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Business Description

Astral was incorporated in the Commonwealth of Pennsylvania on September 26, 1977 under the name Aloette Cosmetics, Inc. On November 8, 2005, our name was changed from Aloette Cosmetics, Inc. to our current name, Astral Health & Beauty, Inc. In 2016 we moved our headquarters from 3715 Northside Parkway NW, Building 200, Suite 200, Atlanta, Georgia 30327 to 6120 Powers Ferry Road NW, The Dupree Building, Suite 300, Atlanta, Georgia 30339. We do business under our corporate name and the names Aloette®, CosMedix®, and purminerals®. This franchise offering relates only to our Aloette® brand. Our agents for service of process are listed in Exhibit D to this Disclosure Document. Our parent company, Astral Brands, Inc. (“Astral Brands”), is a Delaware corporation that shares our principal place of business at 6120 Powers Ferry Road NW, The Dupree Building, Suite 300, Atlanta, Georgia 30339. We do not have any predecessors.

Prior Experience

Our affiliate, Aloette Limited, LLC, is a Delaware limited liability company formed on March 8, 2012 (“Aloette Limited”) to support Astral franchisees. Aloette Limited shares our principal place of business at 6120 Powers Ferry Road NW, The Dupree Building, Suite 300, Atlanta, Georgia 30339. Aloette Limited does not offer franchises in any line of business. Astral Brands and Aloette Limited do not offer franchises in any line of business. We do not have any other affiliates that offer franchises in any line of business or that offer products or services to our franchisees.

Business Offered

We offer franchises granting the right to establish and operate cosmetic and beauty care product franchises under the Aloette® mark that specialize in the marketing of aloe-Vera-based skin products. The franchisee will be, among other things, expected to perform certain inventory, fulfillment, and other functions, and maintain an office separate from his or her residence. We began offering Aloette® franchises on May 1, 1978. We have operated businesses similar to the type to be operated by you since 1978. We have never offered franchises in any other line of business. We and our affiliates do, however, offer products under the CosMedix® and purminerals® brands. We reserve the right to award franchises in similar and other lines of businesses and to distribute products through other channels of distribution.

Initial Fees

Initial Franchise Fee and Software License Fee You must pay Astral an initial franchise fee of $30,000 in full upon signing a Franchise Agreement. The initial franchise fee is non-refundable. You also must pay Astral upon signing a Franchise Agreement an initial Software License Fee of $3,000 for Astral's franchise software. These fees are non-refundable. Goods and Services Before a Franchised Business opens, you must purchase from us the prescribed initial inventory to support your sales for the first month of your operations. The wholesale cost of the initial inventory package for a Franchise ranges from $6,000 to $25,000 at wholesale cost, depending on the mix of products and the estimated start-up sales. The initial inventory consists of: (1) the Products, which cost approximately $5,150 to $23,000; (2) supply items (including samples and give-away items), which cost approximately $650 to $1,000; and (3) business items (including order forms, brochures and carrying kits), which cost approximately $200 to $1,000. The payment for the initial inventory package is non-refundable. The initial franchise fees for all Franchisees are uniform. The inventory packages for all Franchisees will vary depending upon the amount of Products and other items a franchisee believes will be necessary to commence operations.

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 Statement. 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. -23- US2008 15392520 2 we do not make any representations about a Franchised Business' future financial performance or the past financial performance of any such business. We also do not authorize our employees or representatives to make any of these representations either orally or in writing. If you are purchasing an existing Franchised Business, however, we may provide you with the actual records of that business. If you receive any other financial performance information or projections of your future income, you should report it to our management by contacting Mr. Robert Roche (by mail at 6120 Powers Ferry Road NW, The Dupree Building, Suite 300, Atlanta, Georgia 30339, by phone at(678) 303-1831, or by email at [email protected]), the Federal Trade Commission, and the appropriate state regulatory agencies.