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Business Description

To simplify the language in this Disclosure Document, “we,” “STEM FOR KIDS,” or “us” means SFK FRANCHISING INC. “You” means the person or company that buys the franchise, including, if any, such company's owners, partners, members, controlling shareholders, and guarantors. We are a North Carolina company, organized under the name “SFK FRANCHISING INC.” Oh November 25, 2013. Our principal business address is 112 Pheasant Wood Court, Suite C, Morrisville, NC 27560. Exhibit E lists our agents for service of process.;

Prior Experience

Our sole business since inception is selling STEM FOR KIDS® franchises and providing training and other services to STEM FOR KIDS Franchisees. On November 30, 2013, through a licehsihg agreement between STEM FOR KIDS, LLC and^ SFK FRANCHrSlNG, INC., we were granted the worldwide franchise develdprhent rights and use of all trademarks, intellectual property, and de$ighs to operate franchised STEM FOR KIDS locations. We do business and intend to do business under the names StEIVl FOR KlDS and SKF FRANCHISING INC. We operate no businesses of the type being franchised. We have no parent and one affiliate. Our affiliate, STEM FOR KIDS, LLC, was formed on November 16, 2011 and is located at our headquarters. Our affiliate has operated an educational business since January 2012 at its Raleigh location (currently at 7610 Falls of Neuse Rd Suite 120, Raleigh 27615 North Carolina). STEM FOR KIDS, LLC operates 4 additional locations in North Carolina. STEM FOR KIDS, LLC is owned by our President, Moni Singh. SFK FRANCHISING INC., as might any Franchisee, sometimes exchanges merchandise or services with other Franchisees. STEM FOR KIDS, LLC shares certain employees with us. Our affiliate does not offer franchises for this or any other type of business

Business Offered

As a STEM FOR KIDS® Franchisee, you will own and operate an educational business that provides educational activities, namely, classes, camps, workshops, conferences and prograrns in the fields of math, science, technology and engineering using specified business formats, methods, procedures, designs, layouts, standards and specifications. Items and products that we may designate or approve from time to time (“Programs”). Our franchisees will provide Programs to customers at one or more sites located and secured by you. You are allowed to operate Programs in various locations including schools, community centers, park and recreation centers, and Other locations designated by the customer. Our franchises are characterized by a unique system that inciudes: copyrighted programs and material, standards, specifications and teaching methods, for our Programs. Program materials, equipment, and supplies, which may include using course: materials, supplies and equipment that are designed and prepared according to our proprietary standards (together “Proprietary Materials”); Qur techniques for marketing and scheduling Programs, standards and specifications for educational and teaching materials and other related marketing material and products for sale to customers along with our techniques for identifying, recruiting and retaining qualified employees and instructors and distinct marketing materials and supplies. We may change from time to time our material and documents. The typical Programs franchise is operated in leased or no-charge space (freestanding or otherwise) located in the churches, schools, day cares, Cpmmerciai; areas or other locations convenient for learning. The Franchise is a portable business model and does not require a store-front. We also may offer an area development agreement (the “Area Development Agreement”) (included as Exhibit G to this Disclosure Document) to qualified corporations and persons (an “Area Developer”), which grants the right to establish and operate a STEM for Kids Business in a specified number of Territories (the “Development.Area”), Area Developers must open each STEM for Kids Business following the Development Schedule set forth in Exhibit B to the Area Development Agreement The Area Developer must exercise the development rights by executihg a Franchise Agreement for the establishment and operation of a STEM FQR KIDS® business. You must sign our then-current form of Franchise Agreement. If you do not comply with a deadline under the Development Schedule, you will be in default under the Area Development Agreement. If you fail to come into compliance by a new deadlirte we will establish and/or upon the occurrence of a second missed deadline, we may terminate yoUr Area Development, Agreement.

Initial Fees

The current initial franchise fee for the Franchise is $12,500 for a single Territory (as described in ITEM 12). We currently offer the following incentives: a. You may purchase additional territories at the same time as you sign the Franchise Agreement (“Add-On Territory or Add-On Territories”) and pay the Initial Franchise Fee as follows: L For second to fifth territories, pay a fee of $7,000 for each additional territory. ii. For sixth territory and more, pay $6,000 for each additional territory. b. We proudly support those who have served in the United States Armed Forces. We offer a: franchise fee discount of 12% for all honorably discharged veterans who enter into a Franchise Agreement with us for locations in the United States. c. To inspire next generation of leaders to take an active role in STEM education, we offer a franchise fee discount of 5% for college graduates who have successfully completed a bachelor degree within the last 2 years for locations in the United States. For recent college graduates, a net worth of at least $125,000 will be required for a potential franchisee or a guarantor of the franchisee to qualify under our system for locations ip the United States. d. To encourage educators to become our franchisees, we offer a franchise fee discount of 5% to qualifying (must have taught in grades K - 12 for at least 2 years) current teachers and former teachers for locations in the United States. • TO encourage our existing franchisees in good standing to grow their franchise business, we offer a 20% discount in franchise.fees when they enter into an additional single unit Franchise Agreement with us. To qualify,, franchisees must be in good standing and in operation for at least one year.

Financing

At this time, neither we nor our affiliate offer direct or indirect financing. We do not guarantee any note, lease, or obligation While we do not provide direct or indirect financing, your obligations to us under the Franchise Agreement are secured by a Security Agreement found in Exhibit A, Attachment 3. (Exhibit A, Attachment 3; fifth paragraph). You will be required to sign a Security Agreement giving us a security interest in some of your business, including your franchise agreement. (Exhibit A, Attachment 3,1(a).) We will be able to exercise our rights under the Security Agreement in order to secure your performance under the Franchise Agreement. (Exhibit A, 1(b)(i).) Any breach of the terms of the Franchise Agreement would jUstily us to take title to any property secured by the Security Agreement. (Exhibit A, Attachment 3, 11.)

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 inforrtiation is included in the disclosure document. Finanejal performance information that differs from that included in Item 19 may be given only if:, (t) a franchisor provides: the actual records of existing Programs you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing ipforniation 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 authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, we mayy provide you with the actual records of that outlet. If you receive any Other financial performance information or projeotiOns of your future income, you should report it to the franchisor's management by contacting the Franchise Administration Department, 112 Pheasant Wood Court, Suite C, Morrisville, NC 27560, (666) 991 7053, the Federal Trade; commission, amid the appropriate state regulatory agencies