Effective July 1, 2012 the Company sold
its first franchise. Out of the total $35,000 franchise fee, $28,000 was financed under a note, with a term of 38 months,
and annual interest rate of 7%. As of September 30, 2012, balance under the Note was $25,982. Principal received for
the three months ended September 30, 2012 was $2,018. Interest income for the same period was $478.