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Business Description

We are a Tennessee corporation formed on March 15, 2010. Our principal business address is 3609 Outdoor Sportsman's Place, Ste. 5, and Kodak, TN 37764. We operate under our business name and the trademarks described in Item 13 (the “Marks” or “Proprietary Marks”) and no other name we do not own or operate any other business of the type being franchised. We are in the business of owning and franchising Beef Jerky Outlet Stores. We have offered franchises since August 2010.

Prior Experience

Our first affiliate is Paul Lyons Enterprises, Inc. (“PLE”), a Michigan corporation located at 1633 Kirkton Drive, Troy, Michigan 48083. This entity is principally owned by Paul Lyons, our President. PLE does business under the trade name “Up North Jerky.” Using the “Up North Jerky” trade name, PLE is an approved supplier and distributor to our franchisees for some of our proprietary Beef Jerky Outlet specialty food products. Prior to establishment of the franchise being offered to you. Up North Jerky sold beef jerky products to retailers throughout the United States. However, PLE no longer sells beef jerky products to any new retailer other than to our franchisees and through our Franchise System. PLE does not own or operate a business of the type being franchised. Our second affiliate is Beef Jerky Outlet of TN, Inc. (“BJO-TN”), a Tennessee corporation located at our address. BJO-TN owns and operates five retail store locations of the type being franchised in Kodak, Tennessee (open since October 2006); one in Gatlinburg, Tennessee (open since November 2008); one in Sevierville, Tennessee (open since 2009); and one in Pigeon Forge, Tennessee (open since 2013). A fifth location was established in late 2014 in Pigeon Forge, Tennessee that is owned in part with 2 Brothers, LLC. Our third affiliate is Prestige Oil Inc. (“Prestige Oil”), a Michigan corporation headquartered at 109 Cabela Blvd. E., Dundee, Michigan 48131. Prestige Oil owns and operates one retail store location of the type being franchised since December 2007. Our fourth affiliate is BJOH, LLC. (“BJO Holdings, LLC”), a Tennessee limited Liability Company which was established as a holding company. This company was created on July 29, 2015. None of our affiliates has ever offered franchises in this or any other line of business

Business Offered

We offer the right to establish and operate a Store under the terms of our single unit Franchise Agreement at a location that we have approved. You may be an individual, corporation, partnership or other form of business enterprise. Under the Franchise Agreement, certain persons are characterized as a franchisee's principals (referred to in this Disclosure Document as “your Principals”). The Franchise Agreement is signed by us, by you, and by those of your Principals whom we designate as controlling Principals (“Controlling Principals”). In most instances, we will designate your equity owners, executive officers, and certain affiliated entities as Controlling Principals. By signing the Franchise Agreement, your Controlling Principals agree to be individually bound by certain obligations in the Franchise Agreement, including covenants concerning confidentiality and non-competition, and to personally guarantee your performance under the Franchise Agreement (see Item 15). Depending on the type of business activities in which you or your Principals may be involved, we may require you or your Principals to sign additional confidentiality and non-competition agreements. You must also have a “Designated Manager,” who will be the main individual responsible for operating your Store. We recommend that you act as the Designated Manager.

Initial Fees

Franchise Agreement: You must pay us an initial franchise fee of $44,900, payable in a lump sum when you sign the Franchise Agreement, for the right to establish a single Store. If you are a qualified United States veteran, we will reduce the initial franchise fee (for your first Store only) by 50%. The initial franchise fee is therefore not imposed uniformly on all franchisees. In 2018, we discounted the initial franchise fee by 50% for one (1) franchisee that was a qualified United States veteran. The initial franchise fee is not refundable under any circumstances. Pre-Opening Purchases/Charges: You must purchase from our affiliate, PLE, a portion of your initial inventory of specialty food products, including jerky products, sausages, smoked meats and other specialty food items. We estimate that the cost of these items will be between $10,000 to $15,000. There are no refunds. You must also pay us a Technology System Set-Up Fee of $950 at the time of signing the Franchise Agreement. It is not refundable under any circumstances at the time of signing the Franchise Agreement you must also pay us the sum of $5,000 for your Grand Opening. We will hold these funds for you and remit payment to marketing vendors when they are due. If you do not open the franchise, we will refund any unused portion of the Grand Opening fee to you. Multi-Unit Operator Agreement. If you sign a Multi-Unit Operator Agreement with us, the initial franchise fees you pay under the individual Franchise Agreements will be $44,900 for the first Store and $29,900 for each additional Store you develop. When you sign the Multi-Unit Operator Agreement, you must pay us a development fee equal to 100% of the initial franchise fee for the first Store to be developed ($44,900) and sign a Franchise Agreement for this first Store, plus a deposit equal to 50% of the reduced initial franchise fee ($14,950) for each additional Store to be developed under the Multi-Unit Operator Agreement. For your first Store, we will apply a portion of the development fee to pay the initial franchise fee in full. For each Store developed after the first one, we will apply a pro rata portion of the development fee towards the initial franchise fee due under the then current Franchise Agreement and the balance of the initial franchise fee due, or $14,950, is payable when you sign the Franchise Agreement for the Store. We reserve the right to adjust this formula depending upon the size of the area and the financial ability of the Multi-Unit Operator. The development fee must be paid in a lump sum and is non-refundable. Under a Multi-Unit Operator Agreement, we expect that you will develop a minimum of two (2) Stores. For example, for the minimum two (2) Stores, your development fee is calculated as: $44,900 -I- (1 X $14,950) = $59,850. There are no other payments to or purchases from us or any affiliate that you must make before your Store opens for business.

Financing

We do not offer direct or indirect financing. We do not guarantee your note, lease, or other 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. The following represents in Table 1, the average gross sales, average gross product cost, average gross product profit and average gross product margin achieved by non-franchised Stores owned and operated by our Affiliates for at least one (1) year. In Table 2, we have listed only the average gross product sales achieved by franchised Stores owned and operated by our franchisees for at least one year. In Table 3, we provide additional breakdown detail for the Affiliated Stores in the form of three (3) tiers. This provides a high, mid and low perspective on average gross product sales results of the Affiliate stores. Other than with respect to the length of time that an Affiliate Store has been in operation, there are no material differences in the operation of an Affiliated Store as compared to a Franchised Store. In Table 4, we provide additional breakdown detail for the franchised Stores operated by our franchisees for at least one year. This provides a high, mid and low perspective on gross product sales results of the Franchised Stores. Your sales and gross product margins may vary depending on a number of factors, including the location of your Store, pricing strategies and how you operate your business. We define “Gross Margin” in Table 1 to mean total sales less cost of goods. Assumptions: These outlets have earned these amounts. Your individual results may differ. There is no assurance that you'll earn as much. The figures used in this statement are average gross sales, average gross cost, average gross profit and average gross margin only. We do not supply or provide cost information, however, the cost of goods to Affiliate Stores and costs of goods to our franchisees is the same. Our franchisees will not incur a greater cost of goods than our Affiliate Stores. There are no product cost differences between Affiliate Stores and our franchisees. The Affiliated Stores do not pay royalties but do pay advertising fees. There are no other unique costs to franchisees that are not borne by Affiliated Stores. Net income will vary from Store to Store depending upon factors such as rental or real estate costs, costs of goods sold, labor costs and other costs relating to the operation of the Store. The sales revenues shown in this chart reflect the historic experience of our Affiliated Stores, and those of our franchisees; they should not be considered as the actual or potential sales that you will realize. Results for a new franchisee may differ from the results stated in this financial performance representation. We offered substantially the same services to the Stores described in this Statement. These Stores offered substantially the same products and services to the public as you will. The Stores report gross sales information to us based upon a uniform reporting system. We strongly urge you to consult with your financial advisor or personal accountant concerning the financial analysis that you should make in determining whether or not to purchase a Beef Jerky Outlet franchise. The information presented above has not been audited. Written substantiation for the financial performance representation of Affiliated Stores will be made available to the prospective franchisee upon reasonable request Other than the preceding financial performance representation, 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 Scott Parker at 3609 Outdoor Sportsman's Place, Ste. 5, Kodak, TN 37764 and (865) 934-8000; the Federal Trade Commission, and the appropriate state regulatory agencies.