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Business Description

We were organized under the laws of the State of Delaware on March 8, 2006 Our principal business address is 1177 Rosemary Road, Parkersburg, West Virginia, 26105 We do business under our entity name and the name “WOODCRAFT” Our agents for service of process m various states are listed in Exhibit A We have offered franchises since September 2006 We are not engaged m any other line of business and have never offered franchises in any other line of business Except through our affiliate. Woodcraft Supply, LLC (see below), we have never operated a business similar to the franchises we offer As of December 31, 2018, there were sixty-five franchised Woodcraft Stores and ten Woodcraft Stores owned and operated by Woodcraft Supply, LLC

Prior Experience

Our parent entity is Woodcraft, LLC, a Delaware limited liability company organized on March 8, 2006 Woodcraft, LLC is also located at 1177 Rosemar Road Parkersburg, West Virginia 26105 Woodcraft, LLC does not currently and has not previously offered franchises in this or any other line of business Our predecessor is Woodcraft Franchise Corporation (“WFC”) WFC offered franchises for Woodcraft Stores from March 1997 to July 2006 WFC was incorporated in the State of West Virginia on October 8, 1996 WFC maintained its principal business address at 1177 Rosemar Road, Parkersburg, West Vu-ginia, 26105 WFC's predecessor is Woodworkers Club Franchising, Inc (“Club Franchising”) Club Franchising was incorporated in the State of Virginia on June 19, 1995 In April 1997, WFC acquired ownership of the assets of Club Franchising From 1995 to April 1997, Club Franchising offered franchises for retail stores offering woodworking supplies under the trademark “The Woodworkers Club ” To the best of our knowledge Club Franchising never offered franchises in any other line of business As of the date of this disclosure document, there are two Woodworkers Club franchises which are a part of our franchise system WFC was formerly a wholly owned subsidiary of SBR, Inc , (“SBR”) whose principal business address is 5300 Biscoe Road, Parkersburg, West Virginia, 26101 SBR was incorporated in the State of West Virginia on April 19, 1972 Effective June 3, 2006, we merged with WFC and emerged as the surviving entity Under the terms of the merger agreement, we agreed to assume all obligations of the 84 franchise agreements previously entered into between WFC and its franchisees In addition, we acquired ownership of certain intellectual property and other assets necessary for the operation of the franchise system and Woodcraft Stores Our affiliate is Woodcraft Supply, LLC (“Woodcraft Supply”) Woodcraft, LLC is also Woodcraft Supply's parent entity Woodcraft Supply was organized in the State of Delaware on March 15, 2006 Woodcraft Supply's business address is also at 1177 Rosemar Road, Parkersburg, West Virginia, 26105 As of the date of this disclosure document, Woodcraft Supply owns and operates ten Woodcraft Stores Woodcraft Supply also provides various products including “Branded Products” as well as retail computer system support to our franchisees Additional information on Woodcraft Supply and the products and services it provides is included in Item 8 Woodcraft Supply has never offered franchises m this or any other line of business

Business Offered

We offer franchises for a retail store concept which specializes m providing woodworking products and services including tools, books, educational programs, along with related products and services Among the products and services the stores typically provide are power and hand woodworking tools such as saws, drills, lathes and planes, do-it-yourself bts, how-to books, seminars, classes and other educational programs, along with related products and services We refer to the company and franchisee owned stores as “Woodcraft Retail Stores” or “Woodcraft Stores ” Each Woodcraft Retail Store operates under a “System” consisting of certain methods, techniques and procedures described m more detail m our Franchise Agreement attached as Exhibit B to this disclosure document We identify our System by means of certain trade names, service marks, trademarks, logos and commercial symbols including the federally registered trademark “WOODCRAFT” (collectively the “Marks”) At this time, we only offer Franchises for a single Woodcraft Retail Store, though, m the future, we may decide to offer certain qualified persons the right to develop multiple Woodcraft Retail Stores Our products and services are targeted toward woodworking hobbyists and enthusiasts Your Woodcraft Retail Store will compete with local businesses, as well as local, regional or national chains of retail stores selling woodworking products We believe the market for specialized woodworking products IS growing We are not aware of any regulations specific to the industry m which Woodcraft Retail Stores operate Although, you must comply with all local, state and federal laws that apply generally to all businesses You also must comply with all local zoning, business licensing and other regulations applicable to your Woodcraft Retail Store You are advised to examine all of these laws before purchasing a franchise from us

Initial Fees

When you sign the Franchise Agreement, you must pay an Initial Franchise Fee of $50,000 for your first Woodcraft Store franchise For each additional Woodcraft Store franchise you purchase, we will reduce the Initial Franchise Fee by $5,000 to a minimum of $25,000 The Initial Franchise Fee is payable in a lump sum and except as stated above is uniform for all franchisees currently acquiring a Woodcraft Store franchise In addition to the Initial Franchise Fee, you must purchase an initial inventory of Branded Products from our affiliate Woodcraft Supply equal to approximately $5,000 A representative copy of the Woodcraft Supply Product Supply Agreement is included as Exhibit C You will also pay the first months Retail System Support Fee which ranges from approximately $175 to $225 Additional information on the Retail System Support Fee is included m Item 6 A copy of the Retail System Support Agreement is included as Exhibit D If you fail to secure a site for the operation of your Woodcraft Retail Store within 90 days after the effective date of the Franchise Agreement, then we may terminate the Franchise Agreement If so, we will return 75% of the Initial Franchise Fee (or 50% if we have furnished our Initial Training Program to you) If we terminate the Franchise Agreement, Woodcraft Supply will repurchase all salable Branded Products at 90% of their current wholesale price The Retail System Support Fee is not refundable under any circumstances If we determine that you and/or your general manager are unable to satisfactorily complete the Initial Training Program, we may terminate the Franchise Agreement and if so, we will refund 50% ofthe Initial Franchise Fee 1 There are no other fees which you are required to pay to us or our affiliates before opening your Retail Store

Financing

We do not offer direct or indirect financing we do not guarantee your note, lease or obligation we may, however, assist you in obtaining financing

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 about possible performance at a particular location or under particular circumstances This Item contains average revenue, expense and income information about franchisee owned Woodcraft Retail Stores for the 12-month period ended December 31, 2018 We have only included franchisee-owned Retail Stores open for two full years or longer that have provided us with the necessary data in providing these calculations The information has not been audited, it is derived from unaudited financial reports submitted from franchisees to us as part of our reporting requirements and is based on reports received from fifty-eight franchisee-owned Woodcraft Retail Stores We have not included affiliate-owned Woodcraft Stores In addition, the two Woodworkers Club franchises are not included in the calculations as they are substantially different from a Woodcraft Retail Store We have classified the Retail Stores as being Low, Medium or High based on the Store's Total Revenue for 2018 These numbers can vary considerably due to a variety of factors, such as local popularity of Retail Stores and woodworking in general, competition from other similar businesses and the business abilities and efforts of franchisees