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Aqua S

Company Information

11628 Village Place Drive Houston, Texas 77077

[email protected]

Skylette Team Inc., a Texas corporation (“we” or “us” or “our” or “Skylette Team Inc.”), is the franchisor. We and our affiliates have; our principal place of business at 11628 Village Place Driye, Houston, Texas 77077. We were formed oh June 28, 2017. We conduct business under the name and mark “Aqua S” and related names, marks and,slogans. ITEM 1 THE FRANCHISOR, AND ANY PARENTS^ PREDECESSORS AND AFFII I ATES Our Master Franchisor is a sister company ofAqua S International Limited, incoiporated in Hong Kong, China, with its principal office at Room B2, 8/F, Loyong Court Comm. Bldg., Wanchai, Hong Kong, China. Aqua S International Limited owns the Aqua S brand arid Proprietary Marks. Aqua S International Limited opened its first Aqua S Shop in Sidney, Australia January 2015, Currently there are over 10 Aqua S Shops across, Australia, New Zealand arid Asia, and Aqua S International Limited has signed other master franchise agreements for the development of Aqua S Shops in Malaysia, Singapore arid New Zealand. To our knowledge, Aqua S International Limited is not offering,, and has never offered, franchises ip any other line of business. Effective on or about November LL 2017,2we became the North American (including the United States, Cariada arid Mexico) master franchisee of Aqua S International, LLC, a Delaware limited liability company (“Master Franchisor”), with.its; priricipal place of business iri the United States at 919 North Market Street, Suite 950, Wilmington 19801, Our Master Franchisor has graiiied to us the right to operate, arid sub licerise to franchisees, the Aqua S busiriess format and.system (the “System”) relating to the establishment and operation of'Aqua S ice cream parlors, which operate at,retail locations that display the Systerri interior and exterior trade dress and feature and operate under the Proprietary Marks (as defined below) (each an “Aqua S Shop”) through a master franchisirig, agreement (the “Master Franchising Agreement”), To our knowledge, our Master Franchisor is not offering, and has never offered, franchises iri any other line of busiriess. Our affiliate^ Aqua S TX1, LLC (a Texas limited liability company formed July 26, 2017), owns and operates the original Aqua S ice cream parlor in tire United States, located at 9889 Bellaire Boulevard, Suite D 232, Houston, Texas 77036, which opened March 2018, We are a frarichising company which promotes and sells franchises for the operation of Aqua S Shops. We; do not own or operate a shop of the type being franchised, although we have ari affiliate that does. We have not offered franchises in any other line of business, and we are; not engaged in any business other than selling franchises for Aqua S Shops.. We have offered franchises; since the date ofthis Disclosure Document (September 19, 2018)

Not Available

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

4/10

Investment Accessibility

4/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $115,000 Maximum: $150,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $282,350 Maximum: $717,500

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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