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Business Description

To simplify the language in this Disclosure Document, “We”, “Us” or “Our” refers to YCA Franchising, Inc., the Franchisor. “You” means the person who buys the franchise. If you are a corporation or partnership, then “You” includes the owners of the franchise. We are a Texas corporation that was incorporated on April 25, 2014. We maintain our principal place of business at 7728 Central Park Drive, Waco, TX 76712. We do not have any parent companies. We do business under our corporate name and under the trade names Young Chefs® and Young Chefs Academy. We do not engage in any other business activity. Our agents for service of process are listed on Attachment C.

Prior Experience

Our predecessor is Young Chefs International LP, a Texas limited partnership formed in February 2005 (“YCILP”). YCILP offered Young Chefs Academy franchises from April 2005 until 2010. YCILP has a current principal place of business at 7728 Central Park Drive, Waco, TX 76712. YCILP does not currently own any Young Chefs Academy franchises and is not a franchisor for any existing Young Chefs Academy franchises. YCILP no longer offers franchises for this business or in any other lines of business and has not offered or sold any franchises since 2010. JKRC, LLC, a Texas limited liability company formed in March 2015, is our affiliate. The principal business address for JKRC, LLC is 7728 Central Park Drive, Waco, TX 76712. Since March 2015, JKRC, LLC has and will sometimes own and operate Young Chefs Academy franchises and may subsequently sell them. JKRC, LLC does not and has never offered any franchises in any lines of business

Business Offered

We offer Young Chefs Academy franchises that provide cooking classes for children. While teaching children is the main focus, a Young Chefs Academy franchise will occasionally offer classes for special needs adults, adult team building cooking events, and cooking classes for adults. We do not engage in any other business activity. We began offering Young Chefs Academy franchises in May 2014. We currently do not operate a business of the type being franchised. We have not engaged in any other line of business and we do not offer or sell franchises in other lines of business. You must operate your Young Chefs Academy franchise according to our standards and specifications at a location within a territory specified in the Franchise Agreement. You must sign our standard Franchise Agreement and attachments. You will compete with local, regional or national independent cooking schools that may provide similar services. You will offer your services in a developed market. Before signing a Franchise Agreement, you should survey your market to determine the number and quality of competitors. There are no specific national standards regulating cooking schools for children or the Young Chefs Academy franchised business. You must comply with all federal, state and local laws and regulations that apply to the operation of any business, laws that regulate commerce in general, laws that are specific to the operation of food-related businesses and laws that apply to businesses involving children. Types of applicable law include federal, state and local laws regulating health and sanitation; immigration laws; tax laws; unemployment and workers' compensation laws; workplace safety laws; employment and discrimination laws; disability laws; environmental laws; product labeling laws; building codes, zoning codes and the Americans With Disabilities Act in relation to your premises. Some jurisdictions may require compliance with certain restaurant licensing and zoning statutes or a vendor's license to operate the franchised business. You must conduct background checks on any employee that will be in direct contact with children and comply with the Fair Credit Reporting Act in connection with background checks. We require at least 1 person on the premises who is certified to administer CPR and first aid in case of an emergency when children are present. We urge you to consult with a local attorney or otherwise investigate state and local laws and regulations as these vary by locality.

Initial Fees

You must pay all initial franchise fees upon our completion of our initial pre-opening obligations (your completion of our Initial Training Program). You must pay us our standard $39,900 initial franchise fee for your first franchise for a territory of approximately 200,000 to 275,000 population. We use the latest data provided by the U.S. Census Bureau for acquiring the population of an area. We may use other sources if necessary in determining a more accurate population for a specific designated territory. As of the date of this Disclosure Document, if you already have one Young Chefs Academy franchise, then you may purchase a second Young Chefs Academy franchise for an initial franchise fee in the amount of $29,900 if we approve you for a second franchise. If you already have two Young Chefs Academy franchises, then you may purchase any additional Young Chefs Academy franchises for an initial franchise fee in the amount of $19,900 each if we approve you for additional franchises. We offer a $5,000 reduction from the initial franchise fee to qualifying veterans. The initial franchise fee is fully earned when the franchise agreement is signed. The initial franchise fee is not refundable in whole or in part under any circumstances. For new franchises, we will provide initial training and training materials for up to 2 trainees at no extra charge to you. If you send more than 2 people to initial training, then you must pay us a non-refundable $300 training fee for each additional person. If you purchase an existing franchise (and we are paid a transfer fee instead of an initial franchise fee), then you must pay us a non-refundable $2,000 training fee. Training fees are uniform and non-refundable. You must also pay for all of your trainees' travel, meal and lodging expenses.

Financing

We do not provide financing for the initial franchise you purchase from us. We may approve financing beyond your initial franchise you purchase from us. You must be in good standing in the operation of all franchises you have with us in order to purchase additional franchises. If we approve financing, then we will finance up to 50% of the initial franchise fee for a period not to exceed 24 months at an interest rate of whichever is less between 7% per annum or the highest rate allowed by law. Note payments must be made by electronic funds transfer or as we require. We require a security interest usually secured by the franchise rights, appliances, any real estate, stocks and bonds, or other collateral as we deem appropriate. In our note, security agreement and guaranty, you must waive your rights to certain notices of a collection action whereby We can immediately seek payment of outstanding balances if you default on the note or any franchise agreement you have with us, but you do not waive any defenses in any note, security agreement or guaranty. If you are a corporation, your principal shareholders must personally guarantee the debt. You may prepay the note at any time without penalty. If you default, then we can accelerate the payments on the note calling the full amount of the note due. If we call the Note, then the remaining principal and any accrued, unpaid interest will become due and payable to us. If you do not pay the entire balance, then you may be responsible for court costs and attorneys' fees we incur in collecting the debt. We may terminate your franchise if you do not pay us. We have not nor do we intend to sell, assign or discount to a third party any part of our financing arrangements with you or our franchisees. We do not receive any payments from any person for the placement of financing with such person. We do not guarantee any notes, leases or obligations. An example of our note is attached as Exhibit F.

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