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Business Description

Big Frog Custom T-Shirts, Inc. is a Florida corporation formed on June 19, 2008 (“BF Custom”). Our principal business address is 533 Main Street, Dunedin, Florida 34698. We operate under our corporate name and BF Franchise Group. We do not conduct business under any other name. We offer and support franchises for Big Frog Businesses and have done so since October 2008. We have not offered and do not offer franchises in any other line of business and do not own or operate any Big Frog Businesses. We do not have any parent entities, affiliates or predecessors. In 2018, BF Custom intends to offer franchises for Big Frog Businesses in Canada in accordance with Canadian law.

Prior Experience

e. We offer and support franchises for Big Frog Businesses and have done so since October 2008. We have not offered and do not offer franchises in any other line of business and do not own or operate any Big Frog Businesses. We do not have any parent entities, affiliates or predecessors.

Business Offered

We offer franchises for Big Frog Businesses ( “Big Frog Franchises” or “Franchises”) using our trade names, trademarks, service marks, associated logos and symbols (“Marks”) business system, procedures and trade secrets (collectively the “System”). You will service retail and business customers by providing custom printed t-shirts, apparel and various gift items from an approved retail location (“Store”). You must sign our franchise agreement attached to this Franchise Disclosure Document as Exhibit A (“Franchise Agreement”). You may operate one (1) Big Frog Business for each Franchise Agreement you sign.

Initial Fees

Initial Franchise Fee You must pay us an initial franchise fee (“Initial Franchise Fee”) of $13,500 for a Big Frog Express franchise (“Express Franchise”) and $39,500 for a standard Big Frog franchise (“Standard Franchise”) when you sign the Franchise Agreement. If you purchase additional Standard Franchises, we will discount your Initial Franchise Fee to $22,650 for each additional Franchise you purchase. The Initial Franchise Fee is deemed fully earned by us once paid and is non-refundable. United States military veterans who were honorably discharged, and their spouses, will receive a 20% discount off the Initial Franchisee Fee for your first Standard Franchise under the IFA's VetFran initiative. We participate in the IFA's DiversityFran program, which is a franchisee education and recruitment program designed to increase diversity in franchise ownership. We offer a 5% discount on the Initial Franchise Fee for your first Standard Franchise if your company is majority owned (51% or above) by a woman or a qualifying ethnic minority, including Black/African-Americans, Asian-Americans, Latino/Hispanic-Americans and Native Americans. Franchise Equipment Package We require all franchisees to purchase a “Franchise Equipment Package” from us. The Franchise Equipment Package will be delivered to your Store before your Big Frog Business opens to the public. The Franchise Equipment Package includes a printer, printer supplies, and heat presses. We estimate the cost of the total Franchise Equipment Package to range from $30,000 to $38,000 depending on the decorating options offered in your Store. Franchise Equipment Package payments are not refundable under any circumstances. Franchisee Referral Fee We offer a Referral Fee to existing Big Frog Franchisees who refer a prospective franchisee to us, and that prospective franchisee enters a franchise agreement. If you're awarded a Franchise as a result of a referral by an existing Big Frog Franchisee, that Franchisee may be entitled to a referral fee of $5,000. This fee is paid by the Franchisor to the referring Franchisee.

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 Franchise 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. This Item 19 presents information about the Gross Revenue and Key Performance Indicators with respect to all 92 Big Frog Stores open and operating as of December 31, 2018. During the period from January 1, 2018 through December 31, 2018, we did not have any Express Stores open, so we do not provide any financial performance information for Express Stores in this Item 19. Written substantiation of all financial performance representations set forth below will be made available to all prospective franchisees upon reasonable request. All of the information contained in this Item 19 was obtained through Big Frog Franchise Group's Point of Sale (“POS”) operating system and monthly Income Statements submitted to us by Big Frog Franchisees for fiscal year ended December 31, 2018.