Business Description

We are the subfranchisor for the Yi Fang Taiwan Fruit Tea system in South California Area. Our principal business address is 18495 Colima Rd., Rowland Heights, California 91748. Our franchisor is Inkism International Co., LLC (“Inkism-USA”), a California limited liability company that does business as Yi Fang Taiwan Fruit Tea. Inkism-USA's principle business address is 19925 Stevens Creek Boulevard, Suite 100, Cupertino, CA 95014. The parent entity of our franchisor is Inkism International Co., Ltd. (“Inkism-Taiwan”), a Taiwan limited company (formerly named “DanYe International Co., Ltd.”) that does business as Yi Fang Taiwan Fruit Tea. Inkism-Taiwan's principal business address is Number 16, Lane 376, Xiang Yang Road, Fongyuan District, Taichung City, Taiwan. Inkism-Taiwan (and in the future one or more affiliated companies) provides us with the proprietary food ingredients and other products necessary to prepare Yi Fang Taiwan Fruit Tea beverages and other menu items. You must purchase propriety food ingredients from us exclusively. Otherwise, we are not controlled by, controlling, or under common control with any other entity that that provides goods or services to our franchisees or that offers franchises in any line of business.

Prior Experience

In 2006, franchisor's founder began preparing and selling fresh tea and Taiwanese fruits through a food cart in Fongyuan, Taichung. In 2009, franchisor's parent entity Inkism-Taiwan's predecessor, DanYe International Co., Ltd., was formed as an entity to begin franchising fresh tea and Taiwanese fruit to Taiwanese outlets. By 2010, outlets expanded into the Asian markets and by 2013, the number of global stores reached 100. In 2014, DanYe International Co., Ltd. became Inkism- Taiwan. In 2016, Inkism-Taiwan began offering Yi Fang Taiwan Fruit Tea franchises in Asia. As of 2017, there are 100 Yi Fang Taiwan Fruit Tea stores in Taiwan and over 300 stores in China. Yi FangTaiwan FruitTea was inspired by three generations of pineapple farmers and our brand was named after our founder's great-grandmother, Yi Fang. Yi Fang utilized a technique to braise overripe pineapples using a secret formula to create fruit jam. Our most popular fruit tea, the “Yi Fang Taiwan Fruit Tea”is based on Yi Fang's secret recipe. To reproduce the traditional and classic taste of Yi Fang Taiwan Fruit Teas, all the proprietary fruit and tea ingredientsthat make up Yi Fang Taiwan Fruit Tea Products come from, and are made in Taiwan, where the climate is exceptionally good for the ingredients. Currently, franchisor's parent company, Inkism-Taiwan, directly or through licensees, owns and operates 1,236 retail tea stores outside the United States (983 in the People's Republic of China, 177 in Taiwan, 25 in Hong Kong, 5 in Macao, 6 in Australia, 3 in Japan, 6 in the Philippines, 13 in Vietnam, 5 in the United Kingdom, in the Singapore, and 12 in Canada). Franchisor does not operate businesses of the type being franchised by itself, instead, Franchisor expands its business in the United States by licensing to local subfranchisor(s) in order to promote its drink and beverage business. We are the subfranchisor of Inkism-USA in the Great South California Area, and we are planning to have Subfranchisees in the area to promote the business. We have no affiliates that offer franchises in any line of business. However, we will provide you with products and services relating to the offering of drinks and beverages of Yi Fang Taiwan Fruit Tea.

Business Offered

The Yi Fang Taiwan Fruit Tea franchise is a license to independently own and operate a single retail store (“Outlet”), that sells items to retail customers from a focused menu featuring our proprietary tea beverage, the “Yi Fang Taiwan Fruit Tea”, as well as a variety of other teas and juice drinks using teas, milk teas and juices, tapioca balls, recipe and preparation techniques, freshly prepared and available for carry-out or consumption at the Outlet (collectively, “Yi Fang Taiwan Fruit Tea Products”), and related products and accessories to retail customers using designated recipes, authorized equipment and techniques. If you want to and are financially and operationally qualified in our judgment to do so, you and us may enter into an Franchise Agreement (“FA”), under which you will be granted the opportunity to independently own and operate an Outlet. The form of FA is attached as Exhibit A of this disclosure document.

Initial Fees

The Initial Unit Franchise Fee for a single Outlet is $30,000. The Initial Franchise Fee is due and payable in full, by cashier's check or money order or wire transfer to our bank account when Franchisee signs the Franchise Agreement. The Initial Franchise Fee and Territory Surcharge (if applicable) are fully earned by us when paid and are not refundable. When we have reviewed and consented to the site where your Outlet will be opened, you must also pay us a “Design Fee” for our direct services in designing the Outlet as a Yi Fang Taiwan Fruit Tea retail store. Nevertheless, if you decide not to use our service in designing the Outlet, you do not need to pay us the Design Fee. The Design Fee is $3.3 per square foot. The amount of the Design Fee is indicated in Exhibit 1 of the FranchiseAgreement. The estimated range of total design fee ranges from $1,000 to $4,000. The Design Fee under a Franchise Agreement are fully earned by us when paid and are not refundable. When you sign the Franchise Agreement, you must pay us a $10,000 security deposit. If you default in performing any requirement of the Franchise Agreement or any other agreement between you and us, or any of our affiliates, we may use the security deposit, or any portion of it, to cure the default or to compensate us or our affiliates for all damages or expenses we incur because of your default, including damages we suffer because of your purchase of unapproved materials or your use of poor quality raw material in preparing and serving Yi Fang Taiwan Fruit Tea Products. We may also use the security deposit to pay any late charges, interest, penalties, and fees and any costs and charges due us for performing obligations that you do not perform, and which we are entitled to perform for you. If monies are owed, or become due, to us on or after termination or expiration of the Franchise Agreement for any reason, we may use all or any part of the security deposit topay those sums. If we use any part of the security deposit before the end of the term of the Franchise Agreement, you will have to restore the balance of the security deposit to $10,000. If you are not in default in performance under the Franchise Agreement or any other agreement with us or any of our affiliates on the date the Franchise Agreement expires or is terminated for any other reason, we will return to you within 30 days after the expiration or effective date of termination of the Franchise Agreement the remaining balance of the security deposit. The Design Fee under a Franchise Agreement are fully earned by us when paid and are not refundable. There are no other initial fees or payments for services or goods received from us or our affiliates before your Outlet opens.

Financing

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

Franchisee Revenue and Profit

We do not make any representation 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 your future income, you should report it to the subfranchisor's management by contacting our President and Chief Executive Officer, Kan Ping Wen, All Win II Inc., 18495 Colima Rd., Rowland Heights, California 91748, telephone (626) 365-8341; the Federal Trade Commission; and the appropriate state regulatory agencies.