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Business Description

PuroSystems, LLC (“we”, “us” or “our”) was initially incorporated in the state of Florida on Octobers, 1990, under the name Purofirst International, Inc Our name was changed to FhiroSystems, Inc on December 31, 2002, and we converted to PuroSystems, LLC in September of 2015 (that conversion simply involved converting our existing franchisor entity from a corporation to a limited liability company) We maintain our principal place of business at 6001 Hiatus Road, Suite 13, Tamarac, Florida 33321 We conduct our business under our coi-porate name only We do not maintain a sales office at any location other than our principal place of business We do, however, lease tiainmg facilities in California and Michigan Since September 2015, our parent company is Puro Enterprise Holdings, LLC, a Michigan limited liability company formed in September 2015 with its principal business address of 550 West Merrill Street, Suite 100, Birmingham, Michigan 48009 We have offered franchises since 1991 for the establishment of businesses that operate restoration and construction sei-vices and other related seiwices and products for fire, water and other forms of property casualty damage In 1999 we added certain non-casualty related cleaning and purification services to the franchise offering From 1991 to 2001 we offered these franchises under the trademark Purofirst® We no longer offer fianchises under the Purofirst mark In 2001, we began to offer an alternate type of franchise, under the trademark PuroClean® (the “Franchise Business”), to supply drying, repair, cleaning, mitigation, remediation and related services We do not own or operate businesses of the types being franchised We no longer offer franchises in any other line of business As of the date of this Disclosure Document, we do not provide training or equipment for certain purification services, but we may do so in the future.

Prior Experience

Before our incorporation in 1990, Purofirst, Inc, a Florida corporation incorporated on June 1, 1986, sold consulting seiwices and products to dealers under the service maik “PUROFIRST”, of which seven such dealei relationships currently remain On December 31, 2008, Purofirst, Inc was dissolved and transferred all of its assets to us We provide the remaining Purofirst dealers with the right to use the Purofirst mark We do not have any predecessors Founded in 1972, our affiliate Signal USA, LLC d/b/a Signal Restoration Services provides emergency and environmental property restoration services across all 50 States through its network of eight offices in Michigan, Califoinia, Texas, Tennessee, Missouri, Florida, and New York Signal Restoration Services maintains its principal place of business at 2490 Industrial Row Diive, Troy, Michigan 48084 Signal Restoration Services does operate company businesses through these offices that offei services to customers that are similar to PuroClean franchisees but do not do so under the PuroClean Maiks Signal Restoration Services does not and has not offeied franchises in this business oi any other line of business Signal Restoiation Seiwices may, in the futuie, offer certain seiwices, such as training assistance, to PuroClean franchisees.

Business Offered

The Franchise Offered: If you receive oui approval, you (individuals, partnerships, corpoiations, and the owners of partnerships and corporations will be referred to as “you” oi “your”) will have the right to sign a franchise agreement (the “Franchise Agreement”) for the establishment and operation of a PuroClean business A PuroClean business provides drying, cleaning, painting, repaii, mitigation, remediation, construction and replacement services and subcontiact services to insurance companies, businesses and lesidential clients and otheis who have been subject to fire, flood, vandalism, trauma, mold and/or other casualties, as well as, purification, cleaning and odor removal services and products, all according to our established system whether or not casualty related As a PuroClean franchisee, you will provide all of the above services as well as restoiafion, remediation, mitigation, construction, purification and other related services and pi oducts to businesses and residential clients whether or not insurance covers them You may work out of your home (where permitted) or a new or existing place of business (the “Office”) Your Office must be located in your Protected Office Location (“POL”) You will use most equipment, other than office equipment, from your vehicle, which we recommend you purchase in connection with the operation of the Franchise Business The Franchise Agieeraent grants you the right to use the trademarks, trade name, service mark, and commercial symbols associated with youi Fianchise Business as we now designate and as we may designate m the future (the “Proprietary Marks”) foi use in the operation of the Franchise Business New franchisees (excluding Conversion Franchisees and fianchisees that entered the system by purchasing an existing PuroClean business) may take advantage of our Clean Start Program during their first year of operation Under the terms of the Clean Start Program, qualifying franchisee may notify us of their desire to terminate the Franchise Agieement and we will assume the franchisee's obligations under the franchisee's vehicle lease agreement (provided the vehicle is leased from our designated suppliei) and initial Equipment and Supplies Package lease (provided the initial Equipment and Supplies Package is leased from our designated supplier), provided fianchisee satisfies the requirements of the Clean Start Program as detailed in Schedule 2 to the Franchise Agreement Conversion Franchisees: In addition to our standard franchise offering, we offer a conversion progiam foi established mitigation and reconstruction businesses that wish to join the PuroClean fianchise system and that meet our financial and experience criteria (“Conveision Franchisees”) Through the conversion piogram, qualified existing mitigation and/or reconstruction businesses (“Existing Businesses”) can convert to a PuroClean Fianchised Business once all the conversion program conditions have been met and after successfully completing our initial training program In consideration of the PuroClean fianchise, we offer Conveision Franchisees discounted franchise fees and royalty lates based on the Existing Business' established mitigation and/or reconstruction business gross volume Conversion Franchisees also may continue operating any othei portion of their Existing Business A copy of the Conversion Addendum is attached as Schedule 1 to the Fianchise Agreement.

Initial Fees

Single Unit Franchise Agreement 1. Initial Franchise Fee Upon signing the Franchise Agreement, you must pay to us an Initial Franchise Fee in the amount of $50,000 The Initial Franchise Fee is fully earned upon receipt and non-refiindable in consideration of admmistiative and other expenses we incui in entering into the Franchise Agreement, and foi our lost or deferied opportunity to enter into the Franchise Agreement with others. We participate in the International Franchise Association's VetFran Program and offer qualified individuals honorably dischaiged from any branch of the U S Military and who request it at the time of signing a Franchise Agieement a 25% discount off the Initial Franchise Fee We also give certain credits for training to existing franchisees that purchase more than one franchise and who would not require initial training During our fiscal year ended Decembei 31, 2018 we collected Initial Franchise Fees that ranged from $25,000 to $50,000 2. Computer System You must obtain the Computei System from us The total cost of the Computer System is $3,500, of which appioximately $300 will be paid duiing the initial month period The Computer System fee is non-refundable, is separate from the Initial Equipment and Supplies Package referenced in Item 7, and may be financed as described in Item 10 Conversion Franchise Agreement We offer Conversion Franchisees a discounted Initial Franchise Fee, based on the gross receipts their Existing Business earned from providing mitigation and/or reconstiuction services within the 12-month period before the franchisee applied for a PuroClean franchise Conversion Franchisees are entitled to a 5% discount per $200,000 in gross leceipts earned by their Existing Business from providing mitigation and reconstruction services, up to a maximum 50% discount off the Initial Fianchise Fee If you sign a Franchise Agreement and do not have equipment and supplies meeting our standards and specifications you will be required to purchase one of our Equipment and Supplies Packages

Financing

We do not offer any direct financing assistance We offer indirect financing to our fianchisees through Ford Motor Credit Company LLC as outlined below Your ability to obtain a lease through Ford Motor Credit Company LLC will depend on a number of factors including current market conditions, your credit history and your peisonal financial condition We do not guarantee your notes, leases or other obligations and we are unable to estimate whethei you will be able to obtain a lease through Ford Motor Credit Company LLC or any other third party for any or all of your investment Vehicle and Equipment and Supplies Financing You must lease or purchase your vehicle from oui designated vehicle suppliei Our cuiient designated vehicle supplier is Penske Motoi Group which offeis financing thiough Ford Motor Credit Company, LLC, but we reseive the right to change our designated vehicle suppliers oi identify additional designated vehicle suppliei s in the future If you lease youi vehicle from one of our designated vehicle suppliers, your actual payment terms will vary depending on the terms offered by our designated vehicle suppliers at the time you sign your Fianchise Agieement, youi credit history, and other factors A sample copy of the Foid Motor Credit Company LLC Lease Agreement is attached to this Disclosure Document as Exhibit M The teims and conditions of the attached Sample Fold Motor Ciedit Company LLC Lease Agreement (the “Ford Credit Lease Agreement”) may change

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial perfoiTnance of its franchised and/oi fianchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document Financial performance information that differs from that included in Item 19 may be given only if (1) a franchisor provides the actual lecords of an existing outlet you aie 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 location or under particular circumstances Background This Item 19 contains certain historical data submitted to us by our franchisees for the period January 1, 2018 to December 31, 2018 (the “2018 Measurement Period”) There were 189 PuroClean Franchisees in operation for the full 2018 Measuiement Period that had been opened for one or more full years Of the 189 Fianchisees, 176 Franchisees reported their sales data for every month of the 2018 Measurement Period and are included as part of Section A of this Item 19 (the “Reporting Franchisees”) The 13 Franchisees not included in Section A of Item 19 did not report their sales data for every month of the 2018 Measurement Period None of the Franchisees that are not included in this Item 19 opened and closed during 2018 The information contained in this Item 19 includes data was submitted to us by our franchisees through the royalty reporting tool PuroFAB Financial Analysis & Benchmarking We have not audited this information, nor independently verified this information The franchisees included m this Item 19 operate businesses substantially similar to the business being offered in this Disclosure Document A Average and Median Annual Gross Sales The following tables and graphs present the Average and Median Annual Gross Sales for the Reporting Franchisees, together with the highest and lowest perfoiming franchisee and how many franchisees exceeded the average, broken down by (1) the number of years of operation (2) the top and bottom third gross sales regardless of years in operation and (3) the top and bottom 10% gross sales regardless of years m operation