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Business Description

We conduct business under the' trade names More Space Place® and Closet & Storage. Concepts®. We itiaihtaih our principal business address at 436 Commerce Lane, Suite D, West Berlin, NJ 08091. We are a New Jersey Corporation, incorporated in January, 1987. In 1989, we started our busiriessi, operating under the trade name Closet, & Storage Concepts, by acquiring the assets of an urirelated closet and storage design and installation company. We have ovvned and operated two company owned locations similar to the Closet & Storage Concepts business that we are offering since 1989 and we now own and operate a third location. We own and operate one company owned location similar to the More Space Place business. We have never offered franchises in other lines of business. Excepted as noted in this paragraph, we haye never lengaged in ariy other business. Our affiliate, MSP Manufacturing, Inc., a Florida corporation, has a priricipal business address at 5040 140th Ave N, Clearwater, FL 33760, MSP Manufacturing manufactures and distributes to franchisees, cabinet; components, Murphy bed frames, hardware and accessories, mattresses, decorative doors and drawer fronts. It has not operated the type of business being franchised, Our affiliate has never offered fr-anchises in this or any other line of business. We have no other parents or affiliates.

Prior Experience

On October 31, 2013, we acquired a substantial portion of the: assets of More Space Place, Inc., a Michigan corporation. More Space Place, Inc. was formed in 2002 for die purpose of owning retail outlets and selling More Space Place franchises. It operated from its headquarters located at 5040 140th Avenue North,, Clearwater, Florida, 33760. More Space Place, Inc, operated two franchised businesses similar to the More Space Place business being franchised. It operated a location in Palm Harbor, FL from August 1999- July 2013 and a location in Pinellas Park, FL from September 1997-JUly 2013. It never engaged in any other business activity nor offered franchises in any Other lines of business. We have no other predecessors.

Business Offered

We grant franchises for the operation of More Space Place retail outlets and Closet & Storage Concepts businesses (each a “Franchised Business”). More Space Place businesses operate retail locations under the mark More Space Place® and other marks which we may implement. Some of our early franchisees operated under the trade name Murphy Bed Centers of America® and are transitioning to the More Space Place® marks. If you operate a More Space Place location, you will operate the Franchised Business from a retail location at an agreed site. The More Space Place- business consists of selling and servicing our protluCis and other products that utilize the concepts of vertical storage and space^saying as well as use space systems and multi-functional use Of existing, space to create spacious rooms, for example, in home offices, dens, studies hotels, dormitories, and fire stations. You will purchase your products from a supplier we designate. Closet & Storage, Concepts businesses operate locations under the mark Closet & Storage; Concepts® and other marks which we may implerrtenti If you purchase a Closet & Storage Concepts franchise, you will design, market, construct and install custom storage spaces including; closets and garages in custorner's hornes. These custom storage design systems will be designed and installed to fit certain available styles and to meet particular customer preferences, needs and decors. Depending Upon thei level of your investment you will either manufacture the custom Storage design, systems or purchase the nianufactufed products from other companies or Other Closet & Storage Concepts frachisees. You may operate a retail showroom in connection with the custom storage space business. In addition, as a Closet & Storage Concepts franchisee, you will sell accessories related to custom storage space distributed Under the Closet & Storage Concepts name and logo. These accessories may be manufactured by Us, or third party suppliers that we designate. The related accessories include various types of doors, closet hangers, tie and belt racks, closet rods, shoe keepers garment racks, baskets and other related accessories. In certain circumstances,, if we feel demand requires it, we may allow you to operate the Franchised Business out of more than one (1) location under your existing franchise agreement within your granted Territory.

Initial Fees

MORE SPACE PLACE The Initial Franchise Fee for a More Space Place Franchise is Twenty Nine Thousand, Five Hundred Dollars ($29,500.00). If you are in compliance with your More Space Place franchise agreemeht(s), and any other agreements with us„ you may apply for another More Space Place franchise license and we may want you the right to operate an additional More Space Place Franchised Business. The Initial Franchise Fee for each Franchised Business beyond the first one is Twenty Two Thousand Dollars ($22,000). All Iriitial Franchise Fees are payable in friU and in a lump sum when you sign the Franchise Agreement. All Initial Franchise Fees are deemed earned upon the signing and delivery of the Franchise Agreement by us. initial Franchise Fees are not refundable to you in whole or in part: under any circUrhstances. These monies are used, in part, for working capital and, in part, for profit. Iriitial Franchise Fees are imposed uniformly on all franchisees are not refundable under any circumstances, except that we may negotiate the Initial Franchise Fee as an inducement for existing operators, to Open additionalTocations, to induce someone to take over an opefatiiig Franchised Business Or siinilar Circumstances or considerations. GAD Design Software Kev You are Obligated, to purchase a rninimum of one (1) GAD Design Softvvare Key from us for your More Space Place business, which will have our proprietary product libraiy, to operate the Franchised Business. The current Cost for one (1) GAD Design Software Key is $2000,00. This fee is subject; to change based on changes in Operatirig requirements and changes in the software manufacturer's pricing. Opening Showrooiii Displays You are obligated to purchase for your More Space Place business opening inventory for showroom displays and some warehouse inventory, which can be sold as regular/sellable inventory at the appropriate time. The amount of warehouse inventory may vary according to your distance from us arid/or distribution points and the size of the warehouse facility available to you, and will range from $118,000.00 to $32,000.00. CLOSET & STORAGE CONCEPTS: The Initial Franchise Fee for a Closet & Storage Concepts franchise is Thirty Eight Thousand Five-hundred dollars ($38,500;00) for a territory having a population of 1,000,000 individuals or more. If you are in compliance with your Closet & Storage Concepts franchise agreement(s), and any other agreements with us, you may apply for another Closets & Storage Concepts franchise license and we may grant you the ri^t to operate an additional Closets & Storage Concepts business. The Initial Franchise, Fee for each Closets &, Storage Concepts business beyond the first one is Thirty Thousand dollars ($30,000.00). Once your Franchised Business has been establishedj if we feel demand justifies it. We may allow you to operate the Franchised Business out of more than One location within yOur granted Territory to better service the customers in your Territory under your existing; Franchise Agreement. There are no additional initial fees associated with that, AIT Initial Franchise Fees are payable in full and in a lump sum when you sign the Franchise Agreement. Airinitial Franchise Fees are deemed earned upon the signing and delivery of the Franchise Agreement by us. Initial Franchise Fees are not; refundable to yOu in whole or in part under any circumstances. These monies are used, in part for working capital and, in part, for profit. Initial Franchise Fees are imposed uniformly on all franchisees, and are not refundable under any circumstanceSi except that we may negotiate the Initial Franchise Fee. as an inducement: for existing operators to open additional locations, to induce somreOne to take over an Operating Franchised Business or similar circumstances or considerations. CAD Design Software Key: You are. obligated to purchase a minimum of one (1) CAD Design Software Key from us for your Closet & Storage Concepts business; which vwill have our proprietary product library, to operate the Franchised Business. The current cost for one (1) CAD Design Software Key is, $4,500.00. This fee is subject to change based on changes in operating requirements and Changes in the software,manufacturer's pricing. Opening Showroom Displays: You are obligated to purchase for your Closet & Storage Concepts business opening inventory for showroom displays and some warehouse inventory, which can be sold as regular/sellable inventory at the appropriatei time. The amount of warehouse inventory rnay vary according to your distance from us and/or distribution points and the; size of the warehouse facility available to you, and will range from $5,000.00 to $32,000.00. Veteran's Discount: We provide special financial incentives to qualified veterans who have been honorably discharged from the US Armed Forces. This discount applies to the initial purchase of both More Space Place and Closet & Storage Concepts businesses. We offer qualified franchise candidates a 25% reduction in the Initial Franchise Fee for their fuist Franchised Business. The applicable veteran must own 51%. or more of the assets of the Fra^nchised Business or of the business entity that is the Franchisee. We reserve the right to cancel or modify this program at any time.

Financing

We do not offer either direct or indirect financing. We do not guarantee your note, lease, or other obligation. If we award you a ffanchise, we may, in our sole discretion, provide a listing of third party leasing and financing companies; that have financed existing More Space Place® or Closet & Storage! Concepts locations, We do hot know if you will be able to obtain financing, for all or part of your investment, to develop a More Space Place or Closet & Storage Concepts business and, if so, what the terms of such financing will be. We do not: receive direct or indirect payments for placing financing.

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its fi^nchised and/or fmnchisor-owned outlets, if there is a reasonable basis for the information, and if the iriformatioh is included in this Disclosure Document, Financial performance information that differs from that included in Item 19 may be given only ifi (1) a frmichisor provides the actual records of an existing: outlet: you are considering buying;, or (2) a franchisor supplements the information provided in this Item 19,, for example, by providing information about possible performance at a particular Ibcmidn or under particular circumstances. 2018 ResultSrMore Space Place This section represents the results of twenty More Space Place locations operating in the United States as of Decern her 31, 201:8. As of December 31, 2018 there were twenty-seven More Space Place locations opefatirig in the United States. Of the twenty-seven locations, one was company owned and twenty^six were franchisee owned. Twenty franchisee owned locations met these criteria to be considered representative of the franchise offered: (a) Open for at least 2 years as of 12/3 l/l 8, thus considered mature; (b) Operating for the full 12, months of 2018 (c) Operating under the same ownership for the full 12 months of 2018 (d) Operating froni a dedicated retail showroom location staffed full time The: data presented in the table below represents the performance of all twenty (20.) franchised More Space Place franchised US locations meeting the above criteria based on royalty payments and sales reporting for 2018. The information provided with royalty and sales reporting is based only on completed jobs and installation Charges. It: does riot include work in progress dr any deposits received on orders.,