License Agreement

SOUTHERN MAID DONUT FLOUR COMPANY
INDIVIDUAL LICENSE AGREEMENT OUTLINE

Southern Maid Donut Flour Company is presently seeking to license qualified individuals with adequate financial resources and managerial skills to own and operate Southern Maid Donut Shops.

RESPONSIBILITY OF LICENSOR:
1. License the use of Southern Maid Donut trademarks and trade names.
2. Provide standard building plans which licensee can adapt to their locations.
3. Provide training course at the licensee's premise. The training program includes doughnut shop operations and procedures, food preparation, equipment preparation and maintenance, personnel selection, report preparation, and familiarization with the Southern Maid operation manual and recipe book. The minimum training period will depend upon the individual licensee's ability to assimilate the material presented, but will not exceed two weeks.
4. Provide periodic visits to licensee's donut shop for operational and marketing assistance.
5. Provide market and site analysis guideline for selecting a location.
6. Assist licensee in establishing sources of supply for approved furniture, fixtures, equipment, and food stuffs necessary to operate a Southern Maid Donut Shop.

RESPONSIBILITY OF LICENSEE:
1. Maintain the quality image and goodwill established by Southern Maid Donut Flour Company since 1937.
2. Use Southern Maid Donut Flour exclusively for donut production and use standard printed Southern Maid packaging, exclusively.
3. Keep retail shop open a reasonable amount of hours in order to properly serve the public.
4. Spend a reasonable amount of profit to advertise on a local basis by whatever method you personally choose.

LICENSE FEE AND PER DIEM:
1. Licensee is required to pay a license fee of five thousand dollars ($5,000.00).
2. Pay licensor the costs incurred by two trainers at a rate of $500 per trainer per diem.

SOUTHERN MAID DONUT FLOUR COMPANY
INDIVIDUAL FRANCHISE PROGRAM
ESTIMATED INVESTMENT REQUIRED
$5,000 License Fee. This fee is for each location and covers the issuance of Southern Maid Donut Flour Company license, provide a training course on the licensee's premises, operating manuals, new store opening assistance, architectural building plans and specifications, protected territory.
Pay Licensor the costs incurred by two trainers at a rate of $500 per trainer per diem. (Normal training period 1 to 7 days).
$60,000 Estimated equipment cost, including: equipment, signs, furniture and fixtures. $40,000 Remodeling of existing building to Southern Maid Donuts Shop specifications, or finishing-out new building to specifications.
Equipment cost and building preparation may vary with individual selections.