FDD Talk: Average Gross Sales, Cost of Goods Sold, and Gross Profit of Carousel Taffy Stores

Highlights of Carousel Taffy’s Franchise Disclosure Document, Including Its Financial Performance Representations Under Item 19

• Carousel Taffy stores offer gourmet taffy candies and other such related products. The items sold are purchased from approved product suppliers.

• The company began offering franchises for Carousel Taffy in 2009.  David Ross, Carousel Taffy’s principal officer, has operated one Carousel Taffy store since 2003, and currently operates two Carousel Taffy stores in the State of California.  As of December 31, 2010, the company had no franchised stores.

• A Carousel Taffy store typically occupies 800 square feet of space, and can be located in strip shopping centers, shopping malls, freestanding units, and other areas in downtown commercial areas and residential areas.

• The following section includes certain gross sales and gross profit margin results for the two existing Carousel Taffy stores, which are both operated by affiliate corporations owned by David Ross and located around the Morro, California area.  The Morro Bay store opened in August 2003 and the Capitola store opened in July 2005.

• This information was compiled from internal, audited financial statements of the two Carousel Taffy affiliate corporations for the calendar year ended December 31, 2010.