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Business Description

the Franchisor is Crestcom International, LLC. For ease of reference, Crestcom International, LLC is referred to as “we,” or “us” in this Disclosure Document. The person who buys the franchise is referred to as “you” throughout this Disclosure Document. If you are a business entity, certain provisions of the Franchise Agreement also apply to the owners of the business entity and will be noted. We are a Delaware limited liability company organized on December 21, 2007. We do business under our company name and no other name. We offer and sell franchises that operate under the name “Crestcom.” Our principal place of business is located at 6900 East Belleview Avenue, Suite 100, Greenwood Village, Colorado, U.S.A. 80111, Our agents for service of process are disclosed in Attachment J.

Prior Experience

We are owned by a holding company called Crestcom International Holdings, LLC (“Holdings”), a Delaware limited liability company formed on October 21,2013. It acquired all of our ownership interest as of November 15, 2013. Under the FTC's Franchise Rule, Holdings may be considered to be our parent. The principal business address for Holdings is the same as ours.

Business Offered

We are in the business of developing, producing, and distributing management, sales and personnel development training programs and conducting training seminars. We also offer franchises for management, sales and personnel development training businesses under the marks “CRESTCOM®” and “CRESTCOM TRAINERS TO THE WORLD®,” and related service marks, trademarks and trade names (“Marks”) using our system for operating the businesses and related licensed methods of doing business (“Licensed Methods”). We have developed a combination of live and video media training programs, including The BULLET PROOF® Manager, a video media-based, live facilitated training program which is typically provided over a 12-month period. Additionally, we and our predecessors have developed and copyrighted stand-alone video media, audio media, online media, and written training programs which are marketed to individuals and groups

Initial Fees

the initial franchise fee for one CRJESTCOM Business franchise is $69,500. The initial franchise fee is customarily paid in two installments. In most cases a refundable deposit (“Deposit”) of $2,500 is paid with the signing of the Confidentiality/Application Agreement (“Application Agreement”), a copy of which is attached to this Disclosure Document as Attachment B. Once the Deposit has been paid, you may attend the initial classroom training program, which generally lasts two days. If after the initial classroom training program you and we agree to proceed with signing a Franchise Agreement, then the Deposit is converted to a down payment toward your initial franchise fee. The remaining amount due is typically paid in full with the signing of the Franchise Agreement. If either you or we elect not to proceed with the signing of the Franchise Agreement immediately after the completion of the initial classroom training program, then we will refund your Deposit

Financing

Except as described below, neither we nor any agent or affiliate of ours offer any direct or indirect financing to Franchisees. We do not guarantee any notes, leases or other obligations of our Franchisees. Furthermore, we cannot predict if you will be able to obtain financing for any part of your investment in your franchise and, if so, the tenns of the financing. We may agree to finance a portion of your initial franchise fee. The maximum amount we finance is generally 50 percent of your initial franchise fee. We may also agree to finance some or all of the New Materials surcharge and Crestcom Next Generation Sales Academy Program surcharge. Whether we will provide you any financing and the amount of financing we will provide are dependent on your location, your experience in marketing or conducting training programs, your creditworthiness, the funds available to us, the collateral available to secure the loan and various market considerations. If we decide to finance a portion of these payments, you must execute a Promissory Note substantially in our then current fonn. Our current fonn of Promissory Note is attached to this Disclosure Document as Attachment D. The Promissory Note will be payable within 60 days of executing the Franchise Agreement and will bear interest at a rate between 9 and 12 percent per annum, all as determined by us based on the factors discussed above. The Promissory Note will be secured with collateral acceptable to us, including your franchise, or guaranteed by persons acceptable to us, or both. The persons who are acceptable to us to execute this guaranty may include each of your officers, directors, partners, or shareholders, and any member of your or their immediate families, and any Authorized Representatives, as defined in Item 15. The Promissory Note may be prepaid in whole or in part without penalty. If you execute a Promissory Note, it will provide that if you fail to make any payment when due, we may accelerate the entire unpaid balance, which will become due at once. If the default is not cured within 10 days after notice of default to you, the entire principal balance will accrue default interest at the lesser of 18 percent per annum or the highest rate permitted by applicable law. On default, we may pursue the following remedies: (i) sue you for the default amount; (ii) proceed against any collateral pledged to secure the Promissory' Note, which may involve you losing your franchise; (iii) sue any guarantor of the Promissory Note; or (iv) pursue any combination of these remedies. If there is a default, in addition to the amount due on the Promissory Note, you may be liable for our costs and expenses of collection, including reasonable attorneys' fees. We do not offer financing that requires you to confess judgment, but you will have to waive presentment, notice of protest, and protest. Legal actions by us related to the Promissory Note will be litigated in the courts of, or arbitrated in, the City and County of Denver, Colorado, at our option. Pursuant to the Promissory Note, Franchisees agree to submit to the personal jurisdiction of these courts and to binding arbitration, and agree to waive their rights to a jury trial. Whether, and on what tenns, you can obtain financing from third parties will depend on a variety of factors, including your own creditworthiness, the type of security you can offer, the policies of lending institutions, and the availability and cost of commercial credit generally. You may not be able to obtain a loan. Except for payments made to us for financing the initial franchise fee, we and our affiliates do not receive payments for the placement of financing or providing financing. We and our affiliates do not guarantee your obligations to third parties. In the past, we have not sold, assigned or discounted to a third party any note, contract or other instrument executed by a Franchisee, although we reserve the right to do so in the future

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in this Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided by this Item 19, for example, by providing infonnation about possible performance at a particular location or under particular circumstances.