Business Description

Under the franchise we offer, you will develop, own operate and/or subfranchise a minimum of 21 tea shops per country called Presotea, Which offers fresh brewed made to order tea beverages using an espresso type machine with seasonal fresh fruits and ingredients, (hereafter referred to: as “Presotea Shops") herein. If you are not subfranchiSing you will sign an Area Franchise Agreement (sometimes referred to as Franchise Agreement); If you are Subfranchising you will be signing a Master Franchise Agreement. Your Presotea Area Franchise may be Sometimes referred to as “your Business”, or “your Franchise”. The presotea brand and concept was originally created in Taiwan in 12006 by our affiliate Presotea Co., Ltd, which has its principal business address in Taiwan located at: No.3 Fuxing 3t,, Tucheng Dist:, New Taipei City 236, Taiwan (R.O.C.), referred to in this document as Presotea Taiwan.; We were formed in Delaware, oh August 24, 2018 as the United States Master Franchisor entity for the Presotea brand and concept. As of the date of this diseloaure, we have no principal business address in the United States, and have a mailing address at 1209 Orange Street, Wilmington, DeIaware 10801.

Prior Experience

The Presotea brand has been a deep rooted tea drink market based in Taiwan, with more than 400 franchise Stores located in 10 countries, including Taiwan, China (including Hong Kong), Indonesia, Australia, Canada, United Kingdom, Vietnam, Malaysia, Philippines and Korea. We do not have any predecessors. We have no other affiliates. We and our affiliates conduct business under the name.Presotea and do not do business under any other name. We do not offer franchises in any other lines of business. We do not own any Other franchises or any other businesses, apart from Presotea stores. We began offering franehises in the United States, as of the effective date of this disclosure document and state effective dates. There are no Presotea franchises in the Unites States as of the date of this disclosure document. This is our first offering of franchises in ahy line of business. Our agents for Service of process are disclosed in Exhibit E. You must order equipment, inventory, computer systems, software, branded items, and food ingredients through approved vendors. We or our affiliate, Presotea Taiwan, are the only authorized vendor for the branded items.

Business Offered

You may not sell any items for your Presotea Shop through any internet means, or an online ordering. You will operate in accordanGe with the guidelines, standards, specifications, menus, recipes, formulations, trade names, trademarks, logos, color schemes, and decor, and branded items w.e make available to you or othenwise advise you through initial training, the operations manual, marketing materials and related items, along with periodic updates, and industry information, all hereafter referred to as our proprietary “System.” You will be authorized to develop and operate each Presotea Shop only at an approved location within your protected territory. Subject to our prior approval, you rhay be permitted to provide event catering, food truck or kiosk services. We are not required to give this approval in our sole discretion. The market for your products is the general public. The tea beverage service industry is highly competitive. You will compete with other national, regional and local businesses that offer tea beverages and made to order juices and beverages in general as a main part of their business, as well as potehtially Other Presotea Shops ovyned by other Presotea Area Development franchisees. Your Presotea Shops and most competitors will generally be located near residential and light cornmercial areas. Your Presotea Shops may operate in close proximity to competitors who may offer tea drinks and related products similar to those you offer.

Initial Fees

You are required to pay us or our affiliate Presotea Taiwan the following amounts before you Open your first Presotea shop; $20,000 training fee; $55,000 required equipment; $18,000 required branding items, and $50,000 Opening inventory of supplies and food. The Area Franchise Fee commitment is $200,000 to open a minimum of 21 Presotea Shops per county in the Territory in 6 years from the date of the Area Franchise Agreement and/Or Master Franchise Agreement, payable as follows: Except as listed above, there is no other initial fee due when the Area Franchise Agreement is signed and for your 1st Presotea Shop. A $10,000 fee is due upon opening of each of the 2nd through 21st Presotea Shops opened pursuant to the Area Franchise Agreement or subfranchised pursuant to the Master Franchise Agreement. There is no further Area Franchise fee for any additional Presotea $hops opened, beyond 21 Presotea Shops opened per countY in your pTotected Territory. If after 6 years from the date Of the Franchise Agreement and/Or the Master Franchise Agreement there have not been a minimum of'21 Presotea Shops opened per county in the Territory, the entire tDalanee of the unpaid Area, Franehise fee will then be due.

Financing

We do not offer financing for any purpose but reserve the right to do so.

Franchisee Revenue and Profit

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, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of ycur future income, you should report it to the franchisor's management by contacting, CHANG, CHIA-HUA, No.3, Fuxing St, Tucheng Dist, New Taipei City 236, Taiwan: (R.O.G,), email: [email protected], and the Federal Trade Commission, and the appropriate state regulatory agenCies.