INTERNATIONAL. For Additional International Franchise Information Contact:

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1 INTERNATIONAL For over 30 years Cookies by Design has been creating and delivering Gifts that Taste as Good as they Look. Our Cookie Bouquet offers a unique combination of beautifully designed sentiments and delicious sugar cookies. Each bouquet can be custom decorated and arranged to convey any sentiment or celebrate any special occasion. Welcome to Cookies by Design.

2 Requirements Overview Important Information Fees Franchise Fee: $30,000 - per unit Development Fees: Depending on the number of units Territory Fees: Territory fees vary and are based on the on the size of the territory, projected number of Cookies By Design Shoppes to be developed and local franchising standards. Royalties 6% gross sales (months 1-6) / months 6 to end of term, greater of 6% gross sales or $500 Local Marketing Recommended percentage 3% of gross sales Cookies By Design currently offers franchise opportunities for individuals and companies interested in multi-unit development in exclusive territories around the world. This business model enables our partners to build the brand in their territory as well as leverage marketing and purchasing capacity. We require 100% of the first-year development to be funded through allotted capital and, at a minimum, 30% of the next four years (development schedule is 5 years) to be accessible dedicated capital. Cookies By Design Franchise Partner Profile We seek qualified franchise partners interested in multi-unit development in exclusive territories around the world. Our goal is to select franchise partners who possess the right mix of expertise and enthusiasm, as well as the following characteristics: Solid business experience Multi-unit management Proven expertise in retail (food and beverage a plus) Previous franchise experience advantageous Net worth of US $500,000 Liquid assets of US $200,000

3 Franchising Process (International) Request for Consideration The first step to be awarded the rights to operate Cookies By Design franchise in your territory is to complete the Cookies By Design Request for Consideration Form (RFC). This will provide us with the necessary information to evaluate your background and your financial and management capabilities. Financial Information We may request additional information related to the financial details disclosed in the Request for Consideration Form. Business Plan Should we move forward with your request, you will be required to submit a brief business plan for development. This should include market research on the territory and a development proposal. Visit with Executive from Cookies By Design International If, during the first face-to-face meeting or telephone conference with one of our sales directors, you are interested in continuing the process towards owning a Cookies By Design Franchise, you will be provided with our Franchise Disclosure Document (if applicable for your country), commonly referred to as the FDD. This is the time you should be conducting your due diligence on the Cookies By Design brand.

4 Franchising Process (International) Letter of Intent After careful consideration and mutual due diligence, if there is continued interest on both sides in considering moving forward, Cookies By Design will submit a Letter of Intent to you which includes the fees as well as basic terms and conditions of the relationship. If approved, you will enter into a Development Agreement and remit the initial deposit. Signing the Franchise Agreement If Cookies By Design Franchise Committee approves your application, you will be sent the Franchise and Development Agreements that you will be required to sign. Paying the Franchise Fee Once we receive the signed agreements and all necessary documentation in our Atlanta office with the Franchise and Development Fees, we will countersign your agreements and return a countersigned copy to you. Welcome to the Cookies By Design Family! Once we have countersigned your Development Agreement and paid your fees, you are now officially a Cookies By Design franchisee and our franchise services team will begin working directly with you to open your Shoppe as quickly and efficiently as possible.

5 Support Services (International) Pre-Opening and Operation Support Assistance with every phase of Shoppe development: from initial layout through ongoing operations. Your Cookies By Design Consultant will be your direct liaison to our staff at Cookies By Design Support Center. Guidance on Shoppe construction, grand opening, building sales, optimizing profits, training, marketing, ongoing research and development, and more. Development Plans for smooth, consistent development and construction for every Shoppe. Assistance in the creation of a Shoppe layout that optimizes your building requirements. Recommendations for decor and signage Research and Development Team New product ideas are continually explored and tested. After customer-testing and approval, new products are made available to our franchise partners. Purchasing Advice and counsel on setting up your distribution systems Unique advantage of our purchasing programs for necessary equipment, furniture, fixtures, etc. Marketing Marketing strategy and guidance for successful implementation. Access to proven marketing and promotional materials, including point-of-purchase displays, merchandising displays, and any new materials we may create. Assistance with grand opening support, successful new product rollouts and other sales-building initiatives.

6 Property Requirements (International) Finding the right location is the most important characteristic of our business. We offer site selection guidelines. Although it is not guaranteed that we will be 100% accurate, it is critical that our franchise partners follow our recommendations very closely. Location Profile Cities with population in excess of 150,000 Quality demographic profile High pedestrian flows Visible Shoppes Property Profile Leasehold opportunities and flexible terms negotiable Shoppes require the main services

7 Frequently Asked Questions (FAQs) Franchising/Financial Requirements What are the basic requirements for franchising with Cookies By Design? Cookies By Design will require that you agree to build, open, and operate the number of Shoppes determined reasonable for the territory. Cookies By Design will set the number of Shoppes for the territory based upon an analysis of the market. Many factors are considered, including, but not limited to the following considerations: competition, economic, demographic, and geography. Cookies By Design will not grant any development agreements for territories that cannot justify a minimum of 5 Shoppes. If I cannot meet your financial requirements for franchising by myself, can I partner up with other people? Absolutely. We have many franchisees that have partnered up with other interested parties to become franchisees. However, the partners must be directly involved in the application and negotiation process. Why does Cookies By Design require that a franchisee have US $30,000 in liquid assets per Shoppe to financially qualify? Cookies By Design has determined that in most cases these numbers are necessary in order for a franchisee to qualify for the loans that are required to build Shoppes. We feel that these numbers represent the level of financial responsibility that our franchisees should have. What are 'Liquid Assets'? The most common forms are cash, stocks, bonds and inventory.

8 Frequently Asked Questions (FAQs) Real Estate/Development Requirements Can a franchisee develop outside of shopping centers? Absolutely! We allow for considerable flexibility in the location of our Shoppes. In what types of venues will Cookies By Design build? Our two most common venues are retail Shoppes and kiosks. Who determines whether or not I can build a Shoppe on a particular piece of real estate? Cookies By Design retains final acceptance authority in all site selections. Once you have submitted the site to Cookies By Design, we conduct an analysis and, when necessary, we visit your location to determine whether or not the location fits the established criteria for development. Can I buy an existing Shoppe and convert it to a Cookies By Design Shoppe? Yes, if the image elements of Cookies By Design can be incorporated into the building being converted. As with any site, the location must first be accepted by Cookies By Design. What does Cookies By Design look for in a Shoppe location or site? Highly populated areas with good visibility. Does Cookies By Design provide facility and equipment specifications? Cookies By Design provides facility and equipment specifications. All architectural drawings are to be approved by Cookies By Design Development Services department. Cookies By Design specifies all equipment to perform to expected standards. Only approved equipment is to be used in Cookies By Design Shoppes.

9 Frequently Asked Questions (FAQs) Franchisee Support What type of support do you offer to new franchisees? Cookies By Design offers a wide variety of services including support in real estate selection, Shoppe design and layout, equipment schedule, purchasing support, training and opening support. We also offer ongoing assistance through additional training, operation advisory assistance, marketing assistance, operation manuals and revisions, supplier relations and periodic evaluations of your Shoppes and operating systems. Cookies By Design delivers support via highly trained professionals and via technology resources such as password protected web sites. How do I get the appropriate Cookies By Design training for myself and/or my managers? Cookies By Design requires that you send at least two team members to a designated Training Center to train in our Cookie University training facility. The program lasts approximately two weeks and covers food preparation, equipment, food safety and sanitation, inventory, service, management controls and functions, operations compliance, safety and many other topics. At the end of the program you will be a Certified Manager for Cookies By Design. You will be required to send all members of management to a designated Cookies By Design Training Center until you have established one of your Shoppes as a "Certified Training Shoppe.

10 Frequently Asked Questions (FAQs) What type of support does Cookies By Design offer after I open? One of the unique aspects of being a Cookies By Design franchisee is that you get personalized service from one of our International Director s of Operations (IDO s). Your IDO is your one point of contact with Cookies By Design ; you have only one number to call to get answers on training, operations, marketing, etc. This allows you to build a business relationship with someone who knows you and your business. Cookies By Design also offers ongoing support in many other areas, including development, Shoppe construction and opening, marketing, training, and sales-building. Sales and Earnings Claims What is the average profit from a Cookies By Design Shoppe? Each market and territory, especially internationally, are unique and therefore have different costs. When you prepare your Business Plan, you should do proper research to establish those costs based on the local economy. What is the average unit volume (sales) of a Cookies By Design Shoppe? Each market has different sales potential as well. Again, when you are preparing your Business Plan, you should take into account the economic reality in the local market and conduct thorough research to reach your financial estimates based on other competitors. What other sales & earnings numbers can you share with a potential franchisee? Cookies By Design does not furnish or authorize our employees to furnish any oral or written information concerning the actual, average, projected or forecasted sales, costs, income or profits (the "earning capability") of a Shoppe.

11 General Information Why do you have to build a minimum of 5 Shoppes? We use this minimum to keep our franchise community active and aggressive. The number also requires that you are financially sound enough to continue to grow the Cookies By Design brand. Is the franchisee required to build all Shoppes for your development agreement at once or over a period of time? Development schedules will vary by the number of Shoppes you agree to develop and the Territory you have been granted. Are there any territorial obligations? Each franchisee will be granted a specific territory to develop a specific number of Shoppes. Note that there is a territory fee to be granted the exclusive right to develop Shoppes in the selected market. A Shoppe cannot be relocated without Cookies By Design prior written approval.

12 General Information Does Cookies By Design own the real estate and the building or must the franchisee buy them? The franchisee is responsible for buying or leasing the real estate and for the cost of building the Shoppe. We will offer assistance in site selection, architectural design and other areas of construction, but Cookies By Design does not own the real estate or the building. How long does it normally take to get approved to become a franchisee? Normally the franchising process takes between 90 and 120 days, although we require a Letter of Intent with a Deposit after the necessary information has been forwarded to both parties. Once I am approved to become a franchisee, how long until I can actually open a Cookies By Design? You agree to the opening date of your first Shoppe in the development agreement, but as a rule most people open their first Shoppe within 6 months. Should I hire a marketing professional locally to work with Cookies By Design Corporate? Cookies By Design International recommends that you hire a marketing professional and / or agency locally to work directly with Cookies By Design International Marketing to assist in development and execution of the Cookies By Design Corporate Marketing Programs in your region. Is there any financial assistance? No.

13 General Information Once I become a Cookies By Design Franchisee where do I purchase the products to run my business? Cookies By Design International Product Development will provide a list of authorized suppliers / distributors from whom you can purchase your ingredients and supplies. How do I know which cookie gift items will work in my country? Cookies By Design has standard cookie gifts for use around the world which can be supplemented as necessary from a list of optional cookie gift items. Can I add items that are not standard in the US? Cookies By Design does allow some variance but they are considered from market to market. We work very closely with our Franchise Partners to develop products that are popular in the local market. Can I buy local items to supply my Shoppe? Cookies By Design will try to help you source as much product locally that meets Cookies By Design specifications.