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Business Description

Duraclean was,founded Over eigty-six years ago in 1930. It does business only under,its corporate name. In 1983, the owners organized as an Illinois corporation. Our principal business address is Duraclean International, Inc., 220 W, Campus Driye, Arlington Heights, IL 60004. There are approximately 274 Duraclean franchises in operation. Duraclean has developed and authorizes you the opportunity to own and operate a Duraclean service franchise: with Primary Marketing Areas, trademarks and copyrights, proprietary chemical formulas patented equipment, sales support: and on-going assistance. We call this, the franchise system with the competitive "Duraclean Difference."

Prior Experience

Duraclean does not have a parent, predecessor or affiliate.

Business Offered

You will be licensed to use the Duraclean name, training, and methods to engage in any or all of the listed profit centers. With these profit centers, you have the opportunity to engage in the business of professional mold remediation for residential and commercial properties. In addition you can perform water restoration for insurance companies plus carpet and upholstery cleaning servicing both the residential and commercial markets. We will assist you in analyzing which profit centers to begin with add when to consider adding additional ones: The market for Duraclean services includes but is not limited to homes, apartments, condornimums,offices, hotels, motels, institutions and stores. While Duraclean has Offered cleaning franchises, since 1946, Duraclean does operate franchises itself but does not: have any other business activities. Our resources are exclusive to supporting the Duraclean franchise system,

Initial Fees

The initial Franchise Fee is $24,500. When the Restoration franchise agreement is Signed all applicants pay a lump Siiin payment of $ 68,900.00 which includes the; Franchise Fee; training at our coipprate headquarters and in your territory, manuals, vehicle graphics, printings equiprnent, solutions, suppiieS, a business website, the first year site hosting & search engine Optimization and the first year subscription to Duraclean's web based computer software. A portion of the initial payment for equipment may be leased with approved credit. All payments are non- refundable. See Exhibit K1 for a list of the items included with each option. The franchise opening is immediate upon the completion of Duraclean's pre-opening obligations. Duraclean franchisees work from home and begin immediately upon receipt of their equipment and training. Some franchisees are conversions, already equipped to provide service and ntany begin their Duraclean business by marketing prior to attending training. All Duraclean prices are in United States, dollars. Add taxes and shipping to above payments where applicable.

Financing

Duraclean does not offer financing. Duraelean does not arrange financing from other sources however, a portion of the initial payment for equipment may be leased from third parties with approved credit. Duraclean does not have any past or present practice to sell, assign or discount to someone; else, in whole or in part, any note, contract or other instrument signed by you, but it reserves the right to do so in the future. Duraclean does not receiveidirect or indirect payments for placing financing. Duraclean does not guarantee your obligations to third parties.

Franchisee Revenue and Profit

The FTC's Franchise Ruleiperraits affanchisor to provide information about the actual or potential financial performance, of its franchised and/or franchisor -owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure docmnent. Financial performance informiation that differs from that included in Item 19 may be given only if: (1) a franchisor provides' the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item T9, for exaihple, by providing information about possible performauce at a,particular location or under particular circumstances. We do not make,any representafibn about a franchisee's future financial performance or the past financial perfonnance of company-owned or franchised outlets. We; also do not authorize pur employees or representative to make any such representation eithg- orally Pr in writing;, If you are purehasing.an existing outlet, however, we mayprovideypuwiththe actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the frarichispr's management by contacting our Presideiit, Viitcent J. Caffarelloi c/o Duraclean International, Inc., 220 Campus Drive, Arlington Heights, Dhiiois 60004-1485,800-251 -7070, the Federal Trade Commissipn, and the appropriate state regulatory agencies.