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Business Description

We are a Delaware limited liability company that was formed on December 30, 2013. Our corporate address is 5113 Steinbeck Bend Drive, Waco, Texas 76708 and our telephone number is (480) 844-1575. Our agent for service of process are disclosed in Exhibit B. We grant franchises for the operation of a business offering plumbing services, drain cleaning services, water and gas leak detection and repair services, and water heater, water softener, and water filtration system services using our proprietary methods and the BLUEFROG PLUMBING + DRAIN mark. We have been offering BLUEFROG PLUMBING + DRAINfranchises since January 2014. We do not sell franchises in any other line of business. We are not engaged in any other type of business activity. We have never operated a BLUEFROG PLUMBING + DRAIN business. We have no parent company, and none of our affiliates provide products or services to our franchisees. Our affiliate, Restoration 1 Franchise Holding, LLC (“Restoration 1”), has offered franchises since 2009 for a business providing residential and commercial water, fire, smoke, and mold restoration services with additional services such as cleaning, drying, and reconstruction and repair of damaged structural areas, all under the name “Restoration 1.” Restoration 1 has never operated a business of the type you will operate, and has never offered franchises in any line of business other than the Restoration 1 business described above. Restoration 1 Franchise Holding, LLC's principal business address is 5113 Steinbeck Bend Drive, Waco, Texas 76708.

Prior Experience

Gary Findley: Chief Executive Officer Mr. Findley has served as our Chief Executive Officer since June 2017. Mr. Findley has also served in executive positions with our affiliate, Restoration 1, since February 2015, and has been serving as Restoration 1's CEO since October 2016. From March 2014 to December 2015, Mr. Findley served as Chief Operating Officer for EnVie Fitness in Waco, Texas. From October 2008 until January 2015, Mr. Findley served as Chief Operating Officer for Snap Fitness in Chanhassen, Minnesota. Thomas Dougherty: President Mr. Dougherty has served as our President since January 2019. Mr. Dougherty served as our Vice President of Sales Training from September 2017 to January 2019. Mr. Dougherty has also served as Vice President of Sales Training of our affiliate, Restoration 1 Franchise Holding, LLC since September 2017. From August 2014 to August 2017, he served as Director of Sales Training for Service Excellence Training in Buda, Texas. July 2010 to August 2014, he was a Franchise Consultant, Director of Sales and Vice President of Retail Sales for the Dwyer Group in Waco, Texas. Jack Pruitt: Franchise Business Consultant and Operations Specialist Mr. Pruitt has served a Franchise Business Consultant and Operations Specialist since April 2014. From January 2007 to April 2014, Mr. Pruitt was a Franchise Business Consultant for Clockwork Home Services in Sarasota, Florida. Kurt Hurley: Vice President of Marketing Mr. Hurley has served as our Vice President of Marketing since September 2017. Mr. Hurley has also served as Vice President of Marketing of our affiliate, Restoration 1 Franchise Holding, LLC since September 2017. From August 2016 to September 2017, he served as Head of Marketing at Dutton Plumbing in Simi Valley, California. From August 2016 to September 2017, he served as Chief Marketing Officer for Reachosity in Dana Point, California. From June 2014 to August 2016, he was the Vice President /Director of Marketing for Premier Wealth Advisors in San Diego, California. From March 2012 to July 2014, he was the Vice President /Director of Marketing for Fred Wilson Coaching in Palm Springs, California. From October 2013 to June 2014, he was the Vice President /Director of Marketing for Jadu in Chatsworth, California. Robin Wilcox: Operations Support Specialist Ms. Wilcox has served as our Operations Support Specialist since January 2014. From June 2011 through July 2013, she served as the Logistics Manager for Capestone Organic Poultry in the United Kingdom. bluefrog plumbing + drain® Franchise Disclosure Document | 2019 3 Jake Johnson: Controller Mr. Johnson has served as our Controller since December 2018. From November 2014 through December 2018, he served as Controller for Integ in Waco, Texas. From May 2009 to November 2014 he served as a financial analyst for Baylor Scott & White in Waco, Texas. Gina Roberson: Executive Administrator Ms. Roberson has served as our Executive Administrator since June 2016. Ms. Roberson has also served as Executive Administrator of our affiliate, Restoration 1 Franchise Holding, LLC since June 2016. From June 2010 to February 2016, she was an Area General Manager for Snap Fitness in Houston, Texas.

Business Offered

We franchise the right to operate a BLUEFROG PLUMBING + DRAIN business offering plumbing services, drain cleaning services, water and gas leak detection and repair services, and water heater, water softener, and water filtration system services using our proprietary methods and the BLUEFROG PLUMBING + DRAIN Marks, described below (the “Franchised Business”). You will operate the business in a defined geographic area (the “Territory”). As a BLUEFROG PLUMBING + DRAIN franchisee, you must operate the Franchised Business from an office located within your Territory. The location of your business premises must be approved by us unless it is your home office. If you already own a company providing plumbing service and products, you may convert your existing business to a Franchised Business (which we call a “Conversion Franchise”). Our franchises conduct business under our distinctive business format, systems, methods, procedures, designs, standards, and specifications set forth in our confidential operations manuals (the “Manuals”) using the BLUEFROG PLUMBING + DRAIN mark and other service marks that we may specify from time to time (the “Marks”).

Initial Fees

Franchise Fee – Standard Franchise When you sign the Franchise Agreement, you must pay us a nonrefundable Franchise Fee for your Territory (the “Franchise Fee”). Our Franchise Fee is $47,500 for a standard franchise with a territory that includes approximately 250,000 people. If you wish to purchase a larger territory, then the Franchise Fee will increase by an amount equal to $0.12 multiplied by the population in your Territory in excess of 250,000. For example, if you purchase a territory with a population of 500,000, your Franchise Fee will be $77,500 ($47,500 + ($0.12 x 250,000)). If you purchase a territory with a population 1,000,000, your Franchise Fee will be $137,500 ($47,500 + ($.12 x 750,000)). We do not award territories with more than 1,000,000 people. We currently offer the following discounts to franchisees who are acquiring a standard franchise: Time in Partnership and Second Concept Discounts For otherwise qualified franchisees who have been a franchisee of ours for at least two years and who license additional territory from us, we will discount the Franchise Fee for additional territory for a Franchised Business or for the license of a second franchise, as the case may be, based on the number of years you have been a franchisee. You will sign an additional Franchise Agreement for the additional Franchised Business you elect to purchase. VetFran Discount We currently offer a $7,000 discount to veterans who have received an honorable discharge from any branch of the United States military in the 10-year period before you apply to become a franchisee. If the franchisee bluefrog plumbing + drain® Franchise Disclosure Document | 2019 4 is a corporation, limited liability company, or other legal entity, the veteran participant must maintain at least a 51% ownership interest in the entity to qualify for this discount. To apply for this discount, you must provide us a copy of your active duty I.D. or form DD-214, reflecting your military status, before the Franchise Agreement is signed. Combination and Application of Discounts may not be combined unless approved by us. Any questions about application or combination of discounts, including questions about the order in which discounts may be applied, will be resolved by us in our sole discretion. Except for the discounts described above, the Franchise Fee for the standard franchise is uniformly calculated for all new franchisees. Franchise Fee – Conversion Franchise If you are converting an existing plumbing business to a BlueFrog Plumbing + Drain franchised business, the Franchise Fee is reduced to $22,500 for a territory with approximately 250,000 people. If you wish to purchase a larger territory, then the Franchise Fee will increase by an amount equal to $0.06 multiplied by the population in your Territory in excess of 250,000. If your territory includes more than 1,000,000 in population, you must sign a separate Franchise Agreement for multiple territories (each territory is limited to a maximum population of 1,000,000) and the same discount on the Franchise Fee will apply to each territory. If your territory includes 1,000,000 people, for example, your Franchise Fee would be $67,500 ($22,500 + ($.06 x 750,000)).

Financing

We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligations to third parties.

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 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 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 location or under particular circumstances. As of December 31, 2018, we had a total of 11 BLUEFROG PLUMBING + DRAIN franchisees that were open and operating, eight of which had been in operation the full 2018 calendar year. The financial performance representation includes data from each of the eight franchisees that were open as of December 31, 2018 other than one franchisee who is not using our designated POS system (so we did not have the ability to automatically poll this franchisee's sales information). Therefore, the table includes data from a total of seven franchisees. As of December 31, 2018, five of the seven franchised businesses had operated 36 months or more, no franchised businesses had been in operation 24 to 36 months, and two franchised business had operated for at least 12 months but less than 24 months.