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Business Description

We do business under our corporate name, Good Servant, Inc, the name “Reading Town”, “Reading Town Education Center”, “Readmg Town Academy”, and the words “Read, Think, and Present”, “Reading Kids, Leading Kids”, “Readmg the World, Leading the World”, “You are what you read” and brand names such as Tae Leammg, Leading Kids, Encore, Ivy Rule, English Miracle, Math 6 Month, Wnting 6 Month and RT Prep We do not do business under'any other names Our principal business address is 44-07 Little Neck Parkway, Little Neck, N Y 11363 We have no agent for service in the State of California

Prior Experience

We do not have any predecessors We had operated a tutonng business since 1986, starting m Flushing, New York under the name of Good Servant Learning Center After we had operated ten years, we formed Lord Servant, Inc , doing busmess as Reading Town, and changed the name of Good Servant Learning Center to Reading Town We established Good Servant, Inc in 2001., and began to standardize systems, and cumculum to share with other prospective franchisees Then, some Korean educators visited the Reading Town campus m Flushing, New York, and we agreed to start Reading Town businesses first in Korea In 2002, we established Reading World Inc in Korea, and opened four Reading Town centers We registered Reading World, Inc as a franchisor m Korea m 2004 We have offered franchise of Reading Town for five years starting m 2010 m the U S, and we have not offered franchises in any other line of business in the U S

Business Offered

Under the franchise we offer, you will operate a business that offers tutonng and learning center services in reading, writing, math, and speech In addition, you will conduct diagnostic assessments and provide academic counseling to parents as well as to students You will provide these services to students from K to 12*^ grades, operating under the marks and using the System of Reading Town The market for your services is pnmarily students from K to 12''' grades and specifically that segment that seeks academic tutoring in reading, writing, math, and speech You will compete with other national, regional and local tutoring or learning centers, generally in well-developed markets Your Licensed Business may operate in close proximity to major competitors Some competitors will offer many goods and services that are the same as or similar to those you offer We have three corporate-owned centers and eighteen franchisee centers

Initial Fees

There are two types of temtones in Reading Town Temtory A and Temtory B The Initial Franchise Fee is $35,000 for Territory A and $25,000 for Territory B Territory A has more than 5,000 school-age children (5-17 years old), and Territory B has less than 5,000 school-age children (5-17 years old) All figures are based on data from latest U S Census Bureau Each Territory is delineated by geographical or political boundanes, streets or an area within a specified radius from an identified point Your license permits you to operate one Reading Town within your Temtory Regarding the details of territory specification

Financing

We do not offer financing for any purpose as of now However, if We would establish relationships with sourees of financing, We would make such information available to You Financing availability and qualification requirements would probably change and vary widely We do not guarantee any of Your notes, leases or other obligations If We make financing available to You, We would expect to make a profit from the financing We do not require You to obtain financing from Us We do not have any arrangements where We receive compensation for assisting You in obtaining financing If We make such an arrangement. We will disclose the arrangement(s) to any franchisee(s) to whom We make it available We do not intend to sell, assign or diseount to a third party any note(s), contract(s) or other obligation(s) You have signed However, the Agreement places no restriction upon Our right to transfer, assign or discount any such instruments, the Agreement, any other agreements, or the System

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 if (1) a franchisor provides the actual records of an existing outlet you are considenng 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 a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets We also do not authonze our employees or representatives to make any such representations either orally or in wntmg 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 mformation or projections of your future income, you should report it to the franchisor's management by contacting Readmg Town, 44-07 Little Neck Parkway, Little Neck, NY 11363 Phone 718) 229-6400, the Federal Trade Commission, and the appropriate state regulatory agencies