FRANCHISE DISCLOSURE DOCUMENT Duck Donuts Franchising Company, LLC A .

ITEM 1: THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES To simplify the language in this Disclosure Document, "Duck Donuts," "we," "us," and "our" mean Duck Donuts Franchising Company, LLC, the Franchisor. "Franchisee" or "you" in this Disclosure Document means the person who acquires the franchise and shall include all partners, shareholders, officers and directors of the entity, if the entity is a corporation, partnership or other entity. If you are a corporation, partnership, limited liability company, or other entity, your owners must sign our Personal Guaranty Agreement (Exhibit C of the Franchise Agreement), which means that all of our Franchise Agreement’s (Exhibit B) provisions also will apply to your owners. We are a Delaware limited liability corporation; incorporated on October 31, 2012. We do business as "DUCK DONUTS". Our principal business address is 1215 Manor Drive-Suite 302 Drive, Mechanicsburg, PA 17055. We are engaged in the business of granting franchises to operate franchised businesses utilizing the System and Marks (as defined below) and offering food products, services and other merchandise authorized and approved by us (the "Franchised Business"). Duck Donuts had no predecessors during the 10-year period immediately before the close of its most recent fiscal year. Duck Donuts has no parents that offer franchises in any line of business or provide products or services to franchisees of Duck Donuts. We do not operate businesses similar to those operated by our franchisees. We do not have affiliates that that offer franchises in any line of business or provide products or services to our franchisees. Our agents for service of process are disclosed in Exhibit D. We offer to qualified individuals, partnerships, corporations or other entities a franchise granting the right to establish and operate one Franchised Business that offers fresh, made-to-order, donuts prepared on the premises, other breakfast items, gourmet coffee, and other authorized products and an approved retail location (a "Duck Donuts Location"). Duck Donuts Locations are characterized by our distinctive trademarks as well as distinctive exterior and interior store design, trade dress, furnishings and color scheme; uniform guidelines, specifications, and procedures for operating the Franchised Business; procedures for quality control; training and ongoing operational assistance; advertising and promotional programs; all of which may be changed, improved, and further developed by us from time to time (collectively referred to as the "System"). The System requires use of, and is identified by, service marks, trademarks, slogans, and logos including, the Marks as described in this Disclosure Document and such other service marks, trademarks, slogans, and logos as we may designate for use with the Duck Donuts Location. You will operate your Franchised Business in accordance with our confidential operations manual ("Operations Manual"). You will be competing with other businesses which offer restaurant services. The market for such services is well developed in most areas. Your ability to compete in the market will depend in large part on your own capabilities, on the location of your Duck Donuts Location, and general economic conditions. We believe your use of our System is beneficial; however, your use of our System does not guarantee you a successful or profitable business. There are regulations specific to the operation of the Franchised Business. You will need to obtain the proper food and beverage license from the proper licensing agencies. You will also be required to comply with all local, state and federal, food, health and sanitation laws, and building and zoning 1

requirements in the operation of your Franchised Business. You will also be subject to laws governing your relationship with employees, including minimum wage requirements, overtime, working conditions and citizenship requirements. There may be other laws and codes applicable to your business and we urge you to make further inquiries to your advisors about those laws and codes. Option Agreements We also offer qualified individuals who desire to open additional Duck Donuts franchises the opportunity to execute a Multi-Unit Option Agreement at which time a Multi-Unit option fee of 20,000 for the first Duck Donuts Location you option and 10,000 for each additional Duck Donuts location you option are due (“Option Fee”). Each Option Fee is counted as a deposit on the Initial Franchise Fee for each additional Duck Donuts Location developed under the Multi-Unit Option Agreement. The Initial Franchise Fee for each optioned Location under a Multi-Unit Option Agreement is 30,000. For example, in addition to the Initial Franchise Fee of 40,000 for your first Duck Donuts Location, if you purchase two or more additional units under the Multi-Unit Option Agreement, you must pay a 20,000 Option Fee for the first optioned unit a 10,000 Option Fee per each additional optioned unit at the time you sign our Multi-Unit Option Agreement. As you sign Franchise Agreements for the optioned units you must pay the balance of the 30,000 Initial Franchise Fee for a franchise agreement executed pursuant to a Multi-Unit Option Agreement less the Option Fee that you previously paid for that unit. Therefore, when you execute your first option you will owe a balance of 10,000, and when you execute any subsequent option you will owe a balance of 20,000. The options must be executed within a number of years equal to the number of optioned Duck Donuts Locations following the execution of the Multi-Unit Option Agreement by signing our then-current Franchise Agreement and payment of the remaining balance(s) of the Initial Franchise Fees as described above. We have not offered franchises in other lines of business in the past. ITEM 2: BUSINESS EXPERIENCE Founder and CEO: Russell DiGilio Russell founded Duck Donuts in 2006 and has been CEO since establishing Duck Donuts Franchising Company, LLC in 2012. Prior to becoming CEO, he spent more than 30 years in the healthcare industry. Russell was the founder and president of The Autumn Group Management Company from 2001-2014. From 2002-2013, Russell owned multiple independent and assisted living facilities, managed by The Autumn Group Management Company. During this time, he also owned additional small entrepreneurial businesses. Chief Operating Officer: Betsy Hamm Betsy oversees the marketing and operations efforts for Duck Donuts. Prior to joining Duck Donuts Franchising Company, Betsy spent over 15 years at Hershey Entertainment & Resorts Company. As the director of marketing, she oversaw the marketing efforts for the Hershey destination including Hersheypark amusement park. Vice President of Operations: Sophia Zulli Sophia Zulli is responsible for overseeing the operations team. Prior to joining Duck Donuts Franchising Company, Sophia spent over 20 years at Hershey Entertainment & Resorts Company. As the director of food and beverage, she oversaw all aspect of the Food & Beverage operations for the 2

Entertainment Complex, which included; Hersheypark amusement park, GIANT Center Arena, Hersheypark Stadium, Historic Hersheypark Arena and the Historic Hershey Theatre. ITEM 3: LITIGATION No litigation is required to be disclosed in this item. ITEM 4: BANKRUPTCY No bankruptcy is required to be disclosed in this item. ITEM 5: INITIAL FEES You are required to pay an initial franchise fee of 40,000 (forty thousand dollars) when you sign a Franchise Agreement ("Initial Franchise Fee") except for a Franchise Agreement executed in connection with a Multi-Unit Option Agreement for which the Initial Franchise Fee is 30,000 (thirty thousand dollars). The Initial Franchise Fee serves as consideration for the expenses we incur in granting your franchise, the services we perform under the Franchise Agreement, and for our lost or deferred opportunity to offer a Franchised Business to others. The Initial Franchise Fee is non-refundable and is deemed fully earned upon signing of the Franchise Agreement. We may adjust the Initial Franchise Fee if you sign a Multi-Unit Option Agreement or under special circumstances including for Duck Donuts Locations operated in non-traditional venues such as airports or other transportation terminals, arenas, amusement parks, enclosed shopping malls, military installations or other locations that create unique circumstances. We may also adjust the Initial Franchise Fee for individuals and organizations that previously or currently own other Duck Donuts Locations or for former owners and employees of Duck Donuts and their families. Multi-Unit Option Fee To encourage qualified new franchisees, we offer new franchisees and Current Franchise Owners the option to operate a minimum of one additional Duck Donuts Locations through Multi-Unit Option Agreements. If you are a new franchisee, you meet our qualifications, and you wish to purchase an option for additional Duck Donuts Locations, you must, in addition to signing our Franchise Agreement and paying the Initial Franchise Fee: (1) sign a Multi-Unit Option Agreement (see Exhibit E); and (2) upon signing the Multi-Unit Option Agreement, pay us an option fee of 20,000 for the first Duck Donuts Location you option and 10,000 for each additional Duck Donuts location you option. For example, if you sign a Multi-Unit Option Agreement for three (3) additional Duck Donuts Locations, your Option Fee would be 40,000. If you are a new franchisee you must pay our Initial Franchise Fee for your first Duck Donuts Location but your Initial Franchise Fee for each additional Duck Donuts Location you option through a Multi-Unit Option Agreement shall be 30,000 less your Option Fee of 20,000 for the first Duck Donuts Location you option and 30,000 less your Option Fee of 10,000 for each additional Duck Donuts Location you option. If you are in good standing as a current franchisee that has previously signed a Multi-Unit Option Agreement or a new franchisee with ownership in common with a current franchisee that has previously signed a Multi-Unit Option Agreement (collectively a "Shared Ownership Franchisee") and you meet our qualifications, you may sign additional Multi-Unit Option Agreements. If you sign for additional units, you will be required to pay an Initial Franchise Fee of 30,000 for the first unit, a Option Fee of 20,000 for the first additional unit and a 10,000 Option Fee for each additional optioned unit. The Option Fees 3

will be deducted from the Initial Franchise Fees for the optioned units at the time the Franchise Agreements for those additional units are executed and the corresponding Initial Franchise Fees are due. In all cases, you must exercise the options within a number of years of executing the Multi-Unit Option Agreement equal to the number of optioned Duck Donuts Locations as defined in the Multi-Unit Option Agreement. For example, if you sign a Multi-Unit Option Agreement for two (2) additional Duck Donuts Locations, you must exercise your option to open the first Duck Donuts Location within one (1) year and the second Duck Donuts Location within two (2) years of signing the Multi-Unit Option Agreement. Upon exercising the option to develop each additional Duck Donuts Location, you must sign our then current Franchise Agreement. The Multi-Unit Option Agreement must be signed, and the Option Fee paid, when you sign your first Franchise Agreement for a Duck Donuts Location optioned under a Multi-Unit Option Agreement. The Option Fee is deemed fully earned and nonrefundable when paid. We may adjust the Option Fee or under special circumstances including for Duck Donuts Locations operated in non-traditional venues such as airports or other transportation terminals, arenas, amusement parks, enclosed shopping malls, military installations or other locations that create unique circumstances. We may also adjust the Option Fee for individuals and organizations that previously or currently own other Duck Donuts Locations or for former owners and employees of Duck Donuts and their families. ITEM 6: OTHER FEES OTHER FEES Name of Fee1 Royalty Amount 5 % of Gross Sales Local Advertising National Ad Fund 1% of Gross Sales 2% of Gross Revenues Transfer Fee 15,000 Audit Fee 2,000 - 5,000 Collection Costs, Attorneys' Fees and Interest Indemnification Fees and Costs Incurred, Interest at 12% or Highest Permitted by Law Varies Additional Training Consulting Assistance Due Date Weekly via Electronic Funds Transfer (EFT) As Incurred Weekly via Electronic Funds Transfer (EFT) Due upon transfer As required As Incurred Remarks See Notes 1, 2 and 3 See Note 4 Deposited in National Ad Fund administered by us. See Notes 1 and 5 See Note 6 See Note 7. Payable only if audit shows an underpayment. See Note 8 Upon Demand You must reimburse us if we are sued and/or held liable for claims arising out of operation of your Franchised Business. 500 per additional person As incurred See Note 9 or the then-current training fee 75/hr As incurred You must also pay our travel expenses if we are required to travel. See Note 10 4

Name of Fee1 Evaluation of Suppliers Insurance Royalty Late Fee Amount Our expenses Due Date As Incurred All insurance payments Payable on incurred by you and paid by demand Duck Donuts when you fail to do so plus interest. 50 As incurred Returned Check and 30 each insufficient fund Insufficient occurrence Electronic Funds Fee As incurred Software Fees 50 per month Monthly via ACH Brochures Our cost a 5% administrative fee. 25% of our then current Initial Franchise Fee. Upon purchase Relocation Fee Mystery Shopper Fee 240- 740 annually Miscellaneous Fees Varies Remarks See Note 11 We, at our option, may obtain required insurance coverage on your behalf if you fail to do so. Payable on any royalty payment not received by 5 days from the due date. You must pay this fee for any checks returned to us by our depository for lack of funds or any occurrence of insufficient electronic funds in your account. This fee covers the administration of the web-site and franchise management information system Upon approval This amount will cover our of relocation administrative costs in connection with relocation of your Duck Donuts Location. Monthly as See Note 12 incurred As incurred See Note 13 Notes: 1 Except where otherwise specified, we or our affiliates impose all the fees in this table, you pay them to us or our affiliate, and we (or our affiliate do not refund them). All fees are imposed uniformly by, collected and are payable only to us except we may adjust the above fees under special circumstances including for Duck Donuts Locations operated in non-traditional venues such as airports or other transportation terminals, arenas, amusement parks, enclosed shopping malls, military installations or other locations that create unique circumstances. All fees are nonrefundable. We may require you to remit any or all fees pursuant to electronic funds transfer or other electronic means and to require you to maintain a minimum balance on the account to allow the appropriate amount to be deducted from the account. Any charges you incur by your banking institution for services relating to the electronic funds transfer are your responsibility. You shall make available to us all original books and records that we may deem necessary to ascertain your Gross Sales for reasonable inspection at reasonable times. 2 "Gross Sales" are the amount of sales of all products, goods, services, and wares of every kind and nature, whether for cash or on a charge, credit or time basis, sold by or in connection with the Franchised Business, less sales, use or service taxes collected and paid to the appropriate taxing authority. 3 On a weekly basis you must pay us a royalty fee equal to 5% (five percent) of your "Gross Sales." The royalty week is based on a Monday-Sunday cycle. By midnight on every Sunday, 5

our point of sale system will generate a report showing your Gross Sales for the previous week. We will collect your Royalty fees through an electronic funds transfer system on Wednesday of each week, or at such other time and in such other manner as we may specify. 4 You pay third parties for your local advertising and promotion. You must spend a minimum of 1% of your monthly Gross Sales on local advertising which must meet our standards and specifications as defined in the Confidential Operations Manual or as otherwise specified by us in writing. However, it is recommended to spend between 2-5% of your monthly Gross Sales on local store marketing. Such standards and specifications may include, but are not limited to, requirements that you place a certain number or type of media advertisements promoting your Franchised Business(es). 5 We currently require a contribution of 2% of Gross Revenue. 6 The Transfer Fee is for the training, supervision, administrative costs, overhead, counsel fees, accounting and other expenses relating to the transfer of the franchise. The Transfer Fee does not apply to transfers from you to a corporation where you remain the majority shareholder of such corporation or to the heirs, beneficiaries, legal successors or devises if

Duck Donuts Franchising Company, LLC offers franchises the right to operate a retail business offering fresh made to order donuts prepared on the premises and other authorized products under the trademark DUCK DONUTS. The total investment necessary to begin operation of a single Duck Donuts franchise is 353,350 - 573,000.