Business Description

We are Galardi Group Franchise Corp We incorporated in August 9, 1982 To simplify language in this disclosure document, "we," "us," or "our" means Galardi Group Franchise Corporation, and may include one or more of our affiliates "You," or "your" means the franchisee or person or entity (corporation, partnership, LLC or other legal entity and its owners, officers and directors) that buys the franchise Some affiliate entities control or are under common control with us Our parent (majority owner) is Galardi Group, Inc. ("GGI"), incorporated in 1964 Galardi Group Franchising & Leasing, Inc. ("GGFLI"), formed in 1998, owns certain operating assets related to our business and may lease restaurant equipment to you Galardi Group Franchise & Leasing, LLC ("GGFLL") is a limited liability company, formed in 2002 GGFLL conducts restaurant related business after the sale of the franchise to you, and thus may provide services to you Galardi Group Realty Corp ("GGRC") incorporated in 1986, may lease or sublease real property to you We don't have a predecessor in the sense of someone who we acquired most of our assets from. We, our parent and our affiliates are all formed in California, and are all located at 7700 Irvine Center Drive #550, Irvine, California 92618 The phone number is 949-892-2699 See Exhibit Y for our agents for service of process and regulatory agencies We franchise quick service restaurants, called Wienerschnitzel. Your Wienerschnitzel restaurant will feature burgers, hot dogs, fries, drinks and related menu items We may allow, or require, you to offer Tastee-Freez@ deserts We or our parent and affiliates operated Wienerschnitzel restaurants since 1964 and offered franchises since 1965 We do not currently own or operate any Wienerschnitzel restaurants

Prior Experience

Since 1982 we or affiliates offered franchises for Original -Hamburger Stand restaurants, offering limited menus of burgers, fries and soft drinks There are currently 14 Original Hamburger Stand franchises Since 2003, our affiliate Tastee-Freez, LLC offered franchises for Tastee-Freez restaurants selling deserts, or deserts and foods Tastee-Freez started in the 1950s A predecessor offered Tastee-Freez franchises since at least 1982. Tastee-Freez, LLC currently has 43 39 franchises Together with their sub franchisees, and Wienerschnitzel locations that offer Tastee-Freez, about 315 locations offer Tastee-Freez products.

Business Offered

We offer two types of franchises full franchise (also including a business and facility full franchise) or limited franchise In a Full Franchise you obtain and build-out premises, obtain equipment, hire staff and do everything to develop and operate your restaurant In a Business and Facility Full Franchise you lease the location, furniture, fixtures and equipment from our affiliate For a Full Franchise or Business & Facility Full Franchise, payments to us or our affiliate will total in the range of $19,50016,000-$21,500($35,500-$37,500 after April 19,2014) for your first franchise, or a total in the range of $13,50010,000 - $15,500 ($23,500- $25,500 after April 19, 2014) for an additional franchise A Limited Franchise is pursuant to our Operator Agreement It is a month-to-month term, in which ether you or we can end the term on one month's notice You lease the location, furniture, fixtures and equipment from GGFL or GGRC Sometimes we sell as a franchise an operating Wienerschnitzel Restaurant Any of these could be non-traditional, meaning its location is an in-line storefront, kiosk, convenience store, gas station, department store or something else other than a usual free-standing location The terms of all offers are generally the same, unless otherwise noted The market for quick service restaurants and the foods we offer is well-developed Your customers will be all types of consumers who want a good meal served quickly at a reasonable price You will compete with restaurants and quick service restaurants including franchises, chains and Individually-owned restaurants, and other meal options, Ike food trucks, dining at home and grocery store dell counters You must comply with laws on operating a restaurant, health, safety and sanitation laws, which also Include health department inspections, smoking restrictions, posting public notices of health hazards, fire safety and emergency preparedness, rules on use, storage and disposal of waste, Insecticides and other hazardous materials, environmental laws (like laws on recycling and regulating use of certain containers and materials that may harm the environment) and food labeling laws You must comply with the Hazard Analysis and Critical Control Point, or HACCP food safety program adopted by the U S Food & Drug Administration Laws in some states require you to employ a person who is certified in food safety A new trend in laws requires posting and disclosure of nutrition information The federal Health Care Reform Bills that became law in 2010 require disclosure of nutrition and calorie information in chains of more than 20 restaurants As an employer, you must comply with laws on minimum wages, overtime, maximum working hours, working conditions, unlawful discrimination, and restricting employment of children

Initial Fees

You sign a franchise agreement with us, and lease the location, furniture, fixtures and equipment from our affiliate (GGI, GGFLI or GGRC). The initial franchise fee is $32,000. For a non-traditional location like an in-line storefront, kiosk, convenience store, gas station, or inside a department store, the initial franchise fee is $10,000. Fora second or subsequent franchise agreement you enter into with us, the initial franchise fees are reduced by 50% (thus, $16,000, or for a nontraditional location, $5,000). For renewal the initial franchise fee is $1,600 for each year of the renewal term under the Franchise Agreement. You pay the total in a lump sum on signing the franchise agreement. It is non-refundable. You also pay us a security deposit, approximately $5,000, and first month's rent, approximately $900, for the equipment lease. The security deposit is refundable at the end of the lease. The initial franchise fee is not refundable. However, if you diligently identified and proposed locations to us but after a year from signing the Franchise Agreement we did not find any of them to be acceptable, and we did not identify any location acceptable to you, then at your or our written request we can cancel the Franchise Agreement. If so cancelled, we'll retain $5,000 and return the rest of the initial franchise fee you paid. If an existing contract between you and us requires us to sell you a franchise for a different fee than stated above, then the initial franchise fee will be as stated in your contract. If we provide development services for constructing a new restaurant, you pay us a fee equal to 5% of construction costs. If you develop an end-cap drive-thru location, you may pay us a $3,000 deposit for producing site & floor plans. We reimburse any unused portion of the $3,000. You pay us $3,500 for training

Financing

Notes: 1. Financing listed in this table is provided by us or our affiliate. We will comply with applicable laws governing direct financing offered by us to you including, if applicable, the California Finance Lenders Law. 2. Term depends on amount paid per month, total borrowed and rate. 3. The fee for a renewal is $1,600 per year renewed; the usual term is 10 years. For example, a $16,000 renewal fee may be paid all cash or one installment of $8,000 and 24 monthly installments of $384.10, (which amount includes processing fees) at your option. 4. The promissory note is signed by you, the franchisee. If the franchisee is an entity, we require a personal guaranty to be signed by the individual owner(s)and spouse(s). The form of guaranty is Exhibit G to this Disclosure Document. 5. In the promissory note you waive the legal defenses of presentment for payment, notice of dishonor, protest and notice of protest. You do not waive other defenses or other legal rights and you are not barred from asserting other defenses. We do not have a practice or intent to sell, assign or discount all or part of any financing to any third party. We do not place financing with a lender or receive consideration for doing so.

Franchisee Revenue and Profit

Notes; 1. Column 1 shows the average of net sales for the top 25% of Wienerschnitzel restaurants that operated for the entire calendar year 2016. This is 1/4**^ of the number of Wienerschnitzel restaurants that operated for the full year. Column 2 shows the average for the second 25%, Column 3 shows the average for the third 25% and column 4 shows the average of net sales for the fourth 25% of Wienerschnitzel restaurants that operated for the entire calendar year 2016. 2. These are historic, unaudited financial performance representations regarding all 330 Wienerschnitzel restaurants open and operating for the full calendar year 2016. Wienerschnitzel restaurants described in this table are in the States of Arizona, California, Colorado, Illinois, Louisiana, New Mexico, Nevada, Texas, Utah and Washington State. This information is based on information reported to us by our franchisees. 11 Wienerschnitzel restaurants operated for only part of calendar year 2016. Results for restaurants that operated for less than the full calendar year are not included in the above table. Restaurants considered to be operating for less than the full calendar year were those restaurants that were not already open and operating as of January 1, 2016 or that did not operate as of December 31,2016. 3. These restaurants had characteristics that may differ from your franchise. Some differences are as follows. The locations of these restaurants are different than your location. Your restaurant may be in a location with different characteristics. Many of these restaurants have been open and operating for several years, and thus have been open and operating longer than your restaurant. They had more time to develop a reputation in the community and relations with customers and others. Some restaurants operate under our full franchise, some under our business and facility franchise and some under our limited franchise program. Each has different characteristics. You will operate under one of these programs. 4. The revenue figures do not reflect costs and expenses, such as food and labor costs, rent and other operating costs, which must be deducted from revenue or sales to obtain your net income or profit. Costs and expenses may vary. You should conduct an independent investigation of costs and expenses you will incur in operating your franchise business. Franchisees or former franchisees, listed in the disclosure document, may be once source of this information. 5. Some franchises have sold the amounts reflected above. Your individual results may differ. There is no assurance that you will sell as much. Your sales may be lower. Your expenses may be higher. A new franchisee's individual financial results may differ from the results stated above. 6. Written substantiation for the above statements will be made available to the prospective franchisee on reasonable request. Notes: 1. 2. 3. 4. 5. Each column shows the percentage change in system wide restaurant sales in the calendar year, compared to the prior calendar year. For example, the dollar amount of system wide restaurant sales in calendar year 2016 was 3.28% more than the dollar amount of system wide restaurant sales in calendar year 2015 from originally reported sales These are historic, unaudited financial performance representations regarding all Wienerschnitzel restaurants open and operating for the full calendar year indicated, and for the prior full calendar year. For example, the data for 2016 is for all Wienerschnitzel restaurants open and operating for the full calendar years 2015 and 2016. Wienerschnitzel restaurants described in this table are in Arizona, California, Colorado, Illinois, Louisiana, New Mexico, Nevada, Texas, Utah and Washington State. The information is based on information reported to us by franchisees. For each year indicated, some restaurants did not operate for the entire year and entire prior year. Data for restaurants that did not operate for the entire year identified in a column, and entire prior year, are not included in the data for a column. These restaurants had characteristics that may differ from your franchise. Some differences are as follows. The locations of these restaurants are different than your location. Your restaurant may be in a location with different characteristics. Many of these restaurants have been open and operating for several years and thus have been open and operating longer than your restaurant. They had more time to develop a reputation in the community and relations with customers and others. Some restaurants operate under our full franchise, some under our business and facility franchise and some under our limited franchise program. Each has different characteristics. You will operate under one of these programs. In the first year your restaurant operates there will not be a prior year of operation to compare to. Probably your first year of operation will not be a full calendar year. Therefore in the second year your restaurant operates, there also will not be a full prior year to compare to. You cannot achieve these results before the third year that you operate, and this does not mean you will achieve these results in that year, or ever. The revenue figures do not reflect costs and expenses, such as food and labor costs, rent and other operating costs, which must be deducted from revenue or sales to obtain your net income or profit. Costs and expenses vary. You should conduct an independent investigation of costs and expenses you will incur in operating your franchise business. Franchisees or former franchisees, listed in the disclosure document, may be one source of this information. 6. 7. Some outlets have achieved the results reflected above. Your individual results may differ. Your results may be lower. Your expenses may be higher. A new franchisee's individual financial results may differ from the results stated above. Written substantiation for the above statements will be made available to the prospective franchisee on reasonable request.