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Douglas Ferraro vs. Edward Thalheimer, Chita Rivera Thalheimer and The Tutoring Center, Inc. ("TTCI"), filed in Los Angeles Superior Court on November 8, 2001 (Case No. BC261420). Douglas Ferraro ("Ferraro") entered into a license agreement with TTCI but did not open a location. He claimed that TTCI made misrepresentations in offering and selling the franchise, that TTCI breached the franchise agreement and that TTCI had failed to register to offer and sell franchises. Ferraro sued for fraud, breach of written contract, declaratory relief, rescission, unfair business practices and breach of oral contract. In approximately September 2002, TTCI entered into a settlement agreement with Ferraro and without admitting liability, settled all claims out of court and paid him $200,000 in settlement of all claims.


Department of Corporations, Desist and Refrain Order (June 28, 2002). On June 28, 2002, the California Department of Corporations (the "DOC") issued a Desist and Refrain Order against our affiliate, TTCI and our president Dr. Edward Thalheimer, alleging that Dr. Thalheimer and TTCI offered and sold unregistered franchises in California. Pursuant to the order, TTCI and Dr. Thalheimer were ordered to desist and refrain from any further offer or sale of franchises until a registration had been obtained. On August 2, 2005, we received a franchise registration permit from the DOC authorizing the sale of franchises in California.


Other than these two actions, no litigation is required to be disclosed in this Disclosure Document.




Franchise Categories - Franchises - The Tutoring Center - THE TUTORING CENTER FDD & UFOC Data - THE TUTORING CENTER FDD & UFOC ITEM 3 -

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