MINNESOTA COMMERCE - Unhappy Franchisee

No bankruptcy is required to be disclosed in this Item.
No Inidal Fee
(4) BANKRUPTCY
(5) INITIAL FEES
There is no initial franchise fee payable by you for the Distributorship.
Inidal Inventory Purchases
You are required to purchase an initial inventory of Products from Mateo (the "New Distributor Starter
Inventory") before the date you begin operadng your Disdibutorship. In some instances, your inidal
inventory may be acquired from a predecessor disd-ibutor. Currently, the minimum New Distributor Starter
Inventory is generally $54,000. However, this amount may not be uniform for all Distributors, and may range
from $50,000 to $60,000 (see Item 7). In 20442011. the minimum New Distributor Starter Inventory was
generally $54,000, even though the New Distributor Starter Inventory ranged from $50,000 to $60,000
(depending upon the inventory selected). If you qualify, all or a portion of the cost of the New Distributor
Starter Inventory may be financed through Mateo (see Item 10).
"6-Month Test Drive" fTennination bv Distributor During First Six Months'). If vou terminate the
Distributorship Agreement for any reason within six months after the date of the Distributorship Agreement
and vou have not failed to operate the Distributorship for more than 6 "business davs" in total, or more than 3
consecutive "business davs", during this period, then Mateo will fil accgpLibr return all new Products
aiircha_sed_by_jheJDj.slri
or froniJd3lco_duri.ng_ihaJ^_._^^
Distributor's open purchase account an amount eoual to 100% of the Distributor's purchase price for the
returned Products ("i.e.. a restocking fee will not aoplv assuming all conditions are satisfied), and (ii) credit
your open purchase account for the lesser of (a) S2,700, fb) an amount equal to two mQllths_of pavments under
the Distributor's Mateo Mobile Store lease or purchase agreement, or (c) the amount required to tenninate the
Mobile Store lease if less th_an two payments. You and Mateo will sign a joint and mutual release of all claims
that each of the parties and their affiliates, emolovees and agents mav have against the other in such fonn as
Mateo may specify. However, you will remain liableJorjny indebtedness to MatCiijinde!U.h_eJ3istrilMt
Agreement or the operation of the Distributorship and anv such indebtedness will be excluded from the mutual
release. A "business dav" is a weekday in which the shops or locations on the List of Calls are open for
business, and "failed to opg_mte!ljneans not perfonning the typical route funcdons fsuch as customer visits,
sales, and collection of monies owed).
Except as specified in „the.,6-Month Test Drivg^QlLcv. or in Mateo's tool retu_rn_RQl.LCxJhe_cost of the_New
Distributor Starter Inventorv is non-refundable. Currentlv. Mateo's tool return policv permits disnibutors to
return eligible products for credit, subject to a restockin^i fee rif applicable), during the Tenn of the
Distributorship Agreement, or at the expiradon or terminadon of the Distributorship Agreement. In particular.
under Mateo's current tool return policv, if products are returned during the Term of the Distributorship^ a
distributor will receivg_jj;rei.iLt.Qiiis/]herI)ueiLP^^^^ Account that may be usg-d-fflr future purchases. If the
Distributorship Agreement is terminated, the current policies provide that vou may return certain Products to
Mateo feFiH-edit. Tha.in^hich_case a credit will be applied to your account, or a refund will be given to you. in
acoordanco with Matoo'a tool return policy then in effect when such Producta are rotumed. Matoo'ij cun-ent
tool rolum policy provides that Mateo will accept Products that are not used, abuflcd, incomplete, discontinued,
or iipeciol ordered itomo. In addition, Producto muot bo relumed in their original container and packaging. All
Products that Mateo accepts under the tool return policy will be subject to a 15% rostoclting charge-imid_tQ
vou. Mateo may modify the tool return policy from time to time. Except as opccifiod in Mateo's fSee Items 6
aiid 11 for additional discussion of the tool return policy, the cost of the Now Distributor Starter Inventor)^ is
non-refiHHlable:;^
Mateo 2m2_FDD/PK ^^^?54a44434SaiLS 03/09/4412