EMBROID ME - FDD UFOC ITEM 1 Detail

ITEM 1

THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND

AFFILIATES

■ �{ Deleted:, ITS

To simplify the language of this ^Disclosure Document _"EMH,"_ "us" or ''Ve" refers toDeleted:offeringcircular EmbroidMe.com, Inc., (the "Franchisor").�� "You" means the person, including any owner, partner or corporation who is looking at our franchise.

EME was incorporated in February 2000 in the State of Florida. Our principal place of business
is 2121 Vista Paikway., West Palm Beach, Florida 33411. We du business under our corporate
name, EmbroidMe and EmbroidMe.com. We do not have any predecessors or a parent entity.
Our agents for service of process are listed in Exhibit G to this ^DisclosureDocument.______________

COMPANY HISTORY

We grant franchises to qualified persons for the right to own and operate an EmbroidMe business (the "Business") under the terms of our standard Franchise Agreement (a copy is attached as Exhibit A). We started granting EmbroidMe franchises in September 2000 and today have over 330 stores in eight countries.

We have not previously offered franchises in any other line of business. We opened the first EmbroidMe store as a company store in April 2000 in West Palm Beach, Florida and sold this store in August 2001 to a franchisee. We do not currently own and/or operate any EmbroidMe stores.

^J^sc_RIPTION OF AN EME BUSINESS

EME offers to you, our customer, the right to own and operate a full service EmbroidMe Store. In your Store you will use our trademark, trade name, proven and sophisticated procedures and trade secrets. You will service retail and business customers hy providing them with embroidered, screen-printed apparel and/or advertising and promotional merchandise. This will include specific items such as golf/polo shirts, caps, jackets, denim, uniforms, logo reproduction, outerwear, towels, t-shirts, bags, aprons, photographic gifts, pens, mouse pads, cups/mugs, and magnetic business cards. That''s quite a list of product offerings! Your competitors include independent embroidery shops, other franchisees of other embroidery businesses, certain catalog companies that embroider, uniform companies, and to a lesser degree, dry cleaners and alteration shops. Your customer base will primarily be small to medium sized businesses along with corporations, many of who have adopted the national trend toward corporate casual attire and logo wear and merchandise. The embroidery business has grown in recent years due to the trend towards casual attire and logo merchandise

Jviany states> and/or mumcip^liiies regulate embro^ and the retail sale of apparel. The State qf_ California requires an embroidery shop to register as a garment manufacturer and pay an annual fee of $750.00, There also will be other local, state and federal laws applicable to your EmbroidMe business. We encourage you to make further inquiries and seek legal counsel about these laws.

Deleted: Who art we7%

, R3y Titus, our company''s founder and President, grew up in frandiising. His lather, Roy, is the founder ofMinutcman Press International (one of the world''s leading quick print franchises). Through Ray''s teenage years he worked for his dad in the fsniily busines. After attending college in Fkvida, Ray returned to New York and, together with his father, founded Sign*A*Rama, the World''s largest retail sign franchise (ranked in one of Gntrt^iraicur Magazine''s top SO franchise systems). Ray currently serves as President of Sign*A*Rama Inc. Ray''s personal focus has become the successful launch and development of our business.^

Deleted: You will operate your EmbroidMe business from a location within your Designated Territory (see Item 12). The initial franchise fee and terms and conditions of the Franchise Agreement are the same regardless of the size of the Designated Territory. As noted in Items 5 nid 7, however, (i) we are currently offering the EmhroidMc franchise to existing embroidery business owners (the "conversion" franchise) for a reduced initial franchise fee .if $22,500, and (ii) we also offer a muddying existing franchisee the opportunity lo acquire an additional franchise for the same or the Ihtn-cumnt iiansfcr/lraining ft* Except for the initial franchise fee and initial investment as described in Item 7. this Offering Circular and the terms and conditions of the Franchise Agreement as described herein apply to these programs.^

EME - MULTISTATE -200\

Deleted: FTCEME07

AFFILIATES AND SUBSIDIARIES

The Company is a member of the United Franchise Group, an affiliated group of companies which are located at 2121 Vista Parkway, West Palm Beach, Florida 33411 whose franchising companies are:

1.  Sign"A*Rama Inc., ("Sign*A*Rama") the world''s largest franchisor of retail sign shops, that has been in franchising since 1987 and currently has over 830 locations in 29 countries;

2.  Billboard Connection, Inc. ("BBC"), a franchisor of out of home advertising agencies that has been in franchising since 2004 and currently has over 60 agencies in 4 countries: and

3.  FranchiseMart, LLC, ("FranchiseMart"), a franchisor of franchise lead referral centers that has been in franchising since August 2007 and currently has three centers.

4.  Plan Ahead Events, Inc. ("PAE"), a franchisor of event planning and management agencies that has been franchising since October 2007 and currently has 2 agencies.

Minutcman Press International, Inc. located at 61 Executive Blvd, Farmingdale, New York 11735 is also affiliated with us. As one of the world''s leading quick print franchises, Minuteman has been franchising since 1975 and at the close of its last fiscal year (December 31, 2007), it had 981 franchises worldwide.

The Sign*A*Rama, BBC, FranchiseMart, PAE and Minuteman Press franchises are different businesses than the EmbroidMe business described in this Disclosure Document. We have not and none of these affiliates has offered franchises in anv other line of business.