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Business Description

Our principal business address and that of BB and ADC is 1900Q MacArthur Boulevard, Suite 100, Irvine, California 92612. ACS's and LCR's principal business address is 107 Parr Drive, Huntersville, North Carolina 28078. We have six parents. Our immediate parent is Home Franchise Concepts, LLC (“HFC”), and our ultimate parent is JM Family Enterprises, Inc. (“JMF”), JMF controls HFC through JM; Franchise Holdings, Inc., TCP HFC, Inp., Home Franchise Concepts Parent, LLGj, and Home Franchise Concepts Midco, LLC. JMF is majority-owned by the James M. Moran Intervivos Trust Number Two. HFC's principal business address is 19000 MacArthur Boulevard, Suite 100, Irvine, California 92612. JMF's principal business address, and the principal business address of our other parents (other than HFC), is 100 Jim Moran Boulevard, Deerfield Beach, Florida 33442. We were incorporated in California on January 24, 2006, under the name "Closet Tailors, Inc." On May 18, 2006, we converted to a California limited liabilily company named "Closet Tailors, LLC." On May 5, 2010, we Changed our name to Tailored Living, LLC. We have been offering franchises since 2Q06, We have never offered franchises in other lines of business, Through our affiliate Closet Tailors Direct Sales, Inc., we operated a business of the type you will operate under the franchise agreement from 2009 until 2011. Otherwise, our only business is granting TAILORED LIVING® franchises and training and assisting our franchisees.

Prior Experience

We have no predecessors. Our affiliate. Budget Blinds, LLC (BB), a franchisor of window covering businesses, was organized as a California corporation on October 5, 1992 and converted to a California limited liability company on November 24, 2015. It began offering franchises in March 1994. Our affiliate, American Decorative Coatings, LLC fADC), a franchisor of decorative concrete businesses, is a Delaware limited liability company that was organized on October 17, 2014. It began offering franehises in March 2015. Our affiliate, Ad vantaClean , LLC (“ACS”), began offering franehises for restoration and remediation services that make residential and commercial buildings clean, safe, healthy and energy efficient in 2006. Prior tp January 1, 2019, ACS operated as a corporation, AdvantaClean Systems, Inc., (formerly named “LCR Advantage Systems, lnc"), ACS offered franchises that offered and'sold HVAC installation and maintenance services under the trademark “AdvantaClean Air” from April 2009 to March 2010 at which time it ceased offering and selling these franchises. Our affiliate. Loss Control and Recovery, LLC (“LCR”) facilitates and administers jobs With national accounts for ACS franchisees. BB, ADC and ACS have never operated a business of the type we franchise nor have they Offered franchises of the type we franchise. In 2010, we granted 78 conversion franchises to former franchisees of PremierGarage Systems, LLC (“PremierGarage'') upon terms that were in some respects more favorable than those currently being offered. We waived initial franchise fees and territory fees for territories these franchisees had already been operating with their former franchisor. For second and subsequent territories that were In operation when these franchisees joined us, we granted delayed start dates for payment of royalties. As liquid flooring was not a part; of the Tailored Living business model in 20tO, former PrernierGarage franchisees were permitted to retain their right tp sell liquid flooring in their former PremierGarage territories, even if we already had a Tailored Living franchisee in those territories. If you are purchasing a territory in which a former PremierGarage franchisee conducted business, it is possible you may not be permitted to sell liquid flooring from your Franchised Business. The offering for former PremierGarage franchisees did not include the start-up package at no additional charge that we provide under our standard franchise.

Business Offered

The business you will conduct under a TAILORED LIVING® franchise is a mobile business (“Franchised Business") for the design, sale, and installation of organizing units and storage and organizing accessories for closets, pantries, home offices, storerooms, utility' rooms, basements^ laundry rooms, attics, and garages using our expertise (“System”). With very limited exceptions. Franchised Businesses also offer liquid garage flooring services. You will use a motor vehicle with or without a trailer identified with signage we specify to make sales calls and perform installation work. You will generate sales in many v/ays, including local digital marketing such as pay-per-dick, social media, reviews, digital listings, email to existing and potential customers as well as canvassing, home shows, other print media and word of mouth referrals. The market you will serve consists of residential and business customers within the territory assigned to you. The market for iliquid flooring and the design, sale, and installation of organizing units and storage and organizing accessories is very corripetitive. You will compete not only with locally-based, regional, and national chains that specialize ip organizing units and liquid flooring, but also with home builders and remodeling firms, do-it-yourself stores, specialty stores that feature Organization products, and general department stores that sell pre-fabricated organizing products. There are few barriers to entry into this market and there may be more competitors in the future.

Initial Fees

You will pay us an Initial Franchise Fee of $14,950 when you sign the franchise agreement for your first territory. There is no; Initial Franchise Fee payable under a subsequent franchise agreement. We di$count -the Initial Franchise; Fee by 10% for new franchisees who are currently serving or honorably discharged veterans of the United States armed forces and their spouses. If you are a veteran, active service member or spouse of a veteran or active service member of the United States armed forces, you will therefore pay a discounted Initial Franchise Fee of $13,455. Unless you are a veteran, active service member or spoUse of a veteran or active service member of the United States armed forces, in addition to the Initial Franchise Fee, when you sign your first franchise agreement you must also pay to us a territory fee (“Territory Fee”) of $60,000. If you enter into a second franchise agfeement for a second territory at the same time as, your first franchise agreement, the Additional Territory Fee will be $35,000. Otherwise, for any sUbsequeht franchise agreement and territory,, the Additiona) Territory Fee will be the same as the then^current Territory Fee, The Territory Fee is not refundable under any cireumstances. We discount the Territory Fee by 10% for new franchisees who are currently serving or honorably discharged veterans of the United States armed forces and their spouses. If you are a veteran, active service member or spouse of a veteran or active service member of the United States armed forces, yOu will therefore pay a discounted Territory Fee of $54,000;. If you purchase a second territory at the same time, you will also pay a discounted Additional Territory Fee of $31,5O0. Apart from the above discounts, the Initial Franchise Fee, Initial Territory Fee and Additional Territpry Fee are uniform as to all franchises currently being granted. If you are preparing to sign your first franchise agreement and you wish to reserve an assigned Territory for a brief specified term (usually 60 days or less) before you sign the franchise agreement, you may sign a Deposit Receipt and pay a "Deposit Fee" of $10,000. The form of Deposit Receipt is attached as Exhibit©. If you pay a Deposit Fee and later enter into a franchise agreement, the Deposit Fee is fully applicable againstthe Territory Fee under the franchise agreement. The Deposit Fee is uniform as to all franchises currently being granted. None of the fees described in this Item are refundable under any circumstances.

Financing

If you meet our credit standards, we Will, at your request, provide financing as shown, below. To obtain financing, you must sign a Secured Promissory Note and General Security Agreement substantially in the form of Exhibits L and M to: this disclosure document. No separate personal guaranty is, required to obtain financing. Payments begin with the first royalty due date. The note can be prepaid without penalty at any time during its term. The General Security Agreement grants us a security interest in substantially all of your assets to secure your payments under the Secured Promissory Note. You waive your right to notice of a collection action and to assert any defenses to collection against us. We do not receive any direct or indirect payments or other consideration from any person for the placement of financing. Although we have never done so, we have a right to sell your promissory note at a discount rate; to a third party which may be immune under the law to any defenses to payment you may have against us. We do not guarantee any notes, leases, or obligations.

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual onpotential financial performance of its ffanchised andtor franchisor-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 differ$ from that iricluded 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 ih this Iterh 19^ for example, by providing information about possible performance at a particular location or under particular Circumstances. We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not, authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existihg outlet, however, we may provide you with the actual results of that Outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Scott Barrett, 19000 MacArthur Boulevard, Suite 100, Irvine, Galifornia 92612,, telephone number (949) 404 1100, the Federal Trade Commission, and the appropriate state regulatory agencies.