EX-10
from 10QSB
86 pages
The Initial Franchise Fee for a Single Gelato Bar Is $25,000. You Must Purchase From US an Initial Inventory of Cups (Approximate Cost of $500) and Also May Be Required to Reimburse US in an Amount Not to Exceed $15,000 for Certain Expenses We May Incur in Assisting You in Finding a Site and Reviewing Your Lease, All as Further Explained in Item 5. the Estimated Initial Investment for a Single Gelato Bar Ranges From $214,650 to $455,850. See Item 7 for Further Information Regarding This Estimated Initial Investment. Risk Factors: 1. the Franchise Agreement Permits You to Sue or Arbitrate With US Only in California. Out of State Litigation or Arbitration May Force You to Accept a Less Favorable Settlement for Disputes. It May Also Cost More to Sue or Arbitrate With US in California Than in Your Home State. 2. Even Though the Franchise Agreement Provides That “Home State” Law Applies, Local Law May Supersede It in Your State. Please Refer to Any State-Specific Addendum That May Be Attached to the Offering Circular for Details. 3. We Have a Very Limited Operating History as Noted in Item 21 and in Our Financial Statements Included as Exhibit B. 4. We Have the Unilateral and Unconditional Right to Declare the Franchise Agreement Null and Void Without the Return of Any Initial Franchise Fee if an Authorized Location Is Not Designated Within 60 Days From the Date of the Franchise Agreement. 5. as Noted in Item 12, You Do Not Receive Any Protected Territory and We and Others May Operate Competitive Businesses Near Your Authorized Location. 6. the Franchise Agreement Requires You to Waive in Advance a Jury Trial, a Class Action, Any Stay in the Effectiveness of a Pending
12/34/56
