The State of Arkansas has not reviewed and does not approve, recommend, endorse, or sponsor any business opportunity.  The information contained in this disclosure has not been verified by the state.  If you have any questions about this investment, see an attorney before you sign a contract or agreement.

AMERICAN CARD PRODUCTS
4401 Grand Ave
Fort Smith, AR 72904

Date of Issuance of Disclosure Statement: June 10^th, 1997 ( Revised Dec 2005 )

Information for Prospective Franchisees

Required by the Federal Trade Commission

To protect you, we’ve required your franchisor to give you this information.  We haven’t checked it, and don’t know if it’s correct.  It should help you make up your mind.  Study it carefully.  While it includes some information about your contract, don’t rely on it alone to understand your contract.  Read all of your contract carefully.  Buying a franchise is a complicated investment.  Take your time to decide.  If possible, show your contract and this information to an advisor like a lawyer or an accountant.

If you find anything you think may be wrong or anything important that’s been left out, you should let us know about it.  It may be against the law.

There may also be laws on franchising in your state.  Ask your state agencies about them.

Federal Trade Commission

Washington, D.C.

DISCLOSURE STATEMENT REQUIRED BY FEDERAL LAW

AMERICAN CARD PRODUCTS

1.                  IDENTIFYING INFORMATION AS TO FRANCHISOR

This business opportunity program is offered by American Card Products,

an Arkansas company with a principal business address of 4401 Grand Ave. Fort Smith, AR 72904

2.                  BUSINESS EXPERIENCE OF FRANCHISOR’S DIRECTORS AND EXECUTIVE OFFICERS

Steven Chancey is currently owner of American Card Products.  As owner, he manages all aspects of the Company’s Dealership Program including research and development, financial and strategic planning, promotion, and market research. 

3.                  BUSINESS EXPERIENCE OF THE FRANCHISOR

American Card Products was started in 1992.   The original company American Products created in Jan. 1968 has worked in many areas of business opportunities.  Wanting to focus on greeting cards only the creation of American Card Products resulted..  The company offers a greeting card carousel Dealership Program described herein.  The company’s sole place of business is located at 4401 Grand Ave. Fort Smith, AR 72904

4.                  LITIGATION HISTORY

None of the officers, directors, principals, or owners listed in Section 2 of this Disclosure Statement has during the previous seven (7) fiscal years been:

a.                  convicted of a felony, or pleaded nolo contendere to a felony charge that included fraud, (including violation of any franchise law, unfair or deceptive practices law), embezzlement, fraudulent conversion, misappropriation of property or restraint or trade;

b.                  held liable in a civil action resulting in a final judgment or has settled out of court any civil action or is a party to a civil action:  a)  involving fraud (including violation of any franchise law, unfair or deceptive practices law), embezzlement, fraudulent conversion, misappropriation of property or restraint of trade;  b)  which was brought by a present or former franchisee or franchisees and which involves or involved the franchise relationship;

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c.                  subject to any currently effective state or federal agency or court injunctive or restrictive order, or is a party to a proceeding currently pending in which such order is sought, relating to or affecting franchise activities or

the franchisor-franchisee relationship or involving fraud (including violation of any franchise law, unfair or deceptive practices law) embezzlement, fraudulent conversion, misappropriation of property, or restraint trade;

5.                  BANKRUPTCY HISTORY

Mr. Steven Chancey has never filed bankruptcy, been adjudged bankrupt, been reorganized due to insolvency, or been a principal, director, executive director, or partner of any person that has so filed or was so adjudged or reorganized within one (1) year after the period that such person held such position in relation to such other person.

6.                  DESCRIPTION OF FRANCHISE

American Card Products is offering a comprehensive display distributorship program designed to enable qualified entrepreneurs to distribute greeting cards through display carousels in a wide variety of retail locations.  American Card Products provides store header display cards, order forms, consignment forms, window signs, and everything else necessary to start their own greeting card distributorship business.  American Card Products also offers ongoing support to answer each Distributor’s specific questions about running their own greeting card business. 

American Card Products Distributors have access to one of the finest and most diversified greeting card product lines in America.  Since the company works with several greeting card manufacturers, American Card Products can select from thousands of individual titles.  This extensive selection allows American Card Products Distributors to customize the inventory of cards for each display carousel, thereby meeting the consumer demand for any retail location.

The five-year plan for American Card Products anticipates a total of 500 Distributors displaying cards in 30,000 retail outlets across the United States.  At that time new Distributorships will be available only through attrition or population shifts.  The company will then be concentrating all of its efforts on the continued development of the existing Distributor network, and its principal ongoing business of supplying company Distributors with products and services.

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Package Components

American Card Products offers several distributorship programs to accommodate a wide range of investment levels.  Each program listed below consists of different quantities of greeting card display carousels and greeting card inventories purchased.                                                                               

Quantity

Description                        Level 1          Level 2           Level 3         Level 4      Level 5

Display Carousels                           10                  20                  30               40            50         

Designer Greeting Cards                 4320              8640              12960        17280      21600

Matching Envelopes                        4320              8640              12960        17280      21600

Point of Purchase Headers              10                   20                   30             40            50

Window Signs                                10                   20                   30             40             50     

Consignment Forms                        10                  20                   30              40             50

Operations Manual with Forms        1                    1                      1               1               1  

Ongoing Consultation Support:

American Card Products provides Distributors of its business program with access to ongoing consultation support services provided by qualified representatives of the Company via telephone, facsimile, or by mail.  This service is provided free of charge for as long as the Distributor is active in the business.

7.                  INITIAL FUNDS REQUIRED TO BE PAID BY A FRANCHISEE

The investment price of the American Card Products business program begins at  Nine thousand, Five hundred and fifty ($10,950.00) dollars and no cents.  All purchase investments include any shipping and handling charges.  The package components will be delivered via UPS ground.

Payment of the total investment price is due upon execution of the Seller’s Distributor Agreement, a sample of which is attached to this disclosure.

The Seller accepts major credit cards, personal checks, and cashier’s checks for payment of the total investment price.  Any applicable sales taxes are not included in the purchase price.

8.                  RECURRING FUNDS REQUIRED TO BE PAID BY A FRANCHISEE

Distributors of American Card Products’ program are not required to purchase any additional supplies and/or inventory from American Card Products, however the Distributor may order additional supplies and/or inventory from the Seller.

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9.                  AFFILIATED PERSONS THE FRANCHISEE IS REQUIRED OR ADVISED TO DO BUSINESS WITH BY THE FRANCHISOR

American Card Products supplies all the channels necessary to obtain needed inventory, supplies and materials to operate the business opportunity. 

For a complete description of the package components, please refer to Section 6 above.  In an effort to assist Distributors in finding firms engaged in the business of locating suitable sites for greeting card displays, American Card Products is providing the following list of location companies.  The decision to use any such company’s services is solely at the discretion of the Distributor.  Accordingly, American Card Products accepts no responsibility for the decision to engage any such site location company, or for the decision to place product at any particular location.

LOCATION COMPANIES

There are several location firms to choose from.  We can suggest several.   You will simple choose who you want to use.

You can go online and search and find marketing firms with good work records.  A good source for this work is at the following link.

www.vendingconnection.com/yplocators.html

Just copy and paste this URL into your browser - Any of these companies can secure your locations.

10.             OBLIGATIONS TO PURCHASE

The Distributor is not required to purchase any package components other than the items supplied by the Seller, which are described in Section 6.  As indicated in Section 8, any additional supplies and/or inventory may be purchased through American Card Products' sources at the Distributor’s option.

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11.             REVENUES RECEIVED BY THE FRANCHISOR IN CONSIDERATION OF PURCHASES BY A FRANCHISEE

American Card Products does not receive any rebates, kickbacks, commissions, or any other form of revenue from any of its suppliers of the package components included with the Seller’s equipment package.

12.             FINANCING ARRANGEMENTS

The Seller does not offer financing for the initial purchase of this business opportunity. 

13.             RESTRICTION OF SALES

American Card Products does not limit Distributors in the goods or services they may offer for sale, nor the type of customers to whom they may sell goods or services.  Furthermore, the Seller does not limit the geographic area in which Distributors can sell their products, or services, and Distributors are not granted any protected territories.

14.             PERSONAL PARTICIPATION REQUIRED OF THE FRANCHISEE IN THE OPERATION OF THE FRANCHISE

American Card Products does not require any operational duties to be executed personally by the Distributor(s) of its program.

15.             TERMINATION, CANCELLATION AND RENEWAL OF

THE FRANCHISE

(i)                 American Card Products is offering this business opportunity as a one-time investment with no required term or relationship with Distributors.

(ii)               Since there is no term within the Seller’s Distributor Agreement, renewal or extension of the agreement do not apply.

(iii)             As mentioned in item (i) above, there is no term involved with the relationship between Distributor and Seller of this business opportunity.  As such, the Seller has no need to refuse renewal or extension of the Distributor Agreement.

(iv)              Distributors may choose to cancel the Distributor Agreement and their relationship with the Seller at any time.

(v)                Likewise, American Card Products may cease operations with the Distributor at any time, per the terms and conditions of the Distributor Agreement, especially, but not limited to any Distributor’s involvement in fraudulent, deceptive unethical, or misleading business practices.

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(vi)              Since the purchase of the Seller’s business opportunity is a one-time investment, all sales of any equipment, inventory and supplies are final.  If revocation of the Seller/Distributor relationship is initiated by either party, then both parties hold each other harmless from any obligation whatsoever.

(vii)            If the Seller/Distributor relationship ceases to exist for any reason, except for non-payment of any balances owed to the Seller, the Distributorship retains ownership of all equipment, inventory, and supplies in his/her possession.

(viii)          All sales are considered final, so American Card Products maintains no rights or options whatsoever to repurchase any of the package components from the Distributor.

(ix)              The Seller’s Agreement is not assignable without express prior written approval of American Card Products, which will not be unreasonably withheld.

(x)                American Card Products has the right to sell or assign the Distributor Agreement in whole or in part in its own discretion.

(xi, xii) The Distributor Agreement may be modified only if American Card Products and the          Distributor agree to the modification in writing.

(xiii)          In the event of the Distributor’s incapacity or death, the Distributor’s heir(s) shall have the rights and responsibilities outlined in the terms of

the Seller’s Distributor Agreement.

(xiv)          American Card Products does not enforce any restrictions on

the Distributor’s other businesses or jobs in any manner whatsoever.

16.             STATISTICAL INFORMATION CONCERNING THE NUMBER OF FRANCHISES (AND COMPANY-OWNED OUTLETS)

As of December 31, 2005, American Card Products had 381 business opportunities sold.  This document shall be updated when additional information is available.

Since there is no term associated with American Card Products’ Distributor Agreement (as indicated in Section 15 above), there is no need for termination, renewal, requirement, or cancellation of this business opportunity.

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17.             SITE SELECTION

Since Distributors may operate their business in any territory, Distributors may select any site without prior approval from American Card Products.

18.             TRAINING PROGRAMS

American Card Products does not offer any on site training program to Distributors of its Dealership Program, however, they do provide “ongoing consultation support” as indicated in Section 6 above.

19.             PUBLIC FIGURE INVOLVEMENT IN THE FRANCHISE

There is currently no celebrity involvement with this business opportunity.