Form letter terminating franchisees

After a careful review, we found that a number of locations were in default of their franchise agreements and were not following the program. Thus, we have taken the only prudent decision open to us and are closing those Locations. I have attached a list of those stores for your reference.

Country Style Donuts
December 6, 2001

Mass Letter to Franchisees

Country Style Food Services Inc.
Letter to Franchisees
December 6, 2001

December 6, 2001

Dear Country Style Franchisee:

As you know, when I joined Country Style Food Services Inc. I committed to you that we would reposition and revitalize our franchise. Over the last few months I have had the chance to meet with many of you personally to learn more about your business. Your enthusiasm has strengthened my belief that we can grow our sales and enhance consumer loyalty.

The next step in the revitalization process necessitates. After a careful review, we found that a number of locations were in default of their franchise agreements and were not following the program. Thus, we have taken the only prudent decision open to us and are closing those Locations. I have attached a list of those stores for your reference.

I know you appreciate that our mutual success depends upon teamwork and strong cooperation between us. Indeed, the strength of our business depends on each location valuing and supporting the standards outlined in our agreements on a daily basis.

Moving forward, I am prepared to take whatever actions are needed to deliver superior results in all aspects of our business across the entire country.

We have entered a new era.

You have my promise that I will do whatever it takes to make our Country Style brand even stronger. Together we can develop the Country Style brand into an unprecedented success.

I look forward to working with you and invite you to contact me if you would like discuss this further.

Yours truly,

Pat Gibbons
President

Attachment

Central Region Country Style Locations Closing

City Location
Alliston 312 Victoria St., East
Alliston Hwy#89 & King Street
Angus 193 Mill Street
Barrie 367 Yonge Street
Belleville 266 Dundas Street East
Brampton 239 Queen St. E.
Brampton 14 Lisa Street, Unit#1
Downsview 3893 Keele Street
Etobicoke 1000 Islington Avenue
Guelph 72-80 Gordon Street
London 1390 Wellington Rd. South
Markham 6050 Highway #7 East
Nepean 150 Robertson Rd.
North York 5025 Steeles Ave. W.
North York 1335 Lawrence Ave. East
Sault Ste Marie 183 Great Northern Rd.
Sault Ste Marie 328 Wellington St. West
Scarborough 860 Markham Road
Sudbury 1560 Lasalle Blvd.
Toronto 2275 Keele Street
Whitby 1111 Dundas St., East
Windsor 5188-5189 Tecumseh Rd., E

Western Region Country Style Locations Closing

City Location
Calgary, AB 8302-8304 Fairmount Dr.S.E.
Cranbrook, BC 513 Cranbrook St .N., Unit C
Edmonton, AB 11940-111 Third Avenue
Kelowna, BC 2711 Hwy #97 North
Regina, SA 1470 Board Street
Saskatoon, SA 602 22nd Street West


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