ALLEGRA NETWORK - FDD UFOC ITEM 3 Detail

Item 3 LITIGATION

No litigation is required to be disclosed in this Item, except that, in our last fiscal year, we were party to and won the following aetieftarbitration proceeding which was initiated by us with the American Arbitration Association to enforce post-termination noncompete covenants against our former franchisee and to collect amounts due and owing to us bv our former franchisee: Allegra Network LLC v. Donald J. and Regina Frazier. No. AAA No. 651 14 0005107, April 4, 2007.