The franchisor provides local “city guides” for over 50,000 U.S. cities and communities, all of which are accessible via the Internet at http://www.rezcity.com. As part of the local city guide, consumers are able to access local information on city government, parks and recreation, club activities, special events, school information, sports and weather. In addition, local businesses, merchants and professionals may advertise on the city guides via the use of the franchisors proprietary Internet marketing package, which the company licenses from a technology company known as 411Web.com. The franchisee will be able to provide the following services to local businesses: Internet based marketing tools such as real-time reservations, confirmations and appointment scheduling, business-to consumer negotiating of retail products and services, creation of websites with unlimited pages, selection of vanity domain names, site registration with search engines, banner advertisements, other forms of Internet advertising. Franchisees may also be designated as an on-line travel agency with travel benefits. Advertisers may choose one or all of the services offered to be included in the RezCity.com city guides.

The franchisor offers two types of franchises. An Individual Franchise Agreement grants the franchisee the right to market and offer the services within an area known as a “Territory.” An Area Representative Agreement grants the representative the right to act as the company’s sales representative within a defined geographic area known as a “Development Territory.” Area Representatives solicit and identify prospective Individual Franchisees and provide initial training and additional support before, during and after the franchisees begin operations.

Under the Franchise Agreement, the franchisee will be granted the right to operate a franchise from an approved location within a specific area known as a “Territory.” A Territory must have a minimum of 250 people but less than 250,000 people. The franchisor cannot establish another franchisee within a Territory nor can the franchisor establish company owned outlets or other channels of distribution using the franchisor’s Marks in the Territory.

Under the Area Representative Agreement, the franchisee will have the right to solicit and identify prospective franchisees for Franchises and to provide initial training and operational support to franchisees within the agreed upon Development Territory. Provided the franchisee has complied with the development schedule as included in the Area Representative Agreement, the franchisor will not sell any part of the Development Territory to another Area Representative. However, if the franchisee fails to meet the Development Schedule, the franchisor may terminate the Area Representative Agreement. The Development Territory is typically designated by specific counties or states.