Long John Silver's

10350 Ormsby Park Place, Suite 300 Louisville, KY 40223

[email protected]

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Long John Silver’s is a Delaware limited liability company. Their principal business and mailing address is 9505 Williamsburg Plaza, Suite 300, Louisville, KY 40222.

This Disclosure Document covers franchise offerings for franchise rights for LJS Restaurants in venues such as freestanding, single-use restaurant buildings, and inline strip mall or strip center shopping locations (“Traditional Restaurants” or “LJS Traditional Restaurants”). This Disclosure Document also covers franchise offerings for franchise rights for LJS Restaurants that are to be operated in the same facilities as another restaurant concept (“Co-Brand Restaurants” or “LJS Co-Brand Restaurants”). Currently LJS is operated in Co-Brand Restaurants with KFC, Taco Bell or A&W restaurants. The franchisor for the KFC, Taco Bell or A&W restaurant portion of a KFC/LJS, Taco Bell/LJS or LJS/A&W Co-Brand Restaurant is, respectively, KFC US, LLC (“KFLLC”), Taco Bell Franchisor, LLC (“Taco Bell”) or A&W Restaurants, Inc. (“A&W). The franchise offer of these restaurant concepts is made under a separate disclosure document that should be available to you upon request to the franchisor of that concept. This Disclosure Document also covers franchise offerings for franchise rights for LJS Restaurants that are operated as express franchise units (“Express Restaurants” or “LJS Express Restaurants”). The terms “LJS Restaurants” and “Restaurants” will be used in this Disclosure Document to refer collectively to Traditional Restaurants, Co-Brand Restaurants and Express Restaurants. If LJS approves you as a franchisee, you may be offered the opportunity to sign a franchise agreement that gives you the right to construct and operate an LJS Restaurant at a specified location using LJS’s restaurant system, trade dress, trademarks and service marks. You may, subject to LJS’s approval and using LJS-approved plans, construct a new restaurant or remodel and convert an existing restaurant building or facility. LJS Restaurants offer a limited menu featuring fish, seafood, chicken and related items. The Restaurants are designed to serve food promptly and offer dine-in, take-out and in a significant number of Restaurants, drivethru service. Your Restaurant must be built to LJS’s specifications and operated in accordance with LJS’s standards. For a Traditional Restaurant, LJS may offer you the opportunity to sign a Franchise Agreement in the form attached to this Disclosure Document as Exhibit C. The initial term of the Franchise Agreement generally is 20 years with an option to renew for two consecutive five-year options. You must meet certain criteria to exercise any option to renew, including remodeling the Restaurant to LJS’s then current standards. LJS may offer you certain available incentives in connection with your Franchise Agreement for a new Traditional Restaurant if you meet certain criteria. The 2019 Standard Incentive Program is available to new and existing franchisees who sign a new Franchise Agreement and open a new location in 2019, who have a net worth of at least $500,000, and who have at least $250,000 of that net worth in liquid capital (the “Standard Incentive Qualifications”). The available incentives include the following: (a) the initial franchise fee of $20,000 will be waived; (b) the royalty payments over the first three (3) years of the opening of your new Traditional Restaurant will be reduced as follows: 0-6 months: 0% Royalty; 7-12 months: 2% Royalty; 13-24 months: 3% Royalty; 25- 36 months: 4% Royalty; and after 3 years, the standard 5% royalty will apply; And, (c) you will receive the Digital Drive Thru Hardware and the Drive Thru Audio & Timer System at no cost to you. The 2019 Veterans Incentive Program applies to new and existing franchisees who meet the Standard Inventive Qualifications and who (i) are United States military veterans; (ii) have been honorably discharged from any branch thereof; (iii) provide LJS with a copy of their DD Form 214; (iv) own a majority interest in the franchised Traditional Restaurant; and, (v) otherwise meet LJS’s requirements for the 2019 Veterans Incentive Program (the “Veteran Incentive Qualifications”). The available incentives are the same as those available under the Standard Incentive Program plus you will be provided with an additional $5,000 toward opening inventory. For a Co-Brand Restaurant, LJS may offer you the opportunity to sign a Co-Brand Franchise Agreement in the form attached to this Disclosure Document as Exhibit C-2. The initial term and option terms under the Co-Brand Franchise Agreement generally run concurrently with the initial and option terms of the franchise agreement for the other brand in the Co-Brand Restaurant. For an Express Restaurant, LJS may offer you the opportunity to sign an Express Franchise Agreement in the form attached to this Disclosure Document as Exhibit C-3. The initial term of the Express Franchise Agreement generally is 10 years with an option to renew for two consecutive five-year options. You must meet certain criteria to exercise any option to renew, including remodeling the Express Restaurant to LJS’s then current standards. Unless otherwise indicated, all references in this Disclosure Document to “LJS Franchise Agreement” mean each of the Franchise Agreement, Co-Brand Franchise Agreement and Express Franchise Agreement. Before you sign an LJS Franchise Agreement, and at the time you submit a Restaurant site for approval by LJS, you must sign a Site Agreement/Fee Form (“Site Agreement”) in the format that is attached as Exhibit C-1. The Site Agreement requires you to pay a deposit to LJS or its designee before you submit a Restaurant site for approval to LJS. If the site is not approved, the deposit will be refunded; if the site is approved, the deposit is applied to your initial franchise fee when you sign an LJS Franchise Agreement.