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Business Description

The name of the franchisor is Real Deals, Inc. Real Deals, Inc. is an Idaho corporation incorporated July 17, 2006. Our fiscal year ends on December 31st of each year. Our principal place of business is 1881 Pole Line Road East, Twin Falls, Idaho 83301. We have no other parents, predecessors or affiliates to be discussed in this item.

Prior Experience

Our predecessor is Real Deals on Home Décor, Inc. which had a principal place of business is 515 Lyn Ave., Jefferson, Georgia 30549. This corporation was administratively dissolved as of December 31, 2015. Our predecessor began using the Real Deals on Home Décor® marketing and merchandising concept in 2003. Our agents for service of process are disclosed in Exhibit “E.” We do not do business under any names other than Real Deals, Inc. and have no business activities other than operating the Real Deals on Home Décor® franchise system. We do not operate a business of the type offered to you in this disclosure document. Our officers and directors have been operating similar types of businesses since 2005. As of the date of this disclosure document, we have not offered for sale or sold franchises in any other line of business. We first offered franchises for the same type of business as to be operated by you in August 2006. Our predecessor does not and has never offered franchises in the same type of business that you will operate or in any other line of business.

Business Offered

We license and train others to operate Real Deals on Home Décor® businesses. As a Real Deals on Home Decor® business, you will operate a retail store offering home décor, furniture, home accessory, jewelry, clothing, personal accessories, food and beverage items, and other related merchandise and products. The grant of a franchise authorizes you to engage in our complete system under the name Real Deals on Home Décor® and other proprietary marks. Our system includes, among other things, confidential manuals, merchandising, standards, marketing, décor, the sale of products and services, cooperative purchasing, and other confidential business information, procedures, specifications and services as we may develop. As a Real Deals on Home Décor® franchisee, you will have the opportunity to use the Real Deals on Home Décor® system only at a specific location. You will be required to purchase specific materials and supplies and to follow our standards, methods, policies and procedures in the operation of your franchise business, which are more particularly described in our franchise agreement, attached as Exhibit “A” to this disclosure document.

Initial Fees

On the signing of the franchise agreement, all franchisees pay an initial franchise fee of $30,000. Also, all franchisees must initially purchase the following additional items from us at a cost of between $500 and $2,000: Real Deals on Home Décor® products, fixtures, posters, brochures, business cards, vinyl signage, web site link, shirts with logo for all owners and employees, signs and specialty bags. These costs and fees will be incurred in the weeks before opening the franchise business. There is no training fee for up to four attendees. See Item 7 for more details. We also allow additional people to attend the same initial training as you for an additional fee of $250 per attendee per day. We will provide up to 40 total hours of opening assistance at no additional fee to you. If more than 40 hours of assistance is needed, you will pay a fee of $30 per hour/per trainer, plus expenses incurred by the trainers. Unless otherwise described above, these costs and fees are uniform and are non-refundable for all fees.

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 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. A Real Deals on Home Décor® franchise business' actual operating costs may vary widely, which can impact gross sales. Numerous factors will affect a particular Real Deals on Home Décor® business's sales, including goodwill and name recognition in the market; length of time in business; nearby businesses; personnel costs; rent and occupancy expenses; nearby working and living population; traffic count; site accessibility and visibility; the local market and competition from other retail businesses offering furniture, home décor and clothing/accessory boutique items; general economic conditions; local factors affecting goods and supply costs; the franchisee's management skill, experience, business acumen, and the ability to promote and market its Real Deals on Home Décor® business effectively in the local market; service levels and customer satisfaction; and the degree of adherence to our methods and procedures in operating the Real Deals on Home Décor® business. The market in which you are interested in developing a Real Deals on Home Décor® business may have higher population densities, higher or lower labor costs, and higher or lower rent expenses than other markets across the United States or Canada. Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much. This financial performance representation has been prepared based on information as reported by the individual franchises. The numbers they reported to us were used for determining royalty payments due to us. The basis of accounting used by the franchisees is determined by the individual franchisee, but generally the franchisees use cash basis accounting. The figures in the reported to us have not been audited and we have not undertaken to otherwise independently verify the accuracy of such information. You must estimate your own costs and expenses including, but not limited to, inventory, marketing, insurance, royalties, rent, wages, payroll taxes and professional fees. You should conduct an independent investigation of the costs and expenses you will incur in operating your Real Deals on Home Décor® business. Written substantiation for the financial performance representation will be made available to the prospective franchisee upon reasonable request. Other than the preceding financial performance representation, Real Deals, Inc. does not make any financial performance representations. 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 Real Deals, Inc., 1881 Pole Line Road East, Twin Falls, Idaho 83301, and (208) 543-6300, the Federal Trade Commission, and the appropriate state regulatory agencies.