JKI Co. d/b/a Donutchew - Franchise Registration Violation Settlement

251010011 OFVIRGINIACOMMONWEALTH

COMMISSIONCORPORATIONSTATE Corporation State Center Document Control AT RICHMOND, OCTOBER 1, 10/1/2025 -10:23 AM ex rel. COMMONWEALTH OFVIRGINIA, STATE CORPORATIONCOMMISSION NO. CASE SEC-2024-00007v. INC.,COMPANY, JKI d/b/aDONUTCHEW, Defendant ORDER SETTLEMENT StateCorporation ' s " Division and RetailThe " ( ) of Divisionconducted " of Inc., Donutchew( investigation Company, Franchising")an JKI d/b/a 13.1-567 Virginia Retail to Franchising Act "Donutchew"or"Defendant"pursuant § (), of the etseq.of Code Code), the Virginia"Act"§13.1-557of " " ).( ( office located 4239is whose is ataVirginia company MarrDonutchew principal John offers Annandale,Virginia food 22003.Donutchew to the various services public.Drive, has sell never registered inDonutchew been and franchisesto offer Virginia. Basedinvestigation, of Division 13.1-560 the that on alleges Defendant §its the violated sell Virginia offeringto and franchises " the by sellingtwo in Virginia ( without Act Franchisees " ) franchise Act. further being under provisions The Division alleges that theregisteredthe of the Defendant provide with a franchise agreement and to theVirginia athefailed Franchisees Document with cleared in conjunction the and FranchiseDisclosure offer sale franchises, of the of13.1 inviolation (4)Act. § -563 the of are is -562 If anyprovisionsviolated, the authorized § oftheAct by 13.1 of defendant's registration, 13.1-567 of Act coststhe revoke to impose actual Acttoa by § the the

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investigation; issue temporary or by the to by § 13.1-568 Act permanentof of the injunctions, § request of the Act to impose civil penalty that a defendant make 13.1-570 a and to rescission 12.1-15 withinand Code settle and § to matters its restitution, by of the jurisdiction. neither allegations the but toThe Defendant the made herein admits admits nor denies s enter Order Order and authority this ' to " " The Settlement ( ). has with requests. fully cooperated the Division, and andDefendant its investigation As arising these has all a proposal settle matters from allegations, the Defendant made to of settlement Division the by and withan to wherein Defendant will abide theoffer the comply following terms: Virginia to total pay the a Two The Defendant will Treasurer of amount of1. ($2,000) to Thousand civil penalty, be made as follows: Dollars in in two payments, (a) the orOne entryamount before days the Thousand shall be payable on afterof ($1,000) thirty (30) Onethis and (b) Thousand ($1,000), Order; remaining amount, shallof the amount of the be or of this days the payableon before sixty after Order. (60) entry One of The Defendant pay to Virginia the amount will the Treasurer of Thousand2. costs of or before entry to defray ninety days Dollars investigation, after($1,000), the on (90) the this ofOrder. not The the in the future. Defendant violate Act will3. s settlement the ' The Division Defendant and that the offer has recommended supports settlement. accept the considered COMMISSION, matter, and finds opinion NOW having this is THE of the that thesettlement should be accepted.

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ISORDERED THAT:Accordingly,IT (1) accepted. Thesettlementis Defendant of(2) with settlement. folly comply the terms theTheshall (3) this all The in for purposes, including the shall retain matter other institutionofshowproceeding, action a such it cause or deems appropriate taking on account 's comply with of Defendant to the terms settlement.ofthefailure the and U.S. mailA hereof shall be by the by COPY Clerk of sent the electronic Y. Lee, Y. PLLC,toGregory Esquire, for Defendant, Law Office Gregory Lee, Counsel the of 8133Pike,Suite410, Vienna, 22182, ; and Leesburg Virginia gleelaw24@gmail.com a copy deliveredthe ' s of of to Counsel and andshallbe General Division Office Franchising.Retail

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rel.exOF VIRGINIA, COMMONWEALTH COMMISSION CORPORATION STATE SEC-2024-00007 CASE NO. v. JKICOMPANY, INC., d/b/a DONUTCHEW, Defendant ADMISSION CONSENT AND JKIInc.,( ), admitsCompany, Donutchew Defendant the of the to State d/b/a" " Corporation to (as subject matter "") the party and hereof. The denying herein DivisionDefendant,admitting the allegations made theneither by of whilenor consents of RetailFranchising,hereby the substance and entry the and to form, ").foregoing Settlement Order (Order" promise Defendant of Thefurtherstatesthatoffer, tender, threat or no any kind been or by agent has made the or member, subordinate, whatsoever any employee, offoregoingconsideration Order.thereof therepresentative in

DONUTCHEW INC.,COMPANY d/b/aJKI

i2- S'2 Date: By:.q P Its:

by:Seen

Gregory Esquire Lee, Y?