$18

Business Description

Since 1985, we have offered franchises for the establishment of businesses which sell all types of trophies, medals, plaques, ribbons, desk sets, laminations, promotional items and other similar products (the "Products"), for all sporting, educational, business and social events and occasions. We do not own or operate the type of business being franchised, except that our affiliate, Crown Awards, Inc., operates a catalog and Internet based awards business utilizing the Proprietary Marks. Neither we nor our affiliate has ever offered franchises in any other line of business. Our agent for service of process is listed in Exhibit B.

Prior Experience

We do not have any parents. Lori's Trophy and Sporting Goods, Inc. ("Lori's"), whose principal address is 3024 Avenue U, Brooklyn, New York, was the original owner of the trade name and service mark "CROWN TROPHY." On March 13, 1985, we acquired from Lori's all proprietary and property rights in the trade name and service mark "Crown Trophy" and in the decor, style and other unique characteristics of the Crown Trophy shops. At the same time, we gave Lori's a license to continue to use the Crown Trophy trade name and service mark and other property rights it transferred to us in connection with the continued operation of its single Crown Trophy store located at 3024 Avenue U, Brooklyn, New York (opened in 1978). Lori's agreed in the license agreement to use the "CROWN TROPHY" mark only in connection with the sport trophy business, to maintain standards of quality and service established by us, to display the mark only in a manner approved by us, and to indemnify us against any claims resulting from Lori's use of the mark. Lori's also granted us the right to inspect the products and services it uses in connection with the "Crown Trophy" name and confirmed our ownership of the "Crown Trophy" service mark. Crown Awards, Inc. is our affiliate ("Awards"). It is a New York corporation formed in 1988. We and Awards operate from the same offices. Awards is a company that offers Products utilizing the Proprietary Marks directly to the public through the Internet and catalogs. It has also been selling Products directly to our franchisees since 1996. It does not franchise now nor has it ever sold franchises and does not operate a business of the type to be operated by you, other than its mail order and Internet awards business. We do not have any other business activities.

Business Offered

We will offer you a franchise agreement (the "Franchise Agreement") which grants you the right to establish and operate one "Crown Trophy" physical retail establishment, (the "Franchised Business" or "Store") at a location we approve (the "Approved Location"). A Crown Trophy Store offers a wide assortment of trophies, awards, medals, plaques and other promotional products. The Franchise Agreement will also grant you the right to use the Proprietary Marks and the System solely in connection with the Franchised Business. The Franchise Agreement will prohibit you from selling or promoting your products through any Internet website or comparable technology, unless specifically approved by us in advance. We will also offer to you, and other franchisees, the opportunity to make and sell custom-made signs for customers. This is an additional product and service that you may offer to your customers. This aspect of your Crown Trophy Franchised Business will be referred to as the "Signs by Crown" business. You are not required to sell "Signs by Crown" products. This disclosure document describes the Crown Trophy Business. To the extent there are any differences due to the optional "Signs by Crown" business, or additional costs or expenses, those will be identified in this disclosure document. "Signs by Crown" is not a separate franchise or business opportunity, and only Crown Trophy franchises may offer products or services under the "Signs by Crown" brand.

Initial Fees

When you sign the Franchise Agreement, you must pay us an initial franchise fee of $35,000. The initial franchise fee is fully earned and non-refundable in consideration of administrative and other expenses we incur in entering into the Franchise Agreement and for our lost or deferred opportunity to enter into the Franchise Agreement with others. The initial franchise fee is paid in full at the time you sign the Franchise Agreement. You may be required to pay a $5,000 refundable deposit before signing the Franchise Agreement in order for us to begin assisting you with market research and the site selection process. If you later choose to enter into the Franchise Agreement, the deposit will be applied to your payment of the initial franchise fee. If, for any reason, either you or we choose not to enter into the Franchise Agreement, the deposit will be refunded to you in full. If you purchase a second franchise, or more, the initial franchise fee is reduced to $22,500. That franchise fee is non-refundable. You must also purchase your initial equipment, supplies and from us (the “Start-Up Package”). The approximate cost of the Start-Up Package will range from $78,000 to $88,000. Payment of the cost of the Start-Up Package is due in full before commencement of the training program. The cost of the Startup Package is non-refundable.

Financing

We do not offer financing to Franchisees, directly or indirectly. We do not guarantee your note or lease obligations

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to disclose 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 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 performance at a particular location or under particular circumstances. . This franchisor does 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 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 Scott Kelly at 9 Skyline Drive, Hawthorne, New York 10541, telephone (914) 347-7700, ext. 203, the Federal Trade Commission, and the appropriate state regulatory agencies.