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Franchise Information www.nauglestacos.com

OUR STORY

FOR THE PEOPLE Thanks for your interest in becoming a part of America s next great taco chain! Naugles was born in the 1970 s on the sun-soaked shores of Southern California. Dick Naugle started his restaurant with one simple philosophy for keeping customers happy. Prepare food fresh. Serve customer fast. Keep place clean. Dick Naugle Unrelenting commitment to this statement helped Naugles grow to become one of the largest Mexican chains in the country by the mid 80 s, before being acquired by Del Taco in 1988 to seemingly never be heard from again until August of 2006 when Christian Ziebarth, now President, posted a Naugles remembrance page on his Orange County Mexican restaurant blog. Christian wanted Del Taco to bring back Naugles menu items and public interest was overwhelming, so Christian began the process of reviving the iconic brand. Eight years, a four-year trademark court case victory over Del Taco, and countless cheers from die-hard fans for Naugles later NOW TM the brand is back in business!

READY FOR GROWTH The fast food restaurant industry has grown steadily since 2010, with the Mexican restaurant segment leading in overall growth. Thanks to a category-wide explosion of innovative recipes and quality ingredients to satisfy the evolving taste buds of consumers, this segment has played an integral role in the expansion of QSR industry sales. MARKET POSITIONING Our long history of great food, low prices, and restaurant innovation, along with our modern approach to sourcing all-natural ingredients without sacrificing the flavors Naugles customers know and love, have uniquely positioned us to capture significant market share. Our momentum is growing with our ability to offer our classic Mexican and American menu, served in a casual dining room and from 24-hour drive-thru service windows. With a recognizable brand and high-quality food offered at affordable prices, we are committed to capturing market share and filling the void for authentic Mexican food establishments. Statistics from Largest restaurant chains post best year in decade by Jonathan Maze, June 20, 2016, Nation s Restaurant News, p 11.

QSR INDUSTRY SEGMENTS Changing consumer demands have led to an increase in QSR growth and a decline in casual dining. According to Nation s Restaurant News, US restaurant chain sales increased 5.9% to $248.3 billion in the last year, leading the strongest growth since 2006. Mexican food has contributed to this growth with the segment reaching 8.53% of overall restaurant sales and 4.88% of QSR unit growth. SALES & UNIT GROWTH BY SEGMENT BEVERAGE-SNACK BAKERY-CAFE CASUAL DINING CHICKEN PIZZA LSR/SANDWICH C-STORE LSR/MEXICAN FAMILY DINING LSR/BURGER SALES GROWTH UNIT GROWTH Statistics from Largest restaurant chains post best year in decade by Jonathan Maze, June 20, 2016, Nation s Restaurant News, p 12.

THE TEAM

JOSHUA MAXWELL Chief Executive Officer Josh brings an entrepreneurial spirit and the desire to make a positive impact to Naugles. Prior to joining the Naugles team, Josh worked for five years at Netminded Technologies before starting his own company, CacheIT Solutions. Josh s insight and ability to anticipate customer needs helped him to provide small-to-medium businesses with the IT resources they need to succeed. Josh has been instrumental, with assisting his clients, to implement marketing strategies through the deployment of email, web, and social media best practices. Always seeking creative solutions that challenge convention, coupled with his keen business acumen and middle-market experience, Josh is the driving force of our company s TM overall business strategy and expansion plan.

CHRISTIAN ZIEBARTH President With his background as a seasoned web developer and social media expert, Christian created a blog in 2005 dedicated to reviewing Mexican restaurants in Orange County, California. This popular blog was a pioneer in the OC food-blogging scene and Christian s work has been profiled by many publications including The Orange County Register and OC Weekly. By analyzing his blog traffic, Christian noticed a significant and hard-to-ignore loyalty people have toward Naugles. Through his blogging endeavors Christian has formed many contacts with local restaurants, which prompted him to revive the iconic Naugles brand. After years of researching and developing the original Naugles flavors, Christian s commitment to delivering high-quality food has brought in both nostalgic guests and new ones alike. DANIEL DVORAK Chief Marketing Officer Dan contributes more than 10 years of brand development creativity and experience. As a talented conceptual designer by trade, his portfolio of clients include Apple, Wal-Mart, Target, and Amtrak. He uses his experience in 3D CAD rendering and his discerning eye for graphic design to create exciting, dynamic, and successful marketing campaigns. He has the know-how to deploy products and services directly into our strategies by utilizing both traditional and non-traditional advertising methods. With the real-world experience, knowledge, and skills required to successfully launch a food concept, in today s tech-savvy market, Dan leads our marketing efforts with our mobile app, online publishing, TM print, radio, and television marketing channels.

FRANCHISE FACTS

NOT A STARTUP A RESTART From the 1970 s to mid 90 s, Naugles was the place to meet up and hang out with friends to enjoy a delicious and fast meal. We have spent three years planning our comeback, hosting pop-up dinners, and building awareness to support our restaurant s return. TRENDY RETRO DESIGN We provide the convenience of take out and a casual atmosphere for dining. Our brand s well-known, retro look has been infused with a updated feel that offers a casual, fun, and friendly experience. SO-CAL MAINSTAY The rising demand for Mexican restaurants and the brand revival trend, currently sweeping the nation, have enabled us to quickly gain momentum. We were a Southern California mainstay in the 70 s 80 s and our nostalgic customers keep returning to share their experiences with us. We have also fostered a relationship with a new, younger generation that are creating memories by sharing in our passion for enjoying a laid back experience, where surfing and good eats are a staple TM throughout our culture.

GETTING STARTED SEGMENT Fast Food/QSR SUB SEGMENTS Mexican American FOOTPRINT Interior: 450 2,800 SF Pad Size: 22,000 33,000 SF REVENUE Dine-In, 24-Hour Drive-Thru, Delivery, Carry Out, Catering & Retail Sales REAL ESTATE High Traffic, Pedestrian-Friendly Venues Airports Beaches Drive-Thru Lots Theme Parks Shopping Centers/Malls Stadiums FRANCHISE FEES Initial Franchise Fee $35,000 Royalty Fees 6% Marketing Fee 2% LOCATIONS Huntington Beach 21351 Pacific Coast Highway Huntington Beach, CA 92648 Fountain Valley Corporate Kitchen 18471 Mt. Langley Street Fountain Valley, CA 92708

PRESS LINKS September 21, 2016 Reborn Fast Food Icon Naugles Promises 1,000 New Locations May 27, 2016 Naugles Opening 1st Public Location in Huntington Beach May 26, 2016 Naugles to Make a Triumphant Return After 24 Years! July 30, 2015 Naugles Soft Opening Swamped. It Isn t Just the Burritos July 29, 2015 By CNN Wire After 20 Years, Naugles Is Open Again in Southern California July 29, 2015 Nostalgic Naugles is back and so are the crowds for the bean and cheese burrito and the wild and crazy memories January 5, 2015 Naugles Fast-Food Chain Making Comeback

MENU ITEMS

TASTE THE DIFFERENCE Our crave-ability isn t only about our original Mexican-inspired items and flavors we ve reinvented our popular recipes to feature fresh ingredients with bold and spicy flavors! We have also added a selection of vegetarian options to further broaden our appeal. FRESH, SIMPLE & HEALTHIER OPTIONS We use locally-sourced ingredients that include all-natural chicken, lean ground beef, hand-grated cheeses, fresh chips & breads, and ripe produce. All of our sauces are housemade daily, including our popular cheese sauces. ICONIC & MODERN APPEAL In addition to our Baby Boomer and Gen X customer base, our cult-like following includes Millennials that are attracted to our iconic and modern appeal. Our customers now crave healthier, local, and flavorful options and can taste the difference in the quality ingredients we use. We continue to gain momentum by appealing to the masses!

BREAKFAST EGG & CHEESE BURRITO $3.50 EGG, CHEESE & BEAN BURRITO $4.00 EGG, CHEESE & BEEF BURRITO $5.00 COMBO BREAKFAST BURRITO $5.75 TACOS ORIGINAL TACO $2.50 BEEF SOFT TACO $2.50 CHICKEN SOFT TACO $2.50 BUN TACO $4.00 BURRITOS BEEF BURRITO $6.00 COMBO BURRITO $5.50 BEAN BURRITO $4.00 CHEESE BURRITO $3.00 CUPS COMBO CUP $5.00 MEAT & CHEESE CUP $5.50 BEAN & CHEESE CUP $4.50 TACO SALAD CUP $4.50 NACHOS REGULAR NACHOS $3.50 HOMBRE NACHOS $5.00 BURGERS NAUGLE BURGER $6.00 ORTEGA BURGER $5.50 HAM BURGER $4.50 CHEESE BURGER $5.00 CRINKLE CUT FRIES $2.50 HOMBRE $5.50 CHEESE $3.50 DRINKS $2.00 AGAVE VANILLA CREAM BLACK CHERRY COLA DIET BLACK CHERRY LEMON BERRY ACAI ROOT BEER SHAKES $4.00 CHOCOLATE VANILLA STRAWBERRY PINEAPPLE EXTRA CHEESE EXTRA SOUR CREAM BAG OF CHIPS 50

Notice Regarding Franchise Offers and Sales This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. There are approximately 14 countries and 15 US states that regulate the offer and sale of franchises. The countries are Australia, Brazil, Belgium, Canada (provinces of Ontario, Alberta, Prince Edward Island, New Brunswick and Manitoba), China, France, Indonesia, Italy, Japan, Malaysia, Mexico, Russia, South Korea, Spain, and the United States of America. The US states are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of one of these states or countries, are receiving this message in one of these states or countries, or intend to operate a franchise in any of these states or countries, we will not offer you a franchise unless and until we have complied with any applicable presale registration and/or disclosure requirements in the applicable jurisdiction. This offering is not an offering of a franchise. In New York (USA), an offering of a franchise can only be made by a prospectus that has been previously filed and registered with the Department of Law of the State of New York. The application for registration of an offering prospectus or the acceptance and filing thereof by the Department of Law as required by the New York law does not constitute approval of the offering or the sale of such franchise by the Department of Law or the attorney general of New York. TM

WE FUEL FRANCHISE GROWTH Fransmart is a global leader in franchise development, turning emerging restaurant concepts into national and global brands for more than 15 years. Company founder Dan Rowe identified and grew brands like Five Guys Burgers & Fries and Qdoba Mexican Grill from 1 5 unit businesses to the powerhouse chains they are today. Current and past franchise development portfolio brands have opened over 3,000 restaurants in 45 states and more than 35 countries. Both Fransmart and their partner brands are committed to franchise development growth as of 2016 over 1,000 new restaurants are in development across their current portfolio. Fransmart helps connect talented restaurant developers with successful brands that people crave and they have a strong track record of identifying restaurant industry trends that possess staying power. Visit www.fransmart.com for more information.