As organized, Crazy Crow is capable of a wide-ranging range of franchise support functions. We have in place a comprehensive set of operations manuals and training programs.

    Crazy Crow intends to make a strong commitment to data systems and plans to utilize a proprietary point-of-sale system. This system will perform not only traditional cash register functions, but will, in addition, provide inventory/reorder function as well as certain marketing and sales duties. At some point in the future, we intend to be linked electronically with each store which will enable fast and highly cost effective monitoring of inventory, sales, marketing and accounting data.

    With this combination of operations systems, staff and proposed data network, Crazy Crow is prepared to open, train and support an organization of franchised stores.

    Crazy Crow Coffee Company has created standard contracts for establishing franchise relationships. In general, Crazy Crow earns a $22,500 franchise fee for each of the first two stores opened by each franchisee and an $18,000 franchise fee for each additional store. These fees are payable prior to the opening of each such store. In addition, the Concept Company earns on an ongoing basis a royalty fee equal to 6% of the gross sales for each franchise location.

    In return for these payments, Crazy Crow provides a total business format to the franchisee. This format includes store design, site location criteria and assistance, lease review, and comprehensive operations and construction assistance. Additionally, we provide training, both at its headquarters and in the field, in all major areas of operations, including the history of coffee, the coffee industry, retailing of coffee and related products, general retailing, management, accounting, marketing, sales and general retail procedures. On an on-going basis, Crazy Crow will continue to support and supervise the franchisees in many operational and promotional areas.

Crazy Crow Coffee Company plans to offer franchises utilizing the following retail types:

· The Crazy Crow Coffee Company Store: This unit shall have from 500 - 2500 square feet of retail space and can be adapted to several retail environments including Regional Malls, life style centers, power strip center, stand alone, and street level locations. The stores will be positioned to take advantage of retail traffic generated in and around such markets as college campuses, tourist areas, travel and commuter ports, high foot traffic environments, high density population areas, etc. We shall offer in the store a full spectrum of fresh gourmet coffee drinks and pastries in a pleasant and unique environment that encourages relaxation, conversation and congregation. We will also offer, for sale, a full line of packaged gourmet coffees and our own private label merchandise including tee-shirts, cups, hats, aprons, jackets, beach towels, jewelry, etc.

· The Crazy Crow Coffee Company Cart/Kiosk: This particular method of retailing will utilize a uniquely designed cart/kiosk ranging in size from 100 - 350 square feet and will offer a limited, but fast moving array of brewed coffees, dry coffee products and logoed soft goods. The cart/kiosk program will be developed to capture the temporary holiday retail business offered by many retail landlords, a permanent retail program for select retail environments, street and special events and programs.

ESTIMATED INITIAL INVESTMENT