DRAFT

Cartridge World, the world’s largest retailer of cartridge refilling, aims to provide customers with superior service and a high quality product at the lowest possible price, while protecting the future of our environment. With over 1,600 stores worldwide, Cartridge World specializes in refilling both black and color cartridges for printers (laser and inkjet), photocopiers and fax machines. The increased use of computers and printers at work and home, the increasing popularity of the digital-camera and the need to recycle have together heightened demand for Cartridge World’s convenient and cost-saving services. In addition to cartridge refilling services, Cartridge World aims to be a one-stop shop for printer needs, providing the devices themselves as well as new cartridges, specialty paper, fax supplies and technical advice.

Customers save up to 50% by refilling a used cartridge instead of buying a new one. With more than 70% of people throwing their used cartridges away and buying new ones—there exists an enormous amount of growth potential for Cartridge World as awareness of its services spreads.

Investment Required

The fee for a Cartridge World franchise is $30,000.

Cartridge World provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.

On-going Expenses

Cartridge World franchisees pay a royalty fee equal to 6% of gross profit on computer hardware and software sales (6% of gross volume on all other goods and services) and an advertising fund fee up to 4% of gross profit on computer hardware and software sales, (up to 4% of gross volume on all other goods and services). Other fees payable by the franchisee include local marketing expenses and an operations fee, totaling $500 monthly.

What You Get—Training and Support

Franchisees must complete a week of in-store training as well as a professional two-week franchise training program at corporate headquarters in Emeryville, CA. The comprehensive learning program includes hands-on technical lab experience, POS system instruction, as well as marketing and operations training. Franchisees also receive design assistance with store construction and ongoing support and technical advice by phone and through an exclusive franchisee website. Annual conventions, meetings and seminars keep franchisees up to date with the latest news and technologies. Even without previous experience, new franchisees can learn all the necessary specialized skills for handling printer cartridges in their training sessions.

Franchisees also receive a business operations manual, computer software, a comprehensive marketing guide, advertising materials, and ongoing promotion and publicity ideas, as well as information on purchasing, stock control, administration and bookkeeping.

Territory

Cartridge World grants exclusive territories for a specific period of time.