Business Description

We are a California corporation formed on April 22, 2016. We do business only under our corporate name and the name “Winnie Couture.” Our principal business address is 9437 S. Santa Monica Blvd., Beverly Hills, California 90210. Our agents for service of process are listed in Exhibit B to this Disclosure Document. We have never before offered franchises of the type described in this Disclosure Document, and have never offered franchises in any other line of business. We have never operated a business of the type described in this Disclosure Document, but our affiliates, Winnie Couture (“WC”), Winnie Couture, Inc. (“WCI”), and Winnie Couture Company (“WCC”) have operated a business similar to the type you will operate. WCI is a Texas corporation formed on April 13, 2006 and maintains its principal business address at 5152 Buffalo Speedway, Houston, Texas 77005. WCI has never offered franchises of the type described in this Disclosure Document, and has never offered franchises in any other line of business. WCI licenses the WINNIE COUTURE trademarks to us for our use and to sublicense to franchisees in connection with the System. WCC is a Georgia corporation formed on June 10, 2010 and maintains its principal business address at 38 E Forest Avenue, Arcadia, California 91006. WCC has never offered franchises of the type described in this Disclosure Document, and has never offered franchises in any other line of business. WCC sells the Custom Décor Package, Bridal Show Package, and opening inventory to franchisees and is the principal manufacturer and distributor of gowns and dresses. We have no parent company. No affiliate of ours has ever offered franchises in any line of business.

Prior Experience

WCI is a Texas corporation formed on April 13, 2006 and maintains its principal business address at 5152 Buffalo Speedway, Houston, Texas 77005. WCI has never offered franchises of the type described in this Disclosure Document, and has never offered franchises in any other line of business. WCI licenses the WINNIE COUTURE trademarks to us for our use and to sublicense to franchisees in connection with the System.

Business Offered

We have developed a proprietary business format and system (the “System”) for operating an upscale bridal salon (“Salon”) offering our collection of WINNIE CHLOMIN® and WINNIE COUTURE® designs (“Collections”) including, among other lines, bridal gowns, red carpet styles and special occasion dresses as well as related headpieces, veils, jewelry, and accessories (“Accessories”). Our Salons are identified by the trade name and service mark “WINNIE COUTURE®” and other trademarks, service marks, and other trade identifiers that we designate to identify businesses operating under our system (the “Marks”). Our System includes our proprietary and confidential information; our relationships with designers and manufacturers, our custom ordering and measurement procedures; our customer service procedures and requirements; our Salon design, layout, trade dress and color scheme. We grant qualified candidates the right to operate a WINNIE COUTURE® Salon according to our standard franchise agreement (“Franchise Agreement”) (see Exhibit C) and our standards, specifications, policies and procedures (collectively, our Standards”). We will communicate our Standards to you as part of our confidential operations and procedures manuals or other writings (our “Manual”).

Initial Fees

Initial Franchise Fee You will pay us a $45,000 initial franchise fee when you sign the Franchise Agreement. The initial franchise fee is uniform for all franchisees, and is considered fully earned and nonrefundable upon payment. Custom Décor Package Before the Salon opens for business, you must purchase from our affiliate WCC our Custom Décor Package (which includes, among other items, seating, furniture, chandeliers, custom hangers, custom garment bags, custom mannequins, custom garment bags, custom veil bags, display cases, coffee tables, custom wallpaper, mirrors, custom wall posters (both with frames and without), custom foam posters (which stand upright), custom drapes, and all light fixtures (including track lighting), signage, photographs, stand-up banners and posters, and an initial inventory of postcards and other promotional items). The cost for both the Custom Winnie Couture Franchising 3 Franchise Disclosure Document | 2019 Décor Package, with shipping, ranges from $20,500 to $50,000 depending on the size and layout of the Salon. Bridal Show Package You must purchase the Bridal Show Package from our affiliate WCC before you open the Salon for business. This package includes the items we require that you carry and use in connection with your attendance at various local bridal shows, including sweepstakes box, sweepstakes cards, appointment cards, curtains and drapes, tables, table covers, mannequins, trade show posters, WINNIE COUTURE posters, retractable banner, trade show light figures, business cards, pens, tote bags, tunics, celebrity placement posters, and WINNIE COUTURE trifold. The cost of this package is $3,000 and payable to WCC directly.

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. There were a total of five WINNIE COUTURE Salons open and operating during the full 2018 calendar year. These five Salons are similar to the type to be operated by franchisees. These Salons opened as follows and are owned and operated by the following affiliates: 1) the Houston, Texas Salon opened in August 2007 and is owned and operated by WCI; 2) the Atlanta, Georgia Salon opened in October 2010 and is owned and operated by WCC; 3) the Charlotte, North Carolina Salon opened in January 2015 and is owned and operated by WCC; and 4) the Frisco, Texas Salon opened in January 2014 and is owned and operated by WCI; 5) the Chicago, Illinois Salon was opened December 2017 and is owned and operated by Winnie Couture Chicago Inc. Excluded from the list of existing Salons is the Beverly Hills, California Salon which offers different and additional retail offerings than the typical Salon to be operated by franchisees. The following chart includes the 2018 Gross Sales and Cost of Goods Sold amounts for the above-listed four Salons in operation during the full 2018 calendar year: Some stores have sold this amount. Your Individual results may differ. There is no assurance that you will sell as much. Note 1. Gross Sales is defined and calculated according to the definition included in Item 6. Note 2. “Job Material” expenses include the purchase price of the gowns, accessories, veils, and other inventory. Note 3. “Freight and Shipping Cost” expenses include transportation costs associated with the shipment of inventory items to the Salon. Note 4. “Merchant Account Fees” include the additional percent fee on the sale price as imposed by our affiliates' credit card payment processing merchant for the use of their services in processing customer credit and debit cards. Note 5. The above Gross Sales and COGS figures do not reflect the operating expenses, royalty payments or other costs or expenses (except cost of goods sold) that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. Each individual location and franchisee is unique, and each one will have its own set of variables that should be considered. You should conduct an independent investigation of the costs and expenses you will incur in operating your Salon. The financial information is taken from unaudited financial information provided to us by our affiliates. It has not been independently audited. The notes that follow the chart are an integral part of the information presented in this item, and provide information to help you better understand the financial information. Written substantiation for the financial performance representation will be made available to the prospective Winnie Couture Franchising 24 Franchise Disclosure Document | 2019 franchise upon reasonable request. Except for the above, 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 its 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 its President, Chris Lee, 9437 S. Santa Monica Boulevard, Beverly Hills, California 90210, 310-858-8868, the Federal Trade Commission, and the appropriate state regulatory agencies.