$124

Business Description

The franchisor is Wild Birds Unlimited, Inc.. To simplify the language in this Disclosure Document, “we,” “us,” or “Wild Birds Unlimited” means Wild Birds Unlimited, Inc, “You” means the person who' buys the franchise. If you are a corporation, limited liability company, partnership, or other legal entity, certain provisions of the Franchise Agreement also apply to your owners mid will be noted. Wild Birds unlimited: was. incorporated in Indiana on June 8. r983... Our' principal place of business is; 11'711 N., College Avenue, Suite 146, Carmel Indiana 46032;, telephone (317) ,57I-71"00; website: www;wbu.com. We have no parents, predecessors or affiliates.

Prior Experience

We have franchised retail stores that sell birdfeeders, birdseed and nature-related gifts since 1983.-. We do not conduct any business activities other than the operation and administration of our franchise system as described in this: Disclosure Document. We do not offer, and have not offered, franchises in any other line of business. As of the date of this Disclosure Document, we do not operate corporate stores, although lye may do so in the future. In early 1989, we began Offering franchises in Canada under the Wild Birds; Nature Shop trademark. By June, 30,, 1995, all Canadian stores had converted to the WILD Birds Unlimited® trademark,

Business Offered

We grant you the right to operate a Wild Birds Unlimited retail store (the “Store”). You and your staff need to be bird feeding hobbyists and nature enthusiasts, thoroughly trained in the hobby of backyard bird feeding. Your Store will offer a retail experience that helps customers enjoy wild birds arid increases their enjoyment of nature by providing advice, top quality products, and a pleasant shopping experience. Each store operates under the name wild birds Unlimited and other marks we designate (the “Marks”). You must operate your Store under the' Wild Birds Unlimited system (“System”) and in accordance with our specified standards. The System is characterized by distinctive product, layout and decor, all of which we may change. Your Store typically will have 1,200 to 1,700 square feet. Wild BiRDSlUNtmmED''2019 Franchise-Disclosure Document US,,12l60l,404!09 Before executing a Franchise Agreement, you may choose to sign a .Reservation Agreement to reserve a geographic area within which you will locate your store. The reservation Agreement territory may be larger than the territory granted in the Franchise Agreement ('‘Designated Territory”), which is signed later. No other franchise will be granted within the geographic area that you have reserved for a period of 6 months after you have signed the, Reservation Agreement. If you do not sign a franchise agreement within 6 months of signing the Reservation Agreement,, the Reservation Agreement will expire; Although you do not have an, automatic right of renewal, we may, at our option, renew the Reservation Agreement for one additional period of 6 months. As described in this Disclosure Document, we' offer discounts on the initial Franchise Fee and other fees (such as the Training Fee) to existing Wild Birds Unlimited franchisees that wish to open one or more additional stores with us, if you are an existing Wild BIRDS Unlimited franchisee, these discounted fees I will apply to your purchase of franchise rights for an additional WILD BIRDS: UNLIMITED store. You will be required to participate in our online product ordering system (the “MyWBU Store”).. The. MyWBU Store provides for product delivery from, your Store to your Store's retail customers and for product Store: pick-up options, in connection with your participation, you will be required to sign the MyWBU Store (e commerce platform) Authorization and Participation Agreement and pay us an upfront fee (as set forth in Item .5) and a monthly license fee (as provided in Item 6). In connection with the MyWBU Store you also will be required to use our designated credit card processing company, which may be different from, the credit card processing company for your Store' standard retail operations and which may require terms .and conditions different from those to ,which your standard retail Store* operations are subject. We also will implement and administer a minimum advertised pricing policy for the MyWBU Store which you will be required to comply with, subject to state; law. If you are opening a new WILD Birds Unlimited stores you will pay the* then-current upfront fee upon signing the MyWBU Store (ecommerce platform) Authorization and Participation Agreement but will not be required to pay the monthly license fee until your fifth month of participation (in other words,, your first four months of the monthly license, fee is forgiven in this scenario)..com

Initial Fees

Initial Franchise Fee If you are opening your first WILD Birds Unlimited franchise, you must pay a non-refundable Initial Franchise Fee of $30,000, If you sign a Reservation Agreement, you pay us $6,000 when you sign such agreement and the balance of $24,000 when you sign the Franchise Agreement. The .$6,000 is not Wild Birds Unlimited^ 2019'Fianchise Disclosure Document US.1.2i:60,i:4:04'.09 refundable even if you do not sign a Franchise Agreement within the 6-month term of the Reservation Agreement. If you do not sign a Reservation Agreement, you pay us $30,000 when you. sign the Franchise Agreement. If you are required to sign a renewal of the Reservation Agreement, you are required to pay us an additional $6,000 at the time that you sign the Renewal Reservation Agreement, which will be credited against the Initial Franchise Fee then owed to us. If you currently own a WILD BIRDS UNLIMITED franchise and you are granted an option to purchase a franchise for an additional store, the Initial Franchise Fee for the additional franchise will be one-half of the Initial Franchise Fee then being offered by us to new franchises (currently $30,000, therefore the initial Franchise Fee for an additional franchise is currently $ 15,000), paid to us: in, the manner set forth in this paragraph, if you sign a Reservation Agreement, you pay us a fee of one-half of the fee then being offered by us to new franchisees signing a Reservation Agreement (currently $6,00.0, therefore the foe-for the Reservation Agreement for an additional franchisers currently $3,000) to receive the 6-month reservation period. That $3,000 is applied toward the Initial Franchise Fee for the additional store. If you do not sign an additional Franchise Agreement within the 6-month term of the Reservation Agreement, it will expire, and we do not refund the foe: paid to us. (currently $3,000, as noted above)^ Upon signing the Franchise Agreement for an additional you will sign an Initial Franchise Fee Amendment, and you must pay the .second half of the-foe offered by Us to new franchisees .signing a Reservation Agreement (which currently equals $3,000): If you do not .sign a Reservation Agreement, you pay us $6,000 upon signing the Franchise Agreement Regardless of whether you sign a Reservation Agreement, the remaining amount (currently, $9,000) of the Initial Franchise Fee for an additional store is paid in ten monthly payments (currently, $9,00), beginning, in the second month of operating your additional store. If you are purchasing an existing Wild Birds Unlimited franchise, you do not pay an Initial Franchise Fee, but you will be required to pay an Assignment Fee equal to 50?^ of the current Initial Franchise Fee; (currently $30,000, therefore the Assignment Fee for is currently $15,000) upon' signing foe Franchise Agreement. We participate in the Veterans Transition Franchise. Initiative (commonly referred to; as “VetFran”), which seeks to provide opportunities for veterans who Want to be in; business. If you are a veteran of the U,S, armed Forces^ you may be eligible to receive a 15P/o discount off the Initial Franchise; Fee.

Financing

Except for the financing of part of the. Initial Franchise Fee for an additional location as described below we do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. If you are an existing franchisee purchasing an additional franchise, we will permit you, to pay $6,000 of the initial Franchise Fee for your new location in ten monthly payments of $9O0, beginning in the second month of operating your additional store. You will not sign a, promissory note, security agreement or any other financing: document., Rather you will sign the Initial Franchise Fee Amendment. There is, no interest rate, security interest, prepayment penalty or other material financing terms, Your failure to pay any $900 monthly payment will be a default under the Franchise Agreement, and if uncured could lead to termination.

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 Will BlRDS UNLIMITED^ Disclosure 121601404.09 information that differs from that included in Item 19 may be given only if(i) a franchisor provides the actual records of an existing outlet you are considering buying, or (ii) a franchisor information provided in this 19, for example, by providing information about possible performance at a particular location or under particular circumstances. Provided below are nine schedules that provide certain information regarding Same; Store Sales Percent Change, Gross Sales, Cost of Goods Sold, Wages .and Advertising Expenses, Owner's Cash Flow .and Daily Savings Club® Customers as reported by our franchisees. Each schedule Is described more fully below-: Schedule 1 includes with a sutfimary of fiscal year 2016, 2017 and 201:8 Same Store Gross Sales Percent Change for those Wild Birds Unlimited stores open and operational for at least 24 consecutive months. If an individual store was closed for a period in any of the applicable years, it was excluded from this analysis. As used herein, “Same Store Gross Sales Percent Change” means the year over year growth (or decline) ip same Store Gross Sales, expressed as a percentage of the previous year's Gross Sales. :Schedule 2 includes a chart with a summary of fiscal year 2016 Gross Sales for those Wild BirdS UNLIMITED franchises open and operational for at least 24 months as of December 3.1, 2016; a summary of fiscal year 2017 Gross Sales for those Wild Birds Unlimited franchises open and operational for at leasf24 months as of December 31., 2017;, and a summary of fiscal year 2018'GrosS Sales- for those WILD Birds Unlimited, franchises open and operational for at least 24 months as of December 3J, 2018. .Schedule 2als0 includes a chart with a summary of fiscal year 201-8 Gross Sales by performance quartile for those WILD BIRDS UNLIMITED franchises open and operational for at least 24 months as of December 31, 201:8 and a Chart with a Summary of fiscal year 2018 Gross Sales by top half and bottom: haif performance for those Wild BIRDS Unlimited franchises: open and operational for at least 24 months as of December 31,, 2018, Schedule 3 is a chart showing the actual number of stores that achieved Gross, Sales levels for fiscal years 2016, 2017, and 201.8,, which stores were open and operational for at least 24 months as: of the end of the applicable fiscal year. Schedule 4 is a summary of Gross Sales for the first full 12 months of operation for stores that Opened between January 1, 2013 and December 3l, 20l7 and that had completed at least 12 full months of operation as of December 31, 2018. Schedule 4 also includes a summary of Gross Sales for the second full 12 months of operation for stores that opened between January 1 2013 and December 31„ 2017 and that have completed at least their second full 12, months. Of operation as of December 3.1,2018. Schedule 5 is the average monthly comsales volume percentage that contributed to the. Annual Gross Sales for those Wild Birds Unlimited franchises open and Operational for all of 2018 and opened prior to January 1 20,16. Schedule 6 is the historical average Cost of Goods Sold, shown as a percentage of Gross Sales, for products offered by Stores open for at least 24 months as of the end of each fiscal year 2015, 2016 and 2017, as applicable, as well as the historical average of Advertising and Wages expenses incurred by first year stores that completed their first frill year of operation in 2013, 2014,2015, 2016 or 2017. Wii-D Birds Unlimited® 2019 Franchise Disclosure Document US;i2l601,404'.09 Schedule 7 includes a chart with a summary of Owner's Discretionary Cash Flow achieved by Stores in fiscal year 2015, 2016', and 2017, as reported by franchisees that were operating the: full previous 24 months. Schedule 7 also' includes (i) a chart with a summary of fiscal year 2017 Owner's: Discretionary Gash. Flow by performance; quartile for those Stores open and operational for at least 24 hill months as of December 31, 2017, and (it) a chart with a top half and lower half summary of fiscal year 2017 Owner' Cash Flow for those Stores open and operational for at least 24 full months as of December.31, 2017. Schedule 8 includes a chart with, a summary of Owner's Discretionary Cash Flow achieved by Stores that opened between January- 1, 2010 and December 31, 2016 and completed their first, second and/or third full calendar years of operation. Teh, new stores that were opened by existing franchisees as their additional stores were not included in this analysis. schedule: 9 provides specific' information regarding Average Ticket, Average Annual Visits and percentage of Total Gross Sales for Daily Savings Club® Customers from Stores in fiscal year 20i6, 2017 and 2018, as reported by franchisees that were operating the full, previous,24 months. You should consider the following, material factors in reviewing this data 1. We have compiled the Gross Sales information in this financial performance, representation from our Franchisees' monthly sales reports and annual financial statements: submitted to tis (the “P&L Statements”). The stores included in this financial performance representation range in age from 1 to over 30 years of operation. The financial performance information provided for each 12- month period excludes all stores that were not operational during the entire 12-monfh period. This information is not audited, and neither we nor our independent certified public accountants have verified its accuracy or the method Used by each Franchisee in its Computation. 2. The stores included in this financial performance representation represent a variety of geographic and demographic circumstances. These variations in circumstances include: (a) the total population of the city in which the store is located ranges from over 700,000 to less than 1,000; (b) a number of the cities in which the stores are located are suburbs of larger metropolitan areas; and (C) some Stores located in. areas with small populations are in areas with a substantial amount of “tourist traffic. Also; and as noted in. Items 12 and 20„two of WBO's officers-own and operates. WiLDBfRDS Unlimited store under a franchise agreement With WBU. ;3. The stores listed in this financial performance representation are generally located in neighborhood or regional strip shopping Centers or freestanding buildings. 4, Several of the stores included in this financial performance representation operate' temporary seasonal kiosks. These safes are included in this Item 19 data as part of our Franchisees' Gross Sales. 5. Definition of Gross Sales; the sales price of all merchandise and services sold, including cash and charge sales of every kind made at the store, and mail, internet or telephone orders, received or taken at the store. Wild Birds Unlimited* 2019 Franchise Disclosure Document US.121601404.09 41 6. Sales and expenses from the 8 small-sized Wild BIRDS UNLIMITED outlets described in Ttern J of this Disclosure Document have been excluded from this analysis as they have characteristics that differ from the traditional retail locations included in this: tem 19. 7. Sales from our Canadian Stores have been excluded from this analysis, due to the fact that our Canadian stores report their sales to^ us in U.S-dollars according to the current month's exchange rate and that exchange rate fluctuates considerably from year to year.