DOB: Regal Nails LLC Stipulation

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IN THE MATTER OF:

REGAL NAILS, LLC


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STIPULATION AND AGREEMENT

No. ST-06-843-B

 

WHEREAS the Banking Commissioner (the “Commissioner”) is charged with the administration of Chapter 672c of the Connecticut General Statutes, the Connecticut Business Opportunity Investment Act (the "Act");

WHEREAS Regal Nails, LLC, now or formerly of 10146 Florida Boulevard, Baton Rouge, Louisiana and 11488 South Choctaw Drive, Baton Rouge, Louisiana, was a franchisor of nail salons located in Wal-Mart Stores;

WHEREAS the Commissioner, acting pursuant to Section 36b-71 of the Act and through the Securities and Business Investments Division (the “Division”) of the Department of Banking, has conducted a review of the activities of Regal Nails, LLC to determine if it has violated or is about to violate any provision of the Act or any regulation or order under the Act;

WHEREAS as a result of such review, the Commissioner has ascertained that 1) on April 10, 2001, Regal Nails, LLC registered its trademark “Regal Nails” (the “Mark”) (Registration No. 2,443,591) with the United States Patent and Trademark Office, and that such Mark remains federally registered as of the date of this Stipulation and Agreement; 2) due to the registered status of the Mark, Regal Nails, LLC may have been able to claim an exclusion from the definition of “business opportunity” from April 10, 2001 forward pursuant to Section 36b-61(6)(D) of the Act; and 3) prior to April 10, 2001, Regal Nails, LLC made one or more unregistered sales of business opportunities in contravention of Sections 36b-67(1), 36b-62(a) and 36b-65(a) of the Act and failed to provide at least one purchaser-investor with a disclosure statement and cover sheet that complied with Section 36b-63 of the Act;

WHEREAS current counsel to Regal Nails, LLC has represented to the Commissioner in writing that Regal Nails, LLC has ceased offering and selling franchises, and that future franchises would be sold through Regal Nails, LLC’s successor Regal Nails, Salon & Spa, LLC;

WHEREAS Regal Nails, Salon & Spa, LLC filed for registration under the Act on September 15, 2006;

WHEREAS Section 4-177(c) of Chapter 54 of the Connecticut General Statutes permits the resolution of a contested case by stipulation or agreed settlement;

WHEREAS Regal Nails, LLC desires to settle the matters described herein and, without admitting or denying the allegations herein, voluntarily enters into this Stipulation and Agreement, acknowledging that this Stipulation and Agreement is in lieu of any court action or administrative proceeding against Regal Nails, LLC, its members, officers, employees, agents or representatives adjudicating any issue of fact or law on the specific matters described herein;

WHEREAS Regal Nails, LLC, through its execution of this Stipulation and Agreement, voluntarily waives any rights it may have to seek judicial review or otherwise challenge or contest the terms and conditions of this Stipulation and Agreement;

NOW THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS:

1. No later than the date this Stipulation and Agreement is executed by the Commissioner, Regal Nails, LLC shall remit to the department via check payable to “Treasurer, State of Connecticut” the amount of three thousand dollars ($3,000) as an administrative fine;
2.
Regal Nails, LLC, its members, officers, agents, employees, representatives and successors in interest shall refrain from engaging in conduct constituting or which would constitute a violation of the Act or any regulation or order under the Act, either directly or indirectly, including, without limitation, offering or selling business opportunities absent registration or an applicable exclusion or exemption under the Act;
3. Execution of this Stipulation and Agreement by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Regal Nails, LLC based upon a violation of this Stipulation and Agreement or the basis for its entry if the Commissioner determines that compliance is not being observed with the terms hereof or if any representation by or on behalf of Regal Nails, LLC and reflected herein is subsequently discovered to be untrue; and
4. This Stipulation and Agreement shall become binding when executed by the respective parties hereto.


IN WITNESS WHEREOF, the undersigned have executed this Stipulation and Agreement on the dates indicated.

 

               ________/s/_________
     Howard F. Pitkin
            Banking Commissioner

Dated at Hartford, Connecticut                 
this 28th day of November 2006.                         
 

I, Quy T. Ton, state on behalf of Regal Nails, LLC, that I have read the foregoing Stipulation and Agreement; that I know and fully understand its contents; that I am authorized to execute this Stipulation and Agreement on behalf of Regal Nails, LLC and that Regal Nails, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.
                                                                 

       Regal Nails, LLC

By
       ________/s/_______________
       Quy T. Ton
       Manager and CEO


On this 16th day of Nov. 2006, personally appeared Quy T. Ton, signer of the foregoing Stipulation and Agreement, who, being duly sworn, did acknowledge to me that he was authorized to execute the same on behalf of Regal Nails, LLC, a limited liability company, and acknowledged the same to be his free act and deed, before me.



_______________/s/_______________________
Notary Public
My Commission Expires:  With Life




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