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Business Description

The Natural Awakenings concept was founded in Naples Florida in 1993. NAPC is a Florida corporation formed to franchise Natural Awakenings magazines. It was formed on June 2, 1999 and does business under its entity name. NAPC's principal business address is 4933 Tamiami Trail North, Suite 203, Naples, FL 34103. NAPC also owns a dating website located at www. NaturalAwakeningsSingles.com, which is administered by Conscious Dating Network. Franchises have not, nor will they ever be, offered from this website. Other than this website, NAPC does not conduct any other business, does not operate Natural Awakenings magazines, and does not offer franchises for any other line of business, other than the franchises being offered in this Disclosure Document. The agents for service of process for NAPC are listed in the State Agency Exhibit attached to this Disclosure Document (Exhibit A).

Prior Experience

NAPC has no Parent or Predecessors. Our Principal Owner owns Natural Awakenings Magazine, Inc., a Florida corporation formed on June 24, 2004, that publishes the Naples/Ft. Myers Edition of Natural Awakenings Magazine. The principal business address of Natural Awakenings Magazine, Inc. is also 4933 Tamiami Trail North, Suite 203, Naples, FL 34103. Prior to the formation of this corporation the business was operated with the fictitious name, Natural Awakenings, which began operation on November 10, 1993. This is the business model for the NAPC franchise system. Natural Awakenings Magazine, Inc., does not and has never has sold franchises.

Business Offered

You will conduct business as Natural Awakenings Magazine, publishing a free, local, community magazine with content on healthy lifestyles and sustainable living. Your business income is derived from the sale of advertising space using our business system. Each NAPC franchise territory carries with it the right to establish and maintain one Natural Awakenings magazine business in a single language. As a Natural Awakenings franchisee, you will have the right to use the “Natural Awakenings” service/trademark and other symbols used in the operation of a Natural Awakenings business (the “Marks”), within a protected, exclusive area (“Territory”), selling advertising space in your Natural Awakenings magazine to companies desiring to advertise their goods and services to our targeted readership. You will be competing with other types of natural lifestyle magazines that sell advertising to businesses of the same nature.

Initial Fees

When you sign the Franchise Agreement, you will pay NAPC, in cash or other form of payment acceptable to NAPC, an initial fee of $49,500 for the right to establish and operate one Natural Awakenings Magazine in a Territory that consists of at least 300,000 in general population. The initial franchise fee includes the Natural Awakenings magazine business system training, use of Marks, complete initial training program, ongoing support and guidance in your magazine's production and proven sales and marketing materials to assist in the development of your magazine's business. The initial franchise fee also includes the essential business accounting software, sales aids and promotional materials, printed marketing materials, Editorial Archives, Cover Art Archives and all required business forms and rate sheets. You must submit your formal application and only if approved will you be offered a Natural Awakenings franchise. Once you sign the Franchise Agreement, you must pay the initial franchise fee. The initial franchise fee is due upon the signing of the Franchise Agreement, is fully earned by us and is entirely non-refundable in consideration of administrative and other expenses incurred by us in entering into the Franchise Agreement and for our lost or deferred opportunity to enter into the Franchise Agreement with others. The population of the Natural Awakenings franchise territories is determined by the data compiled from the United States Census Bureau.

Financing

We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligations.

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performances 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. We do not make any representations about your 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 Sharon Bruckman at 4933 Tamiami Trail North, #203, Naples, FL 34103 or [email protected], the Federal Trade Commission, and/or the appropriate state regulatory agencies.