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JUMPBUNCH® DISCLOSURE DOCUMENT

TABLE OF CONTENTS

ITEM

1. THE FRANCHISOR, ITS PREDECESSORS AND AFFILIATES

2. BUSINESS EXPERIENCE

3. LITIGATION

4. BANKRUPTCY

5. INITIAL FRANCHISE FEE

6. OTHER FEES

7. INITIAL INVESTMENTS

8. RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES

9. FRANCHISEE'S OBLIGATIONS

10. FINANCING

11. FRANCHISOR'S OBLIGATIONS

12. TERRITORY

13. TRADEMARKS

14. PATENTS. COPYRIGHTS AND PROPRIETARY INFORMATION

15. OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS

16. RESTRICTIONS ON WHAT YOU MAY SELL

17. RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION

18. PUBLIC FIGURES

19. EARNINGS CLAIMS

20. LIST OF OUTLETS

21. FINANCIAL STATEMENTS

22. CONTRACTS

23. RECEIPTS

EXHIBITS

A. FRANCHISE AGREEMENT

B. FINANCIAL STATEMENTS

C. AGENTS FOR SERVICE OF PROCESS

(State Administrators, if any)

D. APPROVED SUPPLIERS

E. OPERATIONS MANUAL TABLE OF CONTENTS

F. CALIFORNIA ADDENDUM

G. RECEIPTS

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INFORMATION FOR PROSPECTIVE FRANCHISEES REQUIRED BY THE FEDERAL TRADE COMMISSION

regarding

JUMPBUNCH, INC.

(A Maryland Corporation)

TO PROTECT YOU, WE'VE REQUIRED YOUR FRANCHISOR TO GIVE YOU THIS INFORMATION. WE HAVEN'T CHECKED IT. AND DON'T KNOW IF IT'S CORRECT. IT SHOULD HELP YOU MAKE UP YOUR MIND. STUDY IT CAREFULLY. WHILE IT INCLUDES SOME INFORMATION ABOUT YOUR CONTRACT, DON'T RELY ON IT ALONE TO UNDERSTAND YOUR CONTRACT. READ ALL OF YOUR CONTRACT CAREFULLY. BUYING A FRANCHISE IS A COMPLICATED INVESTMENT. TAKE YOUR TIME TO DECIDE. IF POSSIBLE, SHOW YOUR CONTRACT AND THIS INFORMATION TO AN ADVISOR, LIKE A LAWYER OR AN ACCOUNTANT. IF YOU FIND ANYTHING YOU THINK MAY BE WRONG OR ANYTHING IMPORTANT THAT'S BEEN LEFT OUT, YOU SHOULD LET US KNOW ABOUT IT. IT MAY BE AGAINST THE LAW.

THERE MAY ALSO BE LAWS ON FRANCHISING IN YOUR STATE. ASK YOUR STATE AGENCIES ABOUT THEM.

Federal Trade Commission Washington, D.C. 20580

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ITEM1

THE FRANCHISOR, ITS PREDECESSORS AND AFFILIATES

To simplify the language in this offering circular, Jumpbunch, Inc., the franchisor, is referred to in this disclosure document as "we," "us," or "our". A franchisee is referred to in this disclosure document as "you" and "your". If you are a legal entity, "you" includes your owners.

We are a corporation formed under Maryland law on June 7, 2001. Our principal business address is 1160 Spa Rd, Suite 3B, Annapolis, Maryland 21403. Our agent or agents to receive service of process, if any, are in attached Exhibit "C".

From July, 1997, to October, 2006, Thomas Bunchman, our President, operated our affiliate, Jumpbunch ("JB"), a Maryland sole proprietorship. In October, 2006, the sole proprietorship ceased operation after its principal assets were sold to a franchise location. Your franchise is modeled after the sports, fitness, and physical education training business that was operated by JB.

We intend to do business under our corporate name and under the JUMPBUNCH® name. We sell franchises for the operation of JUMPBUNCH® businesses. JUMPBUNCH® businesses specialize in providing sports, fitness, and physical education training and educational programs to children in preschool facilities, day care centers, other school facilities, and similar facilities. These businesses operate under the JUMPBUNCH® name and under distinctive business formats, methods, procedures, designs, layouts, standards and specifications, all of which we may improve, further develop or otherwise modify from time to time. We use, promote and license certain trademarks, service marks and other commercial symbols in the operation of JUMPBUNCH® businesses, including the JUMPBUNCH® trademarks and service marks and associated logo (collectively, the "Marks". You will operate your franchise from a specific location in a defined territory. We manage the JUMPBUNCH® network of franchisees. We do not engage in any other business activity. We do not operate JUMPBUNCH® businesses. We have been offering JUMPBUNCH® franchises since October 12, 2001.

The services our franchises sell are well recognized by consumers and available from other sources. The market for our franchisee's services is well developed. Our goods and services are sold to individuals and to businesses. Selling is not seasonal.

In addition to laws that apply to businesses generally, there may be regulations specific to the services offered by this type of business in the state or local area in which you will operate your JUMPBUNCH® franchise. It is your responsibility to investigate and to comply with any of these regulations in your state or local area.

There is competition for the services our franchisees will sell. Local independent businesses compete with our franchisees, as will regional, national or international chains.

ITEM 2

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ITEM 2 BUSINESS EXPERIENCE

Thomas Bunchman, President

Thomas Bunchman is our President, a position he held since our inception. Mr. Bunchman also owned and operated our affiliate, JumpBunch®, a position he held from July. 1997 until its sale in October, 2006.

Kathleen Bunchman, Secretary

Kathleen Bunchman is our Secretary, a position she held since our inception, and works actively with day to day JumpBunch® operations. Ms. Bunchman was a substitute teacher at St. Mary's Elementary School from August, 1996 to June, 2003.

Timothy Lee Holadia, Franchise Sales Broker

Timothy Lee Holadia is our Franchise Sales Broker, a position he has held since April, 2007. Mr. Holadia also is President and Chief Executive Officer of FRANMOGUL, in Virginia Beach, Virginia, a position he has held since July, 2006. Mr. Holadia was Vice President and Director of Franchise Development for Geeks on Call America in Norfolk Virginia, from February, 2001, to July, 2006.

ITEM 3 LITIGATION

No litigation is required to be disclosed in this offering circular.

ITEM 4

BANKRUPTCY

No person previously identified in Items 1 or 2 of this offering circular has been involved as a debtor under the U.S. Bankruptcy Code required to be disclosed in this Item.

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ITEM 5

INITIAL FRANCHISE FEE

You and all other JUMPBUNCH® franchisees will pay a lump sum, nonrefundable, franchise fee upon completion of initial training. The franchise fee varies depending upon the population in your exclusive territory. The table below shows how the franchise fee is calculated.

Territory Population:	Franchise Fee
Less than 250,000	$30,000
250,000-500,000	$40,000
500,000-1,000,000	$50,000

Presently, if our Franchise Sales Broker refers a franchise prospect to us that signs a franchise agreement with us, we pay the Franchise Sales Broker the greater of 40% of the initial franchise fee paid to us, or $15,000.

ITEM 6

OTHER FEES

FA = Franchise Agreement

Name of Fee	Due Date	Amount	Remarks
Successor Franchise Fee	Concurrently with our granting a successor franchise to you	Twenty five (25%) percent of our then current franchise fee	Paid to us if you want to renew your franchise agreement with us and obtain a successor franchise. Nonrefundable. See Article 1.8. of the Franchise Agreement

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Name of Fee	Due Date	Amount	Remarks
Royalty	Monthly on or before the 3rd day following the close of each calendar month	The higher of 8% of Gross Revenue' or the minimum royalty as identified in the table below.	Paid to us to provide ongoing assistance to you and to use our Marks and proprietary intellectual property. Non-refundable. See Article 2.3. of the Franchise Agreement
Start-Up Marketing	Expended according to our marketing programs	$500	Paid to advertisers to promote the franchise at opening. Nonrefundable. See Article 2.4. of the Franchise Agreement
Regional/National Ad Fee	When the Royalty is paid	1% of Gross Revenue¹	Paid to us into the advertising fund to use for building regional and national recognition of the Marks. See Article 2.5. of the Franchise Agreement
Local Marketing Fee	According to Methods of Operation as per your advertising budget	1% of Gross Revenue¹	Paid to advertisers to promote your franchise locally. Non-refundable. See Article 2.6. of the Franchise Agreement
Interest on Late Payments	When you pay us the overdue amount	Highest contract rate beginning from the due date	Paid to us if you are overdue on a payment due to us. See Article 2.7. of the Franchise Agreement
Refresher Training Fee	As we and you agree	$400 per person per day	Paid to us if you need additional or refresher training. See Article 3.2. of the Franchise Agreement
Per Day Fee	As we and you agree	$400 per person per day	Paid to us if you need us to assist you in operating your franchise. See Article 3.4.7. of the Franchise Agreement

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Name of Fee	Due Date	Amount	Remarks
Ongoing Assistance	As we and you agree	$400 per person per day	Paid to us if you need ongoing assistance in operating your franchise. See Article 3.4.8. of the Franchise Agreement
Operations Manual Replacement Charge	When replacement pages are delivered to you	$1 per page	Paid to us if you lose the Operations Manual or if we update pages to the Operations Manual. See Article 3.5. of the Franchise Agreement
Capital Additions	You will expend these amounts over the time it takes to make Capital Additions	Reasonable expenditures from time to time during the term of the Franchise Agreement	Paid to approved suppliers. Nonrefundable. See Article 6.3. of the Franchise Agreement
Auditing Costs	Within 7 days of your receipt of notice from us that you must reimburse us for our actual costs of the audit	Reimbursement of actual costs	You'll reimburse us for our auditing costs if we have to audit you because you fail to provide us with required reports on a timely basis. See Article 8.3. of the Franchise Agreement
Franchise Transfer Fee	Concurrently with the transfer	$5,000	Paid to us if you want to transfer the franchise. See Article 9.2. of the Franchise Agreement.

Except as otherwise noted above, all fees are imposed by us, are payable to us and are nonrefundable.

As the term is used in the Franchise Agreement, "Gross Revenue" means all revenue you derive from operating the JUMPBUNCH® franchise in accordance with the JUMPBUNCH® system standards, and whether from cash, check, barter, trade-in, credit transactions or otherwise, but excluding all federal, state or municipal sales taxes, use taxes or service taxes collected from customers and paid to the appropriate taxing authority and excluding customer refunds, adjustments, credits and allowances actually made by the franchise in compliance with the JUMPBUNCH® system standards.

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MINIMUM ROYALTY

Territory Population:	Year 1 of the Term of the Franchise Agreement	Year 2 of the Term of the Franchise Agreement	Year 3 and Thereafter During the Remaining Term of the Franchise Agreement
Less than 250,000	$300 per calendar month, beginning fourth month	$400 per calendar month	$500 per calendar month
250,000-500,000	$400 per calendar month, beginning fourth month	$500 per calendar month	$600 per calendar month
500,000-1,000,000	$600 per calendar month, beginning fourth month	$700 per calendar month	$800 per calendar month

ITEM 7

INITIAL INVESTMENT

Your Estimated Initial Investment

INVESTMENT ITEM	AMOUNT (LOW)	ESTIMATED (HIGH)	METHOD OF PAYMENT	WHEN DUE	TO WHOM PAYMENT IS TO BE MADE
Initial Franchise Fee	$30,000	$50,000	Lump sum	When you sign the Franchise Agreement	Us. Nonrefundable.
Leasehold Improvements¹	$0	$5,000	Terms vary	Terms vary	Approved suppliers or per specifications. Nonrefundable.
Signs	$100	$1,000	Terms vary	Terms vary	Approved suppliers or per specifications. Nonrefundable.

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INVESTMENT ITEM	AMOUNT (LOW)	ESTIMATED (HIGH)	METHOD OF PAYMENT	WHEN DUE	TO WHOM PAYMENT IS TO BE MADE
Office Equipment and Supplies	$500	$1,500	Terms vary	Terms vary	Approved suppliers or per specifications. Nonrefundable.
Fitness Equipment	$1,000	$1,500	Terms vary	Terms vary	Approved suppliers or per specifications. Nonrefundable.
Start-Up Marketing	$500	$1,000	Terms vary	Shortly before and around the time you begin operations	Advertisers. Nonrefundable.
Insurance	$1,000	$4,500	Lump sum payment of first year premium	Before beginning operations	Insurance companies. Nonrefundable.
Professional Fees	$1,000	$2,500	Terms vary	Terms vary	Accountants, lawyers, etc. Nonrefundable.
Initial Training Expenses	$400	$1,700	Terms vary	Terms vary	Airfare, ground transportation, meals, lodging, etc. Nonrefundable.
Lease Deposits	$0	$2,000	Terms vary	Terms vary	Landlord. Maybe refundable although terms will vary.

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INVESTMENT ITEM	AMOUNT (LOW)	ESTIMATED (HIGH)	METHOD OF PAYMENT	WHEN DUE	TO WHOM PAYMENT IS TO BE MADE
Other Deposits	$0	$500	Lump sum	When you hire the service	Utilities, banks/credit card companies, leased equipment vendors, alarm company, telephone company. May be refundable although terms will varv.
Licenses and/or Bonds	$300	$1,000	Lump sum payment on application	Prior to beginning operations	Government agencies and bonding companies. Nonrefundable.
Additional Funds	$400	$5,000	Terms vary	Amount varies over the next 3 months	Payroll, debt service, and miscellaneous day-to-day expenses
Total	$35,200	$77,200	Does not include real estate costs

The expenses in this Item 7 are estimates of your initial investment in one franchise prior to beginning operations and for the first three months after that time. We cannot guarantee that you will not have additional expenses starting the business. Your costs will depend on how closely you follow the JUMPBUNCH® system standards, your management skill, experience and business acumen, local economic conditions, the acceptance by local consumers of our approved services, prevailing wage rates, competition, etc. We've made no estimate regarding real estate acquisition costs. We do not require you to acquire real estate. We make no representation as to whether any of the estimated investment amounts are refundable. The estimates in this Item 7 were developed based upon the experience of our former affiliate in starting a business similar to the franchise business and upon our analysis of the present market cost of obtaining the necessary goods and services to begin operating the franchise business. We do not provide any financing of your initial investment.

¹ Typically, the franchise will be operated out of your home. We have included in our high end estimate your costs for any leasehold improvements in a rented space in the event you elect to operate the franchise outside your home. Our primary concern as to the type of property in which

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you operate the franchise is that the franchise business not be located in any area which clearly may reflect negatively upon the image of the franchise business, such as in an area with a historically high crime rate. The property type may be residential, office or commercial. There are no requirements as to building size.

² Our estimated cost of office equipment and supplies includes the cost of a computer, printer/fax/copy machine, phone/voice mail system, filing cabinets, forms, and stationery.

³ Our estimated cost of fitness equipment includes sports equipment, toys and miscellaneous items you will need to conduct the classes. We made no estimate for a vehicle as we assume you will use a vehicle you already own.

ITEM 8

RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES

The leasehold improvements, signs, office equipment and supplies, and fitness equipment listed in Item 7 must be purchased by you from our approved suppliers or according to our specifications. You must use an approved accounting software program in the operation of your JUMPBUNCH® franchise. You will use the accounting software program to generate invoices and receipts for customers, track your sales at the franchise, and maintain information required for accounting records. Also, you must use a standard Windows 2000® compatible computer. You must purchase and use Microsoft Publisher 2002 or a more recent version of this software. You also will need a printer, a facsimile machine, and a copy machine, in order to operate the franchise. You will use the personal computer to communicate with us through the Internet, as well as to create correspondence and records related to the franchise. It will be your responsibility to find an Internet Service Provider and to set up an e-mail account through which you can communicate with us. The software and hardware are not proprietary.

Approved suppliers and specifications are set forth in our Operations Manual. Approved suppliers and specifications are determined based on the current needs for operating the franchised business. We evaluate approved suppliers based on price, service, quality, and other commercially reasonable benchmarks. The identity of approved suppliers and these specifications are updated periodically in writing by modifying the appropriate pages of the Operations Manual. We will send you modified pages through the United States Mail or by any other commercially reasonable means. We have procedures for approving vendors and suppliers you recommend. It takes up to 90 days to evaluate new vendors or suppliers.

Attached Exhibit "D" sets forth the goods and services we require you to purchase or lease from our approved suppliers and any arrangements we've negotiated with the suppliers. These goods and services include leasehold improvements, signs, office equipment and supplies, fitness equipment, and insurance. We are not currently approved suppliers. We do not derive revenue or other material consideration as a result of your required purchases or leases. Our reason for these requirements is to ensure uniformity and consistent quality in all

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JUMPBUNCH® locations. During our last fiscal year ending December 31, 2006, we did not derive gross revenue from franchisees' required purchases.

The following table sets forth our estimates regarding the items we require you to purchase or lease from our approved vendors and suppliers relative to your total initial investment and annual operating expenses (not as a percentage of gross revenue).

Goods/Services	Percentage of Total Initial Investment	Percentage of Total Annual Operating Expenses
Leasehold improvements	0%tol3%	Less than 1%
Signs	l%to3%	Less than 1%
Office equipment and Supplies	4% to 5%	Less than 3%
Production equipment	4% to 10%	Less than 3%
Insurance	4% to 5%	Less than 2%

We do not provide other material benefits to you, i.e., special renewal privilege or additional franchises, based on your use of our designated or approved sources. We have no information to report on revenue at this time. There are no purchasing or distribution cooperatives at this time.

ITEM 9

FRANCHISEE'S OBLIGATIONS

THIS TABLE LISTS YOUR PRINCIPAL OBLIGATIONS UNDER THE FRANCHISE AND OTHER AGREEMENTS. IT WILL HELP YOU FIND MORE DETAILED INFORMATION ABOUT YOUR OBLIGATIONS IN THESE AGREEMENTS AND IN OTHER ITEMS OF THIS OFFERING CIRCULAR.

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OBLIGATION	ARTICLE NUMBER IN FRANCHISE AGREEMENT	ITEM NUMBER IN DISCLOSURE DOCUMENT
a. Site selection and acquisition/ lease	Not applicable	11
b. Pre-opening purchases/leases	6.	8
c. Initial and ongoing training	3.	7 and 11
d. Opening	2.4.	11
f. Fees	1.8., 2.1., 2.3.,2.4., 2.5., 2.6., 2.7., 3.2., 3.4., 3.5., 6.3., 8.3., 9.2.,	5 and 6
g. Compliance with standards and Policies / Operations Manual	1.1., 3., 6.	11
h. Trademarks and proprietary Information	4., 6.	13 and 14
i. Restrictions on products/services Offered	6.	16
j. Warranty and customer service Requirements	N/A	11
k. Territorial development and sales Quotas	2.9.	12
1. Ongoing products/service Purchases	3.4.2., 3.5., 6.	8
m. Maintenance, appearance and Remodeling requirements	6.	6 and 8
n. Insurance	6.1.13.	7 and 8
o. Advertising	2.4., 2.5., 2.6.	6 and 11
p. Indemnification	12.4.	9
q. Owner's participation/ Management/staffing	1.4., 1.7.	11 and 15
r. Records/reports	7.	6
s. Inspections/audits	8.	6 and 11
t. Transfer	9.	17
u. Renewal	1.8.	17

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OBLIGATION	ARTICLE NUMBER IN FRANCHISE AGREEMENT	ITEM NUMBER IN DISCLOSURE DOCUMENT
v. Post-termination obligations	11.	17
w. Non-competition covenants	5., 11.	17
x. Dispute resolution	13.12.	17
y. [other]

ITEM 10

FINANCING

We do not offer direct financing. We do not guarantee any note, lease or other of your obligations.

ITEM 11

FRANCHISOR OBLIGATIONS

Except as listed below, we need not provide any assistance to you (Article refers to the relevant Franchise Agreement Article):

Our obligations prior to your beginning operation of your JUMPBUNCH® franchise (with cites to the Franchise Agreement) include:

1. Granting you a franchise when you sign the Franchise Agreement to operate a JUMPBUNCH® business within a designated territory (Article 1.3.);

2. Allowing you to use our Operations Manual and instructing you in "Methods of Operation" within 60 days of your signing the Franchise Agreement (Article 3.5.). You will be permitted to view our Operations Manual at our main office prior to purchasing the franchise. A copy of the Table of Contents to our Operations Manual is contained in Exhibit "E" to the Franchise Offering Circular;

3. Providing you with an initial training program within 60 days of your signing the Franchise Agreement (Article 3.1.);

4. Providing you with general guidance, within 60 days of your signing the Franchise Agreement, concerning (Article 3.3. and sub-articles);

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Standards, specifications and operating procedures and methods utilized by the business;

Purchasing required ancillary goods, equipment, materials, supplies and services;

Advertising and marketing programs;

Employee training; and

Administrative, bookkeeping and accounting procedures and services.

Since we allow you to operate from your home, we have no requirement that we must approve a location for your JUMPBUNCH® business. However, if you decide to operate your business from outside your home, we have the right to approve your choice of location. The primary factor we consider in approving your choice of location is that the location not adversely impact the image of the franchise, such as being located in an area with a historically high crime rate. We will not unreasonably withhold our consent to your choice of a location but if you and we can't agree on a choice of a location, we may terminate the Franchise Agreement and retain your initial franchise fee.

Our obligations to you during the operation of your JUMPBUNCH® franchise may include:

1. Providing you with telephone and e-mail consultation during the times as are outlined in the Operations Manual (Article 3.4.1.);

2. Providing you with buying advisory services where we provide you with lists of sources and approved suppliers for our ancillary goods, services, equipment, etc. (Article 3.4.2.);

3. Providing you with ongoing marketing programs (Article 3.4.3.);

4. Providing you with newsletter services where we may inform you periodically about current events in the JUMPBUNCH® franchise program (FA 3.4.4.);

5. Providing you with meetings, seminars or conventions where we may get together with you and other JUMPBUNCH® franchisees for business or social purposes (Article 3.4.5.);

6. Providing you with research and development regarding our Methods of Operation (Article 3.4.6.);

7. At your request, we may furnish additional guidance and assistance and, in this situation, may charge the per day fees and charges we periodically

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establish. If you request, or if we require, additional or special training for your employees, all of the expenses that we incur in connection with this training, including per day charges and travel and living expenses for our personnel, will be paid by you (Article 3.4.7.);

8. As we may mutually agree, we may provide ongoing assistance to you at the hourly fee and charge we periodically establish. (FA 3.4.8.);

We control an Advertising Fund to which all JUMPBUNCH® franchisees contribute. We may, but are not obligated to, contribute to the Advertising Fund. We are not limited to any specific media in which ads may be disseminated. We are not limited to local, regional or national programs, but may use a combination of these programs. We will generate ads and may solicit outside ad agencies for ad creation. You can only use advertising that you generate after first receiving our approval. We are not required under the terms of the Franchise Agreement to provide advertising in the area or territory where your JUMPBUNCH® franchise is located in the same proportion as your contributions to the Advertising Fund. The Advertising Fund will be accounted for separately from our other funds and will not be used to defray any of our general operating expenses, except for the reasonable salaries, administrative costs, travel expenses and overhead as we may incur in activities related to the administration of the Advertising Fund and its programs. We will prepare an annual unaudited statement of monies collected and costs incurred by the Advertising Fund and furnish the statement to you upon written request. Any money in the Advertising Fund which is not depleted within the calendar or fiscal year will remain in the Advertising Fund for use during the following calendar or fiscal year. Our franchisor-owned company units have no obligation to contribute to the Advertising Fund. (Article 9). There are no advertising cooperatives or franchisee councils involved in the advertising process, although we have the right to require these cooperatives to be formed, changed, dissolved or merged. The Advertising Fund will use 0% of Ad Fees collected to solicit the sale of JUMPBUNCH® franchises. During our last fiscal year ending December 31, 2003, we collected no Advertising Fund fees.

We approve suppliers for hardware and software (see Item 8 above). You must use an approved accounting software program in the operation of your JUMPBUNCH® franchise. You will use the accounting software program to generate invoices and receipts for customers, track your sales at the franchise, and maintain information required for accounting records. We also require you to use a standard Windows 2000® compatible computer. Also, you must purchase and use Microsoft Publisher 2002 or a more recent version of this software. You also will need a printer, a facsimile machine, and a copy machine, in order to operate the franchise. You will use the personal computer to communicate with us through the Internet, as well as to create correspondence and records related to the franchise. It will be your responsibility to find an Internet Service Provider and to set up an e-mail account through which you can communicate with us. The software and hardware are not proprietary. You will contact our approved suppliers for service and maintenance of your computer hardware and software and peripheral equipment. Our approved suppliers have their own policies for service and maintenance as well as hardware and software upgrades. You agree to maintain at your own expense a computer system that conforms to the requirements and formats we periodically, including updating all computer

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software and hardware as we require. We may, as often as we deem appropriate, including on a daily basis, access the computer systems that you must maintain in connection with the operation of the JUMPBUNCH® franchise and may retrieve all information relating to the JUMPBUNCH® franchise's operations. (Article 7.2.)

We estimate the length of time between the signing of the Franchise Agreement or the first payment of consideration for the JUMPBUNCH® franchise and your first marketing effort to sell the franchise services is 30 days. Things that may affect the time period include your ability to purchase equipment, obtain clients, and/or purchase materials and supplies. You must begin operation of your JUMPBUNCH® franchise within 90 days after execution of the Franchise Agreement or within 10 days after you have completed initial training to our satisfaction. The pre-opening training program will be conducted at our mutual convenience during this time period.

Our training program is conducted at our main office at 1160 Spa Rd, Suite 3B, Annapolis, Maryland 21403. Our current initial training program consists of 2 working days of training for you (or your Managing Owner), and 1 additional employee you elect to enroll in the training program. Also, you must participate in all other activities required to operate the JUMPBUNCH® franchise. Although we will furnish initial training to you (or your Managing Owner), and 1 additional employee at no additional fee or other charge, you will be responsible for all travel and living expenses which you (or your Managing Owner) and your employee incur in connection with training. If we determine that you (or your Managing Owner) are unable to complete initial training to our satisfaction, we may terminate the Franchise Agreement under the terms of Article 10 of the Franchise Agreement. (Article 10.2.)

We may reasonably require you (or your Managing Owner) and/or previously trained and experienced employees to attend refresher training courses at the times and locations that we designate, and we may charge reasonable fees for these courses. There are no limits on the frequency of these required refresher training courses.

Pre-opening training will be provided substantially as follows:

SUBJECT	TIME BEGUN	INSTRUCTIONAL MATERIAL	HOURS OF CLASSROOM TRAINING	HOURS OF ON THE JOB TRAINING	INSTRUCTOR
Personnel	See Notel	Operations Manual	1	0	See Note 2
Administration	See Note 1	Operations Manual	3	0	See Note 2
Operations	See Notel	Operations Manual	3	0	See Note 2

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SUBJECT

TIME BEGUN

INSTRUCTIONAL MATERIAL

HOURS OF CLASSROOM

TRAINING

HOURS OF

ON THE

JOB

TRAINING

INSTRUCTOR

Marketing, Advertising and Public Relations

See Note 1

Operations Manual

See Note 2

Client Service and Selling

See Note 1

Operations Manual

See Note 2

Note 1: It is the nature of the JUMPBUNCH® business that all subjects are integrated into the training program, and that there are no clear delineations between the subjects being learned.

Note 2: Thomas Bunchman, our President, currently leads our training program and has experience in training all of the subject matters as the former owner of JB and has trained franchisees as our President.

ITEM 12

TERRITORY

You will be granted a specific Territory (the "Territory") in which to operate your franchise. Your Territory will be defined as a specific geographic area identified using commonly understood state, county, municipal or postal area definitions, in which we will not locate another franchise or company-owned location.

There is no minimum area granted to a franchisee but our typical franchise territory will contain between 250,000 people and 500,000 people, usually in metropolitan markets. The basis for determining the approximate size of a typical territory is the experience of our former affiliate JB in operating in the Annapolis, Maryland area.

We may sell our services and related goods, whether or not using the Marks, through distribution channels other than JUMPBUNCH® businesses. Also, we may establish, and grant to franchisees the right to establish, JUMPBUNCH® businesses anywhere outside the Territory on terms and conditions that we deem appropriate.

We presently do not sell the same or similar services and goods through other distribution channels and have no plans to sell franchises under a different trademark within the current and next fiscal year. We are not restricted from establishing other franchises or company-owned outlets selling or leasing similar products or services under a different trademark.

CA DD-16 JUMPBUNCH®

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Your rights in and to your JUMPBUNCH® franchise depend on your meeting a minimum gross revenue quota. At the end of each 52 week period of your Franchise Agreement, starting on the date you sign the Franchise Agreement, we will calculate your Gross Revenue (as defined in Article 2.2. of the Franchise Agreement) for the previous 52 week period. We may terminate the Franchise Agreement if at the end of a 52 week period, you fail to derive Gross Revenue for the franchise business during the previous 52 week period in the amounts identified in the table below:

MINIMUM 52 WEEK GROSS REVENUE QUOTA

Territory Population:	Yearl	Year 2	Year 3 and Thereafter During the Remaining Term of the Franchise Agreement
Less than 250,000	$45,000	$60,000	$75,000
250,000-500,000	$60,000	$75,000	$90,000
500,000-1,000,000	$90,000	$105,000	$120,000

The configuration of your territory may not be altered except by written mutual agreement signed by both you and us. You do not receive the right to open additional locations under the Franchise Agreement.

ITEM 13 TRADEMARKS

The JUMPBUNCH® trademark is the principal trademark you'll use under license from us through the Franchise Agreement. The JUMPBUNCH® trademark listed below is registered with the United States Patent and Trademark Office ("PTO"). Since we have a Principal Register federal registration for the JUMPBUNCH® trademark, we have certain presumptive legal rights granted by a registration.

TRADEMARK	REGISTRATION NUMBER	DATE OF REGISTRATION	REGISTER
JUMPBUNCH®	2586608	June 25, 2002	Principal
jumpbunch.com	Registered Internet Domain Name

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You must use our current and future trademarks, service marks and trade names only in the ways we have approved in advance in writing. Also, you must stop using any trademarks, service marks or trade names that we determine to be no longer part of the JUMPBUNCH® system standards, including the JUM PBUNCH® trademark.

There are no currently effective material determinations of the PTO, Trademark Trial and Appeal Board, the trademark administrator of any state, or any court. There are no pending infringements, oppositions or cancellations concerning the principal trademarks. There is no pending material litigation involving the principal trademarks.

There are no agreements currently in effect that significantly limit our rights to use or license the use of the principal trademarks in a manner material to the franchise.

We are not obligated, by the terms of the Franchise Agreement or otherwise, to protect your right to use the principal trademarks. Nor are we obligated to protect you against claims of infringement or unfair competition arising out of your use of the principal trademarks.

We have no actual knowledge of either superior prior rights or infringing uses that could materially affect your use of the principal trademarks in the state where your franchise may be located. If it becomes advisable at any time for us and/or you to modify or discontinue the use of any Marks and/or use one or more additional or substitute trademarks or service marks, you are must comply with our directions within a reasonable time after receiving notice from us. We don't have to reimburse you for any loss of revenue attributed to any modified or discontinued Marks or for any expenditures you make to promote a modified or substitute trademark or service mark.

ITEM 14

PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION

You must operate your JUMPBUNCH® franchise in accordance with our Operations Manual and our Methods of Operation. Our Operations Manual and our Methods of Operation contain mandatory and suggested specifications, standards, operating procedures and rules that we periodically prescribe for the operation of a JUMPBUNCH® business and information relating to your other obligations under the Franchise Agreement and related agreements. The Operations Manual may be periodically modified by us to reflect changes in our Methods of Operation. You do not receive the right to use an item covered by a federally registered patent or copyright, but you must use the proprietary information contained in our Operations Manual. The Operations Manual and the specifics on your use of the Operations Manual are described in the Franchise Agreement. Although we haven't filed an application for copyright registration, we claim copyright protection for the Operations Manual, software, advertising materials, and other materials we give you for your use or for public dissemination, other proprietary information and publications we own or have acquired under license from a third party, and everything concerning Methods of Operation. All of this is our proprietary intellectual property.

CA DD-18 JUMPBUNCH*,

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