for each Unit purchased. Units offer our original Smoothie King? smoothies consisting of blends of real fruits, fruit juices, and fruit and vegetable purees combined with nutritional supplements, other blended products, and meal replacement items that are custom made to order. Units also offer consumers the benefit of nutritional retail merchandise, which includes: vitamins, herbs, minerals, a myriad of supplements, and nutritious snack items, among many others. Smoothie King developed and owns a proprietary system (“System”) that you will use in operating your Unit. This System includes specialized hands-on training, marketing and advertising support, volume buying power, business synergy and on-going support. Smoothie King also provides you with certain confidential information and methods for managing a Smoothie King Business. You will use Smoothie King’s trademarks, logos, brand and overall developed intellectual property including “SMOOTHIE KING?,” the “CROWN” design and other product and service names and marks that Smoothie King may designate to identify the System. These names and marks are referred to in this disclosure document as “Proprietary Marks.” Smoothie King offers franchises for “Traditional” and “Non-Traditional” locations. Traditional locations are Units that typically operate in strip centers, drive-thru locations or other commercial shopping centers with general public access from the street and are not typically located in an enclosed environment or Captive Facility. You receive a Protected Territory if you operate your Unit in a Traditional location. Non-Traditional Units are typically located within another business or dependent upon one main business or organization as its primary trade generator, normally have limited access to the general public and a limited trade area, usually in relation to its primary trade generator (a “Captive Facility”). Examples of Non-Traditional locations include enclosed shopping malls, arenas, convention centers, airports, movie theaters, health clubs, hospitals, military bases, grocery stores and similar environments. Because of the factors described above, you will not receive a Protected Territory for a Non-Traditional location. The determination of what constitutes a Non-Traditional location and the decision to grant a Protected Territory is within Smoothie King’s sole discretion. Smoothie King considers each site a Traditional location unless Smoothie King approves the location, in writing, as a Non-Traditional location. All references to Units include both Traditional and Non-Traditional locations, unless otherwise specified. You must sign our Franchise Agreement, attached as Exhibit F. If you will operate from a Non-Traditional location, you also must sign the Non-Traditional Location Addendum, attached as Exhibit M. If you wish to have the right to open multiple Units in an area, you must enter into an area development agreement (the “Development Agreement”) with Smoothie King. Under the Development Agreement, you will receive the right to open a certain number of Units at Traditional locations over a defined period of time in a defined area, as Smoothie King determines in its sole discretion, on the basis of the market potential and the size of the designated area. The term of your Development Agreement generally will not be longer than 5 years and will require you to lease or purchase the approved location of the first Unit within 6 months from the date of your Development Agreement and open your first Unit within 12 months from the date of your Development Agreement and open each subsequent Unit within 6 to 12-month time periods after the first Unit. You must sign our then-current Franchise Agreement for each Unit to be developed under the Development Agreement, which may contain different terms and conditions than the Franchise Agreement attached to this disclosure document.