SMOOTHIE KING

Smoothie King

Smoothie King

Introduction To simplify the language in this offering o insular "disclosure document ^Smoothie King-" or "we" means Smoothie King Franchises, Inc., the franchisor. "^You-" means the person(s) who signs the Franchise Agreement, including a corporation, partnership, limited liability company or other legal business entity (Keen, 1998). You must enter into a Franchise Agreement for each store purchased. If you are a business entity, certain provisions of Smoothie King''s Franchise Agreement will also apply to some of your owners. This offering oiroulnrdisclosure document will indicate when your owners are also covered by a particular provision.

Discussion

The Smoothie King concept and primary product was originated in 1973 by Stephen C. Kuhnau, Sr. Smoothie King is a Louisiana corporation incorporated on May 5, 1987. The corporation was originally incorporated under the name Original California Smoothie Bar Franchises, Inc. On April 6, 1989, the name of the corporation was changed to Smoothie King Home of the Muscle Punch Franchises, Inc. On January 2, 1997, the name of the Corporation was changed to Smoothie King Franchises, Inc. Smoothie King^s principal place of business and current business address is 121 Park Place , Covington, Louisiana, 70433. Effective as of January 1,1997, Smoothie King became a subsidiary of Smoothie King Systems, Inc. ("SKSI"). Except as noted below, Smoothie King has no predecessors or affiliates. A principal stockholder in SKSI owns a majority intorcst in anSKSI's affiliate-named (Laudon et al, 2001).

Smoothie King has been offering franchises since May 1988. Smoothie King owned and operated Smoothie King Nutritional Lifestyle Centers from March 1, 1994 until January 1, 1997. Effective January 1, 1997, Smoothie King transferred all of the assets of its Smoothie King Businesses to Smoothie King Co., Inc. ("SKCI"), which is also a subsidiary of SKSI. Smoothie King does not currently operate any Smoothie King Businesses. SKCI currently owns and operates a Smoothie King Business under a non-exclusive royalty-free license from Smoothie King (Haag et al, 2001). SKCI may own and operate more Smoothie King Businesses in the future. Stephen C. Kuhnau, Sr., co-founder of Smoothie King, has owned and operated Eclipse Enterprises, Inc. d/b/a Town & Country Health Foods/Smoothie King since 1973, which also does business under the service mark -^SMOOTHIE KING.-^ Mr. Kuhnau is the sole shareholder and owner of Eclipse Enterprises, Inc. d/b/a Town & Country Health Foods/Smoothie King and continues to operate Eclipse Enterprises, Inc. d/b/a Town & Country Health Foods/Smoothie ...