Yum Yum Donuts

Yum Yum has some affiliates (that is, companies that are under common control with us). Winchell's Franchising, LLC ("WFL"), a California limited liability company, is an affiliate of Yum Yum. WFL's date of formation is October 20, 2004, and its principal business address is 18830 San Jose Avenue, City of Industry, California 91748. WFL has franchised donut shops under the name "Winchell's", "Winchell's Donuts" or "Winchell's Donut House" since October 20, 2004. WFL currently franchises 37 donut shops under the Winchell's name. WFL may offer new franchises for Winchell's donut shops under a separate disclosure document. These Winchell's donut shops will feature a similar menu and dining concept as the franchises offered by Yum Yum. WFL does not offer franchises in any other line of business.

The total investment necessary to begin operation of a Yum Yum Donut franchise ranges from between S3,400 to $71,700. There is no initial franchise fee required for a franchise. The Franchisee is not acquiring any ownership interest in the capital assets of the business which can be sold or transferred to a third party. Rather, under the non equity franchise model offered by Yum Yum, the Franchisee has no capital investment and bears limited initial costs, as many of the upfront costs generally associated with starting a business are borne and have already been absorbed by Yum Yum.