Franchise Disclosure Document (FDD)

Question 1

Item 8

Answer 1

You must carry the merchandise of those vendors that we have determined consistently account for a significant amount of sales by the stores. The products of these vendors help to shape the total image of the stores. We reserve the right to issue specifications about the amount and variety of such merchandise you are required to carry.

Question 2

Private Label

Answer 2

If Country Visions or anyone we authorize develops private-label or exclusive merchandise, whether or not under the Marks, you must carry if and keep a representative selection of the products at all times.

Question 3

Merchandise that affects our Brand

Answer 3

If there are no specifications or standards addressing the particular merchandise, products and materials sold or used in the franchised business are of a high quality and consistent with our image. We do not currently maintain any procedure for you to obtain our approval of any item that is not covered by our specifications and standards or which is not on our list of approved merchandise suppliers.

Question 4

Advertising - FDD

Answer 4

There is no mention of National Advertising. It’s system wide advertising that we focus on.

We have sole discretion over the creative concepts, materials, media and placement of advertising paid for from the Advertising Fund and over the allocation of the Advertising Fund. The fees paid to the Advertising fund are use to meet all costs of maintaining, administering, directing, producing, approving and preparing advertising materials and programs.

In most cases, Country Visions provides the advertising materials it develops to you and you utilize them at your discretion.

Country Visions will receive payment from the Advertising Fund for its costs of maintaining, administering, directing, creating, preparing and approving advertising and promotions, market research, and collecting and accounting for assessments for the Advertising Fun, including salaries and overhead expenses and the cost of activities reasonably related to these functions, this is not a profit center for us!

During our most recent fiscal year Country Visions the Advertising Fun was allocated as follows: 100% on production and creation of advertising materials, 0% on media placement, and 0% on our administrative expenses.

We are proud of our marketing department and services!

Titled: “National” Advertising and Development Fund (only mention of National)

Country Visions Advertising and Development fund which is our sole discretion of how we handle this fund.

The funds may be used to meet any and all costs of creating, producing, maintaining, administering, directing, approving and conducting advertising, marketing and promotional activities and materials.

I’m looking forward to the time that our growth and size will instigate National Advertising. It’s going to be very exiting, but for now, it makes sense to continue to focus on our system wide and local marketing.