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Business Description

The Company is a corporation incorporated in February 2000 in the State of Florida. Our principal place of business is 2121 Vista Parkway, West Palm Beach, Florida 33411. We do business under our corporate name, EmbroidMe.com, Inc., and our trade names “Fully Promoted” and “EmbroidMe.” We do not have any predecessors or a parent entity. Our agents for service of process are listed in Exhibit G to this Disclosure Document.

Prior Experience

In April 2000, we opened the first EmbroidMe retail store as a company store in West Palm Beach, Florida. In September 2000, we began franchising EmbroidMe businesses and today have 280 franchise locations in 10 countries. In January 2017, we modified our principal trademark for the retail stores from “EmbroidMe” to “Fully Promoted,” although Fully Promoted stores will also continue to use our EmbroidMe trademark in their store operations. Our corporate name has remained the same and is still “EmbroidMe.com, Inc.” We now grant franchises to qualified persons for the right to own and operate a Fully Promoted business (the “Business”) under the terms of our standard Franchise Agreement (a copy is attached as Exhibit A). We sold our corporately owned store as a franchise in August 2001. We do not have any company owned or operated units. We have not previously offered franchises in any other line of business.

Business Offered

The Company offers to you, our customer, the right to own and operate a full service Fully Promoted store (a “Store”) or a Fully Promoted office (an “Office”). In your Store or Office, you will use our trademark, trade name, proven and sophisticated procedures and trade secrets. You will service retail and business customers by providing them with embroidered, screen-printed apparel and/or advertising and promotional product merchandise along with complete marketing campaign management for a variety of printed marketing materials, lead generation services and general marketing services. Embroidered, screen-printed apparel and advertising and promotional merchandise will include specific items such as golf/polo shirts, caps, jackets, denim, uniforms, logo reproduction, outerwear, towels, t-shirts, bags, aprons, photographic gifts, pens, mouse pads, cups/mugs and magnetic business cards. Your competitors include independent marketing and advertising businesses and embroidery shops, franchisees of other marketing, advertising and embroidery businesses, certain catalog companies that embroider and uniform companies. Your customer base will primarily be small to medium sized businesses, along with corporations and organizations. Fully Promoted is truly a one-stop shop for small and medium-sized businesses and organizations. We are the place customers come to get customers

Initial Fees

Except as noted below, all franchisees purchasing a new Fully Promoted franchise pay an initial franchise fee of $49,500 when they enter into our Franchise Agreement for a Store and $29,500 when they enter into our Franchise Agreement for an Office. At least 14 days after we provide you with a copy of this Disclosure Document, together with a copy of all proposed agreements relating to the purchase of a franchise, but prior to signing the Franchise Agreement, you will be required to pay a $9,500 deposit (commonly referred to as a “binder”). This binder is fully refundable if you do not purchase a Fully Promoted franchise. After we receive your binder, we assist you with your search for your Store or Office location. On the date you enter into your Franchise Agreement, the binder is applied against the initial franchise fee leaving a remainder of $40,000 for a Store franchise and $20,000 for an Office franchise which must be paid at the time of signing the Franchise Agreement. The initial franchise fee is non-refundable. All current owners pay a secondstore franchise fee of $25,500 that is nonrefundable and due at closing. Any conversion franchisee converting an existing branded products and marketing services business to a Fully Promoted franchise also will pay an initial franchise fee of $25,500, which is nonrefundable and must be paid at the time of signing the Franchise Agreement. See Item 6 regarding payment of royalties by a conversion franchisee. In addition, if you are purchasing an existing resale outlet, the seller will pay to us $29,500 or 10% of the purchase price of the outlet (whichever is greater), or the then current transfer/training fee from the closing proceeds as described in Items 6 and 7

Financing

We offer indirectly, arrangements for financing of your equipment through leasing companies for Store franchises but not for Office franchises. We do not offer directly or indirectly any arrangements for financing of any other initial investment expenditures or of the continuing operation of your franchise. We do not guarantee your note, lease or any other obligation. We have arranged for equipment financing through Advantage Leasing Corporation (“Advantage”), an unrelated third party not affiliated with the Company in any manner. We may also arrange for equipment financing or leasing through other lending sources in the future. If you choose to obtain financing of your purchase of your equipment through Advantage, this financing company will finance a major portion of your purchase of the equipment package that you need to establish the Fully Promoted Business, up to $86,377 worth of equipment. The term of the loan is 48 months. If you obtain financing for the full equipment package from Advantage, your monthly payment will be approximately $2,456 per month, plus any applicable sales and use tax. When you sign your equipment loan documents, you will be required to pay a security deposit equal to 10% of the financed amount plus a processing fee of $550. Payment factors and terms are subject to change without notice. Depending on your personal credit status and other qualifications, the loan company may approve you for less than the full amount of the purchase price of the equipment package. If you are approved for a lesser amount, you will be required to pay the remaining cost of the equipment package, plus any applicable sales tax directly to us. Advantage and other loan and leasing companies will require you to personally guarantee your loan or lease. If you are married, your spouse will be required to apply for and be listed on the loan documents and also be required to personally guarantee the loan. Advantage will retain a security interest in the equipment. In the event of a default, Advantage may take action against you. Such action may include the acceleration of the payment of the outstanding balance of the loan, repossession and removal of the equipment with or without notice to you. You will also be responsible for their reasonable collection costs, legal fees and expense incurred in enforcing the loan agreement and recovering the equipment. Further details can be found in Sections 6 and 7 of the copy of the Advantage loan agreement included as Exhibit B of this Disclosure Document. Your loan may be prepaid at any time. However, you will still be responsible to pay the full amount of loan payments and, therefore, may not realize a savings by prepaying. Should you cease to be a franchisee prior to the completion of the loan term, another franchisee may apply to take over the remaining term of your loan. However, Advantage may choose to retain your personal guarantee until the loan is paid in full. The Company receives a fee of 1% of the loan amount from Advantage. We may identify new leasing or finance companies and arrange for equipment leasing or financing through other lending sources in the future. We may receive compensation from another lending source.

Franchisee Revenue and Profit

the FTC's Franchise Rule permits a franchisor to provide information about the actual financial performance of its franchises and/or franchisor-owned units, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances. The financial performance representation information in this Item 19 includes certain financial performance information relating to our Stores' operation in calendar year 2018. We obtained 100% of the gross sales data for the Stores listed in the Store Sales Table and the other financial performance representations included in this Item 19 from monthly sales reported to us by the Stores. The monthly sales reports have not been audited by certified public accountants nor have we sought to independently verify their accuracy for purposes of the financial performance representations. Not all Stores properly reported sales in 2018