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Business Description

We were incorporated in the State of South Carolina on March 1, 2005, for the purpose of offering UNITS® franchises and supporting and supplying franchisees. Our principal business address is 680 Bear Swamp Road Johns Island, South Carolina 29455. Our mailing address is 680 Bear Swamp Road Johns Island, South Carolina 29455. We do business only under our corporate name. We offer franchises to operate UNITS® Moving and Portable Storage businesses, and supply select proprietary equipment and related materials to our franchisees.

Prior Experience

We have no predecessors or parents. Our affiliate MHM Group, Inc, a South Carolina corporation, was incorporated in March 2005, and has developed or acquired certain intellectual property and proprietary designs, which, according to licensing agreements, all of our Affiliates have the right to use, including the word mark “UNITS®” and our design logo. We also have a right to sublicense these assets to our franchisees for their use in the operation of UNITS® Businesses. Our affiliates operate UNITS® Businesses similar to the franchise opportunity offered under this Disclosure Document. Our affiliates do not and have not previously offered franchises in this or any other line of business. With the exception of MHM Group, Inc., which, as disclosed above, owns certain intellectual property licensed to us, our affiliates do not furnish services or supplies to our franchisees.

Business Offered

We offer qualified persons or business entities the right to operate franchised businesses which offer the delivery, warehouse storage, and transport of portable, structurally secure, modular selfstorage UNITS® which may be delivered on-site and left at a customer's property, picked up and stored within a UNITS® warehouse facility, or transported from one location to another (the “Franchised Business”) under the terms and conditions of the UNITS® Franchise Agreement, a current copy of which is attached as Exhibit C to this Disclosure Document. Franchised Businesses (collectively referred to as “UNITS® Businesses”) deliver transportable rental storage containers to customer locations. Customers may keep the container at their location (home or business, event or construction site, etc.) for as long as necessary. If long-term storage is desired, UNITS® Businesses can pick up storage containers and store them at a central warehouse until directed by the customer to re- deliver it to another location. A Franchised Business typically requires at least 20,000 to 60,000 square feet of property for their operations, with a minimum of 20,000 square feet. Each UNITS® Business operates according to our proprietary system, the characteristics of which include: (a) proprietary, custom-built containers (the “UNITS® Containers”) and related equipment, including hydraulic tilt bed trailers referred to as “UNITS® Moving and Portable Storage Delivery Systems” (collectively “UNITS® Equipment”); (b) standards and specifications for the provision of mobile storage services and related products and services; (c) distinctive signage; (d) sales techniques, and merchandising, marketing, advertising, and inventory management systems; and (e) general procedures for operating and managing a mobile storage business in the manner set forth in this 7 ©2019 Units Franchising Group, Inc. Franchise Disclosure Document Agreement and in the Operations Manual provided by us, as modified periodically (the “System”). We will provide you with initial and ongoing assistance as described in Item 11 of this Franchise Disclosure Document. We have offered franchises to operate Franchised Businesses since August 2006. We do not offer and have not previously offered franchises in any other line of business. In addition to offering and selling franchises and supporting our franchisees, we also supply our franchisees with UNITS® Containers, UNITS® Moving and Portable Storage Delivery Systems and trucks and other packing and moving equipment and supplies. Except as stated above, we have not engaged in any other business activities, and have never offered franchises in any other line of business.

Initial Fees

You must pay an initial franchise fee (“Initial Franchise Fee”) equal to $18,500 times the number of contiguous markets you agree to purchase (each, a “Market”). Each Market will contain approximately 100,000 people and you must purchase a minimum of three contiguous Markets (for a minimum population of 300,000) within which to operate the Franchised Business, which equals a minimum Initial Franchise Fee of $55,500. The maximum population we typically offer is for 1,200,000 people, which equals an Initial Franchise Fee of $222,000. We use Territory Solutions software to determine population statistics. We are an approved supplier for trucks, our proprietary UNITS® Containers, UNITS® Moving and Portable Storage Delivery Systems, and other equipment, and inventory items such as packing and moving supplies, as well as certain inventory items and signage. Your estimated additional payments to us prior to opening for UNITS® Containers and other UNITS® Equipment range from $301,322 to $565,322, based on the number of UNITS® Containers or other UNITS® Equipment you are required to purchase from us. The Initial Franchise Fee is payment, in part, for our expenses in furnishing assistance and services to you and for our costs, including general sales and marketing expenses, training, legal, accounting and other professional fees. All initial fees are deemed fully earned upon payment, nonrefundable, and must be paid in lump sum.

Financing

We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligations.

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 isa 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 only be given 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. This Item sets forth historical Gross Sales data for certain of our franchisee-owned UNITS® markets achieved between the 2014 calendar year and 2018 calendar year. As of December 31, 2018, there were 26 UNITS locations in operation. Twenty operated as traditional franchises (“Traditional Franchises”); 3 are operated as fractional franchises (“Fractional Franchises”) and 3 are operated as affiliate locations (“Affiliate Locations”). Each Location offered similar products and services as would generally be offered by a typical UNITS® Moving and Portable Storage business offered under this disclosure document. Of the twenty Traditional Franchised Locations, 15 were open and in operation for the entire 2018 calendar year. Table 1-A sets forth the Average Annual Revenues of the 15 Traditional Franchises during the 2018 calendar year, and Table 1-B sets forth the Average Annual Revenues for the 3 Affiliate Locations during the 2018 calendar year. Eleven of the Traditional Franchises provided the expense information we requested for the 2018 calendar year. Table 2-A sets forth certain Revenue and Expense information for these 11 Traditional Franchises for the 2018 calendar year, and Table 2-B sets forth certain Revenue and Expense information for the 3 Affiliate Locations for the 2018 calendar year. We have not audited or independently verified this information. Written substantiation of the data used in preparing this information will be made available upon reasonable request. The financial performance representations do not reflect all of costs of sales, operating expenses or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your UNITS® Businesses. Franchisees or former franchisees, listed in this disclosure document, may be one source of this information. Costs and expenses will vary substantially from business to business. You should consult with your tax advisor regarding such expenses, as well as the effect, if any, of recent or proposed tax legislation. 2. Actual results vary from UNITS® Business to UNITS® Business, and we cannot estimate the result of a UNITS® Business. Revenues and expenses may vary. In particular, the revenues and expenses of your business will be directly affected by many factors, such as: (a) geographic location; (b) competition from other similar businesses; (c) advertising effectiveness based on market saturation; (d) whether you operate the business personally or hire a general manager; (e) your product and service pricing; (f) vendor prices on materials, supplies and inventory; (g) employee salaries and benefits (life and health insurance, etc.); (h) insurance costs; (i) weather conditions; (j) ability to generate customers; (k) customer loyalty; and (l) employment conditions in the market. 3. Some outlets have sold this amount. Your individual results may differ. There is no assurance that you will sell as much. 4. There is no assurance that you will do as well as the UNITS® Representative Businesses discussed above. If you rely upon the above figures, you must accept the risk of not doing as well. 5. Importantly, you should not consider the revenue information presented in the charts above to be the actual potential revenues that you will realize. We do not represent that you can or will attain this level of gross sales, or any level of gross sales. We do not represent that you will generate income, which exceeds the initial payment of, or investment in, the franchise. Therefore, we recommend that you make your own independent investigation to determine whether the franchise may be profitable to you. You should use the above information only as a reference in conducting your analysis and preparing your own projected income statements and cash flow statements. We suggest strongly that you consult your financial advisor or personal accountant concerning financial projections and federal, state and local income taxes and any other applicable taxes that you may incur in operating a UNITS® Business. 6. Other than the preceding financial performance representation, we do not make any financial performance representations. 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 outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to our management by contacting our President at 680 Bear Swamp Road, Johns Island, South Carolina 29455, the Federal Trade Commission, and the appropriate state regulatory agencies.