Requirements

To be Accepted by Lifestyle Improvement Centers:
(THE NATIONAL FRANCHISE CORPORATION)

You must fill out an application, be of good moral character (not convicted of a felony).

Show that you have the financial capital and wherewithal to own and run a business of this type. (If you are starting a Center from Scratch, Franchisor wants you to have between $150,000-$300,000 in cash or equivalent to start, depending on your expertise and the area you are developing in. If you are purchasing an existing center, it is recommended that you have 3 months capital backup to sustain your taking over as new owner.

You will then receive a U.F.O.C. (Uniform Franchise Offering Circular), read and accept the terms.

You will then execute a new Standard Franchise Agreement between yourself and Positive Changes Hypnosis Centers. This document prevails and gives you your rights and restrictions, protected territory, mandatory requirements (i.e.: reporting,) your royalty fees, corporate support, continual training, mandatory advertising, etc.

MODIFIED FRANCHISE AGREEMENT:

In areas of smaller or sparse population, LIC will consider a Modified Franchise Agreement whereas the only change is in the minimum monthly royalty fees ($500 per month vs. $1,000).
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On Sales of Existing Centers in the North Bay owned by Ronald Cupp:

1. You will execute an 'Asset Purchase Agreement' for transferring title. You will need to form your own business entity for the transfer of the assets. You will be required to personally sign as individual guarantor in addition to your new entity

2. You will execute a new Franchise Agreement with the National Corporate Franchise. You must fill out an application and receive a UFOC outlining the qualifications and terms of the Franchise Agreement. You will have a minimum CAPITAL REQUIREMENT of $150,000-$300,000 prior to the purchase, depending on your expertise and the area of operation. After purchase, it is recommended that you have 3 months expense money in reserve.

3. In your Franchise Agreement you will have this protected territory and full support and training of the national Franchise. You will be required to continually increase and upgrade your training offered by the National Franchise.

4. You will be required to pay the National Franchise 5% of program revenue as royalties. You will also be required to pay 1% advertising royalty. There is a minimum monthly fee of $1,000 if your sales are not high enough.

5. You will have to assume all client contracts and liabilities of the existing center (Leases, phones, DSL, advertising contracts, etc) and indemnify seller for all actions after the sale.

6. You will be required to pay for the deposits (i.e.: rental lease) to relieve seller.

7. You will be required to travel to Virginia for 1 weeks initial franchise training.