Restore - Franchise Disclosure Document - 74c9441e
Restore - Franchise Disclosure Document - 74c9441e
Restore - Franchise Disclosure Document - 74c9441e
The franchise offered is for a Restore Hyper Wellness™ retail outlet center (“Restore Center” or
“Center”) that provides cryotherapy and other wellness services we authorize from time to time,
including cryoskin services, photobiomodulation therapy, compression therapy, IV drip therapy,
intramuscular shot therapy, hydrafacial, micronutrient testing, infrared sauna therapy, pulsed
electromagnetic field therapy, and mild hyperbaric oxygen therapy.
The total investment necessary to begin operation of a Restore Hyper Wellness franchised business
is expected to be between $641,957 - $1,184,535. This includes $270,009 to $552,464 that must
be paid to the franchisor or its affiliates. If you sign a Multi-Unit Development Agreement to
develop multiple Restore Centers (minimum of 3), you will have to pay an initial development fee
equal to the sum of the initial franchise fees for the Centers you will develop during the initial
twelve months of its term, plus 50% of the initial franchise fee for the remaining Centers to be
developed thereafter. (See Item 5 of this disclosure document). The total investment necessary to
begin operation under a Development Agreement is $825,957 to $1,784,535. This includes
$84,000 to $400,000 that must be paid to the franchisor or its affiliate(s).
This Disclosure Document summarizes certain provisions of your franchise agreement and other
information in plain English. Read this Disclosure Document and all accompanying agreements
carefully. You must receive this Disclosure Document at least fourteen (14) calendar days before
you can sign a binding agreement with, or make any payment to, the franchisor or an affiliate in
connection with the proposed franchise sale. Note, however, that no governmental agency has
verified the information contained in this document.
You may wish to receive your Disclosure Document in another format that is more convenient for
you. To discuss the availability of disclosures in different formats, contact Jim Donnelly at 3601
South Congress Ave., Suite C-200, Austin, TX 78704 or by telephone at 202-991-0636 or by email
at Jim@restore.com.
The terms of your contract will govern your franchise relationship. Do not rely on the Disclosure
Document alone to understand your contract. Read your entire contract carefully. Show your
contract and this Disclosure Document to an advisor, like a lawyer or accountant.
Here are some questions you may be asking about buying a franchise and tips on how to
find more information:
WHERE TO FIND
QUESTION INFORMATION
How much can I earn? Item 19 may give you information about outlet
sales, costs, profits or losses. You should also try to
obtain this information from others, like current and
former franchisees. You can find their names and
contact information in Item 20 or Exhibits D and E.
How much will I need to Items 5 and 6 list fees you will be paying to the
invest? franchisor or at the franchisor’s direction. Item 7
lists the initial investment to open. Item 8 describes
the suppliers you must use.
Does the franchisor have the Item 21 or Exhibit G includes financial statements.
financial ability to provide Review these statements carefully.
support to my business?
Is the franchise system stable, Item 20 summarizes the recent history of the
growing, or shrinking? number of company-owned and franchised outlets.
Will my business be the only Item 12 and the “territory” provisions in the
Restore business in my area? franchise agreement describe whether the
franchisor and other franchisees can compete with
you.
Does the franchisor have a Items 3 and 4 tell you whether the franchisor or its
troubled legal history? management have been involved in material
litigation or bankruptcy proceedings.
What’s it like to be a Restore Item 20 or Exhibits D and E lists current and former
franchisee? franchisees. You can contact them to ask about their
experiences.
What else should I know? These questions are only a few things you should
look for. Review all 23 Items and all Exhibits in this
disclosure document to better understand this
franchise opportunity. See the table of contents.
Continuing responsibility to pay fees. You may have to pay royalties and other fees even
if you are losing money.
Business model can change. The franchise agreement may allow the franchisor to change
its manuals and business model without your consent. These changes may require you to
make additional investments in your franchise business or may harm your franchise
business.
Supplier restrictions. You may have to buy or lease items from the franchisor or a limited
group of suppliers the franchisor designates. These items may be more expensive than
similar items you could buy on your own.
Operating restrictions. The franchise agreement may prohibit you from operating a
similar business during the term of the franchise. There are usually other restrictions. Some
examples may include controlling your location, your access to customers, what you sell,
how you market, and your hours of operation.
Competition from franchisor. Even if the franchise agreement grants you a territory, the
franchisor may have the right to compete with you in your territory.
Renewal. Your franchise agreement may not permit you to renew. Even if it does, you may
have to sign a new agreement with different terms and conditions in order to continue to
operate your franchise business.
When your franchise ends. The franchise agreement may prohibit you from operating a
similar business after your franchise ends even if you still have obligations to your landlord
or other creditors.
Your state may have a franchise law, or other law, that requires franchisors to
register before offering or selling franchises in the state. Registration does not mean that
the state recommends the franchise or has verified the information in this document. To
find out if your state has a registration requirement, or to contact your state, use the agency
information in Exhibit A.
Your state also may have laws that require special disclosures or amendments be
made to your franchise agreement. If so, you should check the State Specific Addenda. See
the Table of Contents for the location of the State Specific Addenda.
Certain states may require other risks to be highlighted. Check the “State-Specific
Addenda” (if any) to see whether your state requires other risks to be highlighted.
Each of the following provisions is void and unenforceable if contained in any documents
relating to a franchise:
(i) The failure of the proposed transferee to meet the franchisor's then-
current reasonable qualifications or standards.
(ii) The fact that the proposed transferee is a competitor of the franchisor
or subfranchisor.
(iv) The failure of the franchisee or proposed transferee to pay any sums
owing to the franchisor or to cure any default in the franchise agreement existing at the time of the
proposed transfer.
(h) A provision that requires the franchisee to resell to the franchisor items that
are not uniquely identified with the franchisor. This subdivision does not prohibit a provision that
grants to a franchisor a right of first refusal to purchase the assets of a franchise on the same terms
and conditions as a bona fide third party willing and able to purchase those assets, nor does this
subdivision prohibit a provision that grants the franchisor the right to acquire the assets of a
franchise for the market or appraised value of such assets if the franchisee has breached the lawful
provisions of the franchise agreement and has failed to cure the breach in the manner provided in
subdivision (c).
The fact that there is a notice of this offering on file with the attorney general does
not constitute approval, recommendation, or endorsement by the attorney general. Any
questions regarding this notice should be directed to:
ITEM PAGE
ITEM 10 FINANCING................................................................................................................29
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EXHIBITS
Exhibit A – State Agencies/Agents for Service of Process
Exhibit B – Franchise Agreement
Exhibit C – Multi-Unit Development Agreement
Exhibit D – List of Current Franchisees
Exhibit E – List of Franchisees Who Have Left the System
Exhibit F – Operations Manual Table of Contents
Exhibit G – Financial Statements
Exhibit H – State Specific Disclosures and State Specific Addenda to Agreements
Exhibit I – Franchise Compliance Certification
Exhibit J – Form Administrative Services Agreement
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Unless the context otherwise requires, all references to “Restore Franchising,” “Franchisor,”
“we,” “us,” or “our” refer to Restore Franchising, LLC and all references to “Franchisee,” “you,”
or “your” refer to the person who is granted the right to operate a Restore Center under a Franchise
Agreement. If you are a corporation, limited liability company, partnership or any other type of
legal entity, the provisions of the Franchise Agreement (and, if applicable, the Multi-Unit
Development Agreement) also apply to your owners by virtue of the requirement that some or all
your owners personally guarantee, and be personally bound by, your obligations under the
Franchise Agreement (and, if applicable, the Multi-Unit Development Agreement). All initially
capitalized terms used but not defined in this Disclosure Document have the meanings ascribed to
them in the Franchise Agreement and Multi-Unit Development Agreement.
Franchisor
Restore Franchising, LLC is a Texas limited liability company formed on November 14, 2016, and
maintains its principal place of business at 3601 South Congress Ave., Suite C-200, Austin, TX
78704. We conduct business under the name “Restore Franchising,” as well as the name “Restore
Hyper Wellness” and “Restore Hyper Wellness + Cryotherapy”. We do not conduct business under
any other name or mark. We began selling franchises in December 2016. We do not operate a
business of the type being franchised. We have not and do not currently conduct business in any
other line of business and have not and do not currently offer franchises in any other line of
business.
We have a parent company, Austin Cryo Ventures, LLC (“Austin Ventures”). Austin Ventures is
a Delaware limited liability company formed on October 7, 2014, and maintains its principal place
of business at 3601 South Congress Ave., Suite C-200, Austin, TX 78704. Austin Ventures has
operated Restore Centers since its formation in October 2014. For purposes of the disclosure
document, the Restore Centers operated by Austin Ventures, Hyper Ops, LLC, a Texas limited
liability company whose sole member is Austin Ventures (or any other affiliate of ours) will be
described as “company-owned Centers”. In addition, Austin Ventures and its affiliates sell certain
products and services to Restore Hyper Wellness franchisees, as further described in Item 8.
Austin Ventures does not offer franchises for Restore Centers or for any other line of business.
Austin Ventures and its affiliates may provide services to franchisees and are designated as
exclusive suppliers for certain equipment and supplies used in the operation of the Centers.
Except as noted above, we do not have any predecessors or any affiliates that offer franchises in
any line of business or provide products or services to our franchisees.
Our agents for service of process are listed on Exhibit A of this Disclosure Document.
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We offer to qualified persons the right to own and operate a Restore Center under our standard
form of franchise agreement attached hereto as Exhibit B (the “Franchise Agreement”). We also
offer to qualified persons the right to develop multiple Restore Centers within a specific
geographic area (the “Development Area”) under our standard form Multi-Unit Development
Agreement attached as Exhibit C (the “Multi-Unit Development Agreement” or “MUDA”). The
Multi-Unit Development Agreement requires you to open an agreed-upon number of Restore
Centers under a development schedule set out in the agreement. In connection with the
development of Restore Centers under the MUDA, you must sign our then-current form of
franchise agreement for each Center you open, which may differ from the Franchise Agreement
included with this FDD. Each Franchise Agreement will grant you the right to own and operate a
single Restore Center at an agreed-upon location. Restore Centers operate under our Marks
(defined in Item 13) and the mandatory and suggested specifications, standards, operating
procedures, and rules we periodically specify for Restore Centers (“Standards”).
Restore Centers provide cryotherapy services, as well as other wellness services we authorize from
time to time, currently consisting of cryoskin services, photobiomodulation therapy, compression
therapy, IV drip therapy, intramuscular shots, hydrafacial, micronutrient testing, infrared sauna
therapy, pulsed electromagnetic field therapy and mild hyperbaric oxygen therapy and other
wellness services (collectively, the “Services”). You will be required to retain the services of a
medical professional to administer certain services offered to customers of the franchised business
pursuant to an administrative services agreement. Customers may purchase Services individually
or through our multi-tier membership program, which allows members to receive a specified
number of Services each month depending upon the membership tier selected. We may authorize
Restore Centers to offer certain Services “off-site” via our “Nursing Care Area” program, subject
to compliance with applicable law (including any applicable Authorized Care Provider
Regulations). “Authorized Care Provider Regulations” means certain federal, state, and local
rules, regulations, attorney general opinions, medical board pronouncements and determinations
related to the practice of medicine and other related requirements. The following is a general
description of these Services:
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Hydrafacial®: Hydrafacial is a 3-step service that offers deep cleansing and manual
exfoliation, gentle chemical peel and painless extractions, and infusing and
protecting the skin with hydrators and peptides to improve the appearance of
healthy skin. This fully customizable service addresses common skin health
concerns such as dullness, firmness, clogged pores, discoloration, fine lines and
wrinkles. Hydrafacial can be further customized to include the use of Red Light
Therapy and add-ons such as treatments for hands, neck, chest and back.
Circadia® Oxygen Facial: Utilizing Circadia products, this three-step facial utilizes
an exfoliating mask, an oxygen treatment mask and a hydrating mark.
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Restore Centers perform Services in two major markets: 1) preventative health and wellness, and
2) athletic performance. Our hallmark service is whole body cryotherapy, which provides a
hormetic stressor to the body. This type of calibrated stress promotes adaptive responses that affect
health in multiple ways, akin to how the stress of exercise promotes favorable health effects. The
most common reason why people tell us they love whole body cryotherapy is because they feel it
meaningfully helps with pain, including from sources ranging from rheumatoid arthritis to nagging
old sports injuries. The second major market is athletes at all levels who want to enhance athletic
performance by aiming to decrease recovery times.
The target market for Restore Centers includes individuals who desire to lead healthy, active
lifestyles, as well as groups such as health clubs, local running clubs, triathlon clubs, recreational
sports leagues, and high school, college and professional sports programs.
Restore Centers compete with other businesses that offer cryotherapy, infrared saunas and NIR
therapies, hyperbaric oxygen, hydrafacial and Cryoskin services, pulsed electromagnetic field
therapy, and IV drip services. The market for cryotherapy, infrared and NIR therapies and IV drip
services is developing.
Applicable Regulations
Restore Centers offers certain Services that may be subject to federal and state laws and regulations
as well as local permitting and zoning requirements at a county and/or municipal level. Such laws
and regulations include (i) state corporate practice of medicine (“CPOM”) regulations, (ii) laws
pertaining to the practice of medicine and/or nursing, (iii) privacy and safety laws such as Health
Insurance Portability and Accountability Act (“HIPAA”) and Occupational Safety and Health
Administration (“OSHA”), (iv) telemedicine laws and regulations, (v) state individual and facility
licensing requirement, (vi) patient inducement laws, (vii) laws and regulations pertaining to
medical devices and related healthcare equipment and (vii) laws and regulations pertaining to
health and fitness centers, including requirements applicable to membership programs, (viii) laws
and regulations pertaining to cosmetology/esthetic services and (ix) laws and regulations
pertaining to state pharmacy boards. In the future, should Restore Centers authorize your Restore
Center to participate in federal or state healthcare programs or contract with commercial payors,
additional laws, such as federal and state anti-kickback laws and/or physician self-referral laws
may also apply.
Compliance with such laws is mandatory and violation of such laws may result in civil and/or
criminal fines and penalties. For example, the CPOM laws in your state may restrict a non-licensed
individual or company from employing a licensed healthcare professional and may otherwise
directly impact how you structure, manage, account for, and operate your Restore Center.
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It is also important to note that certain Services may, based upon such laws and regulations,
particularly at a state level, require administration and delivery by licensed professionals such as
nurses, estheticians, physicians, nurse practitioners (with or without physician supervision),
licensed therapists, or other licensed or certified medical or healthcare professionals. In addition,
the determination of the scope of treatment by such licensed professionals may also be governed
by the medical, nursing or pharmacy boards or other licensing or accrediting body of a given state.
State healthcare laws and regulations will also dictate which licensed healthcare provider (e.g.
physician, nurse practitioner or nurse) can conduct a primary patient evaluation and diagnosis,
develop the treatment plan, as well as who can perform the procedure. Distinctions will need to be
made between whether the Services are considered medical or non-medical treatments in your
state.
You are advised to consult counsel about any potential impact of these laws, regulations, and/or
other requirements that may be imposed on you, your Center, and the individuals hired by your
Center.
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Jim has been our Chief Executive Officer since our inception in November 2016; he also is the
founder of Austin Ventures and has been its Chief Executive Officer since its inception in October
2014. He is based in Austin, Texas.
Steve has been our Chairman since our inception and Chairman of Austin Ventures since its
inception in October 2014. He is based in Austin, Texas and mainly focuses on product
development, financial matters and operations for Restore Centers and the system. Steve also has
served as President of Welch Phoenixville, LLC, a real estate business since November 2006 and
has been Chairman of Dreamit Ventures, LLC, a healthcare venture capital firm that invests in
early-stage companies in the healthcare and active lifestyle industry, since December 2007.
Shaw Joseph has served as a member of our board of directors since November 2021. Mr. Joseph
is a Managing Director at General Atlantic, focusing on investments in the firm’s Consumer sector.
Since joining General Atlantic in 2012, Mr. Joseph has also been active in General Atlantic’s
Technology sector. Prior to General Atlantic, he was an Associate at Hellman & Friedman from
July 2007 to July 2010. He also serves as a board observer at Squarespace and as a member of the
board of directors of European Wax Center, Torchy’s Tacos and 80 Acres. Mr. Joseph earned a
B.S. from the McIntire School of Commerce at the University of Virginia and an M.B.A. from
Harvard Business School. We believe Mr. Joseph is well-qualified to serve on our board of
directors because of his significant business and leadership experience in the consumer services
sector.
Stacy Donnelly has served as our Chief Operations Officer since June 2020. Prior to joining
Restore Franchising, Stacy served in various roles at Abbott Laboratories in Austin, Texas,
including Senior Director of Global EDU & Marketing from January 2020 until June 2020,
Director of Global EDU from August 2018 until June 2020 and Senior Manager of US Marketing
from January 2015 until August 2018. Stacy is based in Austin, Texas.
David Fossas has served as our Chief Marketing Officer since February 2020. Prior to joining
Restore Franchising, David served as the Senior Brand Director for WP Engine in Austin, Texas.
Prior to joining WP Engine, David served in various roles at W20 Group in San Francisco,
California, including Practice Leader of Media & Engagement from September 2015 until March
2016 and Practice Leader of Strategy & Planning from March 2014 until September 2015. David
is based in Austin, Texas.
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JJ Durant has served as our Director of Franchise Development since January 2018, initially as the
interim Director until he was promoted to Director in April 2019. JJ also has been a multi-unit
franchise owner of Restore Centers in Seattle, Washington, since January 2019. JJ served as the
Ultra Orphan Rare Disease Specialist at NPS Pharma in Seattle, Washington from April 2016 until
April 2019 and the Senior Federal Account Manager at Salix Pharmaceuticals in Seattle,
Washington from April 2013 until April 2016.
Trent joined Restore in March 2021, as our Chief Financial Officer and is based in Austin, Texas.
Trent joins Restore from Expedia, where he served as the CFO for the global Retail group of the
travel company from May 2020 until March 2021. Prior to this role, Trent served as the CFO for
Vrbo, the vacation rental online marketplace (acquired by Expedia), from March 2016 to May
2020. Trent also served as Sr. Vice President of Finance for Vrbo (previously known as
HomeAway) for over eight years.
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If we grant you multi-unit development rights for the development of three or more Restore
Centers under a Multi-Unit Development Agreement, you must pay a standard development fee
(the “Development Fee”), which is calculated as a function of the sum of the discounted initial
franchise fee for the Restore Centers to be developed as follows:
Where we grant you the right to develop 3-4 Restore Centers, the initial franchise fee will
be $42,000 per Center.
Where we grant you the right to develop 5-9 Restore Centers, the initial franchise fee will
be $40,000 per Center.
Where we grant you the right to develop 10-19 Restore Centers, the initial franchise fee
will be $35,000 per Center.
Where we grant you the right to develop 20 or more Restore Centers, the initial franchise
fee will be $20,000 per Center.
You must pay us the Development Fee in multiple installments that correspond with the
development periods in the Development Schedule (each a “Development Period”) as follows:
(a) within 7 calendar days of signing the Multi-Unit Development Agreement, you must pay us
the sum of the full initial franchise fees for the Restore Centers to be developed during the first
Development Period and 50% of the initial franchise fees for the remaining Restore Centers to be
developed under the Development Schedule, and (b) within 7 calendar days of the start of each
subsequent Development Period, you must pay us the remaining 50% of the initial franchise fees
for the Restore Centers to be developed during that Development Period.
Notwithstanding the foregoing, if we grant you the right to develop 20 or more Restore Centers,
you must pay us a Development Fee equal to the full initial franchise fees for all Restore Centers
you agree to develop under the Development Schedule within 7 calendar days of signing the Multi-
Unit Development Agreement.
When you sign the Franchise Agreement for each Restore Center to be developed under a Multi-
Unit Development Agreement, we will apply all or a portion of the Development Fee, as
applicable, against the initial franchise fee as described above.
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For each Center to be opened during a development period set forth in the Multi-Unit Development
Agreement, the Franchise Agreement is to be signed at the beginning of that period.
Franchise Agreement.
If you sign an individual Franchise Agreement, the standard initial franchise fee is $44,500 and is
payable on signing the Franchise Agreement. The initial franchise fee may be less for certain
legacy franchisees with whom we have agreed to a lesser initial franchise fee based on
commitments to open additional Centers. During 2021, the initial franchise fees actually paid for
single unit franchises ranged from $20,000 to $44,500 (our then-current initial franchise fee).
If you sign a Multi-Unit Development Agreement, the Development Fee will be credited in full against
the initial franchise fee to be paid under each Franchise Agreement executed thereunder.
If you sign a Franchise Agreement to renew your rights under an existing agreement, you must
pay a renewal fee equal to 50% of our then-current franchise fee. If you sign a Franchise
Agreement in connection with buying an existing franchised Restore Center, you must pay our
then-current transfer fee, currently $10,000.
Except as described in this Item 5, the initial fees are uniformly imposed and not refundable in
whole or in part.
We may require you to retain our affiliate or designee to perform certain construction management
services, including appointing an architect and general contractor, reviewing bids, supervising
construction, and overseeing the construction process for conformance to brand requirements in
exchange for a one-time fee of $13,000 payable by you upon receipt of Certificate of Occupancy.
If you demonstrate proper capability and adequate capacity to successfully manage the
construction process with reduced oversight, as we determine in our sole discretion, you may elect,
by providing us with advanced written notice, to limit our requirements for construction
management services to only critical components of the process for any subsequent Center in
exchange for a reduced cost of $7,500 per Center.
If you desire to use an architect for the development of your Center who is not approved by us,
you must pay us a fee equal to $1,500 in connection with our consideration and review of such
architect (“Outside Architect Vendor Review Fee”). Additionally, if you desire to use a general
contractor for the development of your Center who is not approved by us, you must pay us a fee
equal to $1,500 in connection with our consideration and review of such requested general
contractor (“Outside GC Review Fee”). You must pay us the Outside Architect Vendor Review
Fee and/or the Outside GC Approval Fee upon demand.
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Additionally, you must pay us or our affiliate (as an approved supplier) between $242,509 and
$489,964 for equipment (including, the cryotherapy chamber, local cryotherapy machine, infrared
sauna, mild HBOT chamber, oxygen monitoring system and PBM, compression, pulsed
electromagnetic field mats, and related equipment) and supplies (including, initial medical
supplies) that you are required to purchase and maintain for the operation of your franchised
business (which, for certain equipment, you are currently required to purchase from our affiliate,
Hyper Supply, LLC, as further described in Item 8). These amounts do not include shipping and
tax expenses which you also must pay and which may range from $10,000 to $50,000. Payment
for the equipment is not refundable under any circumstances. In addition, we do not charge for
your initial or first follow- up site selection visit, but we reserve the right to charge our then-current
fee (as of the issuance date of this disclosure document, $2,000 per site visit) for each additional
site visit you request or we determine necessary in evaluating your proposed site.
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Franchise Agreement
Type of Fee
(See Note 1) Amount Due Date Remarks
Royalty Fee 7% of Gross Sales 5 days after Gross Sales and Reporting Period are
each defined in Note 2. No Royalty Fee will be
Reporting charged for Gross Sales accrued during the
Period first 30 days after the Center first opens.
Brand Fund Up to 2% of Gross Monthly, 5 You will be required to make monthly
Contribution Sales days after the contributions to the brand fund. Gross
end of each Sales is defined in Note 2. No Brand Fund
month Contribution will be charged for Gross
Sales accrued during the first 90 days after
the Center first opens. Upon 30 days’
notice, we may require you to pay Brand
Fund Contributions on a semi-monthly
Reporting Period basis consistent with the
payment of Royalty Fees.
Local Marketing Currently $2,500 Monthly, 5 At your or our option, we or our
Services days after the designated agency will provide you with
end of each local marketing services, including digital
month marketing management services. We will
credit this fee towards your local
advertising obligations.
Marketing Creative Standard fee, currently As incurred At your request, we will provide you with
Services Fee $75 per hour marketing design services for an hourly
(Note 3) fee.
Software/Technology Standard fee, currently As incurred We will provide you access to our
Fee $600 per month and monthly, approved Point of Sale system.
(Note 3) 5 days after
the end of
each month
Outside Architect $1,500 for diligence As incurred. We may charge you this fee in connection
Vendor Review and vetting of with our consideration and review of any
(Note 3) Franchisee's preferred architect you propose to use that is not
architect currently on our approved list.
Outside GC Approval $1,500 for diligence As incurred. We may charge you this fee in connection
(Note 3) and vetting of with our consideration and review of any
Franchisee's preferred general contractor you propose to use that
GC is not currently on our approved list.
Equipment Servicing $450/mo for 5 years Monthly, 5 If you elect to purchase our optional
and Warranty Costs days after the equipment servicing and warranty service,
(Note 3) end of each you will be charged $450/month for 5
month years or may elect to pay a one-time sum
of $19,000 upon enrollment.
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NOTES:
All fees are non-refundable, uniformly imposed, and are payable to us, unless otherwise noted.
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“Gross Sales” means the total revenues for all Authorized Services (as defined in Item 16) and all
other revenue of every other kind and nature related to the Center including, without limitation, all
administrative services fees and revenues earned under or pursuant to any administrative services
agreements or arrangements in place with any Authorized Care Provider, whether for cash, cash
equivalents, or credit, and regardless of collection in the case of credit. Proceeds from the sale of
coupons, gift cards, gift certificates or vouchers will not be included in Gross Sales when the
coupons, gift cards, gift certificates or vouchers are sold; rather, the retail prices of services
purchased with coupons, gift cards, gift certificates or vouchers will be included in Gross Sales
during the Reporting Period in which the coupon, gift card, gift certificate or voucher is redeemed.
Gross Sales also includes the proceeds of any business interruption insurance applicable to the
Center. Gross Sales will expressly exclude the following: tips and gratuities, sums collected and
actually paid by Franchisee for any sales or other excise tax imposed by any duly constituted
government authority. In the case of Franchisor- established promotional discounts implemented
by Franchisee at the Center, the amount actually paid by the guest after the discount, rather than
the original amount, will be considered for purposes of calculating Gross Sales. “Reporting
Period” means each semi-monthly period ending on the 15th day of and the last day of each
calendar month.
Your Center must obtain and purchase all of the mandatory services related to the development or
operation of your Restore Center that we provide, and may elect to accept and participate in some
or all of the optional services we provide to franchised Restore Centers, and you will pay all fees
and charges for such mandatory and optional services in which you participate. The current
mandatory and optional services provided by us and related fees and charges are set forth in the
table in this Item 6. We have the right periodically to do any of the following: (a) modify the nature
and character of such services and increase or revise related mandatory or optional fees and
charges; (b) add new mandatory or optional services or discontinue such existing services; and (c)
revise any mandatory service to become optional or any optional service to become mandatory;
provided, however, in conjunction with any service being designated mandatory, such service will
be implemented at substantially all franchised Restore Centers located in the U.S. Fees and charges
will be determined on the same basis for all franchised Restore Centers that are participating in the
service and may include: (a) overhead costs allocable to providing such service, including
compensation of personnel directly involved in providing such services; (b) recovery of
development costs for such service; (c) costs of tangible and intangible property employed in
providing such service; and (d) costs of operating, maintaining and upgrading such service.
If you sign a Multi-Unit Development Agreement, you should review both the above table of fees
applicable to Franchise Agreements, as well as the following table of fees applicable to the MUDA:
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Note 1: All fees are non-refundable and uniformly imposed by and payable to Restore Franchising.
ITEM 7
ESTIMATED INITIAL INVESTMENT
Franchise Agreement
To Whom
Type of Method of Payment is to be
Expenditure Amount Payment When Due Made
Initial Franchise Fee $20,000 - $44,500 Lump sum Upon FA Restore Only
(See Note 1) Execution
Architect & Permitting $15,000 - $30,000 As required As incurred Non-Restore
Fees (See Note 2) Parties Only
Leasehold $253,000 - $416,000 As required As incurred Landlord
Improvements (See
Note 3)
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See Item 5.
Your permitting costs may be greater or less depending on whether you use nitrogen in the
performance of the Authorized Services or other substances, materials or equipment that are
regulated in the jurisdiction in which you operate you Center.
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These figures cover the costs related to demolition construction, remodeling, repair, insulation,
doors and hardware, partition walls, ceilings, flooring, painting, decoration acquisitions and
installation of fixtures, leasehold improvements and other fixed assets, cabinets, plumbing, HVAC,
electrical, fire and security systems, decorating, and similar costs. This disclosure is net of tenant
upfit allowance which we estimate will range from $0 to $250,000. The tenant upfit allowance will
vary depending on the number of factors, including supply and demand for the locations within
the shopping center. You may either own or lease the premises for your Center, but we expect
most franchisees to lease. Restore Centers are generally located in high traffic retail shopping
centers, preferably in the vicinity of a national grocery store or health clubs, and range in size from
2,200 to 2,800 square feet. The cost of the required leasehold improvements will depend on the
size of the premises, location, material costs, labor costs, amount the landlord is willing to assume,
and other economic factors. In a build-to-suit lease, the landlord may include some or all of the
improvements, fixtures, equipment, and signs which may be factored into your lease payments. If
you decide to purchase the land and build your Center, we are unable to estimate its cost. The cost
of acquiring real estate, developing the site, and constructing the building for the Center will likely
vary significantly depending on the geographic location, the specific site, size of the building, and
other economic factors.
Note 4. Equipment.
This estimate includes the cryotherapy sauna, hyperbaric oxygen chamber, infrared sauna, LED
panels, pulsed electromagnetic field matting and other equipment to be purchased from us, our
affiliate Hyper Supply, LLC or in limited circumstances potentially other pre-approved suppliers.
See Items 5 and 8. Currently, our affiliates are the only approved supplier of the vast majority of
Operating Assets, including the cryotherapy chamber, local cryotherapy machine, infrared sauna,
mild HBOT chamber, oxygen monitoring system and PBM, compression, pulsed electromagnetic
field mats and related equipment, as well as certain supplies used in connection with performing
the Services.
You are required to spend a minimum of $25,000 on pre-opening and grand opening advertising
campaigns commencing approximately five months prior to opening your Center through the 45-
day period following the date your Center opens for business to the public, including without
limitation campaigns related to pre-opening membership program sales.
This estimate of rental range accounts for the substantial variations in retail rental rates across the
United States dependent in large part upon geographic region and the local real estate market. (See
Note 3.) You may either own or lease the premises for your Center, but we expect most franchisees
to lease. Restore Centers are generally located in high traffic retail shopping centers, preferably
in the vicinity of a national grocery store or health clubs, and range in size from 2,200 to 2,800
square feet. We estimate your monthly rent to range between $8,107 and $17,713, however, the
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This estimate includes hardware and software to be purchased from us or our affiliates (See Items
5, 6, 8 and 11.)
This estimate contemplates 2 - 3 employees for approximately 8 - 10 weeks prior to opening. This
estimate includes the cost of wages only.
This estimate includes legal and accounting fees you may incur while developing your Center.
The cost of your insurance coverage will vary depending on the insurance carrier’s charges, the
terms of payment, and your insurance history. You must also carry the insurance required by your
landlord and applicable law. We set certain minimum required insurance coverages, but it is your
responsibility to determine the appropriate and maximum insurance coverage for your Center,
including without limitation any coverage that may be required or recommended with respect to
Authorized Medical Services offered and sold by your Center. We may specify an insurance
agency or insurer as the designated supplier for this service.
Your obligation to obtain and maintain the insurance policies that we require, in the amounts
specified, will not be limited in any way by reason of any insurance maintained by us, nor will
your performance of that obligation relieve you of your liability under the indemnity provisions in
the Franchise Agreement. If you fail to procure or maintain the insurance that we require, we may
(but are not obligated to) obtain the required insurance and charge the cost of the insurance to you,
plus a reasonable administrative fee.
The estimate is based on the potential net operating losses for the first three months of operation
based on the high end of the range for initial investment in development a single Restore Center
and is not an estimate of operating expenses during such three-month period. If you open multiple
centers, the additional funds necessary for your first Center tend to be on the high end of the
estimated range, while the additional funds required for subsequent Centers will tend to fall on the
lower end of the estimated range. These figures are estimates based upon our experience in opening
and operating company-owned Centers.
The amounts provided in this table include costs you will incur to start your business under the
Franchise Agreement. Except as otherwise noted, none of these payments are refundable. These
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You should review these figures carefully with a business advisor, accountant or attorney before
making any decision to purchase a franchise. We do not offer any financing for your initial
investment or any other items. The availability and terms of financing with third-party lenders will
depend on factors such as the availability of financing generally, your creditworthiness and
policies of lending institutions concerning the type of business to be operated.
If you purchase an existing company-owned Restore Center, you may have to make a greater or
smaller investment, depending on the circumstances, than the estimated initial investment shown
above. The price and terms of payment for such Restore Center will be established by mutual
agreement.
To Whom
Method of Payment is to
Type of Expenditure Amount Payment When Due be Made
Initial Development Fee $84,000 – Lump sum On signing the Us
(See Note 1) $400,000 Multi-Unit
Development
Agreement
Additional Funds – 3 $100,000 – As incurred As incurred Third parties
Months (See Note 2) $200,000
Total Initial Investment of a $641,957 – See table above.
Single Restore Center (See $1,184,535
Note 3)
TOTAL ESTIMATED $825,957 -
INITIAL INVESTMENT $1,784,535
(See Note 4)
If you sign a Multi-Unit Development Agreement, the Development Fee will vary significantly
depending upon the number of Centers you are required to develop (See Item 5). You will be
required to pay us the Development Fee in multiple installments. The initial Development Fee is
equal to the sum of the full initial franchise fees for the Restore Centers to be developed during
the first Development Period and 50% of the initial franchise fees for the remaining Restore
Centers to be developed under the Development Schedule. However, if we grant you the right to
develop 20 or more Restore Centers, you must pay us a Development Fee equal to the full initial
franchise fees for all Restore Centers you agree to develop under the Development Schedule within
7 calendar days of signing the Multi-Unit Development Agreement. We expect the Multi-Unit
Development Agreement to cover between 3 and 20 Restore Centers.
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This amount covers the costs needed to begin looking for sites in the Development Area and for
business plan preparation and related expenses during the initial 3-month period after signing the
Multi-Unit Development Agreement. You will need funds for working capital, in an estimated
amount of one hundred thousand dollars ($100,000) to two hundred thousand dollars ($200,000)
to pursue your development obligations. There is no additional investment for training, real
property, equipment, fixtures, other fixes assets, construction, remodeling, leasehold
improvements, decorating costs, inventory, security deposits, utility deposits, business licenses or
other prepaid expenses required under the Multi-Unit Development Agreement. You will incur
costs for these items, and other expenses associated with developing and operating a Restore
Center, under the Franchise Agreement. We cannot assure you that you will not have additional
expenses in starting your Center.
For more information, please see the Estimated Initial Investment table for the Franchise
Agreement above. An initial investment will be required for each Restore Center you open. Our
current estimate of the range this initial investment is described above. However, you will not be
responsible for paying the full amount of the initial franchise fee. As mentioned above, when you
sign the Franchise Agreement, we will apply all or a portion of the Development Fee, as applicable,
against the initial franchise fee payable under each Franchise Agreement and you will pay the
balance of the initial franchise fee, if any.
These figures are estimates based upon our experience in opening and operating company-owned
Centers.
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You must operate your Center in strict compliance with the Standards we prescribe for
development and operation of a Restore Center, all of which may change. The Standards may
regulate, among other things, types, models, and brands of required furniture, fixtures, signs, and
equipment (including components of and required software licenses for the Technology System
(defined below) for the Center (collectively, “Operating Assets”); required, authorized, and
unauthorized Services and products for the Center; and designated and approved suppliers of items
and services. You must buy or lease all Operating Assets and other products and services for the
Center only according to our Standards and, if we require, only from suppliers we designate or
approve (which may include or be limited to us, our affiliates, and/or other restricted sources). You
must maintain a sufficient supply of required supplies and products to meet the inventory standards
we prescribe in the Standards (or to meet reasonably anticipated customer demand for the Services,
if we have not prescribed specific standards).
Our Standards, which are set forth in the Manuals or otherwise in writing, may impose minimum
requirements for quality, cost, delivery, performance, design and appearance, delivery capabilities,
financing terms, and ability to service to the Restore Hyper Wellness network as a whole. We may,
at any time, change, delete, add to or modify any of our Standards. These changes, deletions,
additions or modifications may require additional expenditures by you. We will notify you of any
changes to our Standards or approved suppliers or service providers.
Currently, Hyper Supply, LLC or another affiliate of ours is the only approved supplier for all or
the vast majority of the Operating Assets, including the cryotherapy sauna, local cryotherapy and
hydrafacial equipment, infrared sauna, mild hyperbaric oxygen chamber, oxygen monitoring
system, and photobiomodulation panels and bulbs, pulsed electromagnetic field mats, compression
sleeves and related equipment, as well as all furnishings, fixtures, signage, medical supplies and
certain other materials and supplies used in connection with furnishing, decorating and operating
the Restore Center and performing the Services. In addition, you must obtain certain components
of, or upgrades to, the Technology System and maintenance and support services related to the
Technology System from us or our affiliates.
You will be required to obtain the services of an Authorized Care Provider under applicable
Authorized Care Provider Regulations in connection with the offer, sale and performance of
certain Services (the “Authorized Medical Services,” as further described in Item 16), and must
use an Authorized Care Provider that satisfies the Standards and is pre-approved in writing by us,
which approval may be withheld or denied in our sole and absolute discretion. “Authorized Care
Provider” means licensed medical professionals and health care providers including physicians
and advance practice registered nurses.
Development of Center.
We must approve the site for your Center and the site must meet our then- current site criteria. We
will provide you with our standard site selection criteria and/or on-site evaluation of sites as we
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At our option, you must use our designated master broker in connection with identifying the site
for your Center. If you lease the site for your Center, you are required to have the landlord sign
the Lease Addendum attached to the Franchise Agreement as Exhibit E. Under the Lease
Addendum, we will have the right, but not the obligation, to take possession of your Center
premises if your Franchise Agreement or lease is terminated.
You are obligated, at your expense, to have an architect designated by us or that meets our
Standards prepare all required construction plans based on our prototype designs for Restore
Centers. You are required to use our designated provider of construction management services
(which may be us or any one of our affiliates) in connection with the construction and finish-out
of your Center.
Insurance.
You must obtain and maintain, at your own expense, the insurance coverage we require, and you
must meet the other insurance-related obligations set forth in the Franchise Agreement and the
Manuals. We may amend the insurance requirements or add additional coverage requirements at
any time upon notice to you. The insurance policy or policies must be written by a responsible
carrier or carriers reasonably acceptable to us, name us (or our designated affiliate) as an additional
insured, and include, at a minimum (except as additional coverage and higher policy limits may
reasonably be specified by us from time to time), in accordance with our written standards and
specifications, the following: (a) commercial general liability insurance; (b) all risk property
insurance, including fire and extended coverage, vandalism and malicious mischief insurance for
the replacement value of your Restore Center and its contents with a minimum of six months of
business interruption coverage; (c) commercial auto liability insurance covering owned, borrowed,
hired and non- owned autos; (d) statutory workers’ compensation/employer’s liability insurance;
(e) employment professional liability insurance, and (f) such other insurance policies as we may
determine from time to time. We may designate an insurance agency or insurer as a designated
supplier for certain types of insurance policies.
Technology System.
You must obtain, maintain, use and upgrade the hardware, software, and other equipment and
network connections that we specify periodically in the Standards necessary to operate the point
of sale system, membership management system, medical records system, marketing systems,
enterprise management system and such other technology solutions as we may designate from time
to time (collectively, the “Technology System”) in the operation of your Center, including specific
components of the Technology System that we specify from a single designated supplier. If we
require you to use any proprietary software or to purchase any software from a designated vendor,
you must execute any software license agreements that we or the licensor of the software require
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Operating Assets.
You must purchase or lease only such types, brands and models of fixtures, furniture, equipment,
signs and supplies which we authorize or approve for Restore Centers as meeting our standards
and specifications (including standards and specifications for quality, design, warranties,
appearance, function and performance) and/or are purchased from suppliers authorized or
approved by us (which may include us and/or any of our affiliates). We may periodically modify
the list of approved brands and/or suppliers in our sole discretion. After notice of such
modification, you may not reorder any brand or reorder from any supplier which is no longer
approved.
Where we have designated an exclusive supplier for certain equipment, furnishings, fixtures, signs
or supplies that are required in the operation of the Center, you may acquire such equipment,
furnishing, fixtures, signs or supplies only from such supplier. Our current designated exclusive
supplier for all or the vast majority of equipment, furnishings, fixtures, signs, supplies and other
materials you must acquire or purchase to operate its Center is Hyper Supply, LLC.
If you propose to purchase from an alternative supplier any item not designated by us to be
purchased exclusively from a supplier, you and the proposed supplier must submit to us all
information that we request in order to determine whether to approve the supplier. Requests to
approve suppliers of goods and services of a clinical nature related to Authorized Medical Services
may, to the extent required under applicable laws, necessitate the approval or recommendation of
the Center’s Authorized Care Provider. We, in consultation with our clinical advisors as necessary,
will have the right to approve or disapprove any supplier, and we may approve a supplier
conditionally. In evaluating any supplier you propose, we may, subject to restrictions and
conditions to protect confidential information, disclose to such proposed supplier applicable
standards, specifications and procedures for the item in sufficient detail to enable the proposed
supplier to demonstrate its capacity and capabilities to supply the items in accordance with our
requirements. Within 30 days after we receive all requested information, we will communicate to
you in writing our decision to approve or disapprove your proposed alternative supplier. We will
evaluate proposed alternative suppliers on their ability to comply with applicable standards,
specifications, processes and procedures, and we will only approve those proposed alternative
suppliers that meet our high standards. We may disapprove any supplier who we previously
approved, and you may not, after receipt of notice of disapproval, reorder from any supplier we
have disapproved.
We may prescribe procedures for the submission of requests for approval and impose obligations
on alternative approved suppliers, which will be incorporated in a written agreement with the
supplier. We may obtain from you and/or such alternative approved suppliers reimbursement of
our reasonable costs and expenses incurred in connection with the approval process and on-going
monitoring of the supplier’s compliance with its requirements, but we will not profit from the sale
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We or our affiliates may derive revenue and other benefits based on your purchases and leases,
including from charging you for products and services we or our affiliates provide to you and from
promotional allowances, volume discounts, and other payments made to us by suppliers and/or
distributors that we designate or approve for some or all of our franchisees. We and our affiliates
may use all amounts received from you or suppliers and/or distributors, whether or not based on
your or other franchisees’ actual or prospective dealings with them, for general working capital
purposes, without restriction for any purposes we or our affiliates deem appropriate.
During the fiscal year ended December 31, 2021, we did not earn any revenue from required
purchases and leases by franchisees.
During the fiscal year ended December 31, 2021, Austin Ventures and/or an affiliate earned
combined revenues of $18,265,536 from required purchases made by franchisees. None of our
affiliates earned any revenue from required real estate leases by franchisees. In addition, Austin
Ventures or an affiliate has arrangements with certain suppliers to receive rebates as a result of
required purchases by franchisees from these suppliers and earned $311,760 from rebates during
the fiscal year ended December 31, 2021.
We estimate that the cost to purchase and lease all equipment, inventory and other items and
services that we require you to obtain from us or our affiliates is approximately 28%-38% of the
total cost to purchase and lease equipment, inventory, and other items necessary to establish a
Center and 10%-20% of the total cost to purchase and lease equipment, inventory, and other items
to operate a Center.
We are not involved in any purchasing or distribution cooperatives. We may, but are not obligated
to, negotiate purchase arrangements with suppliers for the benefit of franchisees. As of the issuance
date of this disclosure document, we have not negotiated any such arrangements.
Material Benefits.
We do not provide material benefits to franchisees (for example, renewal of existing or granting
additional franchises) based on their use of designated or approved suppliers.
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Except as described above, neither we nor any of our Affiliates derives revenues or other material
consideration as a result of your purchases from other suppliers.
One or more of our officers owns an interest in Austin Ventures, which in turn wholly owns Hyper
Supply, LLC, and Zimno Tech sp.z.o.o, each of which may act as supplier to our franchisees.
Otherwise, none of our officers has an interest in any supplier.
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This table lists your principal obligations under the franchise and other agreements. It will
help you find more detailed information about your obligations in these agreements and in
other items of this Disclosure Document.
ITEMS IN
SECTION IN THE FA DISCLOSURE
OBLIGATION AND MUDA DOCUMENT
(a) Site selection and Section 4 FA; Sections 2(a) Item 11
acquisition/lease and 2(b) MUDA
(b) Pre-opening Sections 7 and 8 FA Items 6,7 and 8
purchases/leases
(c) Site development and other Sections 4,5,6,7,8,9 and 11 Item 11
pre-opening requirements FA
(d) Initial and ongoing training Section 5 FA Items 5, 6, 7 and 11
(e) Opening Section 4(f) FA Items 5, 7 and 11
(f) Fees Section 3 FA; Section Items 5, 6 and 7
1(a)and Exhibit A MUDA
(g) Compliance with standards Sections 6(d) and 6(e) FA Items 8, 11 and 14
and policies/Operations
Manual
(h) Trademarks and Section 14 FA; Section 5 Items 13 and 14
proprietary information MUDA
(i) Restrictions on Sections 6(a) and 6(c) FA Items 8 and 16
products/services offered
(j) Warranty and customer Not Applicable Not Applicable
service requirements
(k) Territorial development Section 4(b) FA; Section 1 Item 12
and sales quotas MUDA
(l) Ongoing product/service Section 7 FA Item 8
purchases
(m) Maintenance and Sections 6(e)-(g) FA Item 11
appearance requirements
(n) Insurance Section 13 FA Item 7
(o) Advertising/Marketing Section 9 FA Items 6, 7 and 11
(p) Indemnification Sections 14(f) and 20 FA; None
4(b) MUDA
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We do not offer direct or indirect financing. We do not guarantee your note, lease or obligations.
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Except as listed below, we are not required to provide you with any assistance.
Pre-Opening Obligations
1. We will determine the Development Area within which you will select sites for Restore
Centers and provide you with general guidance in selecting sites. We will provide you with
our standard site selection criteria and/or on-site evaluation of sites as we deem appropriate.
(Multi-Unit Development Agreement, Section 2). Sites are subject to our approval and
must meet our then-current site selection criteria. We describe our site selection process
and your obligations below.
2. You must identify and obtain our approval of a site within 3 months after signing the
Franchise Agreement. You will complete and submit to us a standard site selection
application form for a proposed site. Absent our express written permission otherwise, you
must use and coordinate with our designated master broker in connection with site selection
at the outset of your search and all related undertakings and activities. We will provide site
selection assistance as we deem advisable, including site selection guidelines and analytics
and design specifications and conducting one on-site evaluation of a proposed site,
provided that you have submitted a complete site selection application form. You must pay
our then current on-site evaluation fee if you request multiple on-site evaluations. We will
have 30 days after receipt of the complete site selection application form to accept or reject
your proposed site. (Franchise Agreement, Section 4(a)-(b)). If we reject the proposed site,
you must promptly submit another site selection application form for a proposed site. We
will not unreasonably withhold our acceptance of a site that meets our then current criteria
for demographic characteristics; access, traffic patterns; parking; visibility; character of
neighborhood; competition from, proximity to, and nature of other businesses; other
commercial characteristics; and the proposed site’s size, appearance, and other physical
characteristics. If you and we cannot agree to a site for your Center within 3 months after
you and we sign the Franchise Agreement, we may terminate the Franchise Agreement
upon notice and 30 days opportunity to cure such default. We generally do not own sites
and lease them to franchisees, lease sites and sublease them to franchisees, or select sites
for franchisees.
3. We will furnish prototypical plans and specifications for a Restore Center, including
requirements for dimensions, design, image, interior layout, décor, fixtures, equipment,
signs, furnishings, storefront and color scheme. You must prepare all required architectural,
engineering, and design plans to suit the shape and dimensions of the Premises, and you
must ensure that these plans and specifications comply with applicable ordinances,
building codes, regulatory licensing and permit requirements, and with lease requirements
and restrictions. You must submit your plan to us, and upon our request, submit all revised
or “as built” plans during the course of construction. You must use in the development and
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5. We provide training to the Operator, General Manager and Lead Nurse (Franchise
Agreement, Section 5(a)), including training related to pre-opening membership program
sales. However, you will be responsible for all compensation and expenses (including
training materials, travel, meals and lodging) incurred in connection with any training
programs. This training is described in detail later in this Item.
6. In connection with starting the business at the Center, we will provide an opening team to
provide on-site training. We will determine the number and experience level of the opening
team and the training days necessary to support the opening for the Center based on the
experience and training of the existing personnel at the Center. (Franchise Agreement,
Section 5(b)).
7. We will provide to you access to the Manuals and other proprietary online resources that
we may develop from time to time. (Franchise Agreement, Section 6(d)).
8. We will provide you with information regarding approved, required and preferred products,
suppliers, Operating Assets and services. (Franchise Agreement, Section 7 and Section 8).
9. In connection with pre-opening and grand opening of your Center, we will provide you
with approval to and will assist you in planning certain pre-opening activities, including
pre-sale memberships for your Center. We will also provide you with approval and will
assist you in training, marketing, promotion and advertising off-site Services through the
concierge nursing care program, and review and approve or reject your grand opening
advertising campaign. (Franchise Agreement, Section 6(n) and Section 9(f)).
Post-Opening Assistance
During the operation of your Center, we will perform the following services:
1. We may provide you and/or your employees with additional training. We may also provide
mandatory additional training if you appoint a new Operator, General Manager or new
Lead Nurse. (Franchise Agreement, Section 5(c)).
3. We may periodically update the Standards and Manuals. (Franchise Agreement, Section
6(d)).
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5. At your option, we will manage certain marketing activities, including digital marketing.
(Franchise Agreement, Section 9(d)).
6. We may establish and administer gift card, loyalty and/or membership programs (Franchise
Agreement, Section 9(g)).
7. We will manage and/or sublicense software programs that we designate to be used in the
operation of your Center, including point of sale software, software to manage
memberships, reservations, customer information and customer relations, (Franchise
Agreement, Section 8(b)).
8. We may conduct inspections and audits, and if conducted, may provide you with
performance assessments and advise you of the corrective actions that you must take in
connection with any failed key performance indicators (Franchise Agreement, Section
12(b)).
9. We will review and approve or reject alternative suppliers and products that you may
propose in accordance with our then-current Standards (Franchise Agreement, Section
7(b)).
10. We may provide any optional services listed in Exhibit D of the Franchise Agreement that
you may request.
Time to Opening
We estimate it will take you between 9 to 11 months to open your Center from the date you and
we sign the Franchise Agreement or the date you pay us the Initial Franchise Fee (whichever is
first). However, these time estimates may vary depending on numerous factors including location,
construction schedules, financing and licensing and permitting that you may be required to obtain
under applicable law in the jurisdiction where your Center is located, including without limitation
as required by Authorized Care Provider Regulations. You must open the Center by the Opening
Date specified in the Franchise Agreement, provided that if the parties do not execute Exhibit B to
the Franchise Agreement for any reason, then the Opening Date will be the date that is 270 calendar
days after the effective date of the Franchise Agreement (Franchise Agreement, Section 4(b) and
Section 4(f)).
Advertising
Our Advertising. If we conduct media advertising, we may use direct mail, print, radio, Internet,
or television (which may be national, regional or local in scope). We may produce the marketing
materials in-house or employ a local, regional or national advertising agency. We are not obligated
to conduct any advertising or marketing programs within your market.
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We established the Brand Fund in January 2021. The Brand Fund will be maintained and
administered as follows:
(1) The Brand Fund will be intended to maximize the goodwill and public image of the
Brand and will be administered for the creation and development of marketing,
advertising, brand positioning (and repositioning) and related research and design
programs, campaigns and materials. We will direct all initiatives related to the
positioning of the brand using the Brand Fund, including advertising and marketing
programs (e.g., research methods, branding, creative concepts and materials,
sponsorships, and endorsements); selection of geographic and media markets; and
media placement and the allocation. We may use the Brand Fund to pay the costs
of research and development, agency of record services, market research (e.g.,
customer engagement with the brand, including Center design and décor, uniform
design, customer service techniques, customer research and focus groups) creation
and production of video, audio, electronic, and written advertising and marketing
programs; administration of regional, multi-regional, and national advertising and
marketing programs and sponsorships, customer research and surveys, and testing
and related development activities; promotional events; purchasing and
participating in online, social media, radio, television, and billboard advertising and
programming; employing marketing, advertising and promotional agencies to assist
therewith; conducting community relations activities; and supporting public
relations, maintenance of Restore Hyper Wellness websites and online presence;
and such other advertising, marketing, and promotional activities as Franchisor
determines are appropriate for the Restore Centers and the Marks and Restore
Hyper Wellness network. The Brand Fund will furnish you with samples of
advertising, marketing formats, promotional formats, and other materials at no
additional cost when we deem appropriate. Duplicate copies of such materials will
be furnished to you at your cost plus any related shipping, handling, and storage
charges. (Franchise Agreement, Section 9(a)). The “Marks” means the Restore
Hyper Wellness trademarks and service marks and such other registered and
unregistered trademarks, trade names, service marks, logos, slogans, emblems and
other indicia of origin we periodically designate in writing for use in connection
with the System.
(2) The Brand Fund will be accounted for separately from our other funds and will not
be used to defray any of our general operating expenses, except for such reasonable
salaries, administrative costs, travel expenses, and overhead as we may incur in
activities related to the administration of the Brand Fund and its programs,
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(3) The Brand Fund is intended to maximize recognition of the Marks and patronage
of Restore Centers generally. Although we will endeavor to utilize the Brand Fund
to develop advertising and marketing materials and programs and to place
advertising that will benefit the Restore Hyper Wellness network, we undertake no
obligation to ensure that expenditures by the Brand Fund in or affecting any
geographic area are proportionate or equivalent to the Brand Fund Contributions
made by Restore Centers operated in that geographic area, nor are we under any
obligation to ensure that your Center or any other Restore Center will benefit
directly or in proportion to its Brand Fund Contribution. Except as expressly
provided in the Franchise Agreement, we assume no direct or indirect liability or
obligation to you with respect to collecting amounts due to, or maintaining,
directing or administering the Brand Fund. We reserve the right to terminate (and,
if terminated, to reinstate) the Brand Fund. If the Brand Fund is terminated, all
unspent monies on the date of termination accrued will be expended for
advertising/marketing initiatives for the benefit of the franchisees until fully
exhausted. (Franchise Agreement, Section 9(c)).
(4) We do not use Brand Fund contributions principally to solicit new franchise sales.
The total amount collected in fiscal year 2021 for the Brand Fund was $812,264.36. The total
amount of Brand Fund expenditures was $207,000 which constituted 25% of total collections and
were directed towards working media as reflected in the table below. All contributions that
remained in the Brand Fund as of December 31, 2021 will be carried forward for use in 2022 and
subsequent years.
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We may withdraw our approval at any time if any such activity or campaign fails to comply with
our then-current Standards. We may require you to retain us or our designee for standard periodic
fees to engage in certain marketing activities, including digital marketing. The fee we collect will
be credited towards your local advertising obligations.
Pre-Opening Membership Sales. You will perform pre-opening membership sales activities during
the 5-month period preceding opening your Center (or such other period as we may prescribe). All
such membership sales activities must comply with the Standards and the Franchise Agreement.
Before you may commence membership sales activities: (i) you must have received notice that we
activated your designated online account that allows you to manage and track memberships and
sales for your Center, and authorized you in writing to sell memberships to the public; (ii) you (or
your Operator) and the General Manager must complete to our satisfaction the presales training
program; and (iii) you must have secured all financing and permits necessary to develop, build and
fully equip the Center as set forth in the Franchise Agreement. You must also comply with and
certify to us in writing that you have obtained all necessary bonds and otherwise have complied,
and will comply, with all applicable laws relating to your presale of memberships. (Franchise
Agreement – Section 4(e))
Grand Opening. You must develop and implement a pre-opening and grand opening promotion
approved by us for your Center. You must spend a minimum of $25,000, as determined by us and
based in part on the particulars of your market, for a grand opening program for your Center which
expenditures will commence during the period that is approximately five months before and 45
days following the opening of your Center (or such other period as we may prescribe in the
Standards). We may require you to retain us or our designee for a standard fee to conduct the grand
opening advertising campaign. Alternatively, you will develop and submit to us for approval, at
least 6 months before the Opening Date, your grand opening advertising campaign that conforms
to a template we provide. You must execute and complete the approved grand opening advertising
plan according to its timeline. You may spend more than the minimum amount that we require.
Amounts that you spend on pre-opening and grand opening advertising do not count towards any
other advertising obligations you have under the Franchise Agreement post-opening. (Franchise
Agreement – Section 9(f)).
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Approval of Advertising. Any advertising, promotion, and marketing you conduct must be
factually accurate and not misleading and conform to the highest standards of ethical marketing
and the promotional policies which we periodically prescribe, including, but not limited to, the
Standards and compliance with Applicable Laws. Samples of all advertising, promotional, and
marketing materials which we have not prepared or previously approved in writing within the prior
12 months must be submitted to us for approval before you may use them. You may not use any
advertising or promotional materials or engage in any advertising or promotional campaigns that
we have not approved in writing or have expressly disapproved. We will own the copyrights to
any materials and campaigns submitted, regardless of whether we approve such materials and
campaigns. In all cases, we have control over any profiles that use or relate to the Marks, that
display the Marks, or that are maintained on social media websites and applications and all other
similar websites and applications that may exist in the future. We may use part of the Brand Fund
contributions to pay or reimburse the costs associated with the development, maintenance, and
update of such profiles. We may (but need not) establish guidelines pursuant to which you may
establish profiles or otherwise establish a presence on such social media websites and platforms.
In such event, you must comply with the Standards imposed periodically on such use. You will
sign over control of any social media accounts or profiles, with network bases intact, and provide
access to reports and history of promotion performance, upon our request. (Franchise Agreement,
Section 9(h)).
Franchise Advisory Council. In 2020 we established a franchise advisory council for the purpose
of promoting constructive and open communication between Restore franchisees generally and the
Franchisor regarding the soundness of and means for improving the System, new initiatives, and
other matters bearing on the Brand. The council acts only in advisory capacity and has no
operational or decision-making authority. Currently the council is comprised of five different
franchise operators from various states throughout the United States who were selected by the
Franchisor on the basis of geographic diversity, a history of compliance with brand standards and
having demonstrated requisite willingness to commit the time and energy to serve on the
council. Subsequent members will be elected by franchise owners according to election procedures
established by the Franchisor. Currently the council meets four times per year either in person or
by teleconference at our headquarters in Austin, Texas to conduct its business. Going forward we
retain the right to modify the composition, constitution and purpose of the council in all respects
and for all purposes or to otherwise terminate its existence at any time in our discretion.
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Digital Marketing. We may as part of the Brand Fund or otherwise establish and operate websites,
social media accounts, applications, keyword or ad word purchasing programs, mobile
applications (“Mobile Apps”), or other means of digital advertising on the Internet or any
electronic communications network (collectively, “Digital Marketing”) that are intended to
promote the Brand and/or the network of Restore Centers.
You may be required to enter into a license agreement related to the use of Mobile Apps, and we
may require you to promote the use of the Mobile Apps in the Center or to provide content to be
included in the Mobile App. We may add, discontinue, or modify any Mobile Apps periodically
in our sole discretion.
You may not, directly or indirectly, conduct or be involved in any Digital Marketing that uses the
Brand or that relates to the Center or the network of Restore Centers, nor establishes or maintains
any social media accounts utilizing any usernames, nor associating with any of the Marks, without
our prior written consent. We may require any third-party digital marketing agency you retain to
enter into a management services agreement with us or our affiliate on terms and conditions
satisfactory to us.
Currently, we and our affiliates maintain an Internet website at the uniform resource locator
www.restore.com that provides information about the Restore Hyper Wellness network and
Restore Centers (the “Website”). The Website currently includes a series of interior pages that
identify Centers by address and telephone number. We may (but are not required to) include on
the Website an interior page containing additional information about your Center. You must give
us any information and materials that we request from time to time to develop, update and modify
such webpage, but we shall have final approval rights over any content. We may discontinue or
modify the Website in our sole discretion.
Currently, you are permitted to maintain a Center-specific Facebook and Instagram account
created by Franchisor for your Center. You are not permitted to create, have, or use an unapproved
website, landing page or additional social media accounts. You must provide us with full
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Technology System
You must obtain, maintain, and use the Technology System that we specify periodically in the
Standards to (i) enter and track reservations and sales receipts, Services purchased and performed,
and customer information, (ii) update inventory of merchandise and products, (iii) enter and
manage your customer and member contact information, (iv) generate sales reports and analysis
relating to the Center, (v) maintain electronic health and medical records, (vi) conduct telehealth
sessions, and (vii) provide other services relating to the operation of the Center. You must ensure
the installation and operation of the Technology System complies with applicable law, including
without limitation privacy laws (e.g., HIPAA) related to customer protected health information (as
defined under HIPAA) or other customer data.
Currently, as part of the Technology System, we require you to purchase or lease a specific package
of hardware and software from one or more suppliers that we have designated for such hardware
and software in addition to high speed Internet access, which will be used to operate and interact
with various web-based capabilities and software, one laptop or tablet to manage your pre-opening
membership program sales and other events for your Center and to conduct telehealth sessions
with providers, a speaker and audio system, membership management software for membership
administration and reporting, and other required software, hardware and technology solutions that
we prescribe to operate various systems and platforms. If we require you to use any proprietary
software or to purchase any software from a designated vendor, you must execute and pay any fees
associated with any software license agreements or any related software maintenance agreements
that we or the licensor of the software require. Currently, we do not require you to use a designated
vendor for the installation of the Technology System, but we reserve the right to do so.
We estimate that the cost of the Technology System will be approximately $2,200 to $7,100 which
includes the cost of the hardware, software licenses, related equipment, and network connections
and related installation costs. The Technology System estimate does not include the monthly fees
for required software (currently, $600 per month). Currently, you must purchase the components
of the Technology System from our designated vendor, which may be us or our affiliates.
You must replace, upgrade, or update at your expense the Technology System as we may require
periodically without limitation. We will establish reasonable deadlines for implementation of any
changes to our Technology System requirements. We require you to obtain certain components of,
or upgrades to, the Technology System and maintenance and support services related to the
Technology System from us or our affiliates.
We currently do not require you to enter into, or expect that you will need to enter into, any
maintenance, updating, upgrading, or support contracts related to the Technology System, but we
reserve the right to require you to do so in the future. We, our affiliates, and third-party vendors
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You, at all times, must give us unrestricted and independent electronic access (including users IDs
and passwords, if necessary) to the Technology System for the purposes of obtaining the
information relating to the Center, such as information concerning gross revenues, membership
information, and inventory. You must permit us to download and transfer data via a high-speed
Internet connection or such other connection that we specify on a real-time basis. There are no
contractual limitations on our right to access data stored in the Technology System. If we access
any HIPPA-protected information when we access a franchisee’s Technology system, then such
access and use will comply with HIPPA (in additional to all other applicable law).
Manuals
After you sign the Franchise Agreement, we will provide you with access to our operations manual
and other technical manuals (collectively the “Manuals”), the corpus of which includes
approximately 75 pages, via electronic access or our intranet. A copy of the table of contents of
our Manuals is attached as Exhibit F to this disclosure document. We consider the contents of the
Manuals to be proprietary, and you must treat them as confidential. You may not make any
unauthorized copies of the Manuals. (Franchise Agreement, Section 6(d)).
Initial Training
We will provide an initial training program on the operation of a Restore Center for your Operator,
General Manager and Lead Nurse as well as your Lead Esthetician, (if your store has these
services). The cost of the initial training program for your Operator, General Manager and Lead
Nurse are included in the initial franchise fee, but we reserve the right to charge a fee for each
additional trainee, including repeat or replacement trainees.
Our current initial training program typically lasts one week or less depending on the role of the
trainee and is presently conducted through some combination of in person training at our
headquarters in Austin, Texas, one of our other training hubs in Texas, Arizona or Georgia, or at
your Center and virtually via any one or more training modules that will be available electronically.
Our initial training program is conducted on an as-needed basis; however, the training schedule
may change.
Our training instructors are duly and appropriately licensed to practice in their field as follows:
Liz Joyce, our Director of Education, holds a Bachelor of Science in Athletic Training. Liz has
ten years’ experience with sports rehabilitation and education, four of which have been with
Restore;
Nikita Patel, our Manager of Nursing Education, holds a Bachelor of Science in Nursing, Nikita
has eleven years of experience as an ER and ICU nurse;
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Danielle Dubroc, our Manager of Manager Development, holds a Bachelor of Science in Exercise
Physiology and a Master of Science in Exercise Science, with a specialty in strength and
conditioning. Danielle has been with Restore for 3.5 years, either as a store manager at our flagship
corporate store in Austin, Texas, or as our Lead Store Manager Educator;
Candice Nusbaum, our Lead Esthetic Educator, has an education background in Biology and has
a license in Esthiology. She has been in practice and in education for 26 years, and has been with
Restore for 3 years.
James Gann, one of our Manager Educators, holds a Bachelor of Arts in History. James has over
ten years of experience in the leading and development of teams of various sizes across the
military, federal government, and private sectors. He has spent the last year with Restore as a
manager, and now serves as an educator.
Jazmine Hannagan, one of our Manager Educators, holds a Bachelor of Arts in Communication
Studies. Jazmine has six years of operations, education, and training experience within rapidly-
growing franchise systems;
Katie Kunz, one of our Nurse Educators, holds a Bachelor of Science in Allied Health, a Bachelor
of Science in Nursing, and a Master of Business Administration. Katie has a total of five years of
nurse experience, one year working as a nurse educator at Restore.
Marlee Hadd, one of our Nurse Educators, holds a Bachelor of Science in Nursing. Marlee has
seven years experience as a nurse. She has been a nurse educator at Restore for two years year;
Gabrielle Newby, one of our Nurse Educators, holds an Associates Degree in Nursing. She has
seven years of ER experience and one year of Flight Nursing;
Andrea Treviño, one of our Nurse Educators, holds a Bachelor of Science in Nursing. She has a
total of four years of nursing experience, three in telemetry and one in adult cardiovascular
intensive care unit;
Kendall Bohne, one of our Nurse Educators, holds a Bachelor of Science in Nursing. Kendall has
a total of 4 years of nursing experience as a neurology and oncology nurse;
Derek Montag, one of our Operations Educators, has a Bachelor of Science in Nutrition. Derek
has three years of combined experience with Restore either as an assistant general manager and
general manager of one of our corporate stores or as an operations educator;
Kody Sadler, one of our Operations Educators, holds a Bachelor of Science in Exercise Sports
Science. Kody has two years of education experience, one of which has been at Restore;
Alex King, one of our Operations Educators, holds a bachelor degree in kinesiology. Alex has
been in the corporate world for the last five years, and spent two years in a coaching role.
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The subjects covered, approximate hours of classroom/online and on-the-job training and other
information about our initial training as of the date of this disclosure document are described
below.
TRAINING PROGRAM
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The time periods allocated to the subjects listed above are approximations, and the time actually
spent by you and your personnel may vary based on the experience and performance of those
persons being trained. The instructional materials used in the training will consist of our Manuals,
marketing and promotional materials, videos and other handouts, articles and workbooks.
Completion of Training. Before you sell any memberships (including, without limitation, through
pre-opening sales), advertise the Center, or open the Center to the public: (i) you (or your Operator)
must complete our initial training program (including the initial pre-opening membership sales
training) to our satisfaction and (ii) your General Manager and Lead Nurse must complete the
training program(s) that we require for such positions (which may include abbreviated portions of
the initial training program that we provide to franchise owners and the pre-opening membership
sales training program). We will determine, in our discretion, what constitutes successful
completion of the programs. You or your trainees may be required to repeat or send replacement
trainees to training programs. If your Operator, General Manager or Lead Nurse fail to successfully
complete the initial training program, we may require them to attend additional or remedial training
and pay our then-current fee for such training.
Additional Training. We may require you (or your Operator), your General Manager and/or Lead
Nurse as well as your Lead Esthetician to attend (and, in the case of training programs, successfully
complete) any conferences or supplemental or refresher training programs that we choose to
provide at locations that we designate. We may charge you a reasonable registration fee for each
individual that attends or participates in a program or conference. Currently, we do not charge fees
for our conference and refresher training programs but you will be responsible for all costs incurred
by you and your personnel in attending conferences and training programs.
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Training by You. You must implement a training program for all your employees using training
standards and procedures we prescribe. While we may provide additional guidance, you are
responsible for making all hiring and employment decisions as the owner of the Center. This
includes, but is not limited to, employee selection, hiring, training, promotion, termination, hours
worked, rates of pay, benefits, work assigned, supervision, discipline, and working conditions.
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Franchise Agreement.
The Franchise Agreement grants to you the right to own and operate a Restore Center at a specific
location. You may not conduct the business of your Restore Center at any site other than the
premises described in your Franchise Agreement, or relocate your Restore Center, without our
prior written consent. However, subject to our approval and applicable law in the jurisdiction in
which your Center is operated, you may offer off-site Authorized Services through our concierge
nursing care program, as further described below, and such other off-premises offer, sale and
performance of Authorized Services as we may authorize in writing from time to time. The
Franchise Agreement does not provide you with any options, rights of first refusal or similar rights
to acquire additional franchises.
When you sign the Franchise Agreement, we will identify a geographic area (the “Designated
Area”) within which you will develop your Restore Center and may provide off-site Authorized
Services as described above. Except for Restore Centers operating or under development as of the
date you sign the Franchise Agreement and as otherwise noted in this Item 12, we will not operate,
nor grant to a third party the right to operate, a Restore Center located within your Designated
Area, except for (a) any Restore Centers operating or under development as of the effective date
of the Franchise Agreement, and (b) any Restore Centers located in transportation facilities (such
as airports, inter-city train and/or bus stations, turnpikes or other limited access highway rest
stops), sports arenas, entertainment facilities, and military facilities where any such locations or
its retail operations are controlled by a third party or in our judgment should be operated by a third
party (“Special Locations”). There is no minimum Designated Area size. The Designated Area
will be identified by us based on third party trade area mapping and site analytics software
solutions, or, in limited circumstances as we determine appropriate, a city as geographically
constituted as of the effective date of the Franchise Agreement, and in each case may consider
various factors, including population density, average household income, drive time proximity and
traffic patterns, and proximity to other healthy active lifestyle and wellness concepts. After the
Designated Area has been identified in the Franchise Agreement, we may not alter the Designated
Area without your consent. If you have not located a site for your Center when we identify your
Designated Area, then you may select a site anywhere within the Designated Area (subject to the
site selection procedures described in Item 11), and upon our approval of your site, the Designated
Area will remain as originally identified. You may not relocate without our approval and payment
of our standard relocation fee. Under the Franchise Agreement, you have no options, rights of first
refusal or similar rights to acquire additional franchises within your Designated Area or contiguous
territories.
You may not, without prior written consent, use other channels of distribution, such as the Internet,
telehealth platforms, catalog sales, telemarketing, and other direct marketing, to offer, solicit or
make sales (as opposed to advertising and marketing). We and our affiliates may use other channels
of distribution, such as the Internet, telehealth platforms, catalog sales, telemarketing, and other
direct marketing, to solicit and make sales to customers in your Designated Area using the Marks
and other trademarks without compensating you.
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(a) operate, and grant others the right to operate, Restore Centers at locations outside
the Designated Area and on terms and conditions we deem appropriate (you acknowledge
that such Restore Centers may be in areas directly adjacent to your Designated Area and in
direct competition with your Center, without regard to any adverse effects of such activities
on your Center and without any obligation or liability to you); and
(b) operate, and grant to others the right to operate, services centers that offer any or
all of the Authorized Services identified by tradenames, trademarks, service marks or trade
dress other than the Marks, under terms and conditions as we deem appropriate.
You will not receive an exclusive territory. You may face competition from other franchisees, from
outlets that we own, and from other channels of distribution or competitive brands that we control.
We have no obligation to compensate you for our (or another franchisee) soliciting or accepting
business from customers located within your Designated Area. Continuation of your rights to the
Designated Area is not dependent upon your achievement of a certain sales volume, market
penetration or other contingency.
In addition to your rights relating to the Designated Area, we may grant you a non-exclusive right
to provide certain Authorized Services off-site (e.g., in-home) that we authorize within a
designated geographical area around the Center (“Nursing Care Area”). If we grant you such
right, you must comply with all applicable law related to performing off-site Authorized Services
in the Nursing Care Area, including any applicable Authorized Care Provider Regulations. In
absence of us expressly designating a Nursing Care Area that deviates from the Designated Area,
the Nursing Care Area will be deemed to be identical to the Designated Area described above. You
may not provide any such off-site Authorized Services to or at locations outside the Nursing Care
Area without our prior consent, and under no circumstances may you provide any such off-site
Authorized Services to customers or at locations within the designated nursing care area for any
other Restore Center owned or operated by Franchisor or any of its Affiliates or another franchisee.
Any consent to provide such services beyond the Nursing Care Area may be revoked at any time.
Franchisee acknowledges and agrees that Restore Franchising has the right, in its sole discretion,
at any time and from time to time, to revoke its authorization to provide off-site Authorized
Services and to modify or reduce any Nursing Care Area. In such event, Franchisee agrees to
promptly discontinue offsite Authorized Services altogether or in the affected geographical area,
as applicable, notwithstanding that Franchisee may have provided such Authorized Services within
such area prior thereto. Franchisee will not be entitled to any compensation for any elimination of
any off-site Authorized Services nor for any elimination or reduction of the Nursing Care Area.
The Multi-Unit Development Agreement grants you the right to develop an agreed upon number
of Restore Centers within a geographic area described in Exhibit A to the Multi-Unit Development
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During the term of the Multi-Unit Development Agreement and provided you, your owners and
your affiliates are in compliance with the Multi-Unit Development Agreement and all other
agreements with us or any of our Affiliates (including Franchise Agreements signed under the
Multi-Unit Development Agreement), we will: (a) grant to you, in accordance with the Multi-Unit
Development Agreement, the cumulative number of franchises for Restore Centers in Exhibit A
to the Multi-Unit Development Agreement, all of which are to be located within the Development
Area; and (b) not operate (directly or through an affiliate), nor grant others the right to operate,
any Restore Center located within the Development Area, except for: (1) franchises granted to you
under the Multi-Unit Development Agreement; (2) Restore Centers open (or under commitment
to open) as of the date of the Multi-Unit Development Agreement; (3) Restore Centers located in
non-traditional locations; and (4) businesses that we purchase (or as to which we purchase the
rights as franchisor) that are part of another franchise system or chain, regardless whether any or
all of them are converted to use any or all of the Marks and/or System or continue to be operated
independently.
Except as otherwise expressly provided in the Multi-Unit Development Agreement, we retain all
of our rights and discretion with respect to the Marks, the System and Restore Centers anywhere
in the world, including the right to: (a) operate, and grant to others the right to operate, Restore
Centers at the locations outside the Development Area and on the terms and conditions we deem
appropriate; and (b) operate, and grant to others the right to operate, wellness centers identified by
tradenames, trademarks, service marks or trade dress, other than the Marks, on the terms and
conditions we deem appropriate.
In the Development Area you must have open and operating, on the dates they are required to be
open and operating, the cumulative number of Restore Centers specified in the Development
Schedule. We have no obligation under any circumstances to extend the Development Schedule
except where your failure to satisfy the Development Schedule is due solely to delays resulting
from windstorms, rains, floods, earthquakes, hurricanes, mudslides, fires, global pandemics or
other natural disasters. Your failure to develop, open and operate Restore Centers in accordance
with the Development Schedule will be a material breach of the Multi-Unit Development
Agreement.
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Our parent company, Austin Ventures has licensed us the right to use the name “Restore Hyper
Wellness” and the other trademarks listed below and permits us to sub-license the right to use these
trademarks to you. This agreement with Austin Ventures or its affiliate does not significantly limit
our right to use or license the use of the trademarks listed below and such agreement will remain
in effect so long as we are affiliated with Austin Ventures.
The following Marks are registered with the U.S. Patent and Trademark Office (“USPTO”):
We are not aware of any effective determinations of the USPTO, the trademark administrator of
any state, or any court, nor is there any pending interference, opposition, or cancellation
proceeding, or any pending material litigation involving the Marks which may be relevant to its
use in any state. We are not aware of any superior prior rights or infringing uses that could
materially affect your use of the Marks in any state.
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If it becomes advisable at any time for us and/or you to modify or discontinue use of any Mark
and/or use additional or substitute trademark, service mark or trade dress, you must comply with
our directions within a reasonable time after notice. You must bear all costs and expenses
applicable to your Restore Center should we decide to modify the Marks or use additional or
substitute Marks. We will have no liability or obligation whatsoever with respect to any such
required modification or discontinuance of any Mark or the promotion of an additional or
substitute Intellectual Property.
We will indemnify you against, and reimburse you for, all damages for which you are held liable
in any proceeding arising out of your authorized use of any Mark and all costs you actually or
reasonably incur in defending any such claim brought against you, provided you timely notify us
of such claim and you, your owners, and affiliates are in compliance with the Franchise Agreement
and all other agreements between you and us (or our affiliates). We or our affiliate, in our or their
sole discretion, is entitled to prosecute, defend and/or settle any proceeding arising out of your use
of any Mark, and if we or our affiliate undertakes to prosecute, defend and/or settle any such
matter, we have no obligation to indemnify or reimburse you for any fees or disbursements of any
legal counsel you retain.
You must immediately notify us of any apparent infringement of or challenge to your use of any
Mark, or claim by any person of any rights to any Mark, and you must not communicate with any
person other than your legal counsel, us, Austin Ventures and our respective legal counsel in
connection with any infringement, challenge or claim. We or Austin Ventures will have sole
discretion to take any action we or it deems appropriate and will have the right to control
exclusively any litigation arising out of any infringement, challenge or claim or otherwise relating
to any Mark. You must sign any and all instruments and documents, provide assistance and do all
acts and things as, in the opinion of our or Austin Venture’s legal counsel, may be necessary or
advisable to protect our or Austin Ventures’ interests in the Marks.
The Multi-Unit Development Agreement does not grant you the right to use any of the Marks.
Your right to use the Marks is derived solely from the Franchise Agreements you enter into with
us. You may not use any Mark (or any abbreviation, modification or colorable imitation) as part
of a corporate, legal or other business name (other than in connection with any legally required
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ITEM 14
PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION
We have no patents, pending patent applications, or registered copyrights that are material to the
purchase of a franchise. However, we claim copyright interest in our written materials and other
materials that are critical to the System, including, but not limited to, our Manuals, training
material, sales process, advertising material, website, and other publications. The methods,
processes, skills, know-how, and formulas developed for use in the System, techniques,
information, trade practices, and other proprietary products and information relating to the
development and operation of the Franchised Business is proprietary, confidential, and constitutes
our trade secrets (“Confidential Information”).
There is no current material determination of the United States Patent and Trademark Office, the
United States Copyright Office, or a court regarding any patent or copyright. There are no forums,
case numbers, claims asserted, issues involved, and effective determinations for any material
proceeding pending in the United States Patent and Trademark Office or any court. Franchisor
does not know of any patent or copyright infringement that could materially affect the Franchisee.
Unless prohibited under applicable law, your General Manager and Lead Nurse must sign a
Confidentiality, Non-Disclosure, and Non-Competition Agreement in the form attached to the
Franchise Agreement as Exhibit G, or a Confidentiality, Non-Disclosure, and Non-Competition
Agreement that is substantially similar to Exhibit G and is approved by us.
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You are required at all times to faithfully, honestly, and diligently perform your contractual
obligations, fully exploit your Franchise Agreement rights, and devote your time and best efforts
to the operation, promotion and enhancement of your Franchised Business. To operate the
Franchised Business, we require that you form a legal entity (i.e. a corporation, limited liability
company or other business entity). Your Franchised Business shall only be operated by your
Operator, Manager, and/or your Lead Nurse after successfully completing the initial training
Program to our satisfaction. You must notify us in writing of the Operator, Manager and Lead
Nurse’s identity at the time of hire, and shall subsequently notify us of any changes in their
respective employment statuses. If at any time a new Operator, Manager or Lead Nurse is
employed, such individuals must complete the initial training program to our satisfaction within
thirty (30) days of hiring.
Each owner of the Franchised Business must execute, as a condition of entering into the Franchise
Agreement, a personal guaranty of the obligations under the Agreement and agree to be personally
bound by, and personally liable for the breach of every provision of the Agreement, including the
confidentiality provisions and restrictions on owning interests in, or performing services for,
competitive businesses. The Personal Guaranty is attached as an exhibit to the Franchise
Agreement.
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Franchise Agreement
Your Center will provide cryotherapy services (whole body and localized) cryoskin services,
hydrafacial therapy, photobiomodulation therapy, compression therapy, IV drip therapy,
intramuscular shots, micronutrient testing, infrared sauna therapy, pulsed electromagnetic field
therapy, and mild hyperbaric oxygen therapy and other wellness services, and offer and sell related
products, services and merchandise, that we authorize periodically for Restore Centers
(collectively, the “Authorized Services”). We may periodically add, eliminate and modify
Authorized Services.
You are required to retain the services of a registered nurse licensed in your state to administer
certain Authorized Services. Depending on the Authorized Care Provider Regulations applicable
in your Designated Area, certain of the Authorized Services may be deemed medical services and,
in such case, may be offered, administered and/or provided only by or through the supervision of
an Authorized Care Provider (“Authorized Medical Services”). In all such cases, you will act
solely in the capacity of an administrative management services provider to an Authorized Care
Provider as further described below.
You will not, without our approval, offer any products or services (including promotional items)
not authorized by us. Your Center may not be used for any purpose, other than the operation of a
Restore Center, in compliance with this Agreement. Your Center must offer a courteous and
efficient service and a pleasant ambiance.
As a Restore franchisee, you will operate your Center(s) at all times in two separate and concurrent
capacities depending on whether the Authorized Services being provided constitute Authorized
Medical Services, as follows:
(1) In one capacity, you will directly provide to customers the Authorized Services that
are not Authorized Medical Services.
(2) In a separate capacity, when Authorized Medical services are being purchased and
provided you will provide non-clinical administrative management services to an
Authorized Care Provider that is responsible for delivering or performing the
Authorized Medical Services. If you are not a licensed medical professional, you
cannot and are not authorized by us to make decisions or treatment
recommendations regarding which Authorized Medical Services are appropriate for
any customer. In order to provide the above-referenced administrative management
services, you will enter into an administrative services or management services
agreement with the Authorized Care Provider in a form approved by us and agreed
to by such Authorized Care Provider and you. We may, at our option, provide you
a sample form of administrative services agreement (attached to this disclosure
document as “Exhibit J”) which you may use; provided, you acknowledge and
agree that we make no representation or warranty regarding the effectiveness of,
compliance with applicable law or other merits or risks of any sample form
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You are not authorized to operate a Center under the Multi-Unit Development Agreement, and the
Multi-Unit Development Agreement therefore contains no provisions restricting the goods and
services you may offer. However, with respect to each Restore Center developed under the Multi-
Unit Development Agreement, you will be subject to the restrictions on goods and services
contained in our then-current standard franchise agreement. The restrictions in our current
Franchise Agreement are set out above.
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This table lists important provisions of the franchise and related agreements. You should
read these provisions in the agreements attached to this Disclosure Document.
Franchise Agreement
SECTION IN
FRANCHISE OR
PROVISION OTHER AGREEMENT SUMMARY
a. Length of the franchise Section 2(a) The Initial Term of the Franchise
term Agreement is the earlier of 10 years
from the effective date or the expiration
date of the lease for the Premises.
b. Renewal or extension Section 2(b) Provided certain conditions are met, you
of the term of the will have the option to renew the
franchise Franchise Agreement for an additional
term of ten (10) years. In the event you
renew your Franchise Agreement, you
will be required to sign the then-current
Franchise Agreement which may
contain terms and conditions that are
materially different from those in the
original Franchise Agreement.
c. Requirements for Section 2 The conditions for renewal require that:
franchisee to renew or i) You provide us with not less than 6
extend months’ notice before the expiration of
the Franchise Agreement of your intent
to renew; ii) You are not in default or in
violation of the Franchise Agreement or
any other agreement with us; iii) You
present satisfactory evidence that you
have the right to remain in possession of
the Premises for the duration of the
renewal franchise; (iv) you execute our
then-current form of franchise
agreement, which may include
materially different terms and
conditions than those in your original
Franchise Agreement; (v) you pay a
renewal fee equal to 50% of the then-
current standard initial franchise fee;
(vi) you enter into a remodel agreement
under which you agree to remodel the
Center within 6 months; and (vii) you
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This table lists important provisions of the Multi-Unit Development Agreement and related
agreements. You should read these provisions in the agreements attached to this Disclosure
Document.
SECTION IN
MULTI-UNIT
DEVELOPMENT
PROVISION AGREEMENT SUMMARY
a. Term of the Multi-Unit Section 1(a) and Date set forth in Exhibit A. The
Development Agreement Exhibit A Expiration Date is the last
Development Period Expiration
Date identified on the
Development Schedule.
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In January 2022 Austin Ventures engaged Tim Tebow and Demi Tebow to promote the Restore
Hyper Wellness brand. Tim Tebow is a former professional athlete, a sports celebrity, an
entrepreneur, and a philanthropist. Demi Tebow is an entrepreneur, a philanthropist, a former Miss
South Africa, and a former Miss Universe. In exchange for their brand promotion services Mr. and
Mrs. Tebow are paid cash compensation and awarded equity-based incentive compensation in an
affiliate of Austin Ventures. In addition, an entity controlled by Mr. and Mrs. Tebow owns
membership units in Austin Ventures which resulted from the conversion into equity of a
promissory note in an original principal amount of $100,000.
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The FTC’s Franchise Rule permits a franchisor to provide information about the actual or
potential financial performance of its franchised and/or affiliate-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.
The following information shows the average annual gross revenue and average number of
active members for the fiscal year ending on December 31, 2021 for franchised Centers that were
open and operating for at least 12 months as of December 31, 2021 and are at least 1,500 square
feet. Franchised Centers that were in operation for fewer than 12 months during 2021 and affiliate-
owned Centers are not included in this financial performance representation.
As of December 31, 2021, there were 106 franchised Centers in operation at the end of
2021, and 64 of them had been open for more than 12 months (one of which consisted of fewer
than 1,500 square feet and thus is not included in the following tables). The remaining 42
franchised Centers were open and operating for fewer than 12 full months as of December 31,
2021 and are also not included in the following tables.
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NUMBER AND
AVERAGE PERCENTAGE OF CENTERS MEDIAN
NUMBER OF ATTAINING OR EXCEEDING NUMBER
ACTIVE AVERAGE NUMBER OF OF ACTIVE
MEMBERS ACTIVE MEMBERS MEMBERS
4. The Gross Revenue figures are based on the calendar year 2021
operating results of franchised Centers. We obtained the Gross
Revenue and Active Member information from the point-of-sale
computer systems utilized by our franchisees. Neither we nor an
independent accountant has independently audited or verified the
information.
5. Gross Revenue includes: (i) the gross sales proceeds from the sale
of all Authorized Services, except those which constitute Authorized
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Other than the preceding financial performance representation, we do not make any
financial performance representations. 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 our General Counsel at (202) 991-0636, the Federal
Trade Commission, and the appropriate state regulatory agencies.
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Table No. l
System Wide Outlet Summary For 2019 - 2021
Table No. 2
Transfers of Outlets from Franchisees to New Owners for 2019 – 2021
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Table No. 3
Status of Franchised Outlets for 2019 - 2021
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Outlets at
Outlets at Start Outlets Reacquired Outlets Outlets Sold to the End of
State Year of the Year Outlets Opened from Franchisees Closed Franchisees the Year
NC 2019 1 0 0 0 0 1
2020 1 0 0 0 0 1
2021 1 0 0 0 1 0
TX 2019 5 0 0 0 0 5
2020 5 0 0 0 0 5
2021 5 0 0 0 0 5
AZ 2019 0 1 0 0 0 1
2020 1 0 0 0 0 1
2021 1 0 0 0 0 1
GA 2019 0 1 0 0 0 1
2020 1 1 0 0 0 2
2021 2 0 0 0 0 2
WA 2019 0 0 0 0 0 0
2020 0 1 0 0 0 1
2021 1 0 0 0 0 1
NY 2019 0 0 0 0 0 0
2020 0 0 0 0 0 0
2021 0 1 2 0 0 2
KS 2019 0 0 0 0 0 0
2020 0 0 0 0 0 0
2021 0 1 0 0 0 1
MD 2019 0 0 0 0 0 0
2020 0 0 0 0 0 0
2021 0 0 1 0 0 1
Total 2019 6 2 0 0 0 8
2020 8 2 0 0 0 10
2021 10 2 3 0 1 13
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PROJECTED OPENINGS
Projected New
Franchise Agreements Projected New Company - Owned
Signed but Outlet Not Franchised Outlets in the Outlet in the Next
State Opened Next Fiscal Year Fiscal Year
AL 0 0 0
AR 0 0 0
AZ 0 1 0
CA 17 19 0
CO 8 9 0
CT 1 0 0
FL 9 2 0
GA 3 4 1
ID 1 0 0
IL 0 2 0
IN 1 1 0
KS 0 0 0
KY 1 1 0
LA 1 0 2
MA 3 3 0
ME 1 1 0
MD 1 0 1
MI 3 2 0
MN 1 3 0
MO 3 0 0
MT 0 1 0
NC 2 3 0
NE 2 2 0
NH 1 2 0
NJ 6 4 0
NM 3 2 0
NV 1 1 0
NY 1 1 2
OH 1 1 0
OK 1 0 0
OR 0 1 0
PA 4 8 0
RI 2 1 0
SC 2 2 0
TN 4 3 0
TX 6 13 0
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Exhibit D to this Disclosure Document is a list of our franchises and outlet owners as of December
31, 2021, and the addresses and telephone numbers of their Restore Centers.
Exhibit E is the name, city and state, and current business telephone number of the franchisees
who had an outlet terminated, canceled, or not renewed, or otherwise voluntarily or involuntarily
ceased to do business under the System during the last fiscal year, or who have not communicated
with us within 10 weeks of the issuance date of this Disclosure Document. If you buy this
franchise, your contact information may be disclosed to other buyers when you leave the franchise
system.
There are no trademark-specific franchisee organizations associated with the System that have
been either: (i) created, sponsored, or endorsed by us, or (ii) incorporated or otherwise organized
under state law and which have asked us to be included in our disclosure document during the next
fiscal year.
No franchisees have signed confidentiality clauses during our last 3 fiscal years.
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Exhibit G contains our audited financial statements for the fiscal years ending December 31, 2021,
December 31, 2020, and December 31, 2019. Exhibit G also contains our unaudited financial
statements as of March 31, 2022. The Franchisor’s fiscal year end is December 31. The financial
statements of the Franchisor as of and for the years ended December 31, 2021 and December 31,
2020 have been audited by Citrin Cooperman & Company LLP and the financial statements of the
Franchisor as of and for the year ended December 31, 2019 have been audited by Thomas & Reed,
LLC.
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Attached to this Disclosure Document are the following agreements and their attachments:
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The last two pages of this Disclosure Document are detachable duplicate Receipts. Please sign and
date both copies of the Receipt. Keep one signed copy of the Receipt for your file and return the
other signed copy of the Receipt to Tabor Pittman at 3601 South Congress Ave., Suite C-200,
Austin, TX 78704 or by email at tabor@restore.com, with a copy emailed to Suzanne Mullen at
smullen@restore.com.
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STATE AGENCIES/AGENTS
FOR SERVICE OF PROCESS
Listed here are the names, addresses and telephone numbers of the state agencies having
responsibility for the franchising disclosure/registration laws. We may not yet be registered to sell
franchises in any or all of these states.
If a state is not listed, we have not appointed an agent for service of process in that state in
connection with the requirements of the franchise laws. There may be states in addition to those
listed below in which we have appointed an agent for service of process.
There also may be additional agents appointed in some of the states listed.
CALIFORNIA HAWAII
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FRANCHISE AGREEMENT
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FRANCHISE AGREEMENT
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Page
3. FEES ..................................................................................................................................3
5. TRAINING ........................................................................................................................8
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9. MARKETING..................................................................................................................17
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20. INDEMNIFICATION......................................................................................................37
APPENDIX A DEFINITIONS
EXHIBIT A PRINCIPAL TERMS
EXHIBIT B PREMISES AND OPENING DATE
EXHIBIT C ORGANIZATION AND OWNERSHIP INFORMATION
EXHIBIT D MANDATORY AND OPTIONAL SUPPLEMENTAL SERVICES
EXHIBIT E LEASE ADDENDUM
EXHIBIT F PERSONAL GUARANTY
EXHIBIT G CONFIDENTIALITY AND NON-COMPETITION COVENANTS
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This Franchise Agreement is made as of the Effective Date between Franchisor and
Franchisee (as amended or supplemented from time to time, this “Agreement”).
RECITALS
WHEREAS, Franchisee acknowledges the following: (a) Franchisee has read this
Agreement and Franchisor’s franchise disclosure document; (b) Franchisee understands the terms
of this Agreement and accepts them as being reasonably necessary to maintain the uniformity of
Franchisor’s high quality standards at all Restore Centers in order to protect and preserve the
goodwill of the Marks and the integrity of the System; (c) Franchisee has conducted an
independent investigation of the business contemplated by this Agreement inclusive of the
applicable legal and regulatory requirements and recognizes that the cryogenic and alternative
health and wellness technology and modality industry is highly competitive, with constantly
changing market conditions; and (d) Franchisee recognizes that the nature of Restore Centers may
change over time, and that an investment in a Restore Center involves business risks and that the
success of the venture is largely dependent on Franchisee’s own business abilities, efforts and
financial resources.
WHEREAS, Franchisee acknowledges that, among other things, some or all of the
Authorized Services to be offered by Restore Centers may include services and activities of a
nature and type that require the administration, supervision, management, oversight, and
performance by licensed medical professionals and health care providers (“Authorized Care
Providers”) and that the determination whether Franchisee may own and operate a Restore Center
and/or provide certain services (and related activities) is subject to its ability to comply with certain
federal, state and local rules, regulations, attorney general opinions, medical board
pronouncements and determinations related to the practice of medicine and other related
requirements (collectively referred to as the “Authorized Care Provider Regulations”), and
Franchisee further acknowledges that it has retained its own independent counsel to advise
Franchisee regarding the foregoing Authorized Care Provider Regulations and requirements
regarding Authorized Care Providers.
WHEREAS, Franchisee desires to develop and operate one (1) Restore Center pursuant to
the terms of this Agreement.
WHEREAS, certain terms in this Agreement have been given defined meanings in
Appendix A. The appendix and exhibits listed in the table of contents and attached hereto are
incorporated into this Agreement.
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1. GRANT OF FRANCHISE.
(a) Grant. Subject to the terms of this Agreement, Franchisor grants to Franchisee the
right and license, and Franchisee hereby accepts the right and obligation, to operate a Center at the
Premises and to use the System solely in connection therewith. Franchisee may not conduct the
business of its Restore Center or use the System anywhere other than the Premises, nor relocate its
Restore Center, without Franchisor’s written approval and payment of a standard relocation fee.
(b) Designated Area. Neither Franchisor nor any Affiliate will operate, nor authorize
any Person other than Franchisee to operate, a Restore Center located in the Designated Area
identified and described in Exhibit A, except for (i) any Restore Centers operating or under
development as of the Effective Date, and (ii) any Restore Centers located in transportation
facilities (such as airports, inter-city train and/or bus stations, turnpikes or other limited access
highway rest stops), sports arenas, entertainment facilities, and military facilities where any such
locations or its retail operations are controlled by a third party or in Franchisor’s judgment should
be operated by a third party (“Special Locations”).
(a) Initial Term. The initial term will commence on the Effective Date of this
Agreement and will expire on the earlier to occur of: (i) the tenth (10th) anniversary of the
Effective Date; and (ii) the expiration date (including any renewals) of Franchisee’s lease for the
Premises (the “Initial Term”).
(b) Renewal Rights. Franchisee may, at its option, renew the franchise to operate the
Center, subject to the following:
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(2) Franchisee and its Principals and Affiliates (i) must not be in default under
this Agreement nor be in default of any other agreement between Franchisee or any of its Affiliates
and Franchisor or any of its Affiliates, (ii) must have substantially and timely complied with terms
and conditions of this Agreement during the Initial Term, and (iii) must remain in compliance with
this Agreement until the expiration of the Initial Term.
(3) Franchisee must present satisfactory evidence that Franchisee has the right
to remain in possession of the Premises for the duration of the renewal franchise.
(4) Franchisee (and each of its Principals) must execute Franchisor’s then-
current form of franchise agreement (which may contain provisions, including the Royalty Fee,
materially different from those contained herein), and all ancillary agreements (including a
remodel agreement and personal guarantees by Franchisee’s Owners and on such terms as
Franchisor deems appropriate) which Franchisor then customarily uses in granting franchises for
the operation of Restore Centers in the state in which the Center is located, provided (i) Franchisee
must pay to Franchisor a renewal fee of fifty percent (50%) of Franchisor’s then-current standard
initial franchise fee, (ii) the renewal term shall be the shorter of ten (10) years or the remaining
term on the lease for the Premises, and (iii) there will be no further renewal rights.
(5) Franchisee and each Principal must execute a general release, in form and
substance satisfactory to Franchisor, of any and all claims against the Franchisor Indemnitees.
(6) Failure by Franchisee (and its Principals) to sign such agreements and
releases within thirty (30) days after delivery shall be deemed an election by Franchisee not to
acquire a renewal franchise for its Center and this Agreement will expire on the last day of the
initial term unless terminated in accordance with Section 17.
3. FEES.
(a) Initial Franchise Fee. Franchisee agrees to pay Franchisor an initial franchise fee
in the amount set forth in Exhibit A, which amount is due and payable within seven (7) calendar
days following the Effective Date. The initial franchise fee is non-refundable.
(b) Royalty Fee. Franchisee agrees to pay Franchisor non-refundable royalty fees
(“Royalty Fees”) equal to seven percent (7%) of Gross Sales accrued during each Reporting Period
within five (5) days after such Reporting Period. Notwithstanding the foregoing, no Royalty Fee
will be charged for Gross Sales accrued during the first thirty (30) days after the Center first opens
for business to the general public. “Reporting Period” means each semi-monthly period ending
on the fifteenth (15th) day of, and also on the last calendar day of, each calendar month.
(c) Brand Fund Contribution. Franchisee agrees to pay Franchisor each month a non-
refundable Brand Fund Contribution in an amount not to exceed two percent (2%) of the Gross
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(d) Supplemental Services and Related Fees. Franchisee acknowledges and agrees
that its Center will obtain and purchase all of the mandatory services, and may elect to accept and
participate in some or all of the optional services, provided or made available by Franchisor to
Restore Centers, and Franchisee shall pay all fees and charges for such services in which it
participates. Certain mandatory and optional services and related fees and charges as of the
Effective Date are set forth in Exhibit D. Franchisor shall have the right periodically to do any of
the following: (i) modify the nature and character of such services, and increase or revise related
mandatory or optional fees and charges; (ii) add new mandatory or optional services or discontinue
such existing services; or (iii) revise any mandatory service to become optional or any optional
service to become mandatory; provided, however, in conjunction with any service being
designated mandatory, such service shall be implemented at substantially all franchised Restore
Centers located in the U.S. Fees and charges shall be determined on the same basis for all
franchised Restore Centers that are participating in the service and may include: (A) overhead
costs allocable to providing such service, including compensation of personnel directly involved
in providing such services; (B) recovery of development costs for such service; (C) costs of
tangible and intangible property employed in providing such service; and (D) costs of operating,
maintaining and upgrading such service.
(e) Other Remittances. Any fees and charges for which no due date is set forth herein
shall be payable as stated in the invoice therefor, or otherwise within thirty (30) days of the invoice
date.
(f) Reports. Franchisee must report its Gross Sales daily (and/or such other periodic
basis) through a Franchisor mandated electronic data interface (or such other methods) that
Franchisor may require from time to time. Franchisee must submit to Franchisor all Franchisor-
required financial and operational reports for the Center by the tenth (10th) day following the end
of the month (or such other date specified by Franchisor) for which such reports are required and
in form and content as Franchisor periodically prescribes.
(h) Interest on Late Payments. Any payment not actually received by Franchisor on
or before the date due will be deemed overdue. Time is of the essence with respect to all payments
to be made by Franchisee to Franchisor. Without constituting an election of remedies, any and all
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(j) Currency. All amounts payable by Franchisee to Franchisor under this Agreement
must be paid in United States Dollars.
(k) Taxes. Any and all amounts expressed as being payable pursuant to this Agreement
are exclusive of any applicable taxes. Franchisee is obligated to pay all Federal, state and local
taxes, including without limitation sales, use and other taxes, fees, duties and similar charges
assessed against Franchisee. Franchisee is responsible for and must indemnify and hold Franchisor
Indemnitees harmless against any penalties, Interest and expenses incurred by or assessed against
Franchisor as a result of Franchisee’s failure to withhold such taxes or to timely remit them to the
appropriate taxing authority. Franchisee agrees to fully and promptly cooperate with Franchisor to
provide any information or records it requests in connection with any application by Franchisor to
any taxing authority with respect to Franchisee.
(a) Site Selection. Unless the Parties have agreed to the Premises of the Center prior
to or as of the Effective Date, Franchisee must identify and obtain Franchisor’s acceptance for a
suitable location for the Center in the Designated Area within three (3) months after the Effective
Date. Franchisor may require Franchisee to use and coordinate with Franchisor’s designated
master broker in connection with site selection at the outset of Franchisee’s search and all related
undertakings and activities. Franchisee will complete and submit to Franchisor its standard site
application form for a proposed site. Franchisor will provide Franchisee with site selection
assistance as Franchisor deems advisable, including Franchisor’s site selection guidelines and
design specifications and conducting one (1) on-site evaluation of a proposed site; provided,
Franchisor will not conduct an on-site evaluation for any proposed site prior to the receipt of the
completed site application. Franchisee acknowledges and agrees that Franchisor providing its site
selection guidelines and design specifications and any other site selection assistance to Franchisee
does not constitute a representation that any proposed site will be accepted by Franchisor.
Franchisee must pay Franchisor’s then-current on-site evaluation fee if Franchisee requests
multiple on-site evaluations.
(b) Site Acceptance. Franchisor will have (30) days after receipt of the complete Site
Application to approve or reject Franchisee’s proposed site. If Franchisor rejects the proposed site,
Franchisee must promptly submit another site selection application form for a proposed site. Upon
Franchisor’s approval of a proposed site, the parties will complete and execute Exhibit B hereto
which will specify the Premises as well as the Opening Date (provided that if the parties do not
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(1) Franchisee assumes all cost, liability, expense and responsibility for
locating, obtaining and developing the Premises for the Center and equipping the Center at the
Premises. Franchisee is responsible for obtaining all zoning, permitting and regulatory approvals
which may be required by Applicable Law or which may be necessary as a result of any restrictive
covenants related to the Premises. Prior to beginning the finish-out or renovation of the Premises,
Franchisee will obtain all permits, licenses and certifications required for the lawful construction
or remodeling and operation of the Center and submit to Franchisor a certificate of insurance
evidencing that the coverage specified in Section 13 is in full force and effect and that all required
approvals, clearances, permits and certifications have been obtained. Upon Franchisor’s request,
Franchisee will provide to Franchisor additional copies of Franchisee’s insurance policies and
certificates of insurance and copies of all such approvals, clearances, permits and certifications.
(3) Franchisee will obtain services as needed only from registered architects,
registered engineers, and professional and licensed contractors designated by Franchisor or who
meet Franchisor’s minimum requirements for the development, construction and equipping of the
Center. Franchisee will submit to Franchisor the information and documentation set forth in the
Manuals regarding the training, experience and financial responsibility of the registered architects,
registered engineers and professional and licensed contractors whom Franchisee desires to retain
to prepare the plans and construct the Center, along with copies of all proposed contracts with such
architects, engineers and contractors, and any other information requested by Franchisor.
(4) Franchisee will submit its plans to Franchisor and upon Franchisor’s
request, will submit all revised or “as built” plans during the course of construction. Franchisor
will review the plans to confirm they comply with Franchisor’s prototypical plans and the
Standards. Franchisor will notify Franchisee in writing whether it accepts or rejects the plans
within ten (10) days following Franchisor’s receipt of the plans. Franchisee may not begin
construction prior to receiving notification that Franchisor approves the plans. All construction
must be in accordance with the plans approved by Franchisor and comply in all respects with
Applicable Law and the lease. In addition, if Franchisor requires Franchisee to retain Franchisor’s
affiliate or its designated third party for construction management services, then Franchisee must
comply with such requirement in connection with development of the Center, including payment
of the fee for construction management services set forth in Exhibit D.
(5) Franchisee will commence construction at least one hundred twenty (120)
days before the Opening Date and will complete construction no later than thirty (30) days before
the Opening Date. Franchisee will advise Franchisor of commencement of construction within ten
days of the commencement date.
(6) Franchisee will use in the development and operation of the Center only the
fixtures, furnishings (including décor), materials, equipment and signs that comply with the
Standards.
(7) During the course of construction of the Center, Franchisee will (and will
cause its architect, engineer, contractors and subcontractors to) cooperate fully with Franchisor
and its designees for the purpose of permitting Franchisor and its designees to inspect the Premises
and the course of construction of the Center to determine whether construction is proceeding
according to the plans approved by Franchisor and the Standards. Without limiting the generality
of the foregoing, Franchisee and Franchisee’s architect, engineer, contractors and subcontractors
will supply Franchisor and its designees with samples of construction materials, supplies,
equipment and other materials and reports requested by Franchisor or its designees and allow
Franchisor and its designees access to the Premises to conduct such inspections. If requested by
Franchisor, Franchisee will submit to Franchisor reports with photographs showing progress made
in connection with the construction and equipping of the Center at the frequency prescribed by
Franchisor.
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(f) Commence Business. Prior to opening, Franchisee must complete all interior and
exterior preparations for the Center, deliver to Franchisor a copy of the certificate of occupancy
and comply with all other pre-opening obligations contained herein. Franchisee may not open the
Center for business until all of its pre-opening obligations have been completed to Franchisor’s
reasonable satisfaction. Franchisee is obligated to open the Center and commence business no later
than the Opening Date unless Franchisor consents to an extension of such Opening Date.
Notwithstanding anything to the contrary contained herein, Franchisee shall not be deemed to be
in breach of this Agreement if its failure to start construction, finish construction or open the
Center, as above provided, results solely from windstorms, rains, floods, earthquakes, typhoons,
mudslides, fires or other natural disasters. Any delay resulting from any of such causes shall extend
performance accordingly, in whole or in part, as may be reasonable, except that no such cause,
alone or in combination with other causes, shall extend performance more than ninety (90) days
without Franchisor’s consent.
5. TRAINING.
(a) Initial Training Program. Franchisee represents it has obtained the services of an
Operator as of the Effective Date. Franchisor shall provide the Operator, General Manager and
Lead Nurse with its standard initial training program before the Opening Date, which they must
attend and satisfactorily complete to Franchisor’s satisfaction. Operator and the General Manager
must successfully complete the initial presales training program component of Franchisor’s
standard initial training program to Franchisor’s satisfaction prior to commencing in selling presale
memberships. Initial presale training is included in Franchisor’s initial training program and may
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(c) Additional Training. Franchisee’s Operator, General Manager, Lead Nurse and
such other management Personnel as Franchisor may designate must attend such additional
remedial mandatory training programs and seminars as Franchisor may offer from time to time.
Franchisee must pay Franchisor’s then-current training fee for any additional training designated
by Franchisor or requested by Franchisee. Franchisee will be solely responsible for any and all
costs and expenses incurred by Franchisee, its Operator, General Manager, Lead Nurse and other
management Personnel in connection with such additional training, including compensation,
travel, lodging and miscellaneous costs.
(d) Meetings and Conferences. Franchisor may from time to time hold periodic
system-wide meetings at locations designated by Franchisor, including Franchisor’s annual
franchisee conference, to address matters of general interest. Franchisee’s Operator, General
Manager and Lead Nurse will attend any such meetings and conferences as required by Franchisor.
Franchisee will be solely responsible for all costs and expenses incurred by Franchisee and its
Personnel in connection with attending such meetings and conferences, including costs of
obtaining any required certifications, compensation, travel, lodging, meals and miscellaneous
expenses.
(a) Authorized Services. Franchisee agrees that its Center will provide cryotherapy
services (whole body and localized) cryoskin services, hydrafacial therapy, photobiomodulation
therapy, compression therapy, IV drip therapy, intramuscular shots, micronutrient testing, infrared
sauna therapy, pulsed electromagnetic field therapy, and mild hyperbaric oxygen therapy and other
wellness services, and offer and sell related products, services and merchandise, that Franchisor
authorizes periodically for Restore Centers (“Authorized Services”). Franchisor may at any time
and from time to time add new, eliminate existing and/or modify new or existing Authorized
Services as it elects in its sole discretion.
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Franchisee agrees that its Center will not, without Franchisor’s approval, offer any
products or services (including promotional items) not authorized by Franchisor. The Center may
not be used for any purpose, other than the operation of a Restore Center in compliance with this
Agreement. Franchisee agrees that its Center will offer courteous and efficient service and a
pleasant ambiance.
(b) Administrative Services Agreements. Franchisee will operate the Center at all
times in two separate and concurrent capacities depending on whether the Authorized Services
being provided at a given time constitute Authorized Medical Services, as follows:
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(f) Maintenance. Franchisee must maintain the interior and exterior of the Center
Premises and the surrounding area in good condition and repair and comply with the Standards
and Applicable Laws for cleanliness, organization and sanitation of the Center. Franchisee is solely
responsible for maintenance, repair and replacement where necessary to maintain the Center in
accordance with the Standards and for any liabilities arising from Franchisee’s failure to comply
with the terms and conditions of this Section 6(f).
(g) Improvements; System Changes. Franchisee must, at its sole cost and expense,
promptly and fully comply with any changes made to the System by Franchisor. Franchisee will
periodically make such capital improvements and modifications necessary to modernize,
redecorate and upgrade the Center in accordance with Franchisor’s then-current Standards,
provided that any modification or upgrade to the Center that involves a significant additional
investment (e.g., in excess of $100,000) shall not be required more often than every three (3) years
during the Term. Franchisee must complete to Franchisor’s satisfaction within a reasonable time
any Franchisor mandated improvements or modifications.
(h) Compliance with Applicable Law; Operating Permits. Franchisee will develop
and at all times operate the Center in full compliance with Applicable Law. Franchisee must notify
Franchisor in writing immediately upon the commencement, threat or other indication of any legal
action, suit, or proceeding, any administrative action, or the issuance of an order of any court,
agency, or regulatory investigation, audit or inquiry, or other governmental instrumentality, which
may adversely affect the development, occupancy, or operation of the Center or Franchisee’s
financial condition or Franchisor or its operations; or the delivery of any notice of violation or
alleged violation of any Applicable Law. Franchisee will refrain from any business or advertising
practice which may be injurious to Franchisor’s business, to the business of other Restore Centers,
or to the goodwill associated with the Marks. Franchisee will be solely responsible for procuring
and continuously maintaining thereafter all approvals, permits, certifications and/or licenses
required for the development and operation of the Center.
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(j) Privacy Laws. Franchisee will abide by all federal and state privacy laws,
including the Health Insurance Portability and Accountability Act of 1996, as amended, inclusive
of its implementing regulations (HIPPA) and other applicable laws related to the collection,
storage, use, and data security of personal or individually identifiable health information of
customers, and comply with Franchisor’s policies pertaining to such privacy laws. If Franchisee
becomes aware of any violation of any Applicable Law related to privacy and/or security of
Customer Data, or has a reasonable basis to believe that Franchisee will receive a notice of such
violation, or has reason to believe that the security or integrity of any records containing Customer
Data has been breached or potentially breached or has notice of any other event that exposes or
threatens to expose Customer Data to unauthorized third parties, then Franchisee shall promptly
provide written notice to Franchisor regarding such breach, potential breach or notice. If available
to Franchisee, such notice shall include a detailed description of the Customer Data at issue and
the factual circumstances surrounding such breach, potential breach or notice. Franchisee shall
comply with all Applicable Laws and cooperate with and follow any instructions provided by
Franchisor in responding to any such breach, provided Franchisor’s instructions comply with
Applicable Laws, including with respect to notifying any individuals, regulators, law enforcement
agencies, consumer reporting agencies or others. Franchisor shall promptly notify Franchisee in
the event of a privacy and/or security incident with respect to Franchisor’s systems or the systems
of third parties hired by Franchisor that Franchisor believes may reasonably impact the security of
Customer Data maintained by Franchisee. Franchisee may take additional security measures
Franchisee deems appropriate or reasonably requested by Franchisor as a result of Franchisor’s
privacy and/or security incident.
(k) Customer Data. All information, mailing lists and data bases of Customer Data of
customers of the Center, from whatever source derived, will be Franchisee’s property subject to
Applicable Laws. In addition, Franchisee may, through Authorized Care Providers or in
connection with Authorized Medical Services, have access to certain health information of
customers of the Center that may be protected under HIPAA and other privacy laws. Franchisee
will not use such Customer Data or health information except in connection with the operation of
the Center in accordance with this Agreement and in accordance with Applicable Laws. Franchisee
will not use, process, copy, display, publish, store or transfer the Customer Data or any customer
health information without Franchisor’s written approval and the approval or consents of the
respective individuals as may be required under Applicable Laws. Franchisee will fully comply
with all Applicable Law with respect to Customer Data and customer health information. Upon
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(l) Customer Satisfaction and Surveys. Franchisee will participate in all customer
surveys and satisfaction audits as Franchisor may require from time to time, which may require
Franchisee to provide discounted or complimentary Products. Additionally, Franchisee will
participate in any customer complaint resolution and other programs as Franchisor may reasonably
establish for all or part of the Restore Hyper Wellness network, which programs may include,
without limitation, providing discounts or refunds to customers. For any such sales, the amount
actually paid by the customer after the discount or refund is applied and not the advertised price
will be considered for purposes of Gross Sales.
(m) Concierge Nursing Care Services Area. Franchisor may grant Franchisee a non-
exclusive right before and/or after the opening of the Center to provide certain offsite nursing care
services authorized by Franchisor within a designated geographical area around the Center
(“Nursing Care Area”). In absence of Franchisor expressly designating a Nursing Care Area that
deviates from the Designated Area, the Nursing Care Area will be deemed to be identical to the
Designated Area. Franchisee may not provide any such services to or at locations outside the
Nursing Care Area without Franchisor’s prior consent, and under no circumstances may
Franchisee provide any such services to or at locations within the designated nursing care area for
any other Restore Center owned or operated by Franchisor or any of its Affiliates or another
franchisee. Any consent to provide such services beyond the Nursing Care Area may be revoked
at any time.
Franchisee acknowledges and agrees that Franchisor has the right, in its sole
discretion, at any time and from time to time, to revoke its authorization to provide offsite nursing
care services and to modify or reduce any Nursing Care Area. In such event, Franchisee agrees to
promptly discontinue offsite nursing care services altogether or in the affected geographical area,
as applicable, notwithstanding that Franchisee may have provided such services within such area
prior thereto. Franchisee will not be entitled to any compensation for any elimination of any offsite
nursing care services nor for any elimination or reduction of the Nursing Care Area.
Franchisee acknowledges that Franchisor and its Affiliates have the right, through the Technology
System or otherwise, to independent and unrestricted access to lists of the Center's members and/or
prospects, including names, addresses and other related information, all of which constitutes
Customer Data. Franchisor and its Affiliates may use such Customer Data in its and their business
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(b) Alternative Approved Suppliers. Except with respect to items for which
Franchisor has designated an exclusive supplier (as described in Section 7(a)), if Franchisee
proposes to purchase any item from an alternative supplier who is not then approved by Franchisor,
Franchisee and the proposed supplier must submit to Franchisor all information that Franchisor
may request in order to determine whether to approve the supplier. Requests to approve suppliers
of goods and services of a clinical nature related to Authorized Medical Services may, to the extent
required under Applicable Laws, necessitate the approval or recommendation of the Center’s
Authorized Care Provider. Franchisor, in consultation with its clinical advisors as necessary, will
have the right to approve or disapprove any supplier, and Franchisor may approve a supplier
conditionally. In evaluating any supplier Franchisee proposes, Franchisor may, subject to
restrictions and conditions to protect confidential information, disclose to such proposed supplier
applicable standards, specifications and procedures for the item in sufficient detail to enable the
proposed supplier to demonstrate its capacity and capabilities to supply the items in accordance
with Franchisor’s requirements with respect thereto. Within thirty (30) days after Franchisor
receive all requested information, Franchisor will communicate to Franchisee in writing its
decision to approve or disapprove Franchisee’s proposed alternative supplier. Franchisor will
evaluate proposed alternative suppliers on their ability to comply with applicable standards,
specifications, processes and procedures, and Franchisor will only approve those proposed
alternative suppliers that meet its high standards. Franchisor may disapprove any supplier who
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Franchisor may prescribe procedures for the submission of requests for approval
and impose obligations on alternative approved suppliers, which will be incorporated in a written
agreement with the supplier. Franchisor may obtain from Franchisee and/or such alternative
approved suppliers reimbursement of its reasonable costs and expenses incurred in connection with
the approval process and on-going monitoring of the supplier’s compliance with its requirements,
but Franchisor will not profit from the sale of items to Franchisee from an alternative approved
supplier. Franchisee acknowledges and agrees that Franchisor does not act as agent, representative
or in any other intermediary or fiduciary capacity for Franchisee in its relationship with alternative
approved suppliers. Franchisor may impose limits on the number of alternative approved suppliers.
Franchisor has the right to monitor the quality of services provided by alternative approved
suppliers in a manner it deems appropriate and may terminate any alternative approved supplier
who does not meet its quality standards and specifications, as may be in effect from time to time.
(a) Technology System. Franchisee will purchase, use, and maintain the Technology
System prescribed by Franchisor for Restore Centers. Franchisor may periodically modify
Standards for the Technology System, and, if so, Franchisee will acquire, at its cost, such modified
Technology System within 30 days from the date of notice from Franchisor. Franchisee will have
sole and complete responsibility for the acquisition, operation, maintenance, and upgrading of the
Technology System.
(b) Proprietary Systems. If, as part of the Technology System, Franchisor requires
Franchisee to use any proprietary software or systems, Franchisee will, at Franchisor’s request,
license or sublicense such software from Franchisor, its Affiliate or other designee and enter into
software (sub) license agreements on such licensor’s then-current form. Franchisee will purchase
any periodic upgrades, enhancements or replacements to the proprietary software or system at
Franchisee’s sole cost and expense. Franchisee must incorporate any or all required modifications
or additions within 30 days after receiving notice from Franchisor. Franchisee will pay to
Franchisor the Technology Fee in connection with Franchisee’s use and access to proprietary parts
of the Technology System.
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9. MARKETING.
(a) Brand Fund. Recognizing the value of advertising and marketing to the goodwill
and public image of the Brand, Franchisor may administer a Brand Fund for the creation and
development of marketing, advertising, Brand positioning (and repositioning) and related research
and design programs, campaigns and materials, including digital, print, Internet and Social Media,
as well as the planning and purchasing of national, regional, and/or local advertising. Franchisee
must contribute the Brand Fund Contribution to the Brand Fund as set forth in Section 3(c) of this
Agreement. Restore Hyper Wellness Centers operated by Franchisor or its Affiliates will
contribute to the Brand Fund on a similar basis as Restore Hyper Wellness franchisees. Franchisor
will direct all initiatives related to the positioning of the Brand using the Brand Fund, including
without limitation advertising and marketing programs (e.g., research methods, branding, creative
concepts and materials, sponsorships, and endorsements used in connection therewith); selection
of geographic and media markets; and media placement and the allocation thereof. Franchisor may
use the Brand Fund to pay the costs of research and development, agency of record services, market
research (e.g., customer engagement with the Brand, including Center design and décor, uniform
design, customer service techniques, customer research and focus groups) creation and production
of video, audio, electronic, and written advertising and marketing programs; administration of
regional, multi-regional, and national advertising and marketing programs and sponsorships,
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The Brand Fund will furnish Franchisee with samples of advertising, marketing
formats, promotional formats, and other materials at no additional cost when Franchisor deems
appropriate. Multiple copies of such materials will be furnished to Franchisee at Franchisee’s cost
plus any related shipping, handling, and storage charges.
(b) Accounting. The Brand Fund will be accounted for separately from Franchisor’s
other funds and will not be used to defray any of Franchisor’s general operating expenses, except
for such reasonable salaries, administrative costs, travel expenses, and overhead as Franchisor may
incur in activities related to the administration of the Brand Fund and its programs, including with
respect to collecting and accounting for contributions to the Brand Fund. Franchisor does not act
as trustee with respect to the Brand Fund and has no fiduciary duty to Franchisee or its Affiliates,
Principals or any other franchisees with regard to the operation or administration of the Brand
Fund. Franchisor may spend, on behalf of the Brand Fund, in any fiscal year, an amount that is
greater or less than the aggregate contribution of all Centers to the Brand Fund in that year, and
the Brand Fund may borrow from Franchisor or others to cover deficits or may invest any surplus
for future use. All interest earned on monies contributed to the Brand Fund will be used to pay
advertising costs before other assets of the Brand Fund are expended. Franchisor will, upon
Franchisee’s written request (but no more than once annually) provide a copy of its unaudited
annual statement of monies collected and costs incurred by the Brand Fund. Franchisor will have
the right to cause the Brand Fund to be incorporated or operated through a separate entity at such
time as Franchisor deems appropriate, and such successor entity will have all of the rights and
duties specified herein.
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Franchisee must spend an amount each month equal to the greater of: (i) 2% of
Gross Sales for such month; or (ii) $1,600 on local advertising and related activities in connection
with the promotion and marketing of the Center. If Franchisor establishes an advertising
cooperative pursuant to this Section 9, then Franchisee’s contributions to such advertising
cooperative will be included for purposes of determining whether Franchisee has satisfied its
obligations under this Section 9(d).
Expenditures that qualify for the local minimum advertising requirement include
the cost of implementing local marketing plans developed by Franchisor and adapted and
implemented by Franchisee with Franchisor’s approval, such as amounts spent for (i) advertising
media and community relations, such as television, radio, Internet, Social Media, newspaper,
billboards, posters, direct mail, collateral and promotional items; and (ii) advertising on public
vehicles (transit and aerial). Franchisor may determine, in its sole judgment, that certain
expenditures are inappropriate for meeting the minimum advertising requirement, including
permanent on-site signs, point of purchase materials complimentary charges, donations, lighting,
salaries or administrative costs, transportation vehicles (even though such vehicles may display
the Marks), discounts, free offers and Personnel incentive programs. At Franchisor’s request,
Franchisee will furnish Franchisor with copies of invoices and other documentation reasonably
satisfactory to Franchisor evidencing compliance with this Section 9(d).
(i) Advertising Cooperatives. Franchisor may, at its sole option, require Franchisee
to participate in certain local or regional advertising cooperatives organized and/or approved by
Franchisor and composed of certain other franchised and Affiliate-owned Restore Centers located
in the geographic area in which the Center is located, as set forth in the applicable cooperative
advertising agreement. If Franchisee is required to participate in a Franchisor-approved advertising
cooperative, Franchisee will be required to execute Franchisor’s then-current standard advertising
cooperative agreement and contribute to such advertising cooperative on the same basis as all other
members of the advertising cooperative (including franchised and Affiliate-owned Restore
Centers). Franchisor may terminate any advertising cooperative pursuant to the terms of the
applicable cooperative advertising agreement. Franchisor may require advertising cooperatives to
be formed, changed, dissolved or merged. Any amounts contributed by Franchisee to an
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(j) Digital Marketing. Franchisor may as part of the Brand Fund or otherwise
establish and operate websites, Social Media accounts, applications, keyword or ad word
purchasing programs, mobile applications (“Mobile Apps”), or other means of digital advertising
on the Internet or any electronic communications network (collectively, “Digital Marketing”) that
are intended to promote the Brand and/or the network of Restore Centers.
Franchisee may be required to enter into a license agreement related to the use of Mobile
Apps, and Franchisor may require Franchisee to promote the use of the Mobile Apps in the Center
or to provide content to be included in the Mobile App. Franchisor may add, discontinue, or modify
any Mobile Apps from time to time in its sole discretion.
Franchisee may not, directly or indirectly, conduct or be involved in any Digital Marketing
that uses the Brand or that relates to the Center or the network of Restore Centers, nor establishes
or maintains any Social Media accounts utilizing any usernames, nor associating with any of the
Marks, without Franchisor’s prior written consent. Franchisor may require any third-party digital
marketing agency retained by Franchisee to enter into a management services agreement with
Franchisor or its Affiliate on terms and conditions satisfactory to Franchisor.
(a) Business Entity Franchisee. Franchisee and each Principal represents, warrants
and agrees that: (i) Franchisee is duly organized and validly existing under the laws of the state of
its organization, and, if a foreign business corporation, partnership, limited liability company or
other legal entity, Franchisee is duly qualified to transact business in the state in which its Center
is located; (ii) Franchisee has the authority to execute and deliver this Agreement and to perform
its obligations hereunder; (iii) true and complete copies of the articles or certificate of
incorporation, articles of organization, operating agreement or principles, partnership agreement,
bylaws, trust agreements and all other documents relating to its ownership, organization,
capitalization, management and control, and any amendments thereto (“Organizational
Documents”) shall be promptly delivered to Franchisor; (iv) its activities are restricted to those
necessary solely for the development, ownership and operation of Restore Centers in accordance
with this Agreement and in accordance with any other agreements entered into with Franchisor or
any of its Affiliates; (v) all certificates representing direct or indirect legal or beneficial ownership
interests now or hereafter issued must bear a legend in conformity with Applicable Law reciting
or referring to such restrictions; and (vi) Franchisee will deliver to Franchisor a
Secretary’s/Clerk’s/Trustee’s Certificate or other evidence satisfactory to Franchisor, that the
execution, delivery and performance of this Agreement and all other agreements and ancillary
documents contemplated hereby or thereby have been duly authorized by all necessary action by
Franchisee, if Franchisee is a corporation, partnership, limited liability company or other legal
entity, as applicable.
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(1) Neither Franchisee nor any Principal will make or offer a gratuity or gift of
any kind to any employee of Franchisor or any of its Affiliates or any family member of an
employee that could be viewed as relating to an actual or potential business relationship with
Franchisor or its Affiliate. Gifts include entertainment, personal services, favors, discounts and
other preferential treatment of any kind. Franchisor may interpret such action as an improper
attempt to influence the employee of Franchisor or its Affiliate, as applicable. For the avoidance
of doubt, gifts do not include reasonable food and beverages at a meeting between Franchisor and
Franchisee or other customary courtesies.
(2) Franchisee represents and warrants that it will comply with all of
Franchisor’s policies relating to ethical and professional conduct. Franchisee will provide wages
and benefits and maintain Personnel work hours in compliance with Applicable Law. Franchisee
will not utilize forced, prison or child labor. No Person may be employed at an age younger than
that permitted by Applicable Law, and such age will be appropriately documented.
(d) Regulatory Reviews and Approvals. Franchisee represents and warrants that it
has retained its own independent counsel to advise Franchisee regarding the Authorized Care
Provider Regulations and requirements regarding Authorized Care Providers, the Authorized
Services and the Authorized Medical Services.
Franchisee will train and supervise a sufficient number of qualified Personnel to meet its
obligations under this Agreement. Franchisee will maintain a competent, conscientious, trained
staff and take such steps as are necessary to ensure that its Personnel preserve good customer
relations and fully comply with Applicable Law.
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If, during the Initial Term, the Operator is not able to continue to serve in such
capacity or no longer qualifies to act as such in accordance with this Section 11(a), Franchisee
must promptly notify Franchisor in writing and designate a replacement within 30 days after the
Operator ceases to serve, such replacement being subject to the same qualifications described
above. Franchisee must provide for interim management of all Centers owned by Franchisee or
any of its Affiliates that the Operator supervised until such replacement is so designated, such
interim supervision to be conducted in accordance with the terms of this Agreement.
(b) General Manager and Lead Nurse. At least 60 days prior to the Opening Date,
Franchisee must designate and thereafter retain at all times a General Manager qualified to manage
the Center and a lead nurse qualified to supervise administration of the Authorized Services and,
to the extent applicable, to support the administration and delivery of the Authorized Medical
Services in support of the Authorized Care Provider in accordance with the Standards. Both must
complete Franchisor’s initial training program to Franchisor’s satisfaction. Franchisee agrees to
cause the General Manager and lead nurse to execute Franchisor’s then-standard confidentiality
and non-competition agreement. If the General Manager or lead nurse discontinue to serve in their
respective capacities or no longer meet the qualifications for their positions, Franchisee must
promptly notify Franchisor and designate a replacement within 30 days thereafter meeting the
qualifications described above. Franchisee must provide for interim management of the Center
until such replacement is so designated, such interim supervision to be conducted in accordance
with the terms of this Agreement.
(c) Other Personnel. Franchisee will be solely responsible for all employment and
Personnel decisions involving its Personnel, including the hiring, firing, discipline, supervision,
direction, scheduling, and compensation. Franchisee will ensure that each such Personnel receive
such training from Franchisee as Franchisor may require. Franchisor will not be involved in, or
responsible for, training, employment, compensation or any other Personnel matters and decisions
made by Franchisee, as further described in Section 11(d).
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(a) Accounting and Records. Franchisee will obtain and be solely responsible for its
own accounting services and any required hardware or software related thereto. Franchisor may,
at its sole option, designate preferred providers of accounting services and software. Franchisee
will at all times maintain accurate and complete records in accordance with the Standards,
including, sales, inventory and expense information, in order to generate the reports requested by
Franchisor.
(b) Inspections and Audits. Franchisor and its designated agents or representatives
will have the right at any time, provided Franchisor will use reasonable efforts to avoid any
disruption of or interference with the operation of the Center during normal business hours, to:
(1) enter the Premises, observe, photograph and videotape the operations of the
Center and performance of the Services for such consecutive or intermittent periods as Franchisor
deems necessary and otherwise inspect the Center (including inspections by third party vendors
retained by Franchisor to perform “mystery shops”;
(3) perform KPI Assessments and advise Franchisee of corrective actions that
must be taken for any key performance level that Franchisee fails to satisfy upon any such KPI
Assessment, and, where Franchisee fails to satisfy the minimum score for the same key
performance indicator during two or more consecutive KPI Assessments, assess the then-current
corrective action fee; provided, Franchisee’s payment of such corrective action fee or performance
of any corrective action will not constitute an election of remedies or waiver of any right or remedy
of Franchisor under this Agreement, at law or in equity; and
(4) inspect, examine, audit, and copy any books and records relating to the
operation of the Center. Franchisee will fully cooperate with Franchisor in connection with any
such activities; present to its customers such evaluation forms that Franchisor periodically
prescribes; and participate and/or request its customers to participate in any surveys performed by
Franchisor or on its behalf. Franchisor will notify Franchisee in writing of any unsatisfactory
conditions discovered as it deems appropriate, and, if notified, Franchisee will promptly correct
and repair, as applicable, any such conditions. Any audit, examination, or inspection will be at
Franchisor’s cost and expense unless Franchisor is conducting the audit, examination, or
inspection due to Franchisee’s failure to submit reports, or unless the reports submitted by
Franchisee for the Month show an understatement of Gross Sales by 5.0% or more and/or a
corresponding underpayment of Royalty Fees, Brand Contribution and/or Local Marketing
Expenditure, in which cases all reasonable and necessary costs and expenses related to such audit,
examination or inspection will be paid by Franchisee. Franchisee will immediately pay Franchisor
upon demand any deficiency in any fees plus interest as specified in Section 4. Franchisee’s
payment of such fees and interest will not constitute an election of remedies or waiver of any right
or remedy of Franchisor under this Agreement, at law or in equity.
(c) Financial Reports. Within 20 days after the end of each calendar quarter,
Franchisee will deliver to Franchisor an unaudited profit and loss statement and balance sheet with
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13. INSURANCE.
Franchisee must maintain in force: (a) commercial general liability insurance; (b) all risk
property insurance, including fire and extended coverage, vandalism and malicious mischief
insurance for the replacement value of Franchisee’s Restore Center and its contents with a
minimum of six months of business interruption coverage; (c) commercial auto liability insurance
covering owned, borrowed, hired and non-owned autos; (d) statutory workers’
compensation/employer’s liability insurance; (e) employment professional liability insurance, and
(f) such other insurance policies as Franchisor may determine from time to time. All insurance
policies must: (1) be issued by carriers licensed to do business in the state with an AM Best rating
of A-VIII or higher or otherwise approved by Franchisor; (2) contain such types and minimum
amounts of coverage, exclusions and maximum deductibles as Franchisor prescribes from time to
time in the Manuals; (3) name Franchisor and its Affiliates as additional insureds (with respect to
liability insurance only); (4) provide for thirty (30) days’ prior written notice to Franchisor of any
material modification, cancellation or expiration of such policy; (5) include a waiver of
subrogation; and (6) include such other provisions as Franchisor may require from time to time.
Franchisee’s insurance must apply on a primary and non-contributory basis. Any assumption of
risk not covered by a third party insurance policy or a qualified self-insured program must also be
approved by Franchisor.
Franchisee must furnish Franchisor with such evidence of insurance coverage on an annual
basis and payment of premiums as Franchisor may request. If Franchisee fails or refuses to
maintain any required insurance coverage, or to furnish satisfactory evidence thereof, Franchisor,
at its option and in addition to its other rights and remedies hereunder, may obtain such insurance
coverage on Franchisee’s behalf. If Franchisor does so, Franchisee must fully cooperate with
Franchisor in its effort to obtain such insurance policies and pay Franchisor any costs and
premiums it incurs.
(a) Goodwill in Marks and Intellectual Property. Franchisor or its Affiliates are the
exclusive owner of the Marks and all other Intellectual Property provided or to be provided to
Franchisee. Franchisee’s right to use the Marks and any other Intellectual Property is derived solely
from this Agreement and limited to its operation of the Center pursuant to and in compliance with
this Agreement. Franchisee’s use of the Marks and any goodwill associated with such use and any
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(b) Limitations on Franchisee’s Use of Marks. Franchisee will use the Marks as the
sole identification of the Center, except that Franchisee must identify itself as the independent
owner thereof in the manner Franchisor prescribes. Franchisee may not use any Mark as part of
any Entity name or with any prefix, suffix, or other modifying words, terms, designs, or symbols
(other than logos licensed to Franchisee hereunder), or in any modified form, nor may Franchisee
use any Mark in connection with the performance of any unauthorized services or sale of any
unauthorized products; as part of any domain name, electronic address, metatag, or otherwise on
the Internet or in connection with any website (unless expressly authorized in writing by
Franchisor); or in any other manner that Franchisor has not expressly authorized in writing.
Franchisee will display the Marks in the manner Franchisor prescribes at the Center, on supplies
or materials Franchisor designates, and in connection with forms and advertising and marketing
materials.
(c) Intellectual Property Rights. Franchisor or its Affiliates will be the sole owner of
all right, title and interest in and to any Intellectual Property created as a result of or related to the
operation of the Center and any improvements, modifications or derivative works of Franchisee’s
operation of the Center or other activities under this Agreement. Franchisor does not grant
Franchisee any ownership interest or right with respect to any Intellectual Property created as a
result of Franchisee’s operation of the Center. Franchisor’s default under or termination of this
Agreement will not impact Franchisor’s rights in the Intellectual Property. Franchisee does hereby,
on behalf of itself and on behalf of its Principals, Affiliates and its and their respective Personnel,
without reservation, irrevocably sell, assign, transfer and convey, and will be deemed to have
irrevocably sold, assigned, transferred, and conveyed to Franchisor, its successors, assigns and
legal representatives, all right, title and interest (past, present, future, and throughout the world) in
and to any rights to any Intellectual Property related to the operation of the Center; and any and all
claims, of any nature whatsoever, for past, present or future infringement or violation of such
Intellectual Property rights.
If Franchisee, its Principals or Affiliates or its and their respective Personnel has
any rights to work product that cannot be assigned to Franchisor, Franchisee, its Principals and
Affiliates and its and their respective Personnel, as applicable, unconditionally and irrevocably
waives the enforcement of such rights, and if such rights cannot be waived, Franchisee, on behalf
of itself, its Principals and Affiliates and its and their respective Personnel, hereby grants to
Franchisor a fully paid-up, exclusive, irrevocable, perpetual, worldwide license to display, copy,
distribute, perform or use in any manner and to make derivative works of the work product.
Franchisee will assist Franchisor to register and record (as may be required by Applicable Law or
requested by Franchisor), and from time to time enforce, all rights in the Intellectual Property, and
other rights and protections relating to the work product created hereunder in any and all countries.
Franchisee will execute (and cause its Principals, Affiliates and its and their respective Personnel)
any documents and take any other actions reasonably necessary to effectuate the purposes of this
Section 14(c). Franchisee will include the requirements of this Section 14(c) in all agreements with
its Principals, Affiliates and Personnel.
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(g) Ideas and Concepts. From time to time in connection with the operation of the
Center, Franchisee may create or develop Ideas and Concepts that Franchisee believes will
improve the Services, System or the Centers. Franchisee represents and warrants that it will
promptly disclose such Ideas and Concepts to Franchisor and will not implement such Ideas and
Concepts without the prior written approval of Franchisor. Franchisor may elect to use or adopt
such Ideas and Concepts if Franchisor determines that such adoption or use will benefit the Restore
Hyper Wellness network. If Franchisor uses or adopts any of such Ideas and Concepts, they will
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(b) Transfer by Franchisee. The rights and duties created by this Agreement are
personal to Franchisee and its Principals, and Franchisor has granted rights under this Agreement
in reliance upon the business skill, financial capacity and personal character of Franchisee and its
Principals. Accordingly, no Transfer of the Franchise is permitted or authorized without
Franchisor’s prior written approval, subject to the conditions below.
(c) Conditions for Approval of Transfer. Subject to Section 15(f), Franchisor will
approve a Transfer only if the conditions set forth in this Section 15(c), are met prior to or
concurrently with the proposed effective date of the Transfer:
(1) Franchisee (and its Principals) has paid all Royalty Fees and all other
amounts owed to Franchisor and its Affiliates, submitted all required Reports and other statements
and data and otherwise are in full compliance with this Agreement as of the date of Franchisee’s
request for approval of the Transfer and as of effective date of the Transfer.
(2) The proposed transferee (and its direct and indirect owners): (A) have
sufficient business experience, aptitude, assets and financial resources to operate the Center; (B)
are individuals of good character and otherwise meet Franchisor’s then-applicable Standards for
Center franchisees; (C) are not engaged and will not engage in the operation or ownership of a
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(3) The transferee and its owners as specified by Franchisor will complete the
initial training program and provide Franchisor with a business plan for the Center acceptable to
Franchisor.
(4) The transferee and each of its owners specified by Franchisor will (A)
execute and agree to be bound by all of the terms and conditions of Franchisor’s then-current form
of franchise agreement (which will contain a term equal to the remaining Initial Term under this
Agreement and may contain provisions, including financial terms, such as royalty fees, materially
different from this Agreement) and all ancillary agreements Franchisor then requires for
franchisees and its Owners or (B) at Franchisor’s option, assume the obligations of Franchisee and
its Principals under this Agreement and ancillary agreements.
(5) Franchisee and the transferee and its owners have agreed to the terms of a
purchase and sale agreement for the Center.
(7) Franchisee (and its Principals) have executed a general release, in form and
substance satisfactory to Franchisor releasing Franchisor Indemnitees from any and all claims.
(9) The transferee and its owners shall have complied with any other conditions
that Franchisor reasonably requires from time to time as part of its Transfer policies, provided that
such conditions will not be more stringent than any conditions imposed on new franchisees signing
the then-current franchise agreement.
(e) Transfer Upon Death or Permanent Disability. If any Principal dies or becomes
permanently disabled, such Principal’s executor, administrator, or other personal representative
must Transfer such Principal’s interest in this Agreement or in Franchisee (including a Transfer
by bequest or inheritance) to a third party approved by Franchisor in accordance with Section 15(c)
within a reasonable period of time, not to exceed six months from the date of death or permanent
disability.
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Franchisee recognizes that Franchisor has developed and owns the goodwill in the Brand
and must protect the Marks, Confidential Information, and System. Franchisee and its Principals
each acknowledges and agrees that the access to and use of Confidential Information authorized
by this Agreement are among the consideration for the restrictive covenants set forth in Section
16(a), and Franchisee and its Principals each further acknowledges and agrees that the restrictive
covenants set forth in Section 16(a) are necessary to prevent Franchisor from suffering irreparable
harm. THE FOREGOING ACKNOWLEDGMENTS AND AGREEMENTS ARE A MATERIAL
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(a) Non-Compete. Franchisee and its Principals covenant and agree that during the
Term, and for a continuous uninterrupted period of two years following its expiration, termination,
or an approved Transfer and with respect to a Principal, following the date the Principal ceases to
be a Principal under this Agreement, Franchisee and each of its Principals, as applicable, will not,
without Franchisor’s prior written consent, either directly or indirectly, for itself or themselves, or
through, on behalf of, or in conjunction with, any Person or Entity:
(3) Own, maintain, operate, be employed by, engage in, franchise, lease
property to, advise, help, make loans to, or have any interest in, either directly or indirectly, any
Competitive Business or any business that grants licenses or franchises for any Competitive
Business.
During the Initial Term, these restrictions apply to any Competitive Business located anywhere.
Following the expiration of the Initial Term, termination of this Agreement, or an approved
Transfer of this Agreement and with respect to a Principal, following the date the Principal ceases
to be a Principal under this Agreement, this restriction will apply to any Competitive Business
located: (A) within the Designated Area; (B) at or within five miles of the Center; or (C) within
five miles of any Restore Center then operating or under construction in the United States. If, at
any time during the two-year period following the expiration, termination, or approved Transfer
of this Agreement or the date any Principal ceases to be a Principal under this Agreement,
Franchisee or any of its Principals fails to comply with its obligations under this Section 16(a),
that period of non-compliance will not be credited toward satisfaction of the two-year period.
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The occurrence of any of the following are material breaches that will adversely and
substantially affect the interests of Franchisor and be deemed an “Event of Default” constituting
just cause for exercising any of the remedies set forth herein.
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(2) abandons or fails to actively operate Franchisee’s Center for three (3)
consecutive days, except where such failure to actively operate results solely from a Force Majeure
Event;
(6) is convicted of, or pleads no contest to, a felony or other crime or offense
that Franchisor reasonably believes may adversely affect the Restore Hyper Wellness network or
System or the goodwill associated with the Marks;
(9) fails to make timely payment of any amounts due Franchisor or any of its
Affiliates, and does not correct such failure within ten (10) days after written notice of such failure;
(10) fails to make a timely payment of any amount due to any third party (such
as a supplier, vendor, landlord, lessor, etc.) unaffiliated with Franchisor (other than payments
which are subject to bona fide dispute), and does not correct such failure within thirty (30) days
after Franchisor delivers notice of such failure to comply;
(11) fails to comply with any other provision of this Agreement, the Standards
or any other mandatory specification or operating procedure or other obligation that Franchisor
prescribes periodically in the Manuals and does not correct such failure within thirty (30) days
after notice of such failure to comply is delivered; or
(12) fails to comply with any provision of this Agreement on three (3) or more
separate occasions within any period of twelve (12) consecutive months, whether or not such
breach is the same or the breach is cured after notice is delivered to Franchisee.
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(a) Payment of Amounts Owed. Franchisee will pay to Franchisor within 15 days
after the effective date of expiration or termination of this Agreement, or on such later date that
the amounts due are determined, such fees, amounts owed for purchases from Franchisor or its
Affiliates, Interest due on any of the foregoing and all other amounts owed to Franchisor or its
Affiliates which are then unpaid.
(b) Marks. Franchisee may not directly or indirectly at any time or in any manner use
any Mark, including any use of Marks in a derogatory, negative, or other inappropriate manner in
any media, including, but not limited to, print or electronic media; use any colorable imitation of
a Mark in any manner or for any purpose; utilize for any purpose any trade name, trade or service
mark or other commercial symbol or other indicia that indicates or suggests a connection or
association with Franchisor, the Center or the Brand; identify any business as a former Center; or
identify itself as one of Franchisor’s licensees or franchisees (except with respect to other Restore
Centers Franchisee owns and operates under continuing agreements with Franchisor). Franchisee
will take such action as may be required to cancel all fictitious or assumed names or equivalent
registrations relating to its use of any Mark.
(c) System and Manuals. Franchisee will immediately cease to use the System and
Confidential Information in any business or otherwise; and return to Franchisor all Confidential
Information, including without limitation, copies of the Manuals and any other proprietary or
confidential materials that Franchisor has loaned to Franchisee.
(e) Other De-Identification Obligations. Franchisee will promptly and at its own cost
and expense make such alterations as Franchisor specifies in the Manuals or otherwise to
distinguish the Center clearly from its former appearance and from other Centers so as to prevent
confusion therewith to the public. Within 30 days from the effective date of expiration or
termination of this Agreement, Franchisee will deliver to Franchisor all Restore Hyper Wellness
property and all other signs, sign-faces, sign-cabinets, advertising and promotion materials, forms
and other materials containing any Mark or otherwise identifying or relating to a Center and allow
Franchisor, without liability to Franchisee or third parties, to remove all such items from the
Center. Franchisee will furnish to Franchisor, within 30 days from the effective date of expiration
or termination of this Agreement, with evidence satisfactory to Franchisor of its compliance with
the foregoing obligations.
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(g) Memberships. In addition to any procedures required by Applicable Laws and any
instructions that Franchisor may provide, Franchisee must notify all members of the Center
immediately that the Center will cease to operate under the Marks (using a notice that Franchisor
has approved in writing) and offer to such members the option to terminate their membership and
receive a pro rata refund of all membership fees and other charges which were prepaid by such
members related to any period after the effective date of termination or expiration of this
Agreement. Franchisee is solely responsible for paying such refunds to its members. Franchisor
may contact and offer such members continued rights to use one or more Restore Centers on such
terms and conditions Franchisor deems appropriate, which in no event will include assumption of
any then-existing liability arising out of or relating to any membership agreement or act or failure
to act by Franchisee or its Center. Franchisee and its Principals will cooperate with Franchisor to
preserve member goodwill.
(h) Restrictive Covenants and Continuing Obligations. Franchisee will comply with
the restrictive covenants set forth in this Agreement. Franchisee’s (and its Affiliates’ and
Principals’) obligations which expressly or by their nature survive the expiration or termination of
this Agreement will continue in full force and effect subsequent to and notwithstanding its
expiration or termination and until such obligations are satisfied in full or by their nature expire.
(a) Upon (i) expiration of this Agreement without extension or renewal or (ii)
termination of this Agreement by Franchisor in accordance with its terms or by Franchisee in any
manner other than in accordance with its terms, then Franchisor has the right, exercisable by giving
notice thereof (“Appraisal Notice”) to require that the Agreed Value (as defined below) be
determined for all of Franchisee’s personal property, improvements, fixtures, furniture and
equipment used and located at the Center, but excluding any items not meeting Franchisor’s
specifications or standards as provided in this Agreement (the “Appraised Assets”). In the event
of a termination, such Appraisal Notice shall be given no later than thirty (30) days after the date
of such termination; in the event of expiration, such Appraisal Notice shall be given no more than
six (6) months and no less than three (3) months prior to the expiration of this Agreement.
Franchisee may not sell or remove any of the Appraised Assets until the expiration of the foregoing
notice periods, and if Franchisor delivers such Appraisal Notice, until the consummation of the
sale as set forth in this Section 19(a) or as otherwise authorized by Franchisor.
(b) The “Agreed Value” shall be determined by good faith consultation between
Franchisee and Franchisor. Franchisee agrees to give Franchisor, its designated agents and, if
applicable, the Appraiser (as defined in subsection (c) below) full access to its Center’s books and
records relating to the Appraised Assets (including copies of all leases, concession licenses or other
arrangements relating to Franchisee’s occupancy of the premises), at any time upon three (3) days’
prior written notice during customary business hours in order to inspect the Appraised Assets and
determine the purchase price for the Appraised Assets. Franchisor agrees, and agrees to cause its
designated agents, to use reasonable efforts to minimize disruption to Franchisee’s business
operations.
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The Appraiser will make his or her determination and submit a written report
(“Appraisal Report”) to Franchisee and Franchisor as soon as practicable, which report shall
contain the Fair Market Value, Appraised Asset Value and Net Book Value, as applicable. The
Appraiser shall endeavor to complete the Appraisal Report within sixty (60) days after his or her
appointment, and both Parties shall fully cooperate with the Appraiser in order to meet the
deadline. The Appraiser may extend the Appraisal Report deadline, as may be reasonably
necessary. Franchisee agrees to promptly provide the Appraiser with such books and records as he
or she may require, which Franchisee represents and warrants to be complete and accurate. In
absence of such books and records or if the Appraiser is not satisfied with their completeness or
accuracy, the Appraiser may make his or her determination in the Appraisal Report on the basis of
other sources and information he or she deems reasonably appropriate. The Appraiser’s
determination shall be final and binding on the Parties hereto, and the Parties agree to share the
cost of the appraisal equally.
Franchisor has the option, exercisable by delivering notice thereof within ten (10)
days after submission of the Appraisal Report (or the date that an agreement is reached, if the
Parties agree to the Agreed Value), to agree to purchase the Appraised Assets of the Center at its
Agreed Value (“Purchased Assets”).
If Franchisor exercises its option to purchase, the purchase price for the Purchased
Assets will be paid in full by wire transfer at the closing, which will occur at the place, time and
date mutually agreed by the Parties, and if the Parties cannot agree, then as reasonably determined
by Franchisor (subject to compliance with Legal Requirements and any reasonable extensions
required by Franchisor). At the closing, Franchisor will be entitled to all customary representations
and warranties, covenants and closing documents and post-closing indemnifications, including: (i)
instruments transferring good and merchantable title to the Purchased Assets, free and clear of all
security interests, liens, encumbrances, and liabilities, to Franchisor or its designee, with all sales
and other transfer taxes paid by Franchisee; and, (ii) an assignment of all leases (subject to landlord
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If Franchisee cannot deliver clear title to all of the assets, or if there are other
unresolved issues, the closing of the sale may at Franchisor’s option, be accomplished through an
escrow on reasonably appropriate terms, including the making of payments, to be deducted from
the purchase price, directly to third parties in order to obtain clear title to the Purchased Assets.
Franchisee and Franchisor shall comply with any applicable bulk sales or similar laws and all
applicable tax notification and/or escrow procedures. Franchisor has the right to set off against and
reduce the purchase price by any and all amounts owed by Franchisee or any of its Affiliates to
Franchisor or any of its Affiliates.
Upon delivery of the Appraisal Notice and pending determination of Agreed Value
and the closing of the purchase, Franchisor shall authorize continued temporary operations of the
Center pursuant to the terms of this Agreement, subject to the supervision and control of one or
more of Franchisor’s appointed managers.
20. INDEMNIFICATION.
Franchisee agrees to indemnify and defend Franchisor Indemnitees and to hold Franchisor
Indemnitees harmless to the fullest extent permitted by law, from and against any and all Losses
and Expenses (as defined below) incurred by any such Franchisor Indemnitees in connection with
any litigation or other form of adjudicatory procedure, claim, demand, investigation, or formal or
informal inquiry (regardless of whether it is reduced to judgment) or any settlement thereof which
arises directly or indirectly from, or as a result of, a claim of a third party or any regulatory body
or local or jurisdictional authority against any one or more of the Franchisor Indemnitees in
connection with (i) Franchisee’s failure to perform or breach of any covenant, agreement, term or
provision of this Agreement, (ii) Franchisee’s breach of any representation or warranty contained
in this Agreement, (iii) the marketing, promotion, advertisement or sale of any of the services
(including the Authorized Services) offered by Franchisee or its Center pursuant to this
Agreement, including unfair or fraudulent advertising, commercial speech or medical claims, (iv)
Franchisee’s development, ownership, operation and/or closing of its Center (including any claims
for unauthorized practice of medicine or medical malpractice) and (v) any allegedly unauthorized
service or act rendered or performed in connection with this Agreement (collectively
“Indemnified Event”) and regardless of whether it resulted from any strict or vicarious liability
imposed by law on the indemnitees.
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The term “Losses and Expenses” includes compensatory, exemplary, and punitive
damages; fines and penalties; liabilities; attorneys’ fees; experts’ fees; court costs; costs associated
with investigating and defending against claims; settlement amounts; judgments; compensation
for damages to Franchisor’s reputation and goodwill; and all other costs associated with any of the
foregoing Losses and Expenses.
Franchisor agrees to give reasonable notice of any event of which it becomes aware for
which indemnification may be required, and Franchisor may elect (but is not obligated) to direct
the defense thereof, provided that the selection of counsel shall be subject to Franchisee’s consent,
which consent shall not be unreasonably withheld or delayed. Franchisor may, in its reasonable
discretion, take such actions as it deems necessary and appropriate to investigate, defend, or settle
any event or take other remedial or corrective actions with respect thereto as may be necessary for
the protection of indemnitees or Franchisor Centers generally, provided however, that any
settlement shall be subject to Franchisee’s consent, which consent shall not be unreasonably
withheld or delayed.
(a) Independent Contractors. It is understood and agreed by the Parties that this
Agreement does not create a fiduciary relationship between them; that Franchisor and Franchisee
are and will be independent contractors and that nothing in this Agreement is intended to make
either Party a general or special agent, joint venturer, partner or employee of the other for any
purpose. Franchisee will conspicuously identify itself in all dealings as the owner of the Center
and the rights granted under the Agreement with Franchisor and will place such notices of
independent ownership on such forms, business cards, employment-related documents (e.g.,
employment applications and agreements, paychecks and benefits notice), stationery and
advertising and other materials as Franchisor may periodically require. Franchisee must post a
prominent sign in the Center identifying Franchisee as a Restore Hyper Wellness franchisee in a
format prescribed by Franchisor, including without limitation an acknowledgment that Franchisee
independently owns and operate the Center, the Marks are owned by Franchisor and that
Franchisee’s use of such Marks is pursuant to a license issued by Franchisor.
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(b) No Liability for Acts of Other Parties. Franchisee must not employ any of the
Marks in signing any contract or applying for any license or permit, or in a manner (other than the
use contemplated hereby) that may result in Franchisor’s liability for any of Franchisee’s
indebtedness or obligations. Except as expressly authorized in writing, neither Franchisor nor
Franchisee will make any express or implied agreements, warranties, guarantees or representations
or incur any debt in the name or on behalf of the other Party or be obligated by or have any liability
under any agreements or representations made by the other Party. Franchisor will not be obligated
for any damages to any Person directly or indirectly arising out of the buildout, renovation,
operation, or management of the Center.
(a) Governing Law. This Agreement shall be construed under the laws of the State of
Texas, provided the foregoing shall not constitute a waiver of any of Franchisee’s rights under any
applicable franchise law of another state. Otherwise, in the event of any conflict of law, Texas law
will prevail, without regard to its conflict of law principles. However, if any provision of this
Agreement would not be enforceable under Texas law, and if Franchisee’s Restore Center is
located outside of Texas and such provision would be enforceable under the laws of the state in
which Franchisee’s Restore Center is located, then such provision shall be construed under the
laws of that state. Nothing in this Section 22(a) is intended to subject this Agreement to any
franchise or similar law, rule or regulation of the State of Texas to which it otherwise would not
be subject.
(b) Consent to Jurisdiction. Franchisee and its Principals irrevocably submit to the
jurisdiction of the courts of the State of Texas in any suit, action or proceeding, arising out of or
relating to this Agreement or any other dispute between Franchisee and Franchisor, and Franchisee
irrevocably agrees that all claims in respect of any such suit, action or proceeding must be brought
and/or defended therein except with respect to matters that are under the jurisdiction of the Federal
Courts of the United States, which shall be brought and/or defended in the Federal District Court
sitting in Austin, Texas. Franchisee irrevocably waives, to the fullest extent Franchisee may
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(c) Injunctive Relief. Franchisor may obtain in any court of competent jurisdiction
any preliminary relief, including temporary restraining orders and preliminary injunctions, against
conduct or threatened conduct for which no adequate remedy at law may be available or which
may cause Franchisor irreparable harm. Franchisor may have such injunctive relief, without bond,
but upon due notice, in addition to such further and other relief as may be available at equity or
law, and Franchisee’s sole remedy in the event of the entry of such injunction, shall be its
dissolution, if warranted, upon hearing duly held (all claims for damages by reason of the wrongful
issuance of any such injunction being expressly waived). Franchisee and each of its Principals
acknowledge that any violation of Sections 14 or 16 would result in irreparable injury to Franchisor
for which no adequate remedy at law may be available. Accordingly, Franchisee and each of its
Principals consent to the issuance of an injunction prohibiting any conduct in violation of any of
those Sections and agree that the existence of any claim Franchisee or any of its Principal may
have against Franchisor, whether arising from this Agreement, shall not constitute a defense to the
enforcement of any of those Sections.
(d) Attorneys’ Fees. In any judicial or arbitration proceeding between the parties, the
non- prevailing party agrees to reimburse the prevailing party for all of the prevailing party’s costs
and expenses associated with such proceedings, including reasonable accounting, paralegal, expert
witness and attorneys’ fees.
23. MISCELLANEOUS.
If any Applicable Law requires a greater prior notice of the termination of or refusal
to enter into a successor franchise than is required hereunder, a different standard of “good cause,”
or the taking of some other action not required hereunder, the prior notice, “good cause” standard
and/or other action required by such law will be substituted for the comparable provisions hereof.
If any provision of this Agreement or any specification, standard or operating procedure prescribed
by Franchisor is invalid or unenforceable under Applicable Law, Franchisor has the right, at
Franchisor’s sole option, to modify such invalid or unenforceable provision, specification,
standard or operating procedure to the extent required to make it valid and enforceable.
(b) Notices. All notices required or permitted under this Agreement will be deemed
given: (i) when delivered by hand; (ii) two days after electronically confirmed transmission by
facsimile or electronically confirmed delivery receipt by electronic mail; (iii) three days after
confirmed delivery if by certified or registered mail, postage prepaid; or (iv) upon delivery by a
nationally-recognized courier or delivery service. Either Party may specify a different address by
notifying the other Party in writing of the different address. The notice address for each Party is
set forth in Exhibit A. All notices to Franchisor must include a copy to its General Counsel to be
effective. All payments and reports required by this Agreement shall be sent to Franchisor at the
address identified in this Agreement unless and until a different address has been designated by
written notice. No restrictive endorsement on any check or in any letter or other communication
accompanying any payment shall bind Franchisor, and Franchisor’s acceptance of any such
payment shall not constitute an accord and satisfaction.
(c) Waiver of Obligations. Either party may by written instrument unilaterally waive
or reduce any obligation of the other under this Agreement. Any such waiver granted shall be
without prejudice to any other rights the waiving party may have, will be subject to continuing
review by such party and may be revoked, in such party’s sole discretion, at any time and for any
reason, effective upon delivery to the other party of ten (10) days’ prior notice. Franchisee and
Franchisor shall not be deemed to have waived any right reserved by this Agreement or be deemed
to have modified this Agreement by virtue of any custom or practice of the parties at variance with
it; any failure, refusal or neglect by Franchisee or Franchisor to exercise any right under this
Agreement (except as provided in Section 23(d)) or to insist upon exact compliance by the other
with its obligations hereunder; any waiver, forbearance, delay, failure or omission by Franchisor
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(d) Exercise of Rights. The rights of Franchisor and Franchisee hereunder are
cumulative and no exercise or enforcement by Franchisor or Franchisee of any right or remedy
hereunder shall preclude the exercise or enforcement by Franchisor or Franchisee of any other
right or remedy hereunder which Franchisor or Franchisee is entitled to enforce by law. If
Franchisee commits any act of default under any agreement or Event of Default under this
Agreement for which Franchisor exercises its right to terminate this Agreement, Franchisee shall
pay to Franchisor the actual and consequential damages Franchisor incurs as a result of the
premature termination of this Agreement. Franchisee acknowledges and agrees that the proximate
cause of such damages sustained by Franchisor is Franchisee’s act of default and not Franchisor’s
exercise of its right to terminate. Notwithstanding the foregoing, and except as otherwise
prohibited or limited by Applicable Law, any failure, neglect, or delay of a party to assert any
breach or violation of any legal or equitable right arising from or in connection with this Agreement
shall constitute a waiver of such right and shall preclude the exercise or enforcement of any legal
or equitable remedy arising therefrom, unless written notice specifying such breach or violation is
provided to the other party within twenty four (24) months after the later of: (a) the date of such
breach or violation; or (b) the date of discovery of the facts (or the date the facts could have been
discovered, using reasonable diligence) giving rise to such breach or violation.
(e) Successors and Assigns. This Agreement is binding upon the Parties and their
respective executors, administrators, permitted heirs, permitted assigns and successors-in-interest
and will not be modified except by a written agreement signed by both Franchisee and Franchisor.
(f) Construction. The language of this Agreement shall be construed according to its
fair meaning and not strictly against any party. The introduction, appendix, personal guarantees,
exhibits and riders (if any) to this Agreement, are a part of this Agreement, which constitutes the
entire Agreement of the parties with respect to the subject matter hereof. Except as otherwise
expressly provided herein, there are no other oral or written agreements, understandings,
representations or statements relating to the subject matter of this Agreement, other than the
franchise disclosure document, that will have any force or effect. Nothing in this Agreement shall
be deemed to confer any rights or remedies on any Person not a party hereto. This Agreement shall
not be modified except by written agreement signed by both parties. Time is of the essence in this
Agreement.
Franchisee agrees that the electronic signatures or digital signatures (each an “e-
signature”) of any party to this Agreement shall have the same force and effect as manual
signatures of such party and such e-signature shall not be denied legal effect or enforceability
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The headings of Sections are for convenience only and do not limit or construe their
contents. The word “including” shall be construed to include the words “without limitation.” The
term “Franchisee” is applicable to one or more Persons, a corporation, limited liability company
or a partnership and its owners, as the case may be. If Franchisee consists of more than one Person,
the obligations and liabilities to Franchisor shall be joint and several. References to a controlling
interest in an entity shall mean more than fifty percent (50%) of the equity or voting control of
such entity.
(g) Approvals and Consents. Whenever this Agreement requires the approval or
consent of either party, the other party shall make written request therefor, and such approval or
consent shall be obtained in writing; provided however, unless specified otherwise in this
Agreement, such party may withhold approval or consent, for any reason or for no reason at all.
Furthermore, unless specified otherwise in this Agreement, no such approval or consent shall be
deemed to constitute a warranty or representation of any kind, express or implied, and the
approving or consenting party shall have no responsibility, liability or obligation arising therefrom.
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FRANCHISOR:
By: __________________________
Name: James Donnelly
Title: Chief Executive Officer
FRANCHISEE:
[___________________________]
By: __________________________________
Name:
Title: __________________________________
Certain initially capitalized terms used frequently in this Agreement are defined in this
Section 1. Other terms are defined elsewhere in this Agreement in the context in which they arise.
The defined terms may be used in the singular or plural or in varying tenses or forms, but such
variations shall not affect their defined meaning so long as they are written with initial capital
letters.
“Affiliate” means, with respect to a named Person, any Person that is controlled by,
controlling or under common control with the named Person. The term “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of an entity, whether through ownership of voting securities, by contract or otherwise.
“Applicable Law” means any Federal, state, and local laws, ordinances, and codes,
together with all rules, regulations, policies, and guidelines related thereto, including the
Authorized Care Provider Regulations, applicable to Franchisor, Franchisee, its Principals or the
subject matter of this Agreement, including the development, construction and/or operation of the
Center including all laws and regulations related to the provision of the Authorized Services and
any healthcare services including, without limitation, any Authorized Medical Services.
“Brand Fund” means the national, regional, or local marketing fund established for the
promotion of the Brand, as further described in Section 9(a).
“Business Day” means any calendar day other than Saturdays, Sundays, and national
holidays in the United States.
“Competitive Business” means any establishment for which cryotherapy and other
services authorized for Restore Centers individually or collectively constitute, or (if a new
business) is reasonably expected to constitute, 20% or more of the total revenues of such
establishment in the trailing 12 months or the next 12 months, as applicable, and any other
establishment that is the same as or substantially similar to a Restore Center, including any health
care facility, wellness facility, healing arts business, medical spa or day spa or chain of health care
facilities, wellness facilities, healing arts businesses, medical spas or day spas. Restrictions in this
Agreement on competitive activities do not apply to: (a) the ownership or operation of other
Restore Centers that are licensed or franchised by Franchisor or any of its Affiliates; or (b) the
ownership of shares of a class of securities that are listed on a public stock exchange or traded on
the over-the-counter market and that represent less than five percent (5%) of that class of securities.
“Customer Data” means any information relating to customers of the Center that
identifies, or can be used to identify, contact, locate or be traced back to the specific Person to
whom such information pertains, or from which identification or contact information of a Person
can be derived. Customer Data includes any personally identifiable information, such as a Person’s
name, address, phone number, fax number, email address, passport number, financial profile,
credit card information or any other information by which one is reasonably able to personally
identify one or more Persons but expressly excludes any medical records or health information of
a customer, including any such records or information protected by the HIPPA or other applicable
laws and regulations applicable to the records, data and information pertaining to an individual’s
identifiable healthcare information in the jurisdiction where the Center is located.
“Force Majeure Event” means acts of God (such as tornadoes, earthquakes, hurricanes,
floods, fire or other natural catastrophe), strikes, lockouts or other industrial disturbances; war
(declared or undeclared), riot, terrorist acts, Cybersecurity Incident, or other civil disturbances;
epidemics; or other forces, that materially and adversely affect the ability of a Party hereto to
perform provided that with respect to any or all events they are not within the reasonable control
of the Party affected thereby. Financial inability of a Party hereto will not constitute a Force
Majeure Event.
“Franchisor Indemnitees” means Franchisor, its Affiliates and their respective owners,
directors, officers, employees, agents, successors and assignees.
“General Manager” means the on-premises manager who will be primarily responsible
for the day-to-day operation and supervision of the Center.
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“Initial Term” means the initial term of this Agreement set forth in Section 2(a).
“KPI Assessment” means the written assessment made in connection with Franchisor’s
periodic inspections or other assessments of the Center and its operations of Franchisee’s
compliance with the terms of this Agreement and the mandatory standards, specifications and
operating procedures and other obligations contained in the Manuals.
“Lead Nurse” means the registered nurse that meets the Standards and any other
requirements applicable to the Center under Authorized Care Provider Regulations who is
responsible for administering certain Authorized Services to customers of the Center.
“Losses and Expenses” has the meaning given in Section 20 of this Agreement.
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“Marks” means the Restore Hyper Wellness trademarks and service marks and such other
registered and unregistered trademarks, trade names, service marks, logos, slogans, emblems and
other indicia of origin as are now designated, and may hereafter be designated, by Franchisor in
writing for use in connection with the System.
“Opening Date” means the deadline by which the Center must be open for business to the
public, as specified in Exhibit B or as otherwise provided in Section 4(b) hereof.
“Party” and “Parties” means the individual or collective reference to either or both of
Franchisor and Franchisee.
“POS System” means the computerized point of sale cash collection system (including all
related hardware and software) as specified in the Manuals or otherwise by Franchisor in writing
for use in connection with the Center.
“Premises” means the site approved by Franchisor for Franchisee’s Center as set forth in
Exhibit B.
“Principal” means each Person who has a direct or indirect legal or beneficial ownership
interest in Franchisee.
“Social Media” means blogs, social networks like Facebook, professional networks like
Linked-In, live-blogging tools like Twitter, virtual worlds, file, audio and video sharing sites like
Pinterest and Instagram, and other social networking or media sites or tools.
“System” means the distinctive and proprietary marks and trade dress, presentation styles
and services, know-how, methods of operation, identification, décor, furnishings, equipment,
training, service, technology, marketing, advertising, promotion and development that Franchisor
may designate in written or electronic form or through usage from time to time that define and
distinguish a Restore Center, including (1) plans and specifications for interior and exterior signs,
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“Technology Fee” means the initial and periodic fees that Franchisee charges from time
to time for access and use of certain components of the Technology System and support services
related thereto.
“Technology System” includes (1) POS System, computer system, software (including
any proprietary software) data, telephone, voice messaging, retrieval and transmission system, and
member management system; (2) customer relationship management systems; (3) printers and
other peripheral devices; (4) archival back-up systems; (5) Internet access mode (e.g., form of
telecommunications connection) and speed; (6) WiFi and other Internet services for customers; (7)
Franchisor mobile application and related mobile applications; and (8) personal smart devices.
“Transfer” – or similar words – means the direct or indirect sale, assignment, transfer,
exchange, conversion, license, sublicense, lease, sublease, mortgage, pledge, collateral
assignment, grant of a security, collateral or conditional interest or other encumbrance in or on, or
other disposition, whether voluntary, involuntary, by operation of law or otherwise, of this
Agreement, any interest in or right under this Agreement, any form of legal or beneficial ownership
interest in Franchisee, or any form of ownership interest or right to participate in or receive the
benefit of the assets, revenues, income or profits of its Restore Center, or any one or more other
acts or events not covered by the foregoing that Franchisor reasonably determines to be a form of
direct or indirect transfer, including: (1) any transfer, redemption or issuance of a legal or
beneficial ownership interest in the capital stock of, a membership interest in, or a partnership
interest in, Franchisee or of any interest convertible into or exchangeable for capital stock of, a
membership interest in or a partnership interest in, Franchisee; (2) any merger or consolidation
between Franchisee and another entity, whether or not Franchisee is the surviving entity, or any
conversion of Franchisee from one form of legal entity into another form of legal entity, or any
sale, exchange, encumbrance or other disposition of Franchisee’s assets; (3) any transfer in
connection with or as a result of a divorce, dissolution of marriage or similar proceeding or a
property settlement or legal separation agreement in the context of a divorce, dissolution of
marriage or similar proceeding, an insolvency, bankruptcy or assignment for benefit of creditors,
a judgment, a corporate, limited liability company or partnership dissolution or otherwise by
operation of law; (4) any transfer by gift, declaration of trust, transfer in trust, revocation of trust,
trustee succession, trust termination, discretionary or mandatory trust distribution, occurrence of
any event (e.g., death of a person) that affects or ripens the rights of contingent beneficiaries,
exercise of a power of appointment, exercise of a withdrawal right, adjudication of any Owner as
legally disabled, or upon or after the death of any of Franchisee’s Owners by will or the laws of
intestate succession or otherwise; or (5) any foreclosure upon its Center or the transfer, surrender
or loss by Franchisee of possession, control or management of its Center.
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PRINCIPAL TERMS
1. Franchisor: Restore Franchising, LLC, a Texas limited liability company, with its
principal place of business located as of the Effective Date at 3601 South Congress Ave., Suite C-
200, Austin, Texas 78704.
[________________].
For the avoidance of doubt, none of the geographic area(s) (if any) included or depicted on the
map attached in Exhibit A-1 which does not lie within the above referenced boundaries shall
constitute any part or portion of the Designated Area in any respect.
Any political boundaries described above shall be considered fixed as of the date of this
Agreement and shall not change for the purpose hereof, notwithstanding a political
reorganization or change to such boundaries or regions. Any street boundaries shall be deemed to
end at the street center line unless otherwise specified above. If there is any discrepancy between
the written description and the map, the written description prevails.
FRANCHISOR:
By: __________________________
Name: James Donnelly
Title: Chief Executive Officer
[ _________________________]
By: __________________________________
Name:
Title: __________________________________
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(attach)
FRANCHISOR:
By: __________________________
Name: James Donnelly
Title: Chief Executive Officer
FRANCHISEE:
[ _________________]
By: __________________________________
Name:
Title: __________________________________
3. Owners and Authorized Signers. Franchisee and each of its Owners represents and
warrants that the following is a complete and accurate list of all Owners of
Franchisee, including the full name and mailing address of each Owner, and fully
describes the nature and extent of each Owner’s interest in Franchisee. Franchisee
and each Owner as to his/her ownership interest, represents and warrants that each
Owner is the sole and exclusive legal and beneficial owner of his/her ownership
interest in Franchisee, free and clear of all liens, restrictions, agreements and
encumbrances of any kind or nature, other than those required or permitted by this
Agreement.
Submitted by Franchisee
on ___________________, ______.
By:
Print Name:
Title:
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(Signature)
(Print Name)
(Signature)
(Print Name)
(Signature)
(Print Name)
(Signature)
(Print Name)
By:
Print Name:
Title:
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MANDATORY SERVICES
Technology Services. Franchisor or its affiliate will provide or designate a provider for a
Point of Sale system in exchange for a monthly fee of $600.
OPTIONAL SERVICES
Local Marketing Services. Pursuant to Section 9(d), Franchisor or its designee may
provide local marketing services for you in exchange for a monthly fee equal to $2,500 (which
amount is subject to change from time to time).
ADDENDUM TO LEASE
WHEREAS, Landlord and Franchisee agree that the terms contained herein shall supersede
any terms to the contrary set forth in the Lease;
NOW THEREFORE, in consideration of mutual covenants set forth herein, the execution
and delivery of the Lease, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Landlord and Franchisee hereby agree as follows:
3. Franchisor shall have the right, but not the obligation, upon giving written notice
of its election to Franchisee and Landlord, to cure any breach of the Lease and, if
so stated in the notice, to also succeed to Franchisee’s rights, title and interests
thereunder.
5. Franchisee and Landlord acknowledge and agree that Franchisor shall have no
liability or obligation whatsoever under the Lease unless and until Franchisor
assumes the Lease in writing pursuant to Section 2 or Section 3, above.
6. If Franchisor assumes the Lease, as above provided, Franchisor may further assign
the Lease to another person or entity to operate the Restore Center at the Premises,
7. Landlord and Franchisee hereby acknowledge that Franchisee has agreed under the
Franchise Agreement that Franchisor and its employees or agents shall have the
right to enter the Premises for certain purposes. Landlord hereby agrees not to
interfere with or prevent such entry by Franchisor, its employees or agents.
Landlord and Franchisee hereby further acknowledge that in the event the Franchise
Agreement expires (without renewal) or is terminated, Franchisee is obligated to
take certain steps under the Franchise Agreement to de-identify the location as a
Restore Center. Landlord agrees to permit Franchisor, its employees or agents, to
enter the Premises and remove signs (both interior and exterior), decor, design
elements, and materials displaying any marks, designs or logos, or other materials
of any kind owned by, or related to, Franchisor, provided Franchisor shall bear the
expense of repairing any damage to the Premises as a result thereof.
9. Landlord agrees that during and after the term of the Lease, it will not disclose or
use Confidential Information (as defined below) for any purpose other than for the
purpose of fulfilling Landlord’s obligations under the Lease. “Confidential
Information” as used herein shall mean all non-public information and tangible
things, whether written, oral, electronic or in other form, provided or disclosed by
or on behalf of Franchisee to Landlord, or otherwise obtained by Landlord,
regarding the design and operations of the business located at the Premises,
including, without limitation, all information identifying or describing the floor
plan, equipment, furniture, fixtures, wall coverings, flooring materials, shelving,
decorations, trade secrets, trade dress, “look and feel”, layout, design, menus,
recipes, formulas, manner of operation, suppliers, vendors, and all other products,
goods, and services used, useful or provided by or for Franchisee on the Premises.
Landlord acknowledges that all Confidential Information belongs exclusively to
Franchisor. Landlord agrees that should it breach or threaten to breach this
provision of this Addendum, Franchisor will suffer irreparable damages and its
remedy at law will be inadequate. Therefore, if Landlord threatens or actually
breaches this provision, Franchisor (which, along with its successors and assigns,
is an intended third party beneficiary of the provisions of this paragraph), shall be
entitled to all remedies available to Franchisor at law or in equity, including,
without limitation, injunctive relief.
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11. Copies of any and all notices required or permitted hereby or by the Lease shall
also be sent to Franchisor at 3601 Congress Avenue, Suite C-200, Austin, TX
78704, or such other address as Franchisor shall specify by written notice to
Landlord.
12. Under the Franchise Agreement, any lease for the location of a Restore Center is
subject to Franchisor’s approval. Accordingly, the Lease is contingent upon such
approval.
LANDLORD: FRANCHISEE:
Date: Date:
Subscribed and sworn to before me this Subscribed and sworn to before me this _____
______ day of ____________________, day of ____________________, 20____.
20____.
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PERSONAL GUARANTY
In consideration of, and as an inducement to, the execution of the Restore Franchising,
LLC Franchise Agreement dated as of _____________________ (the “Agreement”) by and
between Restore Franchising, LLC (“Franchisor”), and ____________________________
(“Franchisee”), each of the undersigned hereby personally, irrevocably and unconditionally: (1)
guarantees to Franchisor and its successors and assigns, for the term of the Agreement and
thereafter as provided in the Agreement, that Franchisee shall punctually pay and perform each
and every undertaking, agreement and covenant set forth in the Agreement (and any amendments)
and that each and every representation of Franchisee made in connection with the Agreement (and
any amendments) are true, correct and complete in all respects at and as of the time given; and (2)
agrees personally to be bound by, and personally liable for the breach of, each and every provision
in the Agreement, including Section 16 thereof.
Each of the undersigned waives: (a) acceptance and notice of acceptance by Franchisor of
the foregoing undertakings; (b) notice of demand for payment of any indebtedness or
nonperformance of any obligations hereby guaranteed; (c) protest and notice of default to any party
with respect to the indebtedness or nonperformance of any obligations hereby guaranteed; (d) any
right that the undersigned may have to require that an action be brought against Franchisee or any
other person as a condition of liability; (e) notice of any amendment to the Agreement; and (f) any
and all other notices and legal or equitable defenses to which the undersigned may be entitled.
Each of the undersigned consents and agrees that: (i) the undersigned’s direct and
immediate liability under this guaranty shall be joint and several; (ii) the undersigned shall render
any payment or performance required under the Agreement upon demand if Franchisee fails or
refuses to do so punctually; (iii) such liability shall not be contingent or conditioned upon pursuit
by Franchisor of any remedies against Franchisee or any other person or legal entity; (iv) such
liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or
other indulgence which Franchisor may from time to time grant to Franchisee or to any other
person or legal entity including, without limitation the acceptance of any partial payment or
performance or the compromise or release of any claims, none of which shall in any way modify
or amend this guaranty, which shall be continuing and irrevocable until satisfied in full.
This Guaranty shall be construed under the laws of Texas without regard to its conflicts of
law principles. Each of the undersigned irrevocably submits to the jurisdiction of the courts of the
State of Texas in any suit, action or proceeding, arising out of or relating to this Guaranty, and
irrevocably agrees that all claims in respect of any such suit, action or proceeding must be brought
and/or defended therein except with respect to matters that are under the jurisdiction of the Federal
Courts of the United States, which shall be brought and/or defended in the Federal District Court
sitting in Austin, Texas. Each of the undersigned irrevocably waives, to the fullest extent they may
lawfully do so, the defense of an inconvenient forum to the maintenance of such suit, action or
proceeding and agrees that service of process for purposes of any such suit, action or proceeding
need not be personally served or served within the State of Texas but may be served with the same
effect as if they were served within the State of Texas, by certified mail or any other means
permitted by law addressed to the undersigned at the address set forth herein. Nothing contained
GUARANTOR(S)
(Signature)
(Print Name)
(Signature)
(Print Name)
DATE:
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_______________________________________________, a ______________________
(“Franchisee”), and ____________________________________, having an address at
___________________________________________________________ (“You”), hereby enter
into this agreement, effective as of _________________________, 20___, and agree as follows:
2. You acknowledge that you may gain access to parts of Franchisor’s Confidential
Information as a result of your relationship with Franchisee. The Confidential Information
is proprietary and includes Franchisor’s trade secrets. You hereby agree that while you
have a relationship with Franchisee (whether as owner, officer or employee) and thereafter
you: (a) will not use the Confidential Information in any other business or capacity (such
use being an unfair method of competition); (b) will maintain the confidentiality of the
Confidential Information; and (c) will not make unauthorized copies of any portion of the
Confidential Information disclosed in written, electronic or other form. If your relationship
with Franchisee is discontinued (for whatever reason), you must deliver to Franchisor any
such Confidential Information in your possession or control.
3. During the time of your relationship with Franchisee (whether as an owner, officer or
employee), you agree that you will not, without Franchisor’s written consent (which
consent may be withheld at Franchisor’s discretion) directly or indirectly (such as through
a member of your Immediate Family) own any legal or beneficial interest in, nor render
services or give advice in connection with: (a) any Competitive Business located anywhere;
or (b) any entity located anywhere which grants franchises, or licenses interests to others
to operate any Competitive Business.
4. For a period of two (2) years, starting on the earlier to occur of the date you cease to have
a relationship with Franchisee ((whether as an owner, officer or employee) and the
effective date of termination or expiration (without renewal) of the Franchise Agreement,
you agree that you will not, without Franchisor’s written consent (which consent may be
withheld at Franchisor’s discretion) directly or indirectly (such as through a member of
your Immediate Family) own a legal or beneficial interest in, nor render services or give
advice to: (a) any Competitive Business operating within a radius of five (5) miles of (i)
5. You expressly acknowledge the possession of skills and abilities of a general nature and
the opportunity to exploit such skills in other ways, so that enforcement of the covenants
contained in Sections 3 and 4 will not deprive any of you of your personal goodwill or
ability to earn a living. If any covenant herein which restricts competitive activity is
deemed unenforceable by virtue of its scope or in terms of geographic area, type of business
activity prohibited and/or length of time, but could be rendered enforceable by reducing
any part or all of it, you and Franchisee agree that it will be enforced to the fullest extent
permissible under Applicable Law and public policy. In addition to relief as may be
available at equity or law, Franchisor may obtain in any court of competent jurisdiction
any injunctive relief, including temporary restraining orders and preliminary injunctions,
against conduct or threatened conduct for which no adequate remedy at law may be
available or which may cause it irreparable harm. You acknowledge that any violation of
Sections 2, 3 or 4 hereof would result in irreparable injury for which no adequate remedy
at law may be available. If Franchisor files a claim to enforce this Agreement and prevails
in such proceeding, you agree to reimburse Franchisor for all its costs and expenses,
including reasonable attorneys’ fees.
IN WITNESS WHEREOF, the undersigned have executed and delivered this Agreement
on the effective date.
,
a
By:
Signature
Print Name:
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APPENDIX A DEFINITIONS
EXHIBIT A PRINCIPAL TERMS
EXHIBIT A-1 MAP OF DEVELOPMENT AREA
EXHIBIT B DEVELOPER AND ITS OWNERS
EXHIBIT C PERSONAL GUARANTY
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RECITALS
WHEREAS, Developer acknowledges the following: (a) Developer has read this
Agreement and Franchisor’s franchise disclosure document; (b) Developer understands the terms
of this Agreement and accepts them as being reasonably necessary to maintain the uniformity of
Franchisor’s high quality standards at all Restore Centers in order to protect and preserve the
goodwill of the Marks and the integrity of the System; (c) Developer has conducted an independent
investigation of the business contemplated by this Agreement inclusive of the applicable legal and
regulatory requirements and recognizes that the cryogenic and alternative health and wellness
technology and modality industry is highly competitive, with constantly changing market
conditions; and (d) Developer recognizes that the nature of Restore Centers may change over time,
that an investment in a Restore Center involves business risks and that the success of the venture
is largely dependent on Developer’s own business abilities, efforts and financial resources.
WHEREAS, Developer acknowledges that, among other things, some or all of the
Authorized Services to be offered by Restore Centers may include services and activities of a
nature and type that require the administration, supervision, management, oversight and
performance by licensed medical professionals and health care providers (“Authorized Care
Providers”) and that the determination whether Developer may own and operate a Restore Center
and/or provide certain services (and related activities) is subject to its ability to comply with certain
federal, state and local rules, regulations, attorney general opinions, medical board
pronouncements and determinations related to the practice of medicine and other related
requirements (collectively referred to as the “Authorized Care Provider Regulations”), and
Developer further acknowledges that it has retained its own independent counsel to advise
Developer regarding the foregoing Authorized Care Provider Regulations and requirements
regarding Authorized Care Providers.
WHEREAS, Developer desires to develop Restore Centers pursuant to the terms of this
Agreement.
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(a) Term and Fees. Unless sooner terminated in accordance with Section 7,
the term of this Agreement starts on the Effective Date hereof and expires on the Expiration Date
(the “Term”). Developer agrees to pay Franchisor the nonrefundable development fees in the
amounts and on the dates set forth in Exhibit A. Developer has no right to renew or extend its
rights under this Agreement.
(b) Development Rights. During the Term and provided Developer and its
Affiliates are in compliance with this Agreement and all other agreements with Franchisor or any
of its Affiliates (including Franchise Agreements signed pursuant to this Agreement or otherwise),
Franchisor will: (i) grant to Developer, in accordance with the provisions of this Agreement, that
cumulative number of franchises for Restore Centers set forth in Exhibit A, all of which are to be
located within the geographic area described in Exhibit A (the “Development Area”); and (ii) not
operate (directly or through an Affiliate), nor grant the right to operate, any Restore Center located
within the Development Area, except for: (A) franchises granted pursuant to this Agreement; (B)
Restore Centers open (or under commitment to open) as of the date hereof; (C) Restore Centers
located in transportation facilities (such as airports, inter-city train and/or bus stations, turnpikes
or other limited access highway rest stops), sports arenas, entertainment facilities, and military
facilities where any such locations or its retail operations are controlled by a third party or in
Franchisee’s judgment should be operated by a third party (“Special Locations”); and
(D) businesses that Franchisor purchases (or as to which Franchisor purchases the rights as
Franchisor) that are part of another franchise system or chain, regardless whether any or all of them
are converted to use any or all of the Marks and/or System or continue to be operated independently.
2. GRANT OF FRANCHISES.
(a) Site Selection Assistance. Franchisor will furnish Developer with its
standard site selection criteria and assistance for Restore Centers, as Franchisor may establish from
time to time. Franchisor also will provide such on-site evaluation of sites proposed pursuant hereto
as Franchisor deems necessary or appropriate.
(b) Site Evaluation and Acceptance. Subject to the provisions of Section 1(b),
Franchisor will accept or reject sites for the cumulative number of Restore Centers set forth in the
Development Schedule in Exhibit A located within the Development Area in accordance with the
following provisions:
(ii) Franchisor will accept or reject each site for which Developer
submits a complete Site Information Package in accordance with Section 2(b)(i) and, if Franchisor
accepts the sites, will do so by delivering its standard site acceptance letter. Franchisor’s site
acceptance letter, duly executed, is the exclusive means by which Franchisor accepts a proposed
site, and no other direct or indirect representation, approval or acceptance, whether in writing or
verbally, by any of its officers, employees or agents, shall be effective or bind Franchisor.
Franchisor will use all reasonable efforts to make a site acceptance decision and, if the site is
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(ii) The initial franchise fee payable for each Restore Center required to
be developed by Developer pursuant to this Agreement shall be in an amount set forth in Exhibit
A, payable concurrently with the execution of the related Franchise Agreement, and the royalty
fees shall not exceed the percentages set forth in Franchisor’s standard form franchise agreement
being offered as of the Effective Date. A portion of the development fee will be credited against
the initial franchise fee payable under each Franchise Agreement as set forth in Exhibit A.
Developer acknowledges and agrees that no portion of the development fee shall be refundable for
any Restore Centers that Developer has failed to develop in accordance with the terms of this
Agreement.
(e) Annual Reports. Developer must furnish Franchisor: (a) within ninety (90)
days after the end of each calendar year, (i) a consolidated year-end balance sheet and income
statement and statement of cash flow for Developer and all of its Affiliates that develop, own or
operate Restore Centers, all prepared in accordance with GAAP, and reflecting all year-end
adjustments and accruals; (ii) similar information from all Principal Owners who have executed
guarantees of this Agreement; and (iii) such summaries of financial information as Franchisor may
require from time to time; and (b) within thirty (30) days of Franchisor’s request, such other
information as Franchisor may require from time to time, including income tax statements. All such
reports shall use Franchisor’s then-current standard chart of accounts. Developer must execute a
verification that the information in each such report and financial statement is complete and
accurate. Franchisor reserves the right to require that Developer’s annual financial statements be
audited, at Developer’s expense, by an independent certified public accountant of national or
regional repute. Franchisor reserves the right to publish or disclose information that Franchisor
obtains under this Section 2(c) in any data compilations, collections, or aggregations that
Franchisor deems appropriate, in its sole discretion, provided Franchisor will not publish and
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Developer’s Operator: (1) shall exert substantially all of his or her time and
best efforts to the development and operation of all Restore Centers owned by Developer and its
Affiliates; and (2) subject to Franchisor’s consent to the contrary, may not engage in any other
business or activity, directly or indirectly, that requires substantial management responsibility or
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(a) Independent Contractors. Neither this Agreement nor the dealings of the
parties pursuant to this Agreement shall create any fiduciary relationship or any other relationship
of trust or confidence. Franchisor and Developer, as between themselves, are and shall be
independent contractors.
Developer understands and agrees that Franchisor may operate and change
the System and Franchisor’s business in any manner that is not expressly and specifically
prohibited by this Agreement. Whenever Franchisor has expressly reserved in this Agreement or
is deemed to have a right and/or discretion to take or withhold an action, or to grant or decline to
grant Developer a right to take or withhold an action, except as otherwise expressly and specifically
provided in this Agreement, Franchisor may make its decision or exercise its right and/or discretion
on the basis of Franchisor’s judgment of what is in its best interests, including its judgment of what
is in the best interests of its franchise network, at the time its decision is made or its right or
discretion is exercised, without regard to whether: (i) other reasonable alternative decisions or
actions could have been made by Franchisor; (ii) Franchisor’s decision or the action it takes
promotes its financial or other individual interest; (iii) Franchisor’s decision or the action it takes
applies differently to Developer and one or more other Developers or Franchisor’s company-
owned operations; or (iv) Franchisor’s decision or the exercise of its right or discretion is adverse
to Developer’s interests. In the absence of an applicable statute, Franchisor will have no liability to
Developer for any such decision or action. Franchisor and Developer intend that the exercise of its
right or discretion will not be subject to limitation or review. If applicable law implies a covenant
of good faith and fair dealing in this Agreement, Franchisor and Developer agree that such
covenant shall not imply any rights or obligations that are inconsistent with a fair construction of
the terms of this Agreement and that this Agreement grants Franchisor the right to make decisions,
take actions and/or refrain from taking actions not inconsistent with its rights and obligations
hereunder.
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5. RESTRICTIVE COVENANTS.
(b) In-Term Covenants. During the Term, neither Developer nor any of its
Principal Owners may, without Franchisor’s consent (which consent may be withheld at
Franchisor’s discretion):
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(a) Transfer Subject to Approval. Developer’s rights and duties under this
Agreement are personal to Developer and its Principal Owners. Accordingly, neither Developer
nor any of its Principal Owners may effect or suffer a Transfer without Franchisor’s prior approval
and complying with the terms and conditions of this Section 6. Any Transfer without such approval
or compliance constitutes a breach of this Agreement and is void and of no force or effect.
Developer may not under any circumstances directly or indirectly subfranchise or sublicense any
of its rights hereunder.
(b) Conditions for Approval. If Franchisor has not exercised its right of first
refusal under Section 6(e), Franchisor will not unreasonably withhold its approval of a Transfer
that meets all of the reasonable restrictions, requirements and conditions Franchisor imposes on
the Transfer, the transferor(s) and/or the transferee(s), including the following:
(ii) the proposed transferee and its owners must provide Franchisor on
a timely basis all information Franchisor requests; the transferee’s owners must be individuals
acting in their individual capacities who are of good character and reputation; and the transferee
and its owners must have sufficient business experience, aptitude and financial resources to
develop Restore Centers pursuant to this Agreement, and must otherwise meet Franchisor’s then-
current standards for new franchisees;
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(v) Developer and its Principal Owners and Affiliates must, except to
the extent limited or prohibited by applicable law, execute a general release, in form and substance
satisfactory to Franchisor, of any and all claims against Franchisor, its Affiliates and their
respective shareholders, members, managers, officers, directors, employees, agents, successors
and assigns;
(vi) Franchisor must not have disapproved the material terms and
conditions of such Transfer (including price, terms of payment and financing) on the basis that
they are so burdensome as to be likely, in Franchisor’s reasonable judgment, to adversely affect
the transferee’s operation of Restore Centers or its compliance with its franchise agreements, any
area development agreements and any other agreements being transferred;
(ix) Developer and its Principal Owners and Affiliates must execute
such other documents and do such other things as Franchisor reasonably requires to protect its
rights under this Agreement, any Franchise Agreements and any other agreements being
transferred.
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(f) Securities Offerings. Neither Developer nor any of its Principal Owners
may issue or sell, or offer to issue or sell, any of its securities or any securities of any of its Affiliates,
regardless of the means by which such sale is conducted, directly or indirectly, or by operation of
law (including by merger, consolidation, reorganization or otherwise) without obtaining
Franchisor’s prior consent and complying with all of its requirements and restrictions concerning
use of information about Franchisor and its Affiliates. Notwithstanding the foregoing, neither
Developer nor any of its Principal Owners may issue or sell its securities or the securities of any
of its Affiliates if: (1) such securities would be required to be registered pursuant to the Securities
Act of 1933, as amended; or (2) after such issuance or sale, Developer or such Affiliate would be
required to comply with the reporting and information requirements of the Securities Exchange
Act of 1934, as amended. Any memorandum or other communications circulated in connection
with any solicitation of offers to purchase that would require Franchisor’s consent to Transfer the
Development Rights (through whatever form of transaction, whether through direct or indirect sale
of assets or securities, by operation of law or otherwise), and such offering, is subject to Franchisor’s
approval.
The occurrence of any of the following events described in this Section 7 are material
breaches that will adversely and substantially affect the interests of Franchisor and be deemed an
Event of Default constituting just cause for exercising any of the remedies set forth herein.
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(vi) fails to comply with any other provision of this Agreement and does
not correct such failure within thirty (30) days after written notice of such failure to comply is
delivered to Developer;
(b) Post-Term Covenants. For a period of two (2) years, starting on the
effective date of termination or expiration, neither Developer nor any of its Principal Owners
directly or indirectly (such as through an Affiliate or through its or their Immediate Families) shall
own a legal or beneficial interest in, or render services or give advice to: (i) any Competitive
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(a) Governing Law. This Agreement shall be construed under the laws of the
State of Texas, provided the foregoing shall not constitute a waiver of any of Developer’s rights
under any applicable franchise law of another state. Otherwise, in the event of any conflict of law,
Texas law will prevail, without regard to its conflicts of law principles. However, if any provision
of this Agreement would not be enforceable under Texas law, and if the Development Area is
located outside of Texas and such provision would be enforceable under the laws of the state in
which the Development Area (or its predominant part) is located, then such provision shall be
construed under the laws of that state. Nothing in this Section 9(a) is intended to subject this
Agreement to any franchise or similar law, rule or regulation of the State of Texas to which it
otherwise would not be subject.
Developer agrees that, for the Restore Hyper Wellness network to function
properly, Franchisor should not be burdened with the costs of litigating network-wide disputes.
Accordingly, any disagreement between Developer (and/or its Principal Owners) and Franchisor
and/or its Affiliates shall be considered unique as to its facts and shall not be brought as a class
action, and Developer (and each of its Principal Owners) waives any right to proceed against
Franchisor or any of its shareholders, members, managers, Affiliates, officers, directors,
employees, agents, successors and assigns by way of class action, or by way of a multi-plaintiff,
consolidated or collective action. In any legal action between the parties, the court shall not be
precluded from making its own independent determination of the issues in question,
notwithstanding the similarity of issues in any other legal action involving Franchisor and any other
Developer or franchisee, and each party waives the right to claim that a prior disposition of the
same or similar issues precludes such independent determination.
Furthermore, the parties agree that in the event any legal action is filed in
connection with this Agreement, such action shall be tried to the court sitting without a jury, and
all parties hereto waive any right to have any action tried by jury.
10. MISCELLANEOUS.
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If any applicable law requires a greater prior notice of the termination than
is required hereunder, a different standard of “good cause” to terminate this Agreement or the
taking of some other action not required hereunder, the prior notice, the “good cause” standard
and/or the other action required by such law shall be substituted for the comparable provisions
hereof. If any provision of this Agreement is invalid or unenforceable under applicable law,
Franchisor has the right, in its sole discretion, to modify such invalid or unenforceable provision
to the extent required to make it valid and enforceable.
(c) Exercise of Rights. Except as otherwise expressly provided herein, the rights
of Franchisor and Developer hereunder are cumulative and no exercise or enforcement by
Franchisor or Developer of any right or remedy hereunder shall preclude the exercise or
enforcement by Franchisor or Developer of any other right or remedy hereunder, which Franchisor
or Developer is entitled to enforce by applicable law. Notwithstanding the foregoing, and except
as otherwise prohibited or limited by applicable law, any failure, neglect, or delay of a party to
assert any breach or violation of any legal or equitable right arising from or in connection with
this Agreement, shall constitute a waiver of such right and shall preclude the exercise or
enforcement of any legal or equitable remedy arising therefrom, unless written notice specifying
such breach or violation is provided to the other party within twenty four (24) months after the
later of: (i) the date of such breach or violation; or (ii) the date of discovery of the facts (or the date
the facts could have been discovered, using reasonable diligence) giving rise to such breach or
violation.
(d) Successors and Assigns. This Agreement is binding on the parties hereto
and their respective executors, administrators, heirs and permitted successors and/or assigns. This
Agreement is fully transferable and assignable by Franchisor, whether by operation of law or
otherwise (without notice to Developer, or approval by it), and shall inure to the benefit of any
transferee or other legal successor to its interest herein.
The headings of the Sections are for convenience only and do not limit or
construe their contents. The term “including” shall be construed to include the words “without
limitation.” The term “Developer” is applicable to one or more persons, a corporation, limited
liability company or a partnership and its Principal Owners, as the case may be. If two or more
persons are at any time Developer hereunder, whether as partners, joint venturers or otherwise,
their obligations and liabilities to Franchisor shall be joint and several. References to a controlling
interest in an entity shall mean more than fifty percent (50%) of the equity or voting control of
such entity.
(g) Approvals and Consents. Whenever this Agreement requires the approval
or consent of either party, the other party shall make written request therefor, and such approval
or consent shall be obtained in an unequivocal writing; provided however, unless specified
otherwise in this Agreement, such party may withhold approval or consent, for any good faith
reason. Furthermore, unless specified otherwise in this Agreement, no such approval or consent
shall be deemed to constitute a warranty or representation of any kind, express or implied, and the
approving or consenting party shall have no responsibility, liability or obligation arising therefrom.
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IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as
of [_________] (the “Effective Date”).
FRANCHISOR DEVELOPER
By: By:
Name: James Donnelly Name:
Title: Chief Executive Officer Title:
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Certain initially capitalized terms used in this Agreement are defined in this Appendix A.
Other terms are defined elsewhere in this Agreement in the context in which they arise. The defined
terms may be used in the singular or plural or in varying tenses or forms, but such variations shall
not affect their defined meaning so long as they are written with initial capital letters.
“Affiliate” means, with respect to a named Person, any Person that is controlled by,
controlling or under common control with the named Person. The term “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of an entity, whether through ownership of voting securities, by contract or otherwise.
“Applicable Law” means any Federal, state, and local laws, ordinances, and codes,
together with all rules, regulations, policies, and guidelines related thereto, applicable to the
Franchisor, Developer, its Principal Owners or the subject matter of this Agreement, including the
development, construction and/or operation of the Center including all laws and regulations related
to the provision of certain healthcare services.
“Competitive Business” means any establishment for which cryotherapy and other
services authorized for Restore Centers individually or collectively constitute, or (if a new
business) is reasonably expected to constitute, 20% or more of the total revenues of such
establishment in the trailing 12 months or the next 12 months, as applicable, and any other
establishment that is the same as or substantially similar to a Restore Center, including any health
care facility, wellness facility, healing arts business, medical spa or day spa or chain of health care
facilities, wellness facilities, healing arts businesses, medical spas or day spas. Restrictions in this
Agreement on competitive activities do not apply to: (a) the ownership or operation of other
Restore Centers that are licensed or franchised by Franchisor or any of its Affiliates; or (b) the
ownership of shares of a class of securities that are listed on a public stock exchange or traded on
the over-the-counter market and that represent less than five percent (5%) of that class of securities.
“Development Schedule” means any and all obligations of Developer under Section 5 of
Exhibit A.
“Franchisor” means Restore Franchising, LLC., a Texas limited liability company, with
its principal place of business located at 3601 South Congress, Suite C-200, Austin, Texas 78704.
“Immediate Family” means spouse, parents, brothers, sisters and children, whether
natural or adopted.
“Manuals” means Franchisor’s operations and training manuals, and any other written
directives related to the System, in whatever form and provided in whatever manner, as the same
may be periodically amended and revised by Franchisor at its sole option, including the Standards,
all bulletins, supplements and ancillary and additional manuals and directives established by
Franchisor from time to time.
“Marks” means the Restore Hyper Wellness trademarks and service marks and such other
registered and unregistered trademarks, trade names, service marks, logos, slogans, emblems and
other indicia of origin as are now designated, and may hereafter be designated, by Franchisor in
writing for use in connection with the System.
“Principal Owner” or “Principal” means each person or entity that has a direct or indirect
legal or beneficial ownership interest in Developer.
“System” means the distinctive and proprietary marks and trade dress, presentation styles
and services, know-how, methods of operation, identification, décor, furnishings, equipment,
training, service, technology, marketing, advertising, promotion and development that Franchisor
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“Transfer” means the direct or indirect sale, assignment, transfer, exchange, conversion,
license, sublicense, lease, sublease, mortgage, pledge, collateral assignment, grant of a security,
collateral or conditional interest or other encumbrance in or on, or other disposition, whether
voluntary, involuntary, by operation of law or otherwise, of this Agreement, any interest in or right
under this Agreement, any form of legal or beneficial ownership interest in Developer, or any form
of ownership interest or right to participate in or receive the benefit of the assets, revenues, income
or profits of its Restore Center, or any one or more other acts or events not covered by the foregoing
that Franchisor reasonably determines to be a form of direct or indirect transfer, including: (1) any
transfer, redemption or issuance of a legal or beneficial ownership interest in the capital stock of,
a membership interest in, or a partnership interest in, Developer or of any interest convertible into
or exchangeable for capital stock of, a membership interest in or a partnership interest in,
Developer; (2) any merger or consolidation between Developer and another entity, whether or not
Developer is the surviving entity, or any conversion of Developer from one form of legal entity
into another form of legal entity, or any sale, exchange, encumbrance or other disposition of
Developer’s assets; (3) any transfer in connection with or as a result of a divorce, dissolution of
marriage or similar proceeding or a property settlement or legal separation agreement in the context
of a divorce, dissolution of marriage or similar proceeding, an insolvency, bankruptcy or
assignment for benefit of creditors, a judgment, a corporate, limited liability company or
partnership dissolution or otherwise by operation of law; (4) any transfer by gift, declaration of
trust, transfer in trust, revocation of trust, trustee succession, trust termination, discretionary or
mandatory trust distribution, occurrence of any event (e.g., death of a person) that affects or ripens
the rights of contingent beneficiaries, exercise of a power of appointment, exercise of a withdrawal
right, adjudication of any Principal Owner as legally disabled, or upon or after the death of any of
Developer’s Principal Owners by will or the laws of intestate succession or otherwise; or (5) any
foreclosure upon its Center or the transfer, surrender or loss by Developer of possession, control
or management of its Center.
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PRINCIPAL TERMS
1. Franchisor. Restore Franchising, LLC, a Texas limited liability company, with its
principal place of business as of the Effective Date located at 3601 South Congress Ave., Suite C-
200, Austin, Texas 78704.
3. Expiration Date. The expiration date is the latest date specified in Column C of the
Development Schedule set forth in Section 5 below.
4. Development Area. The Development Area is the geographic area or areas listed
below as named and depicted on the map attached hereto as Exhibit A-1:
Any political boundaries described above shall be considered fixed as of the date of this Agreement
and shall not change for the purpose hereof, notwithstanding a political reorganization or change
to such boundaries or regions. Any street boundaries shall be deemed to end at the street center line
unless otherwise specified above. If there is any discrepancy between the description of the
Development Area and the map, the description prevails.
5. Development Schedule. Developer must comply with all of its obligations in the
Development Schedule set forth below. Developer shall: (1) on or before the Commencement Date
of each Development Period duly execute and deliver each of the Franchise Agreements required
for such Development Period as specified in Column D of the Development Schedule, and (2) on
or before the date that is seven (7) calendar days after Commencement Date of each Development
Period pay the Development Fee specified in Column E of the Development Schedule.
F
Cumulative Number
C of Restore Centers To
Development D Be Open and
A B Period Required Number E Operating by the
Development Commencement Expiration of Franchise Development Development Period
Period Date Date Agreement(s) Fees Expiration Date
6. Development Fee.
The Development Fee consists of a portion (or all) of the initial franchise
fees for the Centers to be developed in the relevant Development Period, as described in
subsection (b) below. The amount of the franchise fees will vary depending on the number of
Centers to be developed as described in subsection (c) below.
The Development Fee for (i) the first (1st) Development Period is equal to
the sum of (x) the full initial franchise fees for all Franchise Agreements to be executed during
the first (1st) Development Period, plus (y) fifty percent (50%) of the initial franchise fees for all
Franchise Agreements to be executed during the subsequent Development Periods; and (ii) each
subsequent Development Period is equal to fifty percent (50%) of the initial franchise fees for all
Franchise Agreements to be executed during such Development Period. However, if 20 or more
Restore Centers are to be developed, the Development Fee due and owing within seven (7)
calendar days of the Effective Date will be equal to the full initial franchise fees for all Franchise
Agreements to be executed pursuant hereto.
The amount of each initial franchise fee depends on the number of Centers
to be developed, as follows:
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FRANCHISOR DEVELOPER
By: By:
Name: James Donnelly Print Name:
Title: Chief Executive Officer Title:
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(attach)
Entity Name:
Entity Form:
Entity Domicile:
Date of Formation:
3. Owners and Authorized Signers. Developer and its Principal Owners each represents and
warrants that the following is a complete and accurate list of all Owners of Developer,
including the full name and mailing address of each Owner, and fully describes the nature
and extent of each Owner’s interest in Developer. Developer and each Owner as to his/her
ownership interest, represent and warrant that each Owner is the sole and exclusive legal
and beneficial owner of his/her ownership interest in Developer, free and clear of all liens,
restrictions, agreements and encumbrances of any kind or nature, other than those required
or permitted by this Agreement.
DEVELOPER
,
a
By:
Name: ______________________________
Title:
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PERSONAL GUARANTY
In consideration of, and as an inducement to, the execution of the Restore, LLC Area
Development Agreement dated as of __________________, (as amended, revised or
supplemented from time to time the “Agreement”) by and between RESTORE FRANCHISING,
LLC (“Franchisor”), and _____________ ______________________ (“Developer”), each of the
undersigned hereby personally and unconditionally: (1) guarantees to Franchisor and its successors
and assigns, for the term of the Agreement and thereafter as provided in the Agreement, that
Developer shall punctually pay and perform each and every undertaking, agreement and covenant
set forth in the Agreement (and any amendments) and that each and every representation of
Developer made in connection with the Agreement (and any amendments) are true, correct and
complete in all respects at and as of the time given; and (2) agrees personally to be bound by
each and every provision in the Agreement (and any amendments), including Section 5 and 8.02
thereof.
Each of the undersigned waives: (a) acceptance and notice of acceptance by Franchisor of
the foregoing undertakings; (b) notice of demand for payment of any indebtedness or
nonperformance of any obligations hereby guaranteed; (c) protest and notice of default to any party
with respect to the indebtedness or nonperformance of any obligations hereby guaranteed; (d) any
right that the undersigned may have to require that an action be brought against Developer or any
other person as a condition of liability; (e) notice of any amendment to the Agreement; and (f) any
and all other notices and legal or equitable defenses to which that the undersigned may be entitled.
Each of the undersigned consents and agrees that: (i) that the undersigned’s direct and
immediate liability under this guaranty shall be joint and several; (ii) that the undersigned shall
render any payment or performance required under the Agreement upon demand if Developer fails
or refuses to do so punctually; such liability shall not be contingent or conditioned upon pursuit by
Franchisor of any remedies against Developer or any other person; and (iv) such liability shall not
be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence
which Franchisor may from time to time grant to Developer or to any other person including the
acceptance of any partial payment or performance or the compromise or release of any claims, none
of which shall in any way modify or amend this guaranty, which shall be continuing and irrevocable
until satisfied in full.
This Guaranty shall be construed under the laws of Texas without regard to its conflicts of
law principles. Each of the undersigned irrevocably submits to the jurisdiction of the courts of the
State of Texas in any suit, action or proceeding, arising out of or relating to this Guaranty, and
irrevocably agrees that all claims in respect of any such suit, action or proceeding must be brought
and/or defended therein except with respect to matters that are under the jurisdiction of the Federal
Courts of the United States, which shall be brought and/or defended in the Federal District Court
sitting in Austin, Texas. Each of the undersigned irrevocably waives, to the fullest extent they may
lawfully do so, the defense of an inconvenient forum to the maintenance of such suit, action or
proceeding and agrees that service of process for purposes of any such suit, action or proceeding
need not be personally served or served within the State of Texas but may be served with the same
effect as if they were served within the State of Texas, by certified mail or any other means
WEST\297301250.4
permitted by law addressed to the undersigned at the address set forth herein. Nothing contained
herein shall affect Franchisor’s right to bring a suit, action or proceeding in any other appropriate
jurisdiction, including any suit, action or proceeding brought by Franchisor to enforce any judgment
against the undersigned entered by a State or Federal Court. In any judicial proceeding if Franchisor
files an action to enforce the terms of the Guaranty and prevails, the undersigned agree to reimburse
Franchisor for all of its expenses, including reasonable accounting, paralegal, expert witness and
attorneys’ fees.
Furthermore, the undersigned agree that any legal action in connection with this
Agreement shall be tried to the court sitting without a jury, and the undersigned hereto waive
any right to have any action tried by jury.
GUARANTOR(S)
(Signature)
(Print Name)
(Signature)
(Print Name)
(Signature)
(Print Name)
(Signature)
(Print Name)
2
WEST\297301250.4
Westport Restore LLC Felicia Sale 877 Post Rd. E, 06880 Westport CT 917-686-1902
Phone
Franchisee Principal Address City State Number
BGKT Enterprises, Steve Chaloult 1041 NJ-73, 08053 Marlton NJ 609-420-7244
LLC
Rejuvenate Life 1, LLC Kurt 30664 Detroit Rd., Westlake OH 216-220-7036
Altenburger 44145
Restore Health Searcy, Wesley Griffin 901 E. Beebe Capps Searcy AR 864-787-9645
LLC Expy, 72143
Restore Hyperwellness Dannelle (DJ) 400 Urban Plz, Ste Kirkland WA 206-227-2930
+ Cryotherapy NW, Carlson 125
LLC
Ostara LLC Chris Prentice 13158 N. Dale Mabry Carrollwood FL 727-453-8318
Hwy, 33618
Restore OC LLC Bob Park 32411 Golden Lantern Laguna CA 949-254-1218
Ste A-B, 92677 Niguel
Coeur Wellness Tim Jolicoeur 2148 N. Eagle Rd. Meridian ID 208-501-9624
Investments LLC Ste 130, 83646
Wellness Now LLC Niraj Patel 201 Maltby Apt D, Richmond VA 804-814-7666
23233
Midcon Health & Jason 1691 Clarkson Road Chesterfield MO 314-799-1616
Wellness, LLC Miltenberger
Hyper Wellness Tim Scott 4175 Chappel Dr., Ste Perrysburg OH 419-466-0776
Therapy LLC B5-C
Robert Marie, LLC Brian Haden 23116 Cinco Ranch Katy TX 214-536-5010
Blvd.
Wicked Partners Mandy Oberton 55 Needham Street Newton MA 617-429-4033
Northeast, Inc.
Magnolia Wellness Ali Korf 4300 Paces Ferry Vinings GA 770-712-2842
LLC Road SE (suite 240)
Sacramento Restore, Ilan Frank 2541 Fair Oaks Blvd. Sacramento CA 916-743-8715
Inc.
GB Wellness, LLC Jenn Sanderson 3225 Washtenaw Ave Ann Arbor MI 914-282-0589
NAD DADS, LLC John Fox 2735 Madison Road Hyde Park OH 440-463-3266
Do More Stores, LLC Eric Cain 2250 Marietta Blvd Atlanta GA 717-979-9008
NW #208, Atlanta,
GA 30318
Restore Hyper Stacy Donnelly 5509 W Lovers Lane, Dallas TX 512-800-0193
Wellness Lovers Lane, Suite A Dallas, TX
LLC 75209
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Phone
Franchisee Principal Address City State Number
Hyper Wellness Heather 2552 East 146th Carmel IN 317-660-2838
Therapy LLC Mesalam Street, Carmel, IN
46033
Rejuvenate Life 1, LLC Stephanie 17830 Royalton Rd Strongsville OH 408-203-7938
Altenburger #210, Strongsville,
OH 44136
DT Global Dennis Tran 2715 Bissonnet Street West TX 832-878-9948
Investments, LLC Suite 140 University
Omran Solutions, LLC Tony Omran 2561 South Broadway, South CO 954-263-2483
Denver. CO 80210 Broadway
(SoBo)
Restore Montana, LLC Doug Sperber 1040 S Fowler Ave, Bozeman MT 479-936-6766
Bozeman, MT 59718
Restore Michigan John Babcock 643 S Adams Rd, Birmingham MI 614-519-7563
Partnership, LLC Birmingham, MI
48009
Cardinal Cryo, LLC Kyler Ferguson 9825 Sandy Rock Rea Farms NC 704-776-6278
Place, Ste E,
Charlotte, NC 28277
Milliken Sisters Julia Rhie 4701 183a Toll Rd. Cedar Park TX 215-490-2249
Welness, LLC Cedar Park, TX 78613
Buckeye Holding Christopher 345 North Main West CT 203-910-7105
Company, LLC Gray Street, Ste. 105, West Hartford
Hartford, CT 06117
Phone
Franchisee Principal Address City States Number
BH Tempe, LLC * Chris Ogden BH Tempe Arizona
BH Chandler, LLC* Chris Ogden Chandler Arizona
Bio Hax, LLC* Chris Ogden Deer Valley Arizona
Chris Ogden Peoria Arizona
Chris Ogden Scottsdale Arizona
Vytal Ventures, Inc. * Marc Thomas Brea California
PP Holding, Inc.* Parag Laddha Cerritos California
Vytal Ventures, Inc. * Marc Thomas Del Mar California
AMH Advisors, Inc. Jess Salsman Irvine California
Spectrum
Jess Salsman Irvine California
Woodbury
Core 4, LLC* Michelle Kellie Manhattan California
Beach
Vytal Ventures, Inc. * Marc Thomas Newport California
Coast
Ilan Frank * Ilan Frank * Northern California
CA-NV No.1
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2022 Franchise Disclosure Document
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Phone
Franchisee Principal Address City States Number
Ilan Frank * Ilan Frank* Northern California
CA-NV No.
2
PBK1102, LLC Peter Keady South Bay California
Peter Keady South Bay California
Core 4, LLC * Michelle Kellie Santa Monica California
Vytal Ventures, Inc. * Marc Thomas UTC California
Meraki Ventures Brody King * Denver - Colorado
Boulder LLC Boulder
Meraki Ventures Brody King * Denver - Colorado
Broomfield LLC Broomfield
Meraki Venture Cherry Brody King * Denver - Colorado
Creek LLC Cherry Creek
Meraki Ventures Brody King * Denver - Colorado
Stapleton LLC North
Stapleton
Meraki Ventures Cherry Brody King * Denver - Colorado
Creek LLC Superior
Live Restored Kirk Mickelsen Greenwood Colorado
Greenwood Villlage, Village
LLC
Omran Solutions, LLC Tony Omran Washington Colorado
Park West
More Life Ventures, Shawn and Colorado
LLC* Julie Johnson
Shawn and Colorado
Julie Johnson
Shawn and Colorado
Julie Johnson
Buckeye Holding Chris Gray West Connecticut
Company, LLC Hartford –
North
AMMA Andy Ayers Christiana Delaware
DEVELOPMENT and Michael
GROUP, LLC* Palumbo
Andy Ayers Wilmington Delaware
and Michael
Palumbo
Bennessere Group Thomas Oh & Dr. Phillips Florida
Joe Furstace
Fort Myers Cryo Nick Christiano Ft Myers Florida
Ventures, LLC
Clad12m, LLC Andew Jacksonville Florida
Dostaler
Sunshine Cryo, LLC Foxwell & Lake Mary Florida
Drinnan
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2022 Franchise Disclosure Document
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Phone
Franchisee Principal Address City States Number
Naples Cryo Ventures, Nick Christiano Naples Florida
LLC
Restore Orlando Lisa Schiller Orlando Florida
Holdings, LLC * Winter Park
Restore PGA, LLC Kim Weiss & Palm Beach Florida
Lisa Schiller Gardens
Restore Hyper Wellness Chris Hunter & Pinecrest Florida
Pinecrest, LLC Scott Stein
Team Restore, LLC Jill Goulet South Tampa Florida
Ostara, LLC Chris Prentice Tampa- Florida
Carrollwood
CKLK Empire, LLC Chris Prentice Tampa Florida
Brandon
Ostara II, LLC Chris Prentice Tampa - Florida
Wesley
Chase
Ostara II, LLC Chris Prentice Tampa - Florida
Westchase
Do More Stores, LLC Tadd & Eric Marietta Georgia
Hyper Wellness Therapy Shawn Peachtree Georgia
Peachtree, LLC Stansbery City
Magnolia Wellness, Ali Korf and Vinings and Georgia
LLC Taylor Korf Smyrna
Coeur Wellness Tim Jolicoeur Boise Idaho
Investments, LLC * Tim Jolicoeur Coeur Idaho
D'Alene
Tim Jolicoeur Meridian Idaho
Revitalize Holdings, Scott Weinstein Deerfield Illinois
LLC & Dan
Lieberman
Revitalize EV, LLC Weinstein Evanston Illinois
Revitalize NB, LLC Scott Weinstein Northbrook Illinois
& Dan
Lieberman
Hyper Wellness Shawn Carmel Indiana
Therapy, LLC Stansbery
Hyper Wellness Shawn Indianapolis Indiana
Therapy, LLC * Stansbery 1 (Fishers)
Shawn Indianapolis Indiana
Stansbery 2 Zionsville
Restore Wellness KC, Jason Olathe Kansas
LLC Miltenberger
and Tyler
Milligan
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2022 Franchise Disclosure Document
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Phone
Franchisee Principal Address City States Number
Restore Wellness KC, Jason Overland Kansas
LLC Miltenberger Park
and Tyler
Milligan
DR Innovations, LLC Andrew Roy Wichita Kansas
Hyper Wellness Therapy Shawn SW Ketucky
Peachtree, LLC Stansbery Lexington
PP Holding, Inc. Parag Laddha Boston Massachusetts
Wicked Partners Mandy and Dedham Massachusetts
Northeast, Inc. Jason Oberton
JEGL, Inc. Mandy and Hingham Massachusetts
Jason Oberton
JEGL, Inc. Mandy and Newton Massachusetts
Jason Oberton
LeoBruMa, LLC Oscar Baltimore- Maryland
Alcorezea Canton
(Previously
Towson)
Melissa Givens, LLC Melissa Givens Bethesda - Maryland
Rockville
Restore Michigan John Babcock Birmingham Michigan
Partnership, LLC * and Scott (New)
Marcus
GB Wellness, LLC Thomas Oh East Ann Michigan
Arbor
Restore Michigan John Babcock Farmington Michigan
Partnership, LLC * and Scott Hills
Marcus
John Babcock Northville Michigan
and Scott
Marcus
John Babcock Novi (New) Michigan
and Scott
Marcus
Restore Wellness STL, Miltenberger Chesterfield Missouri
LLC and Milligan
Miltenberger Des Peres Missouri
and Milligan
Restore Montana, LLC Douglas Montana AD Montana
Sperber
Cardinal Cryo 3, LLC Kyle Ferguson Charlotte Nebraska
Carmel
Commons
DR Innovations, LLC Andrew Roy West Omaha Nebraska
and Jeffrey
Drake
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2022 Franchise Disclosure Document
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Phone
Franchisee Principal Address City States Number
Pinnacle Holdings, LLC Thomas and Apex North
* Leslie Ball Carolina
JJJ CLT Holdings, LLC Jason Norris Charlotte North
Huntersville Carolina
Jason Norris Charlotte North
Midtown Carolina
51 Nelson Maine Meri Westcott Durham North
Ventures, LLC North Duke Carolina
Cardinal Cryo, LLC Tasha and Weddington North
Kyler Ferguson Carolina
BGKT Enterprises, LLC Steven New Jersey
Chaloult
Restore Life Jersey, Steven Princeton #2 New Jersey
LLC * Chaloult
Steven Chaloult Steven Short Hills New Jersey
Chaloult
High Desert Thrive Thomas and Albuquerque New Mexico
Holdings, LLC Elizabeth Lutes - Northeast
Thomas and Elizabeth Thomas and Albuquerque New Mexico
Lutes Elizabeth Lutes - Uptown
Thomas and Elizabeth Thomas and Santa Fe New Mexico
Lutes Elizabeth Lutes
RHW Henderson, LLC Pedersen & Henderson Nevada
Vaughn
Gotham Cryo Ventures, Matt Grossman 3rd Avenue New York
LLC
Restore Hyper Wellness Matt Grossman 6th Avenue New York
NYC, LLC
MSGRC, LLC * Matt Grossman Bedford New York
CKLK Empire, LLC Chris Prentice Buffalo New York
MSGRC, LLC * Matt Grossman New Hyde New York
Park
MSGRC, LLC * Matt Grossman Westbury New York
MSGRC, LLC * Matt Grossman White Plains New York
Rejuvenation I, Ltd. Dan Rogovin Dublin Ohio
NAD DADS, LLC John Fox Hyde Park Ohio
Rejuvenate Group, LLC Kurt and Orange- Ohio
* Stephanie Pinecrest
Altenburger (Formerly
Fairlawn
Montrose)
Rejuvenate Life 2, LLC Kurt and Strongsville Ohio
Stephanie
Altenburger
Hyper Wellness Shawn Toledo Ohio
Therapy, LLC Stansbury
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2022 Franchise Disclosure Document
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Phone
Franchisee Principal Address City States Number
Rejuvenate Life 1, LLC Kurt and Westlake Ohio
Stephanie
Altenburger
Restore Wellness OKC, Jason Oklahoma Oklahoma
LLC Miltenberger City
Restore Wellness Tulsa, Jason Tulsa No. 1 Oklahoma
LLC* Miltenberger (Jenks)
Restore Wellness Tulsa, Jason Tulsa No. 2 Oklahoma
LLC * Miltenberger (Woodland
Hills)
Meraki Ventures, LLC * Nate Fennel Beaverton Oregon
and Brody
King
Meraki Ventures Tigard Nate Fennel Tigard Oregon
LLC *
ATA Cryo, LLC Anton Plantz East End Pennsylvania
Pittsburgh
AMMA Andy Ayers Springfield/ Pennsylvania
DEVELOPMENT and Michael Media/Glen
GROUP, LLC* Palumbo
Andy Ayers Wayne/Paoli Pennsylvania
and Michael
Palumbo
Restore Philadelphia, Andy Ayers Plymouth Pennsylvania
LLC and Mike Meeting
Palumbo (Formerly
Glen Mills)
Restore Health Adam Hart Greenville South
Greenville, LLC Carolina
No LLC Ted Bruenner West Ashley South
Carolina
Restore Wellness of Vinnie Green Hills Tennessee
Greater Nashville, LLC Magnarini
Restore Health Adam Hart and Memphis Tennessee
Holdings, LLC Chad Griffin
Fezziwig, LLC * Wade and Mt. Juliet Tennessee
Smith
Redeemed & Restored, Gabe and Murfreesboro Tennessee
LLC * Callie
Beukinga
Milliken Sisters Julie Rhie and Austin- Texas
Welness, LLC Sarah Milliken Lakeline
Restore Hyper Wellness Stacy Donnelly Austin-South Texas
South Lamar, LLC and Bryan Lamar
(Entity Name Changed) Bouillion
Dave and Jill Loya Dave and Jill Cypress Texas
Loya
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2022 Franchise Disclosure Document
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Phone
Franchisee Principal Address City States Number
Restore Hyper Wellness Stacy Donnelly Dallas- Texas
Lovers Lane, LLC Lovers Lane
(Entity Name Changed)
Restore Hyper Wellness Stacy Donnelly Dallas- Texas
Preston Hollow, LLC and Monica Preston
(Entity Name Changed) Murphy Hollow
BTC Restore, LLC Laura Smith Fort Worth Texas
BTC Restore, LLC Laura Smith Frisco Texas
Robert Marie, LLC Haden Katy Texas
BTC Restore, LLC Laura Smith Lewisville Texas
TAKJO Ventures, LLC Thomas Oh Mueller Texas
BTC Restore, LLC Laura Smith Mckinney Texas
R & M Health and Rachel North Texas
Wellness, LLC * Rentschler Richland
Hills
DT Global Investments, Dennis Tran Rice Village Texas
LLC (Formerly
Houston
Heights)
Treat Yourself, LLC Joe and Xing Round Rock Texas
BTC Restore, LLC Laura Smith Southlake Texas
6GT, LLC Michael Spring Texas
Nguyen
G&H Wellness, LLC Herky and West Village Texas
Gabrielle
Pollock
Robert Marie, LLC Brian Haden Woodlands Texas
and Lisa Haden
Meraki Ventures Brody King* Farmington Utah
Farmington LLC
Wellness Now LLC Ankita and Richmond Virginia
Niraj Patel
Meraki Ventures, LLC Brody King Bothel Mill Washington
and Nate Creek
Fennell*
Restore Hyperwellness + James Durant Kirkland Washington
Cryotherapy NW, LLC
Meraki Ventures, LLC Brody King Seattle Washington
and Nate Ballard
Fennell*
Bio Hax, LLC * Chris Ogden Brookfield Wisconsin
Chris Ogden Northshore Wisconsin
NOTE 1: Any entity or individual with an asterisk (*) next to their name has been granted Development
Rights
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2022 Franchise Disclosure Document
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Name of Telephone
Franchisee Address State City Number
Melissa Givens 11614 Rockville Pike MD Bethesda 202-629-8901
Matthew Grossman 1191 3RD AVE NY NYC 917-597-3554
Ted Bruenner 975 Savannah Highway, Unit SC Charleston 917-660-6442
#105
Bill Froelich 1941 PRESTON RD # 1035, TX Plano 469-992-7176
75093
Name of Telephone
Address State City
Franchisee Number
13303 Newport Dawn
Brody King Drive Draper, Utah Colorado Broomsfield* 281-622-3926
84020
16213 Crystal Downs
John Babcock &
E. Northville, MI Michigan Birmingham 614-519-7563
Scott Marcus
48168
16213 Crystal Downs
John Babcock &
E. Northville, MI Michigan Novi 614-519-7563
Scott Marcus
48168
9610 Sterling Shores
Scott Stein & Raleigh
Street Delray Beach FL North Carolina 919-413-2425
Christopher Hunter Durham
33446
13303 Newport Dawn
Brody King Drive Draper, Utah Utah Salt Lake City* 281-622-3926
84020
Note: Locations with an asterisk (*) next to their name have been transferred.
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2022 Franchise Disclosure Document
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OPERATIONS MANUAL
TABLE OF CONTENTS
75 Pages Total
1. INTRODUCTION (8 pages)
Confidential Disclosure Agreement (1 page)
Legal Disclaimer (1 page)
Franchise Model (2 pages)
The Restore Operation Manual (1 page)
Our History (1 page)
Our Mission (1 page)
Our Values (1 page)
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2022 Franchise Disclosure Document
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FINANCIAL STATEMENTS
G-1
WEST\297301252.8 2022 Franchise Disclosure Document
ASSETS
Current assets:
Cash $ 9,679,497
Accounts receivable 983,766
Franchise fees receivable, current 4,036,625
Due from affiliates 2,958,042
Deferred charges, current 30,196
Other current assets 171,773
Total current assets 17,859,898
Other assets:
Deferred charges, net of current portion 527,435
2
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RESTORE FRANCHISING, LLC
(A Limited Liability Company)
STATEMENT OF INCOME
FOR THE THREE-MONTHS ENDED MARCH 31, 2022
(Unaudited)
Revenues:
Royalties $ 1,572,772
Brand fund 454,472
Franchise fees 289,816
Service fees 842,737
Other revenues 5,000
Total revenues 3,164,796
Selling, general and administrative expenses 1,128,823
NET INCOME $ 2,035,973
3
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RESTORE FRANCHISING, LLC
(A Limited Liability Company)
4
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AUDITED STATEMENTS AS OF DECEMBER 31, 2021,
DECEMBER 31, 2020 AND DECEMBER 31, 2019
Table of Contents
Page
Independent Auditor's Report 1-2
Financial Statements
Balance sheets 3
Statements of income and changes in member's equity (deficit) 4
Statements of cash flows 5
Notes to financial statements 6 - 13
To the Member
Restore Franchising, LLC
Opinion
We have audited the accompanying financial statements of Restore Franchising, LLC (a limited liability
company), which comprise the balance sheets as of December 31, 2021 and 2020, and the related
statements of income and changes in member's equity (deficit) and cash flows for the years then ended,
and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Restore Franchising, LLC as of December 31, 2021 and 2020, and the results of its
operations and its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States
of America. Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of Restore Franchising, LLC and to meet our other ethical responsibilities in accordance
with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about Restore Franchising, LLC's
ability to continue as a going concern within one year after the date that the financial statements are
available to be issued.
2
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RESTORE FRANCHISING, LLC
(A Limited Liability Company)
BALANCE SHEETS
DECEMBER 31, 2021 AND 2020
2021 2020
ASSETS
Current assets:
Cash $ 6,603,462 $ 893,062
Accounts receivable 923,630 353,470
Accounts receivable - related parties 234,362 -
Franchise fees receivable, current 1,840,725 -
Due from affiliates 3,165,197 -
Deferred charges, current 28,756 4,290
Other current assets 132,728 3,500
Total current assets 12,928,860 1,254,322
Other assets:
Deferred charges, net of current portion 531,026 85,534
Franchise fees receivable, net of current portion 2,402,325 -
Total other assets 2,933,351 85,534
TOTAL ASSETS $ 15,862,211 $ 1,339,856
2021 2020
Revenues:
Royalties $ 3,911,585 $ 1,242,894
Brand fund 1,106,996 -
Franchise fees 1,326,952 1,410,980
Service fees 2,459,219 345,651
Other revenues 286,475 35,415
Total revenues 9,091,227 3,034,940
Selling, general and administrative expenses 3,806,274 507,666
Net income 5,284,953 2,527,274
Member's deficit - beginning (2,123,533) (1,300,241)
Member distributions - (3,350,566)
MEMBER'S EQUITY (DEFICIT) - ENDING $ 3,161,420 $ (2,123,533)
2021 2020
Cash flows from operating activities:
Net income $ 5,284,953 $ 2,527,274
Adjustments to reconcile net income to net cash provided by
operating activities:
Bad debt expense 3,197 -
Changes in assets and liabilities:
Accounts receivable (573,357) 73,152
Accounts receivable - related parties (234,362) -
Franchise fees receivable (4,243,050) -
Due from affiliates (3,165,197) -
Deferred charges (469,958) (89,824)
Other current assets (129,228) (2,500)
Accounts payable and accrued expenses 633,878 41,060
Deferred revenues 7,257,898 1,682,897
Due to managing member 90,000 -
Due to/from Parent 252,799 (24,937)
Due to affiliates 101,432 -
Brand fund liability 901,395 -
Net cash provided by operating activities 5,710,400 4,207,122
Cash used in financing activity:
Member distributions - (3,350,566)
Net increase in cash 5,710,400 856,556
Cash - beginning 893,062 36,506
CASH - ENDING $ 6,603,462 $ 893,062
6
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RESTORE FRANCHISING, LLC
(A Limited Liability Company)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
7
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RESTORE FRANCHISING, LLC
(A Limited Liability Company)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
8
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RESTORE FRANCHISING, LLC
(A Limited Liability Company)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
9
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RESTORE FRANCHISING, LLC
(A Limited Liability Company)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
10
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RESTORE FRANCHISING, LLC
(A Limited Liability Company)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
11
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RESTORE FRANCHISING, LLC
(A Limited Liability Company)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
12
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RESTORE FRANCHISING, LLC
(A Limited Liability Company)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
13
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RESTORE FRANCHISING, LLC
CONTENTS
Page
FINANCIAL STATEMENTS
Independent Accountants' Audit Report ................................................................................. 1
Balance Sheet .......................................................................................................................... 3
Income Statement.................................................................................................................... 4
Statement of Cash Flows ........................................................................................................ 5
Notes to Financial Statements .............................................................................................. 6-7
April 6, 2020
We have audited the accompanying financial statements of Restore Franchising, LLC, which comprise of
the balance sheet as of December 31, 2019, and the related statements of income and cash flows for the
year then ended, and the related notes to the financial statements.
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America. Management
is also responsible for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the Company's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Company's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
1.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
balance sheet of Restore Franchising, LLC as of December 31, 2019, and its related statements of income
and cash flows for the year then ended, in accordance with generally accepted accounting principles in the
United States of America.
Sincerely,
2.
ASSETS
CURRENT ASSETS
Cash $ 36,506
Account Receivable 961,731
Other Current Asset 2,414
Total Current Assets 1,000,651
SHORT-TERM LIABILITIES
Accounts Payable $ 1,000
Total Short-Term Liabilities 1,000
LONG-TERM LIABILITIES
Notes Payable 25,000
TOTAL LIABILITIES 26,000
MEMBERS' EQUITY
Opening Balance Equity 20,000
Retained Earnings 954,651
Total Members' Equity 974,651
3.
REVENUE
Franchise Income $ 411,845
Franchise Royalty Fee 2,193,950
TOTAL REVENUE 2,605,795
OPERATING EXPENSES
Austin Cryo Venture Payments 2,063,141
Referral Fees 65,000
Legal and Professional Services 55,248
Other Fees and License 3,613
Discounts 3,950
TOTAL EXPENSES 2,190,952
Distributions -
4.
OPERATING ACTIVITIES
Increase in Retained Earnings $ 414,843
Adjustments to reconcile increase in retained
earnings to net cash used by operating activities:
(Increase) Decrease in Certain Assets:
Increase in Receivables (472,313)
Increase in Account Payable 1,000
Net Cash Used By Operating Activities (56,470)
5.
Nature of Activities
On November 11, 2016 (“Date of Inception”), Restore Franchising, LLC, a limited liability company was
formed under the State of Texas’ statutes. Restore Franchising, LLC is a wholly owned subsidiary of
Austin Cryo Ventures, LLC. The Company sells the rights to Restore Cryotherapy, a leading Cryotherapy
service provider across the United States, including but not limited to, their business logo, name, and
model to third-party retail outlets, owned by independent, third-party operators called “franchisees”. The
Company is currently in the development stage and is subject to significant risks and uncertainties
including changes in regulatory guidelines for cryotherapy and the ability to expand operations and
capital.
Basis of Accounting
The balance sheet is presented in accordance with accounting principles generally accepted in the United
States of America (“U.S. GAAP”) as defined by the Financial Accounting Standards Board (“FASB”)
Accounting Standards Codification (“ASC”). ASC 606 (Revenue From Contracts With Customers) has
been implemented in the presentation of these financial statements. The preparation of the balance sheet
in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Estimates
Management uses estimates and assumptions in preparing these financial statements in accordance
with accounting principles generally accepted in the United States of America. Those estimates and
assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates
that were used.
Depreciation
No depreciation is computed because the entity does not have any fixed assets.
Cash and cash equivalents include all monies in banks and highly liquid investments with maturity of less
than three months. The carrying value of cash and cash equivalents approximates fair value because of the
short maturities of those financial instruments.
Subsequent Events
The Organization has evaluated subsequent events through April 6, 2020, the date on which the financial
statements were available to be issued.
Income Taxes
The Company is not a tax paying entity for federal income tax purposes, and thus no income tax expense
has been recorded. Income is taxed to the member on its respective returns. There are no anticipated
withdrawals by the member to pay income taxes for the current fiscal year.
6.
The Company's federal and various state income tax returns for 2016 through 2019 are subject to
examination by the applicable tax authorities, generally for three years after the later of the original or
extended due date.
Member’s capital was used to offset the significant costs incurred during the development stage of the
franchise model, including the investment of legal and operational fees.
NOTE 3 – CONCENTRATIONS
Financial instruments which potentially subject the Company to concentrations of credit risk consist
principally of cash and cash equivalents. The Company places its cash and cash equivalents with financial
institutions and limits the amount of credit exposure to any one financial institution.
The Company is a wholly owned subsidiary of Austin Cryo Ventures, LLC, which owns multiple Restore
Cryotherapy locations and is headquartered in Austin, Texas. Some members of management also have
ownership interests in Austin Cryo Ventures, LLC.
7.
CALIFORNIA
2. Neither the franchisor nor any person in Item 2 of the Disclosure Document is
subject to any currently effective order of any national securities association or
exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et
seq., suspending or expelling such person from membership in such association or
exchange.
4. The following paragraphs are added at the end of Item 17 of the Disclosure
Document:
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Applicable Law. The Franchise Agreement requires application of the laws of the
State of Texas with certain exceptions. This provision might not be enforceable
under California law.
ILLINOIS
Release. You must sign a general release of claims if you renew or transfer your
franchise. California Corporations Code section 31512 voids a waiver of your rights
under the Franchise Investment Law (California Corporations Code Sections 31000
through 31516). Business and Professions Code Section 20010 voids a waiver of
your rights under the Franchise Relations Act (Business and Professions Code
Sections 20000 through 20043).
Except to the extent governed by federal law, Illinois law governs the Franchise
Agreement.
Franchisees’ rights upon termination and non-renewal are set forth in Sections 19
and 20 of the Illinois Franchise Disclosure Act.
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MARYLAND
1. The following language is added to the end of the “Summary” sections of Item
17(c), entitled Requirements for franchisee to renew or extend, and Item 17(m),
entitled Conditions for Franchisor approval of transfer:
2. The following language is added to the end of the “Summary” section of Item 17(h),
entitled “Cause” defined – non-curable defaults:
3. The “Summary” section of Item 17(v), entitled Choice of forum, is deleted in its
entirety and the following is substituted in its place:
Texas state courts, and federal district court in Austin, Texas, except that to the
extent required by the Maryland Registration and Disclosure Law, you may bring
an action in Maryland.
4. The “Summary” section of Item 17(w), entitled Choice of law, is deleted in its
entirety and the following is substituted in its place:
Texas law applies, except for any claims arising under the Maryland Franchise
Registration and Disclosure Law.
5. The following language is added to the end of the chart in Item 17:
You must bring any claims arising under the Maryland Franchise Registration and
Disclosure Law within 3 years after the grant of the franchise.
Initial franchise fees are deferred until the Franchisor has performed all initial
obligations owed the Franchisee and the Franchisee has commenced doing
business. This financial assurance requirement is imposed by the Maryland Office
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7. The following language is added to the end of Exhibit I of the Franchise Disclosure
Document:
MINNESOTA
With respect to franchises governed by Minnesota law, the franchiser will protect
the franchisee’s rights to use the trademarks, service marks, trade names, logotypes,
or other commercial symbols or indemnify the franchisee from any loss, costs, or
expenses arising out of any claim, suit, or demand regarding the use of the name as
required by Minnesota Statute 80C.12 Subd. 1(G).
2. The following is added to the end of the “Summary” section of Item 17(c), entitled
Requirements for franchisee to renew or extend:
With respect to franchises governed by Minnesota law, the franchiser will comply
with Minnesota Statute 80C.14 Subd. 3-5, which require (except in certain specified
cases) that a franchisee be given 180 days’ notice for non-renewal of the franchise
agreement.
3. The following is added to the end of the “Summary” section of Item 17(f), entitled
Termination by franchisor with cause:
With respect to franchises governed by Minnesota law, the franchiser will comply
with Minnesota Statute 80C.14 Subd. 3-5, which require (except in certain specified
cases) that a franchisee be given 90 days’ notice of termination (with 60 days to
cure).
4. The following is added to the end of the “Summary” section of Item 17(m), entitled
Conditions for franchisor approval of transfer:
The general release required as a condition of transfer shall not apply to any liability
under the Minnesota Franchise Law and the consent to transfer shall not be
unreasonably withheld.
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5. The following is added to the end of the “Summary” section of Item 17(u), entitled
Dispute resolution by arbitration or mediation, and Item 17(v), entitled Choice
of forum:
Nothing in this Franchise Disclosure Document abrogates or reduces (1) any of the
franchisee’s rights as provided for in Minnesota Statute 80C; or (2) franchisee’s
rights to any procedure, forum, or remedies provided for by the laws of the
jurisdiction. With respect to franchises governed by Minnesota law, such
franchisees shall not be required to initiate litigation outside of Minnesota, not be
required to waive jury trials, or be required to consent to liquidated damages,
termination penalties, or judgment notes.
NEW YORK
1. The following information is added to the cover page of the Franchise Disclosure
Document:
Except as provided above, with regard to the franchisor, its predecessor, a person
identified in Item 2, or an affiliate offering franchises under the franchisor’s
principal trademark:
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b. No such party has pending actions, other than routine litigation incidental to
the business, which are significant in the context of the number of
franchisees and the size, nature or financial condition of the franchise system
or its business operations.
Neither the franchisor, its affiliate, its predecessor, officers, or general partner
during the 10-year period immediately before the date of the offering circular: (a)
filed as debtor (or had filed against it) a petition to start an action under the U.S.
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code;
or (c) was a principal officer of a company or a general partner in a partnership that
either filed as a debtor (or had filed against it) a petition to start an action under the
U.S. Bankruptcy Code or that obtained a discharge of its debts under the U.S.
Bankruptcy Code during or within 1 year after that officer or general partner of the
franchisor held this position in the company or partnership.
The initial franchise fee constitutes part of our general operating funds and will be
used as such in our discretion.
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5. The following is added to the end of the “Summary” sections of Item 17(c), titled
“Requirements for franchisee to renew or extend,” and Item 17(m), entitled
“Conditions for franchisor approval of transfer”:
However, to the extent required by applicable law, all rights you enjoy and any
causes of action arising in your favor from the provisions of Article 33 of the
General Business Law of the State of New York and the regulations issued
thereunder shall remain in force; it being the intent of this proviso that the non-
waiver provisions of General Business Law Sections 687.4 and 687.5 be satisfied.
6. The following language replaces the “Summary” section of Item 17(d), titled
“Termination by franchisee”:
7. The following is added to the end of the “Summary” section of Item 17(j), titled
“Assignment of contract by franchisor”:
However, no assignment will be made except to an assignee who in good faith and
judgment of the franchisor, is willing and financially able to assume the franchisor’s
obligations under the Franchise Agreement.
8. The following is added to the end of the “Summary” sections of Item 17(v), titled
“Choice of forum”, and Item 17(w), titled “Choice of law”:
The foregoing choice of law should not be considered a waiver of any right
conferred upon the franchisor or upon the franchisee by Article 33 of the General
Business Law of the State of New York.
NORTH DAKOTA
1. The following language is added to the end of the “Summary” sections of Item
17(c) of the Franchise Agreement Table and Item 17(m) of the Franchise
Agreement Table and Multi-Unit Development Table:
2. The following language is added to the end of the “Summary” section of Item 17(r)
of the Franchise Agreement Table and Multi-Unit Development Agreement Table:
Covenants not to compete such as those mentioned above are generally considered
unenforceable in the State of North Dakota. However, we will seek to enforce them
to the extent enforceable.
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3. The “Summary” section of Item 17(v) of the Franchise Agreement Table and Multi-
Unit Development Agreement Table is deleted and replaced with the following:
Texas state courts, and federal district court in Austin, Texas, except that to the
extent required by the North Dakota Franchise Investment Law, you may bring an
action in North Dakota.
4. The “Summary” section of Item 17(w) of the Franchise Agreement Table and
Multi-Unit Development Agreement Table is deleted and replaced with the
following:
Texas law applies, except to the extent otherwise required by the North Dakota
Franchise Investment Law, North Dakota law applies.
RHODE ISLAND
1. The following is added to the end of the “Summary” section of Item 17(v), entitled
Choice of forum:
To the extent required by the Rhode Island Franchise Investment Act, you may
bring an action in Rhode Island.
2. The “Summary” section in Item 17(w), entitled Choice of law, is deleted in its
entirety and the following is substituted in its place:
Except for claims arising under the Rhode Island Franchise Investment Act, Texas
law applies.
SOUTH DAKOTA
All initial fees and payments owed by franchisees shall be deferred until we
complete our pre-opening obligations under the Franchise Agreement and the
franchisees have commenced doing business.
VIRGINIA
1. Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a
franchisor to cancel a franchise without reasonable cause. If any grounds for default
or termination stated in the franchise agreement does not constitute “reasonable
cause,” as the term may be defined in the Virginia Retail Franchising Act or the
laws of Virginia, that provision may not be enforceable.
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WASHINGTON
A release or waiver of rights executed by a franchisee may not include rights under
the Act or any rule or order thereunder except when executed pursuant to a
negotiated settlement after the agreement is in effect and where the parties are
represented by independent counsel. Provisions such as those which unreasonably
restrict or limit the statute of limitations period for claims under the Act, or rights
or remedies under the Act such as a right to a jury trial, may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisee’s
reasonable estimated or actual costs in effecting a transfer.
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This Rider is entered into this _____ day of ______________, 20___, by and between
Restore Franchising, LLC, a Texas limited liability company (“we,” “us,” or “our”), and _______
____________________________ (“Franchisee,” “you,” or “your”).
1. Background. We and you are parties to that certain Franchise Agreement dated
________________, 20____ (the “Franchise Agreement”) that has been signed concurrently
with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement.
This Rider is being signed because (a) any of the offering or sales activity relating to the Franchise
Agreement occurred in Illinois and the Franchised Business will be located or operated in Illinois
and/or (b) you are a resident of Illinois.
2. Governing Law. The following language is added to the end of Section 22(a) of
the Franchise Agreement:
Notwithstanding the foregoing, except to the extent governed by the federal law,
Illinois law governs the Franchise Agreement.
Your rights upon termination and non-renewal are set forth in Sections 19 and 20
of the Illinois Franchise Disclosure Act.
However, this waiver shall not apply to the extent prohibited by Section 705/41 of
the Illinois Franchise Disclosure Act of 1987 or Illinois Regulations at Section 200.609.
WITNESS WHEREOF, the parties have executed this Rider to the Franchise Agreement
on the date stated on the first page.
FRANCHISOR FRANCHISEE
By: By:
Name: Name:
Title: Title:
RIDER TO THE
RESTORE FRANCHISING, LLC
MULTI-UNIT DEVELOPMENT AGREEMENT
FOR USE IN ILLINOIS
This Rider is entered into this ___ day of ________________, 20__, by and between Restore
Franchising, LLC, a Texas limited liability company (“we,” “us,” or “our”), and
_________________________________________________ (“Developer,” “you,” or “your”).
2. Governing Law. The following language is added to the end of Section 9(a) of the
MUDA:
Notwithstanding the foregoing, except to the extent governed by the federal law, Illinois
law governs this Agreement.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in
this Agreement that designates jurisdiction and venue in a forum outside of the State of
Illinois is void. However, this Agreement may provide for arbitration to take place outside
of Illinois.
Your rights upon termination and non-renewal are set forth in Sections 19 and 20 of the
Illinois Franchise Disclosure Act.
However, this waiver shall not apply to the extent prohibited by Section 705/41 of the
Illinois Franchise Disclosure Act of 1987 or Illinois Regulations at Section 200.609.
(j) Illinois Franchise Disclosure Act. In conformance with Section 41 of the Illinois
Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any
person acquiring any franchise to waive compliance with any provision of the Act or any
other law of Illinois is void.
7. Additional Disclosures. The following language is added to the end of the MUDA
as new Section 10(k):
WITNESS WHEREOF, the parties have executed this Rider to the MUDA on the date stated on
the first page.
FRANCHISOR DEVELOPER
By: By:
Name: Name:
Title: Title:
Date: Date:
This Rider is entered into this _____ day of ______________, 20___, by and between
Restore Franchising, LLC, a Texas limited liability company (“we,” “us,” or “our”), and _______
____________________________ (“Franchisee,” “you,” or “your”).
1. Background. We and you are parties to that certain Franchise Agreement dated
_______________, 20___ (the “Franchise Agreement”) that has been signed concurrently with
the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This
Rider is being signed because (a) you are a resident of Maryland, and/or (b) the Franchised
Business will be located or operated in Maryland.
2. Initial Franchise Fee. The following is added to the end of Section 3(a) of the
Franchise Agreement:
Initial franchise fees are deferred until the Franchisor has performed all initial
obligations owed the Franchisee and the Franchisee has commenced doing
business. This financial assurance requirement is imposed by the Maryland Office
of the Attorney General, Securities Division based on our financial condition.
3. Transfer and Renewal. The following language is added to the end of Section
2(b)(7) and Section 15(c)(7) of the Franchise Agreement:
; provided, however, that such general release shall not apply to any liability under
the Maryland Franchise Registration and Disclosure Law.
However, our right to terminate upon bankruptcy might not be enforceable under
federal bankruptcy law (11 U.S.C. Section 1010 et seq.), although we intend to
enforce it to the extent enforceable.
5. Governing Law. The first sentence of Section 22(a) of the Franchise Agreement
is deleted in its entirety and the following is substituted in its place:
This Agreement shall be construed under the laws of the State of Texas, except as
otherwise required by law for claims arising under the Maryland Franchise
Registration and Disclosure Law or any applicable franchise law of another state.
Notwithstanding the foregoing, you may bring an action in Maryland for claims
arising under the Maryland Franchise Registration and Disclosure Law.
WITNESS WHEREOF, the parties have executed this Rider to the Franchise Agreement
on the date stated on the first page.
FRANCHISOR FRANCHISEE
By: By:
Name: Name:
Title: Title:
This Rider is entered into this ___ day of ________________, 20__, by and between Restore
Franchising, LLC, a Texas limited liability company (“we,” “us,” or “our”), and
_________________________________________________ (“Developer,” “you,” or “your”).
2. Development Fee. The following is added to the end of Section 1(a) of the MUDA:
Notwithstanding the foregoing, all development fees and initial payments by area
developers shall be deferred until the first franchise under this Agreement opens.
3. Transfer and Renewal. The following language is added to the end of Section
1(d)(i) and Section 6(b)(v) of the MUDA:
; provided, however, that such general release shall not apply to any liability
under the Maryland Franchise Registration and Disclosure Law.
5. Governing Law. The first sentence of Section 9(a) of the MUDA is deleted in its
entirety and the following is substituted in its place:
This Agreement shall be construed under the laws of the State of Texas,
except as otherwise required by law for claims arising under the Maryland
Franchise Registration and Disclosure Law or any applicable franchise law of
another state.
WITNESS WHEREOF, the parties have executed this Rider to the Franchise Agreement on the
date stated on the first page.
FRANCHISOR DEVELOPER
By: By:
Name: Name:
Title: Title:
Date: Date:
This Rider is entered into this _____ day of ______________, 20___, by and between
Restore Franchising, LLC, a Texas limited liability company (“we,” “us,” or “our”), and _______
____________________________ (“Franchisee,” “you,” or “your”).
1. Background. We and you are parties to that certain Franchise Agreement dated
_____________, 20___ (the “Franchise Agreement”) that has been signed concurrently with the
signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This
Rider is being signed because (a) the offer or sale of the franchise for the Franchised Business you
will operate under the Franchise Agreement was made in the State of Minnesota, and/or (b) the
Franchised Business will be located or operated in Minnesota.
2. Transfer and Renewal. The following language is added to the end of Section
2(b)(7) and Section 15(c)(7) of the Franchise Agreement:
Any release as a condition of renewal and/or assignment or transfer will not apply
to the extent prohibited by law with respect to claims arising under Minn. Rule
2860.4400 D.
3. Renewal and Termination. The following language is added to the end of Section
2(b) of the Franchise Agreement and to the beginning of Section 17 of the Franchise Agreement:
Minnesota law provides you with certain termination and non-renewal rights. Minn.
Stat. Section 80C.14, subds, 3, 4 and 5 require, except in certain specified cases,
that you be given ninety (90) days’ notice of termination (with sixty (60) days to
cure) and one hundred eighty (180) days’ notice for non-renewal of this Agreement.
4. Governing Law. The following language is added to the end of Section 22(a) of
the Franchise Agreement:
Pursuant to Minn. Stat. § 80C.21 and Minn. Rule part 2860.4400(J), this section
shall not in any way abrogate or reduce your rights as provided for in Minnesota
Statutes 1984, chapter 80c, including the right to submit matters to the jurisdiction
of the courts of Minnesota.
Notwithstanding the foregoing, Minnesota law provides that no action may be commenced
under Minn. Stat. Sec. 80C.17 more than three (3) years after the cause of action accrues.
Further, we and you acknowledge that the limitation of damages in this Section 19.15 might
not be enforceable under the Minnesota Franchises Law; however, we and you will enforce
the limitation of damages to the extent the law allows.
WITNESS WHEREOF, the parties have executed this Rider to the Franchise Agreement
on the date stated on the first page.
FRANCHISOR FRANCHISEE
By: By:
Name: Name:
Title: Title:
This Rider is entered into this _____ day of ______________, 20___, by and between
Restore Franchising, LLC, a Texas limited liability company (“we,” “us,” or “our”), and _______
____________________________ (“Franchisee,” “you,” or “your”).
1. Background. We and you are parties to that certain Franchise Agreement dated
__________________, 20 ___ (the “Franchise Agreement”) that has been signed concurrently
with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement.
This Rider is being signed because (a) the offer or sale of the franchise for the Franchised Business
you will operate under the Franchise Agreement was made in the State of New York, and/or (b)
you are a resident of New York and will operate the Franchised Business in New York.
2. Releases. The following language is added to the end of Section 2(b)(7) and Section
15(c)(7) of the Franchise Agreement:
; provided, however, that all rights enjoyed by you and any causes of action arising
in your favor from the provisions of Article 33 of the General Business Law of the
State of New York and the regulations issued thereunder shall remain in force; it
being the intent of this proviso that the non-waiver provisions of GBL Sections
687.4 and 687.5 be satisfied.
You may terminate this Agreement on any grounds available by law under the
provisions of Article 33 of the General Business Law of the State of New York.
However, to the extent required by applicable law, no transfer will be made except
to an assignee who, in our good faith judgment, is willing and able to assume our
obligations under this Agreement.
5. Governing Law. The following language is added to the end of Section 22(a) of
the Franchise Agreement:
However, to the extent required by Article 33 of the General Business Law of the
State of New York, this Section shall not be considered a waiver of any right
conferred upon you by the provisions of Article 33 of the New York State General
Business Law, as amended, and the regulations issued thereunder.
WITNESS WHEREOF, the parties have executed this Rider to the Franchise Agreement
on the date stated on the first page.
FRANCHISOR FRANCHISEE
By: By:
Name: Name:
Title: Title:
This Rider is entered into this _____ day of ______________, 20___, by and between
Restore Franchising, LLC, a Texas limited liability company (“we,” “us,” or “our”), and _______
____________________________ (“Franchisee,” “you,” or “your”).
1. Background. We and you are parties to that certain Franchise Agreement dated
___________________, 20___ that has been signed concurrently with the signing of this Rider.
This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed
because (a) the offer or sale of the franchise for the Franchised Business will operate under the
Franchise Agreement was made in the State of North Dakota, and/or (b) you are a resident of North
Dakota and will operate the Franchised Business in North Dakota.
Covenants not to compete such as those mentioned above are generally considered
unenforceable in the State of North Dakota. However, we and you acknowledge
and agree to the enforcement of these provisions to the extent enforceable under the
law.
3. Releases. The following language is added to the end of Section 2(b)(7) and Section
15(c)(7) of the Franchise Agreement:
Any release will not apply to the extent otherwise prohibited by applicable law with
respect to claims arising under the North Dakota Franchise Investment Law.
4. Governing Law. The following language is added to the end of Section 22(b) of
the Franchise Agreement:
6. Limitations on Legal Actions. The first sentence of Section 22(e) is hereby deleted
to the extent required by the North Dakota Franchise Investment Law.
7. Limitations of Claims and Waiver of Jury Trial. The following is added to the
end of Section 22(e) of the Franchise Agreement:
The time limitations set forth in this subparagraph might be modified by the North
Dakota Franchise Investment Law. In addition, if and to the extent required by the
North Dakota Investment Law, the last paragraph of Section 22(e) is deleted.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider on the date
stated on the first page above.
FRANCHISOR FRANCHISEE
By: By:
Name: Name:
Title: Title:
This Rider is entered into this _____ day of ______________, 20___, by and between
Restore Franchising, LLC, a Texas limited liability company (“we,” “us,” or “our”), and _______
____________________________ (“Developer,” “you,” or “your”).
2. Releases. The following language is added to the end of Section 2(d)(i) of the
MUDA:
Any release will not apply to the extent otherwise prohibited by applicable law with
respect to claims arising under the North Dakota Franchise Investment Law.
Covenants not to compete such as those mentioned above are generally considered
unenforceable in the State of North Dakota. However, we and you acknowledge
and agree to the enforcement of these provisions to the extent enforceable under the
law.
4. Governing Law. The following language is added to the end of Section 9(a) of the
MUDA:
7. Limitations of Claims and Waiver of Jury Trial. The following is added to the
end of Section 9(e) of the MUDA:
The time limitations set forth in this subparagraph might be modified by the North
Dakota Franchise Investment Law. In addition, if and to the extent required by the
North Dakota Investment Law, the last paragraph of Section 22(e) is deleted.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider on the date
stated on the first page above.
FRANCHISOR FRANCHISEE
By: By:
Name: Name:
Title: Title:
This Rider is entered into this _____ day of ______________, 20___, by and between
Restore Franchising, LLC, a Texas limited liability company (“we,” “us,” or “our”), and _______
____________________________ (“Franchisee,” “you,” or “your”).
1. Background. We and you are parties to that certain Franchise Agreement dated
________________, 20_____ (the “Franchise Agreement”) that has been signed concurrently
with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement.
This Rider is being signed because (a) the offer or sale of the franchise for the Franchised Business
you will operate under the Franchise Agreement was made in the State of Rhode Island, and/or (b)
you are a resident of Rhode Island and will operate the Franchised Business in Rhode Island.
2. Governing Law. The first sentence of Section 22(a) of the Franchise Agreement is
deleted in its entirety and the following is substituted in its place:
Except as otherwise required by law for claims arising under the Rhode Island
Franchise Investment Act, this Agreement shall be construed under the laws of the
State of Texas.
3. Consent to Jurisdiction. The following is added to the end of Section 22(b) of the
Franchise Agreement:
Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that “A
provision in a franchise agreement restricting jurisdiction or venue to a forum
outside this state or requiring the application of laws of another state is void with
respect to a claim otherwise enforceable under this Act.”
IN WITNESS WHEREOF, the parties have executed this Rider to the Franchise
Agreement on the date stated on the first page.
FRANCHISOR FRANCHISEE
By: By:
Name: Name:
Title: Title:
This Rider is entered into this _____ day of ______________, 20___, by and between
Restore Franchising, LLC, a Texas limited liability company (“we,” “us,” or “our”), and _______
____________________________ (“Franchisee,” “you,” or “your”).
2. FEE DEFERRAL. The following language is added to the end of Section 3(a) of
the Franchise Agreement:
All initial fees and payments owed by Franchisee to Franchisor shall be deferred
until Franchisor completes its pre-opening obligations under this Agreement and
Franchisee has commenced doing business.
WITNESS WHEREOF, the parties have executed this Rider to the Franchise Agreement
on the date stated on the first page.
FRANCHISOR FRANCHISEE
By: By:
Name: Name:
Title: Title:
This Rider is entered into this _____ day of ______________, 20___, by and between
Restore Franchising, LLC, a Texas limited liability company (“we,” “us,” or “our”), and _______
____________________________ (“Franchisee,” “you,” or “your”).
1. Background. We and you are parties to that certain Franchise Agreement dated
____________________, 20____ (the “Franchise Agreement”) that has been signed
concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise
Agreement. This Rider is being signed because (a) the offer or sale of the franchise for the
Franchised Business you will operate under the Franchise Agreement was made in the State of
Washington, (b) you are a resident of Washington, and/or (c) the Franchised Business will be
located or operated in Washington.
2. Reserved Rights. The last sentence of Section 1(c) of the Franchise Agreement is
hereby deleted in its entirety.
3. Addition of Paragraphs. The following paragraphs are added to the end of the
Franchise Agreement:
A release or waiver of rights executed by a franchisee may not include rights under
the Act or any rule or order thereunder except when executed pursuant to a
negotiated settlement after the agreement is in effect and where the parties are
represented by independent counsel. Provisions such as those which unreasonably
restrict or limit the statute of limitations period for claims under the Act, or rights
or remedies under the Act such as a right to a jury trial, may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisee’s
reasonable estimated or actual costs in effecting a transfer.
IN WITNESS WHEREOF, the parties have executed this Rider to the Franchise
Agreement on the date stated on the first page.
FRANCHISOR FRANCHISEE
By: By:
Name: Name:
Title: Title:
RIDER TO THE
RESTORE FRANCHISING, LLC
MULTI-UNIT DEVELOPMENT AGREEMENT
FOR USE IN WASHINGTON
This Rider is entered into this ___ day of ________________, 20__, by and between Restore
Franchising, LLC, a Texas limited liability company (“we,” “us,” or “our”), and
_________________________________________________ (“Developer,” “you,” or “your”).
2. Addition of Paragraphs. The following paragraphs are added to the end of the
MUDA:
A release or waiver of rights executed by a franchisee may not include rights under
the Act or any rule or order thereunder except when executed pursuant to a
negotiated settlement after the agreement is in effect and where the parties are
represented by independent counsel. Provisions such as those which unreasonably
restrict or limit the statute of limitations period for claims under the Act, or rights
or remedies under the Act such as a right to a jury trial, may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisee’s
reasonable estimated or actual costs in effecting a transfer.
earnings from the party seeking enforcement, when annualized, exceed $100,000
per year (an amount that will be adjusted annually for inflation). In addition, a
noncompetition covenant is void and unenforceable against an independent
contractor of a franchisee under RCW 49.62.030 unless the independent
contractor’s earnings from the party seeking enforcement, when annualized, exceed
$250,000 per year (an amount that will be adjusted annually for inflation). As a
result, any provisions contained in this Agreement or elsewhere that conflict with
these limitations are void and unenforceable in Washington.
IN WITNESS WHEREOF, the parties have executed this Rider to the Franchise Agreement on
the date stated on the first page.
FRANCHISOR FRANCHISEE
By: By:
Name: Name:
Title: Title:
Date: Date:
The purpose of this Certification is to determine whether any statements or promises were made
to you that we have not authorized and that may be untrue, inaccurate or misleading. Do not sign
or date this Certification the same day as the Receipt for the Franchise Disclosure Document;
you should sign and date this Certification the same day you sign the Franchise Agreement.
Please review each of the following questions and statements carefully and provide honest and
complete responses to each. All representations requiring prospective franchisees to assent to a
release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration
and Disclosure Law.
1. You had your first face-to-face meeting with our representative on:
_____________________________.
2. Have you received and personally reviewed our Franchise Agreement and each Addendum
(if any) and related agreement (i.e., personal guaranty) attached to them?
☐ Yes ☐ No
3. Did you receive the Franchise Agreement and each related agreement, containing all
material terms, at least 14 days before signing any binding agreement with us? This does
not include changes to any agreement arising out of negotiations you initiated with us.
☐ Yes ☐ No
4. Do you understand all the information contained in the Franchise Agreement and each
Addendum (if any) and related agreement provided to you?
☐ Yes ☐ No
If No, what parts of the Franchise Agreement, Addendum (if any) and/or related
agreements do you not understand? (Attach additional pages, if necessary.)
5. Have you received and personally reviewed our Franchise Disclosure Document (“FDD”)
that was provided to you?
☐ Yes ☐ No
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WEST\297301252.8 2022 Franchise Disclosure Document
6. Did you receive the FDD at least 14 days before signing the Franchise Agreement, this
document or any related agreement, or before paying any funds to us?
☐ Yes ☐ No
7. Did you sign a receipt for the FDD indicating the date you received it?
☐ Yes ☐ No
8. Do you understand all the information contained in the FDD and any state-specific
Addendum to the FDD?
☐ Yes ☐ No
If No, what parts of the FDD and/or Addendum do you not understand? (Attach additional
pages, if necessary.)
9. Do you acknowledge and understand that no parent of ours promises to back us financially
or otherwise guarantees our performance or commits to perform post-sale obligations for
us?
☐ Yes ☐ No
10. Have you discussed the benefits and risks of purchasing a Restore Franchising franchise
with an attorney, accountant or other professional advisor?
☐ Yes ☐ No
☐ Yes ☐ No
11. Do you understand that the success or failure of your Restore Franchising franchise will
depend in large part upon your skills and abilities, competition from other businesses, and
other economic and business factors?
☐ Yes ☐ No
12. Has any employee or other person speaking on our behalf made any statement or promise
concerning the actual or possible revenues or profits of a Restore Franchising franchise
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WEST\297301252.8 2022 Franchise Disclosure Document
that is not contained in the FDD or that is contrary to, or different from, the information
contained in the FDD?
☐ Yes ☐ No
13. Has any employee or other person speaking on our behalf made any statement or promise
regarding the amount of money you may earn in operating a Restore Franchising franchise
that is not contained in the FDD or that is contrary to, or different from, the information
contained in the FDD?
☐ Yes ☐ No
14. Has any employee or other person speaking on our behalf made any statement or promise
concerning the likelihood of success that you should or might expect to achieve from
operating a Restore Franchising franchise that is not contained in the FDD or that is
contrary to, or different from, the information contained in the FDD?
☐ Yes ☐ No
15. Has any employee or other person speaking on our behalf made any statement, promise or
agreement concerning the advertising, marketing, training, support service or assistance
that we will furnish to you that is contrary to, or different from, the information contained
in the FDD?
☐ Yes ☐ No
16. If you have answered “Yes” to any one of questions 12-15, please provide a full explanation
of each “Yes” answer in the following blank lines. (Attach additional pages, if necessary,
and refer to them below.)
17. Do you understand that the Franchise Agreement, Addendum (if any) and related
agreements contain the entire agreement between you and us concerning the Restore
Franchising franchise, meaning that any prior oral or written statements not set out in the
Franchise Agreement, Addendum (if any) or related agreements will not be binding?
Nothing in this document or any related agreement is intended to disclaim the
representations we made in the FDD that we furnished to you.
☐ Yes ☐ No
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WEST\297301252.8 2022 Franchise Disclosure Document
18. Do you understand that, except as provided in the FDD, nothing stated or promised by us
that is not specifically set forth in the Franchise Agreement, Addendum (if any) and related
agreements can be relied upon?
☐ Yes ☐ No
19. You signed the Franchise Agreement and Addendum (if any) and related agreements on
______________, 20_____ and acknowledge that no agreement or addendum is effective
until signed and dated by us.
The individuals signing below for the Franchisee constitute all of the executive officers, partners,
shareholders, investors and/or principals of the Franchisee, or constitute the duly authorized
representatives or agents of the foregoing.
FRANCHISEE:
By:
Date:
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WEST\297301252.8 2022 Franchise Disclosure Document
THIS ADMINISTRATIVE SERVICES AGREEMENT (the “Agreement”) is made, entered into and
effective on and as of, by and between [___________] (the “Company”), and [_______], a [_______]
[professional] limited liability company (the “PC).
RECITALS
A. The PC has been formed under the laws of the State of [____] to render professional medical
services to patients at one or more locations in various states throughout the United States.
C. The PC desires to contract with the Company for the right to use components of the Restore
proprietary service line which pertain to the provision of medical services by the PC and the corresponding
provision of non-clinical administrative services by the Company to the PC as set forth in this Agreement,
and the Company desires to provide such services to the PC in accordance with the terms and conditions of
this Agreement.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:
ENGAGEMENT
1.1 Engagement. The PC hereby engages the Company, and the Company hereby agrees to be
engaged by the PC, to be the exclusive provider of non-clinical administrative services (“Administrative
Services”) described in this Agreement during the Term (as defined below). During the Term, the PC will
not retain, engage or employ, directly or indirectly, any other entity or individual to provide any or all of
the Administrative Services or any similar services. The PC acknowledges that the Company is providing
the Administrative Services to the PC on a non-exclusive basis and may provide similar services to other
persons or entities.
DUTIES OF THE PC
2.1 Professional Standards. Professional medical services, including services incident thereto
(“Medical Services”) shall be performed solely by, or under the direct supervision of, physicians who are
employed by or under contract with the PC (“PC Providers”). The PC shall have complete and absolute
control over the methods by which the PC, the PC Providers and other Clinical Staff practice medicine and/or
render the professional services that they are licensed to provide. To the extent required by applicable law,
the PC Providers shall supervise, oversee and train the licensed non-physician clinical staff, such as nurses,
nurse practitioners and physician assistants (“Clinical Staff”). The PC shall require that all PC Providers and
Clinical Staff comply with applicable ethical standards, laws and regulations. If the PC implements a
program to monitor the quality and utilization of medical care, then the Company shall, at PC’s request,
assist with the administration of such program and addressing any issues that may arise in connections with
findings related thereto. The PC shall promptly inform the Company of any disciplinary actions or
professional liability actions involving PC, PC Providers and Clinical Staff and shall provide any information
reasonably requested by Company related thereto.
2.3 Continuing Medical Education. The PC shall ensure that each of its PC Providers comply
with all continuing education requirements necessary to maintain licensure and, as applicable, certification.
2.4 Billing. The PC shall control the amount of professional fees or other amounts charged and
collected by the PC for items and services provided by PC Providers and Clinical Staff. The PC hereby
appoints the Company to act as its agent in the billing and collection of all PC revenues, to the extent
permitted by applicable law. The PC shall cooperate and shall cause the PC Providers and Clinical Staff to
cooperate with the Company in all reasonable matters relating to the billing and collection of all revenues.
The PC Providers shall review and approve the reports and other information required to support complete
and accurate bills. Additionally, the PC and PC Providers will provide such information necessary to appeal
or contest any denials of claims or other regulatory issues. The PC, in consultation with the Company, shall
establish reasonable policies and procedures with respect to billing and collection matters. The PC hereby
authorizes the Company to endorse and negotiate on the PC’s behalf any checks or payments received by
the PC, any PC Provider (in his or her capacity as such) or any Clinical Staff and agrees to cooperate with
the Company in billing and collection activities pertaining to the professional services provided by the PC,
any of the PC Providers of any of the Clinical Staff. The PC and the Company shall comply with applicable
federal, state, and local statutes and regulations regarding the billing and collection of all PC revenues.
2.5 PC Expenses. The PC shall be solely responsible for the payment of all PC Expenses (as
defined below), which, to the extent permitted by applicable law, the Company shall pay as agent for and on
behalf of the PC.
“PC Expenses” means the expenses, incurred or otherwise approved by the PC, whether
incurred directly by the PC or incurred on behalf of PC by the Company, including: state and federal payroll
taxes or self-employment taxes incurred by the PC in connection with employment of PC Providers and
Clinical Staff, compensation and benefit expenses for PC Providers and Clinical Staff, premiums for
professional and general liability insurance, medical books and journals, registration fees for continuing
medical education, registration fees for continuing education required for PC Providers and Clinical Staff,
membership dues for professional organizations, locum tenens expenses, facility leases, repairs and
maintenance, telephones, utilities, billing services, courier services, legal expenses, travel and entertainment,
outside medical consultants, license fees, and other expenses approved from time to time by the PC.
2.6 Medical Records. The Company shall provide PC with access to an electronic medical
record system, but PC shall own, maintain and be solely responsible for the preparation and the contents of
all patient medical records. The PC shall be responsible for ensuring proper documentation of medical
services by the PC Providers and Clinical Staff. The PC and the Company shall comply with applicable
federal, state and local statutes and regulations regarding the confidentiality and retention of such records.
At the PC’s request, the Company will assist in processing and responding to patient and third-party requests
for the medical records.
The PC may establish and maintain a deposit bank account (the “Receivables Account”).
The PC may (A) deposit or cause to be deposited promptly all cash, checks, drafts or other similar items of
payment relating to or constituting receivables of the PC into the Receivables Account and (B) request in
In any depositary agreement for the Receivables Account with the bank (the “Depositary
Agreement”), which Depositary Agreement shall be in form and substance reasonably satisfactory to the
Company, the PC shall instruct the Bank to “sweep” daily the account balance in the Receivables Account
into a deposit account of the Company. Such instructions to the Bank may be revoked, rescinded or modified
at the sole instruction of the PC. Any Depositary Agreement shall provide that in the event that such
instructions to the Bank are in any way revoked, rescinded or modified, the Bank shall provide the Company
with notify advance written notice of such instructions. The parties agree that the PC’s revoking, rescinding,
or modifying such instructions to the Bank shall constitute a material breach by the PC of this Agreement.
3.1 Strategic Planning and Goals. The Company, in consultation with the PC, shall assist the
PC in preparing a strategic plan for the goals, growth, and enhancement of the PC.
3.2 Recommended Professional Fees. The parties acknowledge and agree that the PC shall
have sole control over the amount of fees charged, collected, or other amounts due in connection with
services and goods provided by the PC. The Company, at the request of PC, may recommend professional
fees, charges, premiums or other amounts due in connection with services and goods provided by the PC.
3.3 PC Administrative Services. The Company shall, in consultation with the PC, assist the
PC in assessing business activities, customer satisfaction, and outcomes monitoring. The Company shall
develop systems to assist the PC in tracking revenues, expenses, cost accounting, utilization, quality
assurance, physician productivity and customer satisfaction.
3.4 Related Office Services. The Company shall, in consultation with the PC, manage the
office space and provide any related office and medical furniture, fixtures, supplies and equipment necessary
to enable the PC to provide medical services in an organized and efficient manner, provided that PC shall
approve the selection of any medical equipment and medical supplies. The PC shall maintain complete
control over those aspects of related office services that involve direct medical care provided to patients, and
the PC shall own all medical related supplies, if any.
3.5 Electronic Medical Record. The Company shall make available to PC an electronic
medical record system. The PC shall be responsible for ensuring proper documentation of medical services
by the PC Providers and Clinical Staff in such electronic medical record system and shall own the contents
of all such medical records.
3.6 Business Office and Support Services. The Company shall provide, in accordance with
applicable law, computer, bookkeeping, tax return preparation, billing and collection, accounts receivable
and accounts payable services necessary for the management of the PC pursuant to this Agreement. The
Company shall also order and purchase on behalf of the PC office and other supplies reasonably required in
the day-to-day operation of the PC. Notwithstanding the foregoing, the PC shall be solely responsible for
the ordering, purchasing, stocking, and monitoring of any pharmaceuticals or other medical items and
supplies that require a permit, licensure registration, certification, or identification number to order. Upon
request from the PC, the Company may arrange for access to information systems services and other
necessary operational services.
3.7 Professional and Consulting Services. The Company shall arrange for or render business
and financial management consultation and advice reasonably requested by the PC and directly related to
3.8 Financial Statements, Books and Records. The Company shall prepare profit and loss
and income statements, in accordance with the manner and form in which the Company normally keeps its
accounts, books and records, and in accordance with applicable laws and U.S. generally accepted accounting
principles.
3.9 Personnel Services. The Company shall provide the following personnel services to the
PC:
To the extent not provided by the PC, the Company shall provide non-medical personnel
(i.e., managerial, clerical, secretarial, bookkeeping, billing and collection personnel) as determined by the
Company, and as necessary to provide the Administrative Services under this Agreement. To the extent
not provided by the PC, the Company shall provide personnel for the maintenance of billing and collection
records, financial records, and medical records, to the extent the PC has custody of patient records. The
Company shall determine the assignments, salaries and fringe benefits of all the nonmedical personnel
provided by the Company. The Company retains decision-making authority regarding all non-medical
administrative matters. Non-medical personnel may perform services from time to time for other
individuals or entities, provided that such services do not interfere with the Company’s obligations
hereunder. The Company, in its sole discretion, may utilize employees or independent contractors to
provide such services.
The PC shall be responsible for the hiring, firing, disciplining and determination of
compensation and benefits of the Clinical Staff.
Upon request of the PC, the Company shall perform administrative services relating to the
PC’s recruitment of new PC Providers and Clinical Staff, provided that the PC shall be solely responsible
for the selection, compensation, hiring and firing of PC Providers and Clinical Staff.
The Company shall: (i) at request of PC, establish and administer employee benefits,
including insurance plans, for PC; (ii) provide day-to-day management and direction of non-medical
operations of the PC; and (iii) at request of PC, develop policies and procedures for non-medical operations
of the PC.
3.10 Third Party Payors. The Parties acknowledge that at present, the Restore proprietary
service line is not reimbursable by any third party payors.
3.11 Billing and Collection. The Company shall provide billing and collection services for all
professional services rendered by the PC. Such services may include: (i) maintenance of insurance
information for each patient who receives medical care by PC Providers and Clinical Staff who render care
on behalf of the PC; (ii) submission of regular bills for each patient who receives medical care from PC
Providers and Clinical Staff; (iii) pursuit of any disputed claims on behalf of the PC, including the filing of
lawsuits to obtain payment; and (iv) accounting for the collection of all revenues of the PC. The PC and the
Company shall comply with applicable federal, state, and local statutes and regulations regarding the billing
and collection of PC revenues. To the extent a bona fide request to write-off or hold in abeyance any of the
PC’s professional fees is received from any source, the Company shall notify the PC and the PC shall
promptly inform the Company as to whether to honor such request.
3.12 Financial Services. The Company shall provide the following financial services to the
PC: (i) such bookkeeping services as may be required to keep the books and accounts of the PC and may
retain a professional accountant to perform same; (ii) ensuring that all state and federal tax returns of the
3.13 Cash Management. All charges collected and all collections from services rendered by
the PC shall be paid directly to the PC and deposited in an account in the name of and under the PC’s sole
control, as set forth in Section 2.7. Once such receivables are swept into the Company Account, the Company
is authorized, as an agent for the PC, to establish payroll systems and make payroll payments, pay accounts
payable, and otherwise satisfy the obligations of the PC. The Company shall prepare and provide the PC
quarterly reconciliations of all bank accounts.
3.14 Incurrence of Debt and Guarantees; Grant of Security. Subject to approval by the PC,
the Company is authorized in the name of the PC to incur and guaranty indebtedness, to grant liens in any
or all of the real and personal property of the PC to secure any of such indebtedness and guarantees and to
enter into such contracts, agreements and instruments as the Company determines in connection with such
indebtedness, guarantees and liens.
3.15 Recruitment. The PC hereby requests, and the Company agrees to recruit and provide
initial screening of physicians and other licensed clinical staff on behalf of the PC. The PC is solely
responsible for the selection, compensation, hiring and firing of any physician or licensed clinical staff, as
well as the monitoring the qualifications and supervision of its physicians and licensed clinical staff.
3.16 Insurance. The Company shall evaluate, on an ongoing basis, the professional liability,
general liability, and other insurance needs of the PC and make recommendations related to same. The
Company shall arrange and maintain in effect such policies of insurance that are approved by the PC, in
accordance with Article 10 hereof.
3.17 Additional Services. The Company shall provide Administrative Services required for the
day-to-day operation of the PC, including any additional administrative services agreed to by the parties not
otherwise described above.
3.18 Use of Certain Aspects of the Restore System. The PC understands that the Company
has obtained from Restore Franchising, LLC (the “Franchisor”) the right to use the name “Restore Hyper
Wellness + Cryotherapy” and any other proprietary marks, trade names, logos, and the like (“Proprietary
Marks”) and the right to use the proprietary service line and other information, tangible and intangible,
whether spoken, printed, electronic or any other form or medium provided to the Company by Franchisor
(the “System”) and has obtained the right to permit the Practice to use the System, subject to the provisions
herein. The Practice expressly acknowledges that it is not the owner of the System or the Proprietary Marks
and it shall not represent in any manner that it has acquired any ownership rights in the System or the
Proprietary Marks and shall not use any of the System or Proprietary Marks or any marks, names, or indicia
which are, or may be confusingly similar, in its own entity or business name. The Practice further agrees
that it is not licensed to use, nor shall it use, the Proprietary Marks. The Practice further acknowledges and
agrees that any and all goodwill associated with the System and Proprietary Marks shall inure directly and
exclusively to the benefit of the Franchisor.
The Company permits PC to use and apply the clinical components of the Restore proprietary
services line and the System that pertain to the provision of medical services in connection with rendering
such services to Restore clients. Subject to Article 5, the PC shall use the System only in such manner as
authorized by the Company and the Franchisor, which Franchisor may in its sole discretion modify from
time to time. The PC’s right to use the System is derived solely from this Agreement. Any unauthorized use
5
Franchisor reserves the right to modify or discontinue use of the System, or use one or more
additional or substitute trade or service marks in Franchisor’s sole discretion. Subject to Article 5, if
Franchisor exercises such right, the PC agrees to comply with Franchisor’s directions, as communicated
to it by the Company, to modify or otherwise discontinue the use of such System. Any and all expenses
or costs incurred by the PC associated with such modification or discontinuance of any element of the
System shall be the sole responsibility of the PC. In no event, will the Franchisor be liable to the PC for
any purported loss or damage due to the modification or discontinued use of System or the Proprietary
Marks.
CONFIDENTIALITY
4.1 Confidential Information. The PC acknowledges and agrees that the Confidential
Information (as defined below), as such may exist from time to time, are valuable, confidential, special and
unique assets of the Company and its affiliates, expensive to produce and maintain and essential for the
profitable operation of their respective businesses. The PC further acknowledges and agrees that the PC, PC
Providers and Clinical Staff, during the course of this Agreement, or at any time thereafter, shall not, directly
or indirectly, use, make available, sell, disclose or otherwise communicate to any person or entity any
Confidential Information concerning the organization, business or finances of the Company so far as they
have come or may come to their knowledge, except as may be required by law or except as may be in the
public domain through no fault of their own, and shall not use or attempt to use any such Confidential
Information in any manner that may injure the Company or may be calculated to injure the Company,
whether directly or indirectly. “Confidential Information” shall include any patents, patent applications,
licenses, copyrights, trademarks, trade names, service marks, service names, know-how, trade secrets,
customer lists, details of health care facility, payor or consulting contracts, pricing policies, operational
methods, marketing plans or strategies, product development techniques or plans, procurement and sales
activities, promotional and pricing techniques, credit and financial data concerning health care facilities,
payors or customers, business acquisition plans or any portion or phase of any scientific or technical
information, ideas, discoveries, designs, computer programs (including source or object codes), processes,
procedures, formulas or improvements of the Company, whether or not in written or tangible form, and
whether or not registered, and including all memoranda, notes, plans, reports, records, documents and other
evidence thereof. The provisions of this Section 4.1 shall survive the termination of this Agreement for any
reason.
4.2 Return of Confidential Information. Upon the termination of this Agreement for any
reason, the PC agrees to return to the Company or destroy any Confidential Information then in the PC’s
possession. Further, the PC shall cause each of its members, PC Providers and Clinical Staff to return to the
Company or destroy any Confidential Information in any such individual’s possession upon his or her
disassociation from the PC or upon the termination of this Agreement for any reason. The provisions of this
Section 4.2 shall survive the termination of this Agreement for any reason.
5.1 The PC shall have sole responsibility, and the Company shall have no responsibility, for
the hiring, firing, compensation, supervision, or any training of PC Provider or Clinical Staff employed or
otherwise retained by the PC. Notwithstanding anything contained in Articles 2 or 3 to the contrary, the
neither the Company nor Franchisor (as defined below) shall exercise any authority, influence or control
over nor have any responsibility for, the professional services rendered by PC to any patient. PC Providers
and Clinical Staff shall exclusively exercise their independent, medically appropriate judgment in all clinical
decisions, as they determine to be in the best interests of the patients.
5.2 No portion of this Agreement is intended to, or will be interpreted to, interfere with any PC
Providers’ ability to exercise their independent, clinical and professional judgment, including making
referrals as medically appropriate. The Company shall not interfere with PC Providers’ physician-patient
relationships. The PC, PC Providers and Clinical Staff shall be solely responsible for the procurement and
maintenance of any and all licenses, permits or other certifications that the PC or such providers may be
required to hold in order to provide professional services. The PC warrants and covenants that it shall provide
the Company with written notice within 24 hours in the event the license or governmental program
participation (if the PC participates in any governmental health care programs) of the PC or any PC Provider
or Clinical Staff, as applicable, (i) lapses or is suspended, revoked, restricted, limited, or (ii) is subject to
any disciplinary or investigative procedure, order or other such similar events.
5.3 The PC shall cause PC Providers to perform all medical management deemed necessary or
advisable by either the PC to satisfy applicable laws, and good medical practice organization and
management.
6.1 The PC shall have the right to inspect the books and records of the Company regarding its
collections, billing, accounting and other administrative and management functions provided by the
Company on behalf of the PC.
7.1 Compensation. The parties hereby agree and acknowledge that, in exchange for all the
Administrative Services rendered by the Company in accordance with this Agreement, the PC shall pay the
Company an Administrative Services Fee (as defined in Exhibit A, which is attached to and made a part of
this Agreement). Upon notice to PC, the Company may adjust the components of the Administrative
Services Fee annually to reflect the scope of services provided by the Company.
7.3 PC Expenses. All PC Expenses, including the compensation of PC Providers and Clinical
Staff, shall be the sole responsibility of the PC and shall be paid by the Company, to the extent permitted by
applicable law, as agent of and on behalf of the PC, out of PC revenues.
8.1 Term. The parties intend that the initial term of this Agreement shall be 10 years.
Thereafter, this Agreement shall automatically renew for successive 5 year terms unless earlier terminated
as provided herein.
8.2 Termination. Either party terminate this Agreement by providing written notice to the
other party at least ninety (90) days prior to the expiration of the then-current term. Either party may
terminate this Agreement upon a material breach of any provision of this Agreement by the other party that
is not cured within sixty (60) days after the date of written notice specifying the nature of the alleged breach.
The Company may immediately terminate this Agreement in the event the PC or any PC Provider is no
longer licensed to practice medicine or is suspended or terminated from participation in any federal or state
health care program. The parties hereto may terminate this agreement at any time by mutual written consent.
9.1 In the performance of the duties, responsibilities and obligations required by this
Agreement, the Company shall at all times be performing as an independent contractor of the PC.
9.2 Except as otherwise expressly provided herein, no act, work, commission or omission by
the Company pursuant to the terms and conditions of this Agreement shall be construed to make or render
the Company an agent of the PC. This Agreement also does not intend to create any employment, joint
enterprise or joint venture relationship with the PC or PC Providers.
9.4 Nothing in this Agreement limits the right of the Company to provide any services or
products or enter into any contractual arrangements with any person or entity other than the PC, including
persons or entities in similar businesses or in competition with the PC.
9.5 The Company acknowledges and agrees that: the PC is a “covered entity” (as defined in
HIPAA) and the Company is a “business associate” (as defined under HIPAA) of the PC when the Company
provides services to the PC involving “protected health information” (as defined under HIPAA) pursuant to
this Agreement. The Company agrees to perform all services involving protected health information in
accordance with the Business Associate Agreement set forth on Exhibit B.
10.1 Each party shall maintain such policies of general liability and professional liability
insurance as are commercially available at limits of liability customarily maintained by similar enterprises.
Immediately upon becoming aware of any claim or possible claim against its insurance policies, the PC shall
notify the Company thereof and provide all pertinent details.
MISCELLANEOUS
11.1 Notices. All notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed given when delivered if delivered in person, or three (3) days after being mailed
by certified or registered mail, postage prepaid, return receipt requested, or one (1) day after being sent by
nationally recognized overnight courier. All such communications shall be sent to the following addresses,
or to such other addresses as any of the parties may designate by written notice in the manner aforesaid:
If to the Company:
[____________]
If to the PC:
[____________]
3601 South Congress Ave., Suite D-100
Austin, Texas 78704
Attn: Dr. Jonathan Hemmert
Either party may change its address specified for notices by designating a new address via notice in
accordance with this Section 11.1.
11.2 Assignment. The Company and the PC may freely assign this Agreement at any time and
for any reason without consent of the other party.
11.3 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the
parties and their respective successors, legal representatives and permitted assigns.
Each party shall select one arbitrator in accordance with the Rules. The two named arbitrators
shall then select a third arbitrator within fifteen (15) days. If the two named arbitrators have not agreed
on the third arbitrator within such fifteen (15)-day period, then such appointment shall be made by the
American Arbitration Association in accordance with the Rules, upon the written request of the Company
or the PC. The arbitration shall be held, if possible, within ninety (90) days of the appointment of the third
arbitrator, and the award shall be issued, if possible, within thirty (30) days after the close of the hearing.
Any decision or award of the arbitrator shall be based solely on the terms of this Agreement,
applicable law, and the facts presented by the parties. The parties agree that the arbitrator will have no
authority to award exemplary or punitive damages. The parties hereby waive any rights of application or
appeal to any court or tribunal of competent jurisdiction (including the courts of the United States and the
State of Texas) to the fullest extent permitted by law in connection with any question of law arising in the
course of the arbitration or with respect to any award made. Notwithstanding the foregoing, by agreeing to
arbitration, the parties do not intend to deprive any Texas court of its jurisdiction to issue a pre-arbitral
injunction (including an injunction to preserve the status quo during the pendency of the arbitration in
accordance with the normal standards for the imposition of such relief in such court), pre-arbitral attachment,
or other order in aid of arbitration proceedings and enforcement of any award. Without prejudice to such
provisional remedies as may be available under the jurisdiction of a court, the arbitrators shall have full
authority to grant provisional remedies and to direct the parties to request that any Texas court modify or
vacate any temporary or preliminary relief issued by such court, and to award damages for the failure of any
party to respect the arbitrators’ order to that effect.
In consideration of the anticipated advantages of arbitration, each party agrees that arbitration will
be the exclusive remedy to resolve disputes under this Agreement; provided, however, that the Company
may commence a legal action to enforce Article 4 of this Agreement.
Each party will, upon the written request of another party, provide the other with copies of specific
documents relevant to the issues raised by any arbitration claim or counterclaim. Any dispute regarding
discovery shall be determined by the arbitrator, whose determination shall be binding.
The arbitration award shall be final and binding upon the parties, and judgment upon any award
may be entered in a Texas court. Once a final judgment has been entered, the judgment may be entered and
enforced in any other court of competent jurisdiction. Each party hereby irrevocably consents to the personal
jurisdiction of the courts in the State of Texas, solely for purposes of confirmation of, entry of judgment
upon, and enforcement of the arbitral award. Each party further hereby irrevocably waives and covenants
not to assert any defenses in any such proceeding based on any alleged defects in jurisdiction, venue, or
convenience of the forum.
10
11.7 Attorney’s Fees. If either party commences any arbitration proceeding or legal action
arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys’ fees
and expenses, including fees and expenses on appeal.
11.8 Entire Agreement; Amendment. This Agreement, together with the exhibits hereto,
constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes
all prior agreements, arrangements, or understandings, written or oral, with respect to the same subject
matter. Neither party has made or given any representation, warranty or inducement to the other that is not
set forth herein. Subject to Section 7.1, no amendment to this Agreement shall be effective unless and until
made in writing and signed by an authorized officer or agent of each party.
11.9 Governing Law. Notwithstanding the place where this Agreement may be executed by
any of the parties hereto, the parties expressly agree that all terms and conditions of this Agreement shall be
governed by, construed and enforced in accordance with, the laws of the State of Texas, without regard to
the conflicts of laws principles thereof.
11.10 Third Party Beneficiaries. Except as described in this Section 11.11, nothing in this
Agreement is intended to confer any rights or remedies on any person or entity other than the parties to this
Agreement, their respective successors and assigns, and no other person or entity is intended to be nor
shall be a third-party beneficiary of this Agreement. Notwithstanding the previous sentence, the PC agrees
that the Company’s affiliates are express and intended third party beneficiaries of this Agreement.
11.11 Waiver of Breach. No provision of this Agreement shall be deemed waived unless
evidenced by a written document signed by an authorized officer or agent of the party to be charged with
the waiver. The waiver by either party of a breach of any provision of this Agreement shall not operate
as, or be construed to be, a waiver of any subsequent breach of the same or other provision of this
Agreement.
11.12 Construction. The parties have jointly participated in the negotiation and drafting of this
Agreement. In the event of any ambiguity or question of intent or interpretation, no presumption or burden
of proof shall arise favoring or disfavoring any party hereto. The section and other headings contained in
this Agreement are for convenience only and shall not affect in any way the meaning or interpretation of
this Agreement. References to numbered sections and articles denote the Sections and Articles of this
Agreement unless otherwise specified. Forms of the verb “include” are used in an illustrative rather than
a limiting sense. Whenever the context of this Agreement requires, the gender of all words shall include
the masculine, feminine, and neuter, and the number of all words shall include the singular and plural.
11.13 Counterparts. This Agreement and any amendments may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one
and the same instrument.
11.14 Additional Assurances. Except as may be otherwise expressly provided herein, the
provisions of this Agreement shall be self-operative and shall not require further documentation; provided,
however, that at the Company’s request, the PC shall execute, and shall cause its shareholder(s), members,
employees, nurse practitioners, physician assistants and independent contractor physicians to execute, any
additional instruments and perform any additional acts that the Company may deem necessary to effectuate
this Agreement.
11
11.16 Authority. Each signatory to this Agreement represents and warrants that he possesses all
necessary capacity and authority to act for, sign, and bind the respective entity on whose behalf he is signing.
12
COMPANY:
[___________________]
By: _________________________
Name:
Title:
PC:
[ ___________________]
By: _________________________
Name: Jonathan Hemmert
Title:
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EXHIBIT A
ADMINISTRATIVE SERVICES FEE
[RESERVED]
WHEREAS, the parties hereto have entered into an agreement whereby Business Associate shall
provide services for and on behalf of Covered Entity (“Agreement”), that involve the use or disclosure of
Protected Health Information (“PHI”), as defined below;
WHEREAS, in furtherance of the agreement between the parties under which Business Associate
shall provide services for and on behalf of Covered Entity, Covered Entity wishes to disclose PHI to
Business Associate pursuant to the terms of this Amendment;
WHEREAS, the parties desire to impose certain requirements regarding the use and disclosure of
PHI received by Business Associate in furtherance of services performed after the Effective Date, pursuant
to applicable requirements of the Health Insurance Portability and Accountability Act of 1996, Pub. L. No.
104-191 and its implementing regulations (collectively, “HIPAA”), as amended by the regulations
promulgated pursuant to the Health Information Technology for Economic and Clinical Health
(“HITECH”) Act (Division A, Title XIII and Division B, Title IV of Pub. L. No. 111–5) (which was part
of the American Recovery and Reinvestment Act of 2009);
WHEREAS, Business Associate, as recipient of PHI from Covered Entity, may be deemed a
Business Associate of Covered Entity under HIPAA.
NOW, THEREFORE, in consideration of the foregoing and the covenants herein contained, the
parties hereto agree as follows:
A. Definitions.
(i) “Breach” shall have the meaning given to such term at 45 C.F.R. § 164.402.
(ii) “Breach Notification Rule” shall mean the rule related to breach notification for
Unsecured Protected Health Information at 45 C.F.R. Parts 160 and 164.
(iii) “Electronic Protected Health Information” or “EPHI” shall have the same meaning
given to such term under the Security Rule, including, but not limited to, 45 C.F.R. § 160.103 limited to the
information created or received by Business Associate from or on behalf of Covered Entity.
(iv) “Privacy Rule” shall mean the Standards for Privacy of Individually Identifiable
Health Information, codified at 45 C.F.R. Part 160 and Part 164, Subparts A and E.
(v) “Protected Health Information” or “PHI” shall have the meaning given to such
phrase under the Privacy and Security Rules at 45 C.F.R. § 160.103, limited to the information created or
received by Business Associate from or on behalf of the Covered Entity.
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(vi) “Security Rule” shall mean the Security Standards for the Protection of Electronic
Protected Health Information, codified at 45 C.F.R. § 164, Subparts A and C.
(vii) “Unsecured PHI” shall have the meaning given to such phrase under the Breach
Notification Rule at 45 C.F.R. § 164.402.
(viii) Other terms used, but not otherwise defined, in this Amendment shall have the
same meaning as those terms in the Privacy, Security or Breach Notification Rules and the Agreement.
Where there is a conflict between meanings in either this Amendment together with the Privacy, Security
or Breach Notification Rules and the Agreement, then the meanings in this Amendment together with the
Privacy, Security or Breach Notification Rules shall govern.
B. Scope. Covered Entity may disclose PHI to Business Associate for the limited purpose of
carrying out Covered Entity’s contracted for services of Business Associate, and Business Associate’s use
and disclosure of such PHI, including by its employees and Subcontractors, shall be subject to the terms
and conditions contained in this Amendment. The use or disclosure of PHI by Business Associate
(including, without limitation, its employees and Subcontractors) is limited to the same extent that Covered
Entity’s use or disclosure is limited by HIPAA as a Covered Entity.
A. Permitted Uses and Disclosures of PHI. Except as provided in Subsections (B), (C), (D)
(E), and (F), below, Business Associate may only use or disclose PHI to perform functions, activities or
services for, or on behalf of Covered Entity, as necessary to provide services to Covered Entity.
B. Use for Management and Administration. Except as otherwise limited in this Amendment,
Business Associate may, consistent with 45 C.F.R. § 164.504(e)(4), use PHI if necessary (i) for the proper
management and administration of Business Associate, or (ii) to carry out the legal responsibilities of
Business Associate.
E. De-Identification. Business Associate may de-identify PHI received from Covered Entity,
consistent with the Privacy Rule’s standards for de-identification at 45 C.F.R. § 164.514.
F. Reporting Violations. Business Associate may use PHI to report violations of law to
appropriate Federal and State authorities, consistent with 45 C.F.R. § 164.502(j)(1).
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3. PRIVACY RULE, HITECH ACT OBLIGATIONS AND ACTIVITIES OF BUSINESS
ASSOCIATE
A. Limitations on Disclosure. Business Associate shall not use or disclose PHI other than as
permitted or required by this Amendment or as Required by Law. Business Associate shall not use or
disclose PHI in a manner that would violate the Privacy Rule if done by Covered Entity, unless expressly
permitted to do so pursuant to the Privacy Rule and this Amendment.
C. Mitigation. Business Associate shall mitigate, to the extent practicable, any harmful effect
that is known to Business Associate of a use or disclosure of PHI by Business Associate in violation of the
requirements of this Amendment.
D. Reporting of Improper Use or Disclosure. Business Associate shall promptly report any
use or disclosure of PHI not permitted by this Amendment after becoming aware of such use or disclosure.
F. Obligations on Behalf of Covered Entity. To the extent Business Associate carries out an
obligation for which Covered Entity is responsible under the Privacy Rule, Business Associate must comply
with the requirements of the Privacy Rule that apply to Covered Entity in the performance of such
obligation.
G. Access to PHI. At the request of the Covered Entity, Business Associate shall provide
Covered Entity with access to PHI in a Designated Record Set, to Covered Entity or, as directed by Covered
Entity, to an Individual or a third party designated by the Individual, in order for Covered Entity to meet
the requirements under the Privacy Rule at 45 C.F.R. § 164.524.
H. Amendment of PHI. Business Associate shall make any PHI contained in a Designated
Record Set available to Covered Entity (or an Individual as directed by Covered Entity) for purposes of
amendment per 45 C.F.R. § 164.526. If an Individual requests an amendment of PHI directly from Business
Associate or its Subcontractors, Business Associate shall notify Covered Entity in writing after receiving
such request. Any denial of amendment of PHI maintained by Business Associate or its Subcontractors
shall be the ultimate responsibility of Covered Entity.
J. Governmental Access to Records. Business Associate shall make its internal practices,
books and records, including policies and procedures and PHI, relating to the use and disclosure of PHI
received from, or created or received by Business Associate on behalf of the Covered Entity available to
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the Secretary and the Covered Entity for purposes of determining Covered Entity’s compliance with the
Privacy Rule as applicable.
K. Minimum Necessary. Business Associate shall only request, use and disclose the minimum
amount of PHI necessary to accomplish the purpose of the request, use or disclosure.
A. Compliance with the Security Rule. Business Associate agrees to comply with the Security
Rule with respect to EPHI and have in place reasonable and appropriate Administrative, Physical, and
Technical Safeguards to protect the Confidentiality, Integrity, and Availability of EPHI and to prevent the
use or disclosure of EPHI other than as provided for by this Amendment or as Required by Law.
B. Subcontractors. Business Associate shall ensure that any Subcontractor that creates,
receives, maintains, or transmits EPHI on behalf of Business Associate agrees to comply with the Security
Rule with respect to such EPHI.
B. Contents of Notification. Any notice referenced above in Section 5.A of this Amendment
will include, to the extent reasonably practicable or as Required by Law, the identification of each individual
whose Unsecured PHI has been, or is reasonably believed by Business Associate to have been accessed,
acquired, or disclosed during such Breach. Business Associate will also provide to Covered Entity other
available information that Covered Entity is Required by Law to include in its notification to the individual
whose PHI was compromised.
A. Term. The term of this Amendment shall commence as of the Effective Date, and shall
terminate when all of the PHI provided by Covered Entity to Business Associate, or created or received by
Business Associate on behalf of Covered Entity, is destroyed or returned to Covered Entity or, if it is
infeasible to return or destroy PHI, protections are extended to such information, in accordance with the
provisions of this Section 6.
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B. Termination for Cause. Upon Covered Entity’s knowledge of breach of a material term of
this Amendment by Business Associate, Covered Entity shall:
(i) Provide an opportunity for Business Associate to cure, and, if Business Associate
does not cure the breach within 45 days, Covered Entity may immediately terminate this Amendment and
the Agreement;
(ii) Immediately terminate this Amendment and the Agreement if Covered Entity has
reasonably determined that (i) Business Associate has breached a material term of this Amendment, and
(ii) cure is not possible; or
(iii) Immediately terminate this Amendment if the Agreement has been terminated.
C. Termination by Business Associate. Business Associate shall have the right to terminate
the Amendment under the same terms and conditions as set forth above with respect to Covered Entity’s
right to terminate.
D. Effect of Termination.
(i) Except as provided below in Section 6.D(ii) of this Amendment, upon termination
of this Amendment, for any reason, Business Associate shall return or destroy all PHI received from
Covered Entity, or created or received by Business Associate on behalf of Covered Entity. This provision
shall apply to PHI that is in the possession of Subcontractors of Business Associate. Business Associate
and its Subcontractors shall retain no copies of the PHI.
(ii) Where Business Associate asserts that returning or destroying the PHI is infeasible
or impracticable, Business Associate shall provide to Covered Entity notification of the conditions that
make return or destruction infeasible. Upon Business Associate’s good faith representations that return or
destruction of PHI is infeasible or impracticable, Business Associate shall extend the protections of this
Amendment to such PHI and limit further uses and disclosures of such PHI to those purposes that make the
return or destruction infeasible, for so long as Business Associate maintains such PHI.
A. Notice of Privacy Practices. To the extent that Covered Entity has agreed to further
limitations on uses and disclosures of PHI, Covered Entity shall notify Business Associate of such
additional restrictions, including any limitation(s) in Covered Entity’s notice of privacy practices that are
produced in accordance with 45 C.F.R. § 164.520 (as well as any changes to that notice), to the extent that
such limitation(s) may affect Business Associate’s use or disclosure of PHI.
B. Individual Authorization. Covered Entity shall promptly provide Business Associate with
any changes in, or revocation of, permission by an Individual to use or disclose PHI, to the extent that such
changes affect Business Associate’s use or disclosure of PHI.
C. Restrictions. Covered Entity shall promptly notify Business Associate of any restriction to
the use or disclosure of PHI that Covered Entity has agreed to in accordance with 45 C.F.R. § 164.522, to
the extent that such restriction may affect Business Associate’s use or disclosure of PHI.
D. Minimum Necessary. Covered Entity shall provide Business Associate only the Minimum
Necessary amount of data for Business Associate to accomplish the intended purpose of the disclosure.
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8. MISCELLANEOUS
B. Survival. The respective rights and obligations of Business Associate under Section 6.D of
this Amendment shall survive the termination of the Amendment.
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IN WITNESS WHEREOF, the parties hereto have duly executed this Business Associate Privacy
Amendment as of the Effective Date.
BUSINESS ASSOCIATE:
[INSERT NAME]
By: ______________________________________
Name:
Date: ___________________________________
COVERED ENTITY:
[INSERT NAME]
By: ______________________________________
Name: __________________________________
Date: ___________________________________
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STATE EFFECTIVE DATES
The following states require that the Franchise Disclosure Document be registered or filed
with the state, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland,
Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia,
Washington and Wisconsin.
Hawaii Pending
Washington Pending
Other states may require registration, filing, or exemption of a franchise under other laws,
such as those that regulate the offer and sale of business opportunities or seller-assisted
marketing plans.
This Disclosure Document summarizes certain provisions of the Franchise Agreement and other
information in plain language. Read this Disclosure Document and all agreements carefully.
If Restore Franchising, LLC offers you a franchise, it must provide this Disclosure Document to you
fourteen (14) calendar-days before you sign a binding agreement with, or make a payment to, the
franchisor or an affiliate in connection with the proposed franchise sale.
New York and Rhode Island require that we give you this disclosure document at the earlier of the
first personal meeting or 10 business days before the execution of the franchise or other agreement or
the payment of any consideration that relates to the franchise relationship.
If Restore Franchising, LLC does not deliver this Disclosure Document on time or if it contains a
false or misleading statement, or a material omission, a violation of federal law and state law may
have occurred and should be reported to the Federal Trade Commission, Washington, DC 20580 and
your state agency in Exhibit A.
The name, principal business address and telephone number of the franchise sellers offering the
franchise are:
James “JJ” Durant 3420 A 14th Avenue W, Seattle, WA 98118 (206) 227-2930
Cody Wise 3601 S. Congress Avenue, Suite C200, Austin, (281) 380-3291
TX 78704
This Disclosure Document summarizes certain provisions of the Franchise Agreement and other
information in plain language. Read this Disclosure Document and all agreements carefully.
If Restore Franchising, LLC offers you a franchise, it must provide this Disclosure Document to you
fourteen (14) calendar-days before you sign a binding agreement with, or make a payment to, the
franchisor or an affiliate in connection with the proposed franchise sale.
New York and Rhode Island require that we give you this disclosure document at the earlier of the
first personal meeting or 10 business days before the execution of the franchise or other agreement or
the payment of any consideration that relates to the franchise relationship.
If Restore Franchising, LLC does not deliver this Disclosure Document on time or if it contains a
false or misleading statement, or a material omission, a violation of federal law and state law may
have occurred and should be reported to the Federal Trade Commission, Washington, DC 20580 and
your state agency in Exhibit A.
The name, principal business address and telephone number of the franchise sellers offering the
franchise are:
James “JJ” Durant 3420 A 14th Avenue W, Seattle, WA 98118 (206) 227-2930
Cody Wise 3601 S. Congress Avenue, Suite C200, Austin, (281) 380-3291
TX 78704