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Business Description

CAI is an Oklahoma corporation formed on October 15, 2001. We operate under our corporate name, Cookie Advantage, Inc., and the name “Cookie Advantage,” and no other name. Our principal business address is 7 North Armstrong, Bixby, Oklahoma 74008. We began offering franchises for Cookie Advantage Businesses in January 2002. We have not and do not operate any franchises like those described in this Franchise Disclosure Document, or in any other line of business. We do not conduct any other business other than franchising Cookie Advantage Businesses. We have no predecessors or parent entities. We have one affiliate, KDKC, Inc. (our “Affiliate”), an Oklahoma corporation, that has operated a business similar to the type being offered under this Franchise Disclosure Document since 1998 in Bixby, Oklahoma. The principal business address for our Affiliate is 7 North Armstrong, Bixby, Oklahoma 74008. Our Affiliate does not and has not offered franchises in this or any line of business. This Affiliate is a provider of packaging supplies to franchisees. Our agent for service of process in Oklahoma is Duane Carns, 7 North Armstrong, and Bixby, Oklahoma 74008. Our agents for service of process for other states are disclosed in Exhibit A. 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 franchise laws. There may be states in addition to those listed above in which we have appointed an agent for service of process. There may also be additional agents appointed in some of the states listed.

Prior Experience

We began offering franchises for Cookie Advantage Businesses in January 2002. We have not and do not operate any franchises like those described in this Franchise Disclosure Document, or in any other line of business. We do not conduct any other business other than franchising Cookie Advantage Businesses. We have no predecessors or parent entities.

Business Offered

We offer franchises (“Cookie Advantage Franchise(s)” or “Franchise(s)”) for the use of our “COOKIE ADVANTAGE” trademarks, trade names, service marks, and logos (“Marks”) for the operation of Cookie Advantage Businesses. Cookie Advantage Businesses are operated under our proprietary Cookie Advantage system (“System”). The System may be changed or modified by us throughout your ownership of the Franchise. Cookie Advantage Businesses provide marketing solutions to businesses to implement a customer follow-up and appreciation program utilizing the delivery of cookies by mail as thank you gifts, corporate gifts, or incentives for return or new business. Franchisees sell the Cookie Advantage program to business customers, then prepare, bake, and package the cookies for mailing and pickup by the U.S. Postal Service as specified by the business customer, utilizing their customized messages or logos. You will operate your Cookie Advantage Business from an approved retail location that will meet approval of the local health department (the “Bakery”) in a specified geographic area. You must sign our standard franchise agreement attached to this Franchise Disclosure Document as Exhibit C (“Franchise Agreement”). You may operate one Cookie Advantage Business for each Franchise Agreement you sign.

Initial Fees

You must pay us an initial franchise fee (“Initial Franchise Fee”) of $29,500 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we provide to allow you to open your Cookie Advantage Business and also offsets some of our franchisee recruitment expenses. The Initial Franchise Fee is uniform, due in full at the time you sign the Franchise Agreement, and is deemed fully earned by us once paid and is non-refundable. During our last fiscal year, ended December 31, 2018, we collected Initial Franchise Fees of $29,500. You must purchase an initial inventory of product packaging (“Packaging”) for $760 prior to opening your Cookie Advantage Business. The merchandise must be purchased from our Affiliate. The Packaging costs includes shipping and is non-refundable. Some states have imposed a fee deferral. Please refer to the State Addendum in Exhibit G to the Franchise Disclosure Document.

Financing

We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation.

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-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. We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. 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 Duane Carns at Cookie Advantage, 7 North Armstrong, Bixby, Oklahoma 74008; Phone (918) 369-4777; Fax (918) 369-5200; Toll Free (888) 626-6543, the Federal Trade Commission, and the appropriate state regulatory agencies.