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Business Description

Garage Living Franchise Systems USA, Inc. (“we”, “us” or “our”) is a Delaware corporation that was incorporated on July 28, 2014 and has its principal place of business at 201 Chrislea Road, Vaughan, Ontario, Canada L4L 8N6 We do business under our corporate name and the proprietary mark “Garage Living” We will refer to the person or owner, partner or other entity who buys this franchise as “you” throughout this Disclosure Document We are offering franchises for the operation of “Garage Living” businesses (the “Business” or “Franchised Business”) We do not own or operate a Business of the type being franchised We have never offered franchises in any other line of business, and we have no other business activities We began selling franchises in the United States in February 2015 Our agents for service of process are listed in Exhibit A

Prior Experience

We have no predecessor or parent company Our first affiliate is Garage Living Franchise Systems Inc , a Canadian corporation headquartered at our address (“GLF CAN”) GLF CAN does not own or operate a business of the type being franchised, it is not an approved supplier of any product or service that you must purchase, and it will not guarantee our performance GLF CAN has offered “Garage Living” franchises in Canada since March 2014 As of December 31, 2018, 3 franchises have been sold in Canada Our second affiliate is Garage Living Inc. , a Canadian corporation headquartered at our address (“Affiliate”) Our Affiliate owns and operates one business of the type being franchised which has been in operation since September 2005 Our Affiliate owns the proprietary marks which it has licensed to us so that we may sublicense them to our franchisees Our Affiliate has never offered franchises m this or any other line of business Our Affiliate is an approved supplier of Slatwall panels and accessories, stock modular cabinetry, coating fluid and related materials, overhead storage racks and other standard organizers, showroom fixtures and displays

Business Offered

Garage Living Businesses are businesses providing design, supply and installation of residential garage organizers, cabinetry, concrete floor coatings, car lifts, garage doors, garage door operators, renovations services and additional products and services related to residential garage renovations (the “Products and Services”) Our System includes in tenor design, layout, color scheme, fixtures and furnishings, specific equipment, materials and supplies, methods, uniform standards, specifications and procedures for operations, procedures for management control, training and assistance, and merchandising, advertising and promotional programs, all of which may be changed, improved and further developed by us (the “System”) The System is identified by certain trade names, service marks, trademarks, logos, emblems and indicia of origin, including the mark “Garage Living” as are now designated and together with any other proprietary marks as we may designate in writing in the future for use with the System (the “Proprietary Marks”) A Garage Living Business is operated from a light industrial, commercial or retail space with 3,000 to 4,000 square feet of space total, including approximately 800 to 1,000 square feet for a showroom, 400 to 500 square feet for office space, and the remainder for warehouse space Your leased space must include sufficient parking for customers and service vehicles, and must have a loading dock or a drive-m door -ideally having both types of doors is optimal We offer you a franchise agreement (the “Franchise Agreement”) which gives you the right to establish and operate one Business within an assigned Designated Territory and the right to use the Proprietary Marks and the System solely with the operation of the Franchised Business Your Business must at all times be under the direct, on-site supervision of a ‘ Designated Operator” Your Designated Operator must have a 51% ownership interest in you and must have decision making authority with respect to your Business

Initial Fees

When you sign the Franchise Agreement you must pay to us an initial franchise fee m the amount of $60,000 for a single territory The initial franchise fee is imposed uniformly on all franchisees The initial franchise fee is fully earned by us and is not refundable In 2018, we offered discounts for the following franchisees for the franchise where two territories were purchased at the same time Fort Worth Franchise $30,000 discount You must purchase from our affiliate your initial inventory of Slatwall panels and accessories, stock modular cabinetry, coating fluid and related materials, overhead storage racks and other standard organizers We estimate that the cost of your initial inventory of these items will be between $17,000 and $21,000 If for any reason your Business fails to open, the products may be returned and a refund of 50% of the cost will be issued to you, less shipping and restocking fees In addition to the initial inventory you must purchase from our affiliate some of the showroom fixtures and displays We estimate the total cost of fixtures and displays for the showroom purchased from our affiliate will be between $15,000 and $25,000 If for any reason your Business fails to open, the standard fixtures and displays that have not yet been installed in your showroom may be returned and a refund of 50% of the cost will be issued to you, less shipping and restocking fees Custom displays are not refundable under any circumstances You must pay us the then-current fees for a minimum of one PRO software license for our SAP accounting software at a cost of $2,500 to $3,500 You must also purchase from us a Cabinet Vision design software license at a cost of $1,800 to $2,000 The number of licenses you chose to purchase greater than one will increase this cost Our affiliate has established volume discounts with various equipment suppliers for the grinding equipment This includes the large grinder and vacuums The approximate discounted price for this equipment depending on the package chosen ranges from $30,000 to $40,000 Should you choose to lease this equipment through a third party, our affiliate may still facilitate the sale at the discounted prices You must pay us $4,500 for the development of your “micro-site” website that will be designed and deployed for your specific franchised territory This amount is payable when the Franchise Agreement is signed .and is not refundable under any circumstances There are no other payments to or purchases from us or our affiliates that you must make before your Business opens

Financing

We do not offer direct or indirect financing We do not guarantee your note, lease or any other obligation We may refer you to third party financing sources for the purchase or lease of equipment, but we have no control over their decision whether to offer financing to you and we do not receive a referral fee for referring you or any other franchisee to the third party for 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 franchised and/or franchisor-owned Businesses, 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 records of an existing Business 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 location or under particular circumstances 1 — We-do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised Businesses We also do not authorize our employees or representatives to make any such representations either orally or in writing If you are purchasing an existing Business, however, we may provide you with the actual records of that Business 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 Aaron Cash at 201 Chrislea Road, Vaughan, Ontario, Canada L4L 8N6 and (905) 856-7175, the Federal Trade Commission, and the appropriate state regulatory agencies