Franchise Requirements

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0 height="100%"><tr> <td valign="top" width=200 BGCOLOR="#000000" TEXT="#F7F7FF"> <div> <IMG SRC="074c2b80.jpg" border=0 width="194" height="184" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> </td> <td valign="top" BGCOLOR="#000000" TEXT="#F7F7FF"> <div> <FONT SIZE="5" COLOR="#FFFFFF" FACE="Arial" ><B>International Ninjutsu Society </B></FONT>  |     <A HREF="index.htm" TARGET="_top" TITLE="International Ninjutsu Society "><U>home</U></A></div> <div> Franchise Requirements</div> <bR> <div> International Ninjutsu Society - Spirit Dojo U.S. Franchising</div> <bR> <bR> <div> <B><U>U.S. Franchise Requirements and Fees</U></B></div> <bR> <bR> <div> Spirit Dojo net worth and capital requirements for new franchisees are as follows: </div> <bR> <div> Minimum net worth of 50,000; and $50,000 per school in cash, liquid assets, available financing, or a combination thereof.</div> <bR> <div> These are minimum requirements and do not represent the total potential costs to open and operate one or more Spirit Dojo units.</div> <bR> <div> Additional franchisee qualifications and requirements include:</div> <bR> <div> The prospective franchise group should have at least one partner with a successful business management background and one partner who qualifies as the Principal Operator.</div> <bR> <div> The Principal Operator should live in the area to be developed throughout the term of the franchise group's existence.</div> <bR> <div> The Principal Operator must have a Black Belt with no less then a Thrid degree rank and prior general management experience running a school, or relative to the number of units to be developed and must own or have the right to acquire at least 5% equity in the business within 12 months of hire date.</div> <bR> <div> A fully completed Request for Consideration Form and current resume must be submitted for each member of the proposed franchise group, including the proposed Principal Operator. </div> <bR> <div> Also, INS  will request supporting financial documentation from each proposed owner.</div> <bR> <div> The initial franchise fee is $5,000 per school per year.</div> <bR> <div> An ongoing royalty fee of 5% of net sales is due on a monthly basis.</div> <bR> <div> INS requires that a minimum of 7% of net monthly sales be spent by each franchisee for marketing purposes*, as follows: 2.82% on national fund; and 4.18% on co-op and/or local marketing initiatives. Also, $5,000 must be spent on grand opening advertising for each of the first two schools.</div> <bR> <div> INS Franchise Offering Circular includes more detailed information regarding marketing and advertising fees.</div> <bR> <div> THESE FRANCHISE REQUIREMENTS DO NOT CONSTITUTE AN OFFER TO AWARD A FRANCHISE. SUCH AN OFFER MAY BE MADE ONLY IN COMPLIANCE WITH APPLICABLE DISCLOSURE LAWS, IF ANY.</div> </td> </tr></table></body>