Business Description

We are Tulip Kids, Inc. we are a corporation. We incorporated in California on July 21, 2010. Our principal address is 1159 Willow Ave, Sunnyvale, CA 94086. We have no parent company. We use the name "Tulip Kids". We refer to the person who buys the franchise as "you" or "your" in this Disclosure Document. If you are a business entity, "you" or "your" includes each shareholder, member, partner and/or other owner of that entity. Our agent for service of process in California is Deepti Mohta c/o Tulip Kids, Inc., 11159 Willow Ave, Sunnyvale, CA 94086.

Prior Experience

Tulip Kids, Inc. does operate a business of the type being franchised. It has operated a business similar to the franchise since it was formed in 2013. We began offering franchises in 2017. We have not offered franchises in any other business and we do not have business activities other than offering and running these franchises.

Business Offered

You will operate a business providing childcare, preschool or after-school enrichment programs or a combination depending on the location, to children ages 1 to 14 through childcare, preschool, afterschool programs, workshops, camps and special events (Franchised Unit). Tulip Kids, Inc. does operate a business of the type being franchised. It has operated a business similar to the franchise since it was formed in 2013. We began offering franchises in 2017. We have not offered franchises in any other business and we do not have business activities other than offering and running these franchises. There is an existing, still developing market for education, recreation and entertainment enhancement programs for children. Parents, elementary and primary schools, pre-schools, recreation facilities, summer camps, youth organizations, like scouting, and non-educational institutions for children have an interest and are potentially clients for your services. The business can be seasonal. Our founders have found that in certain areas the interest in our services tends to align with the public-school year, and thus to decline during summer and holidays. You will compete with other businesses that offer children's education and entertainment services, including other franchises, and with independently-owned companies that offer similar services, programs offered directly by schools and other potential customers, other forms of children's entertainment, such as camps, and birthday party entertainers and providers, and with other educational, cultural, recreational and leisure time options available for children, such as schools and programs offered at schools, museums, parks, cultural organizations, athletic programs and programs offered by community organizations. Your instructors will need to interact with children. For this reason, you must have proper criminal background checks on all instructors before appointing them to the business, as prescribed by state law. Some jurisdictions may restrict individuals from instructor positions, such as persons who have been convicted of certain types of offenses (narcotics, lewd conduct, sex crimes or violent acts of felony, as examples) or who have been found by a court of law to be insane. Some school districts require instructors to have immunizations and/or pass tests confirming the absence of infection, such as tuberculosis. Some schools require instructors to complete a course on proper conduct with relation to working with children We are not aware of other laws or regulations specific to operating a child's educational entertainment and enhancement business. You should consult your attorney and federal, state and local government agencies to determine all legal requirements you must comply with. In some places, local ordinances, may restrict or prohibit a home-based business or office. You must comply with federal, state and local laws that apply to operating any business, such as city business tax registration and zoning for the type of business you'll operate. You must also investigate registration, licensing and other requirements that apply to where your business is located.

Initial Fees

On singing the Franchise Agreement you must pay us an initial franchise fee. The initial fee for a business serving approximately 50 children, including pre-school and after care school, is about $30,000. Training for up to two people is included. If you require that additional people be trained, you will be required to pay us $500 per day of training for each such additional person to be trained. If we terminate the franchise due to you or your assigned employees or agents not completing our training program, or because you choose to operate from an office outside-the-home but do not present an office acceptable to us, we refund all but $20,000 of the initial fee. Otherwise, the initial franchise fee is deemed to be fully earned by us when paid and is not refundable. If you purchase an existing business from an affiliate of the Franchisor, the initial franchise fee will be waived, however there is a franchise transfer fee of about $30,000 for a business serving approximately 50 children, in addition to $250,000 to $500,000 for other costs, such as business assets, equipment and value of the established market of the business, as determined unilaterally by the Franchisor. There will be no refunds. We may finance your purchase of an existing business from us. (See Item 10)

Financing

The Franchisor will independently arrange for financing, including leases, and installment contracts that the franchisor or any of its agents or affiliates offers directly or indirectly to franchisee including: - the annual interest rate and finance charges - the number of payments - any penalties for default - any consideration that the franchisor receives from referring the franchisee to a lender We and our affiliates do not offer direct or indirect financing. We and our affiliates do not guarantee your note, lease or obligation.

Franchisee Revenue and Profit

Included in Item 21 of this Disclosure Document are the annual earnings of certain businesses owned and operated by us for the period from 2013 through 2016. A new franchisee's individual results may differ from the results. We do not suggest, guarantee or warrant that you will succeed in the operation of a franchise. How well you might do depends primarily on factors outside our control, including your general business ability, how hard and smart you work, your resources, how closely you follow our system, your location, competition, and how good a business person you are. Figures should not be considered as the actual or potential sales, income, gross or net profits that will be realized by any franchisee. We do not represent that any franchisee can expect to attain these, or any other specific levels of sales, income, gross or net profits. Actual results will vary from unit to unit, and we cannot estimate results of any franchise. General Cautions As a prospective Tulip Kids Franchisee, you should understand that past results are no assurance as to future results. Actual results will vary from franchisee to franchisee and no one (including us) can reliably estimate or project the results of operation of any franchised unit. You must not assume that by simply purchasing a Tulip Kids franchise you'll achieve the same results experienced in the past (or any other results). Before signing any binding documents or making any investment, you should make your own independent investigation regarding the possible purchase of a Tulip Kids Franchise We strongly urge you to speak with us and our current and past Franchisees regarding their experiences and you should also have an experienced legal, financial and/or business advisor, such as an attorney or accountant, preferably one with experience in franchising and/or the industry you're interested in. review this and all other documents. See Item 20 of our Disclosure Agreement and any related Schedules regarding the names, addresses and phone numbers of our current and past franchisees Purchasing a franchise grants you no guarantee of success in business ventures (including a Tulip Kids Franchise) always involves some risk of loss or failure and the purchase of a Tulip Kids Franchise is a speculative investment, with no guarantee of results. Some outlets have earned amount. There is no assurance you'll do as well. If you rely upon our figures, you must accept the risk of not doing as well. Some factors that can affect results (and may be reasons why your results may differ materially from those reported in this document) include the location or market in which a Tulip Kids Franchise operates, the number of schools and children between the ages of 3 and 12 that are in your Territory, product or service mix, labor and other costs, as well as existing and potential competition In addition, your background, skills and qualifications may be different from those of our existing Franchisees. You should consider all of these (and other) factors and decide if the units whose results are reported are comparable to the Tulip Kids Franchise that may be operated by you. Success in most businesses (including franchised ones) depends, a large part, on your personal efforts and your marketing, operational, financial, administration and other skills, your active participation in the daily affairs of the business and compliance with the methods of operation proscribed by, and, perhaps most importantly, your willingness to work hard. Other than the financial performance representation, Tulip Kids Group Inc. does not make any financial performance representations. We 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 franchisor's management. Additional language required by the State of California is contained in the California Addendum in Schedule A of this Disclosure Document.