Business Description

Native New Yorker Franchising, Inc. is an Arizona corporation that was incorporated in May 1993. Our principal business address is 1757 East Baseline, Bldg. 6, # 122, Gilbert, Arizona 85233 and our telephone number is (480) 247-8610. Our agent for service of process is disclosed in Exhibit "B" to this Disclosure Document. We do not do business under any names other than ''Native New Yorker Franchising, Inc."

Prior Experience

We began offering franchises for Native New Yorker restaurants in 1993. We began offering Native New Yorker franchises with area development rights in 2006. We are not engaged in any business other than the offering of Native New Yorker franchises. We do not offer franchises in any other line of business. We have not directly operated a Native New Yorker restaurant (although we have indirectly done so through our affiliates).

Business Offered

A Native New Yorker restaurant is a casual dining, family-oriented, American menu restaurant, with both dine-in, full-service bar, and take-out services. The featured menu item is fried chicken wings served with several different sauces. The restaurants also serve high quality, reasonably-priced hamburgers and other hot and cold sandwiches, a variety of pastas, pizza, chicken, appetizers, soups, salads, and desserts, as well as other items. As a Native New Yorker franchisee, you will establish and operate a casual dining restaurant emphasizing a variety of quality food and spirits in a relaxed, sport-themed, family-friendly surrounding (your "Restaurant). We will grant you a license to use certain logos, service marks, and trademarks, including "Native New Yorker" (collectively, the "Marks). The "Marks" also include our distinctive trade dress used to identify a Native New Yorker restaurant. You must sign a Franchise Agreement (the "Franchise Agreement") and operate your Restaurant in accordance with the terms of the Franchise Agreement. The form of Franchise Agreement is attached to this Disclosure Document as Exhibit "C". We and NNY A are the creator and owner of the trade secrets, recipes, concept, style, confidential information, format and operating system utilized by Native New Yorker restaurants (collectively, the "System"). The operational aspects of a Native New Yorker restaurant are contained within our confidential specifications and operational manuals (collectively, the "Manuals"). You will operate your Restaurant as an independent business using the Marks, the System, the Native New Yorker name, as well as the support, guidance and other methods and materials provided or developed by us.

Initial Fees

You will pay a $50,000 franchise fee for your franchise (the "Initial Franchise Fee"). The Initial Franchise Fee is payable in full at the time you sign the Franchise Agreement. We may terminate the Franchise Agreement and refund $5,000 of the Initial Franchise Fee if you're Managing Owner or General Manager (each defined in Item 1 S) fails to successfully complete the initial training program to our satisfaction. The Initial Franchise Fee is not refundable under any other circumstances. All Initial Franchise Fees are uniform and fully earned except as otherwise described below with respect to an ADA. If you sign an ADA, the Initial Franchise Fee for your first Native New Yorker restaurant will be $50,000 and the Initial Franchise Fee for each additional Native New Yorker restaurant will be $45,000. At the time you sign the ADA, you must pay us the entire Initial Franchise Fee for your first restaurant plus 50% of total amount of Initial Franchise Fees for the remaining restaurants to be established under the ADA. For example, if you commit to establish 4 restaurants under an ADA, your initial fee will be SI 17,500 ($50,000 + $22,500 + $22,500 + 22,500). You must pay us the remaining balance of the Initial Franchise Fee for each additional restaurant (i.e., $22,500 per restaurant) at the time you sign the franchise agreement for that restaurant. If we terminate your ADA due to your default, you will not be entitled to a refund of any Initial Franchise Fees previously paid to us but you will not be required to pay the remaining balance of the Initial Franchise Fee for any restaurants for which a Franchise Agreement had not been signed.

Financing

We do not offer any direct or indirect financing for any fee. We do not guarantee any of your notes, leases or other obligations. We are on the Small Business Administration approved franchise registry.

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 or franchised outlets. We also 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 Federal Trade Commission, the appropriate state regulatory agencies, and our management by contacting President and Chief Operating Officer, Dan Chaon, at 480-247-8610.