1349976--4/15/2010--Famous_Uncle_Als_Hot_Dogs_&_Grille

related topics

{cost, operation, labor}

{stock, price, share}

{operation, international, foreign}

{customer, product, revenue}

{cost, contract, operation}

{acquisition, growth, future}

{competitive, industry, competition}

{stock, price, operating}

{personnel, key, retain}

{product, candidate, development}

{control, financial, internal}

We are subject to penny stock regulations and restrictions, which could affect the market liquidity of our stock. We have never paid a stock dividend and we do not anticipate paying any stock dividends in the foreseeable future. Risks Associated with the Company We have a limited history of business operations, and face substantial business and financial risks because we are in our initial stage of development. We are expanding our business through sales of franchises in new locations and this brings with it financial risks related to the management of growth. We have limited operating capital, and will require additional financing to continue to operate and expand, although we have not made a significant effort to secure any additional sources of financing. There is no assurance that additional financing can be obtained and, if it can be obtained, it may result in dilution of our stockholders interests. Our business faces competition by other franchising companies, both in the fast-food industry and in other business sectors. We receive as royalty income a certain percentage of the earnings of the independent franchisees to who we have sold our franchises, and our profitability is related to the success of those third-party franchisees. Costs are greater and profits are lower for new franchise locations, and royalty profits could be lower for new locations. Our franchise locations are subject to natural disasters and other problems, and these problems could affect the profitability of our franchise locations, which would affect the profits we receive for franchise royalties Franchised stores are dependent upon supply and quality of meat and other Products, and any interruptions in these supplies or quality could affect the profitability of our franchise locations, which would affect the profits we receive for franchise royalties. If our third party suppliers or manufacturers fail to timely deliver products of acceptable quality or comply with FDA manufacturing guidelines, or raise prices, our franchised stores could be negatively affected, and as a result, Company profits could be affected. Franchised stores are subject to changes in food and other costs, and this could have an unpredictable effect on the Company s profits. Franchise operations are affected by labor costs and labor availability, and franchise profits will be reduced when those costs are high or when a qualified labor force cannot be maintained. Other costs of franchised operations could increase unpredictably and this has an unpredictable impact on our profitability. Certain stockholders have the ability to control the Company and have other substantial rights, preferences and privileges. Because we currently have only two directors, who are our two executive officers, control of the Company is concentrated in two individuals, who could make and control corporate decisions that may be disadvantageous to or opposed by shareholders. We Depend On 3 Key Personnel, The Loss Of Whom Could Impair The Security Of The Company s Day-To-Day Operations And Cause A Loss To The Company Or Its Investors. Since Our Franchise Licensing Rights Are Subject To A License Agreement, The Termination Of Or Failure To Renew Such License Agreement In The Future Can Cause us to discontinue use of the name Famous Uncle Al s Hot Dogs .

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1349976--4/15/2010--Famous_Uncle_Als_Hot_Dogs_&_Grille_Inc