Business Description

We have no parent or predecessors. We are a California corporation formed on March 11, 2019. Our principal business address is 6930 Beach Blvd. Unit LI30, Buena Park, CA 90621. We do business under our corporate name “Pelicana F&B” and our brand name “Pelicana.” We do not do business under any other name. We have not offered franchises for any other line of business. This is our first offering of franchises.

Prior Experience

We are a franchising company which promotes and sells franchises for the operation of Pelicana Restaurants. We have not offered franchises and have not conducted business in any other line of business. We are a master franchisee of Pelicana Co., Ltd., a South Korea corporation (“Master Franchisor”) for the west coast region of the United States. The Master Franchisor has granted to us the right to operate, and sub-license to franchisees, the Pelicana business format and system (the “System”) relating to the establishment and operation of Pelicana Restaurants. Master Franchisor has another master franchisee for the east coast region of the United States, Pelicana USA, Inc., a New York corporation formed November 5, 2013. Our affiliate, JH Corporation, a California corporation formed March 23, 2011, is the approved supplier for certain sauces, spices and other items that you must purchase for your Franchised Restaurant. JH Corporation has never owned or operated a business of the type being franchised. JH Corporation has never offered or intends to offer any franchises, nor has it offered franchises in any other line of business. Our Master Franchisor and Pelicana USA, Inc. own the Proprietary Marks (as described below) and, as indicated above, has licensed them to us so that we may sublicense them to our franchisees. See Item 13 for additional details.

Business Offered

We are in the business of selling franchises for a Korean style fried chicken restaurant operating under the name of “PELICANA” and other related trademarks, service marks, logos and commercial symbols (collectively, the “Marks”). A Pelicana Restaurant (“Restaurant”) specializes in the preparation and sale of Korean style fried chicken and side menu items and related products and services, located at locations approved by us, such as in strip shopping centers, shopping malls, and free-standing units.

Initial Fees

A. Franchise Fee The initial franchisee fee for a single Franchised Business is $30,000 (“Initial Franchise Fee”) payable at the time you sign the Franchise Agreement (see Exhibit C). The Initial Franchise Fee must be paid in a lump sum when you sign the Franchise Agreement and is non-refundable, except as provided herein. The Initial Franchise Fee is payable by all franchisees who buy a Pelicana franchise. We use the Initial Franchise Fee to cover the costs of evaluating your proposed site, training you and your employees, administrative overhead, enforcement and protection of our Marks and the System, and helping you to develop and open your Pelicana Restaurant. We may offer to waive the Franchise Fee or reduce it under certain circumstances. We also may offer to waive or reduce the Franchise Fee, for the following reasons: (i) as an inducement for existing franchisees to open additional Restaurants, (ii) as an inducement for someone to take over an operating franchised Restaurant; (iii) as an inducement for a professional multi-unit franchisee to open several Restaurants; or (iv) to allow a franchisee to have additional money to spend on store development, improvements and/or marketing during the first 12 months of operation. We will make the decision on the amount of any waiver or reduction on an individual basis depending on the condition of the premises, the need for upgrades and remodeling, the need for special incentives and/or other considerations. In certain rare circumstances, we may permit installment payments ofthe Initial Franchise Fee on terms negotiated with the franchisee, but which terms shall be no more than one year in duration and be interest-free. Upon request by potential franchisees, we will keep open our records with respect to the reduced fees for inspection. Except as provided above or in this Disclosure Document, we will not refund any part of the Initial Franchise Fee paid under the Franchise Agreement. B. Application Process: You must complete a comprehensive franchise application. We ask for preliminary financial and biographic information, which you are required to furnish accurately and completely. We evaluate your application and decide if more discussion with you may be productive. We will provide you with a copy of this Disclosure Document at least 14 days before you sign the Franchise Agreement or pay the Initial Franchise Fee. We have no obligation to sell you a Pelicana franchise, and may refuse to sell you a Pelicana franchise or withdraw our acceptance of your application any time before you sign the Franchise Agreement and pay the Initial Franchise Fee.

Financing

We do not provide, directly or indirectly, any financing to you. We are unable to estimate whether you will be able to obtain financing for any or all of your investment and, if so, the terms of financing. We do not guarantee your notes, leases or other obligations.

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, affiliate-owned or franchised Pelicana Restaurants. We do not authorize our employees or representatives to make any such representations either orally or in writing. But if you are purchasing an existing Pelicana Restaurant from us or an affiliate of ours, we may provide you the actual records of that Pelicana Restaurant. If you receive any other financial performance information or projections of your future income, you should report it to our management by contacting Ms. Fun Joo Cho, CEO of Pelicana F&B Management, Inc., 6930 Beach Blvd. Unit L130, Buena Park, CA 90621, (213) 598-4070, the Federal Trade Commission, and the appropriate state regulatory agencies.