$5

Business Description

We conduct business under the name 986 PHARMACY® and 986 SPECIALTY PHARMACY. Our principal business address is 2035 S. Myrtle Ave., Monrovia, CA 91016. We are a California corporation that was incorporated on July 17, 2014. We do not do business under any other name. Four of our officers, Khanh-Long Thai, Brian T. Garner, Ammie Hwang, and Henry Chang have been operating retail pharmacy businesses since 2006, and have provided business coaching to several independent pharmacies in Southern California. We have no parent company or predecessor. Our affiliate companies are listed: 986 Pharmacy 8001, Inc. dba986 Pharmacy located at2143 Foothill Blvd., La Verne, CA 91750, is a retail pharmacy established April 9, 2015. T & G Healthcare, Inc., operates two retail pharmacies, under the name El Monte Pharmacy located at 3948 N Peck Rd. Unit A1-A2, El Monte, California 91732 since 2006, and one under the name Cal Med Pharmacy, located at 24031 Marguerite Parkway Suite A. Mission Viejo, CA 92692, since 2016. Partner Healthcare Inc. located at 2035 S. Myrtle Avenue, Monrovia, California 91016, provides medicine and other equipment to surrounding retirement and nursing homes, since 2008. CT Pharmacy, Inc., doing business as Columbus Pharmacy, 861 North Broadway, Los Angeles, CA 90012, has provided retail pharmacy services since 2007. E.K. Pharmacy Solutions, Inc., doing business as Kyoto Pharmacy, 420 E. 3'''^ Street, Los Angeles, CA 90013, has provided retail pharmacy services since 2011. In addition, one of our officers, Brian Garner owns two pharmacies operating under the names and locations: 1) Hendricks Pharmacy, located at 137 Harvard Ave, North, Claremont, CA 91711, which has provided retail pharmacy services since 2009; 2) Royalty Pharmacy, located at 1902 Royalty Dr. #110, Pomona, CA 91767. In addition the name and trademark “986 PHARMACY” has been licensed to the following retail pharmacy locations owned by one of more of our family members or close friends. The locations are: 9612 Las Tunas Dr. Temple City, California 91780; 8054 E. Garvey Ave. Suite 101 Rosemead, California 91770; 1809 Verdugo Blvd. Ste. 110, Glendale, CA 91208; and 701 S. Atlantic Blvd. #168 Monterey Park, California 91754. In addition the name and trademark “986 SPECIALTY PHARMACY” has been licensed to the following specialty pharmacy locations: The locations are; 1647 N. Hacienda Blvd., La Puente, CA 91744 and 241 N. Buffalo Dr., Ste. 150, Las Vegas, NV, 89145. We have offered franchises since the date of this disclosure document. We have not offered franchises in other lines of business. We do not have any other business activities. None of our affiliates has offered franchises in this or any other line of business.

Prior Experience

We are a California corporation that was incorporated on July 17, 2014. We do not do business under any other name. Four of our officers, Khanh-Long Thai, Brian T. Garner, Ammie Hwang, and Henry Chang have been operating retail pharmacy businesses since 2006, and have provided business coaching to several independent pharmacies in Southern California. We have no parent company or predecessor.

Business Offered

The franchised offered is for you to establish, own and operate a retail pharmacy location under our brand, logos and trademarks, and name, “986 PHARMACY” and “986 SPECIALTY PHARMACY” any other names or logos we may adopt in the future, (“Marks”). Your retail pharmacy (“Pharmacy”) will sell prescriptions, over the counter medicines, beverages and candy to the general public. The customers are the community within a fifteen (15) mile radius of the Pharmacy location, with a focus on the elderly community because of the increased amount of medications in that age group. Your competitors include local and national chains of retail pharmacies, independent retail pharmacies, convenience stores, internet pharmacies, drug stores, and other stores that may offer prescription drugs.

Initial Fees

You will pay us a $50,000 lump sum franchise fee upon signing the Franchise Agreement. This fee is not refundable under any circumstances. The shareholders of 986 Degrees Corporation and Franchisees whom are opening additional franchise locations will be given a Franchisee discount of thirty percent (30%). The initial fees will be a $35,000 lump sum franchise fee due upon signing the Franchise Agreement

Financing

We do not offer direct or indirect financing. We do not guarantee your lease or other obligations to third parties.

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 our management by contacting Bryan Gamer, 1000 Wilshire Boulevard, Suite 2150, Los Angeles, California, 90017 PH (213) 908-1103; the Federal Trade Commission, and the appropriate state regulatory agencies.