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Business Description

Metro Brokers Franchising, LLC is the Franchisor, and is referred to in this Disclosure Document as “Metro Brokers,” “MBF,” “Franchisor,” “we”, or “us.” The franchise offered and sold by us is referred to in this Disclosure Document as the “Office.” “You” or “Franchisee” means the person(s) or entity that buys and/or operates the franchise from MBF. If the franchise is purchased or operated by a corporation, limited liability company, partnership, or other entity, then “you” may also mean the shareholders, members, partners, or other owners of that entity. All such shareholders, members, partners, or other owners of the entity and their respective spouses shall be required to execute the personal guaranty attached to the Franchise Agreement. MBF was formed September 21, 2016 to franchise Metro Brokers Offices and does business under its entity name and as “Metro Brokers.” MBF has offered Metro Brokers Office franchises since 2016. MBF’s principal business address is 4 Inverness Court East, Suite 200, Englewood, CO 80112. MBF does not conduct any other business, does not operate Metro Brokers Offices, and does not offer franchises for any other line of business, other than the franchises being offered in this Disclosure Document.

Prior Experience

MBI has licensed third-parties to use the “Metro Brokers” mark and other trade- or servicemarks since its formation. MBI also previously offered franchises in the same line of business, but no longer offers or sells any new franchises. MBI existing franchisees continue to operate and may compete with you.

Business Offered

Metro Brokers offers franchises for the operation of a Metro Brokers Office. Metro Brokers Offices offer high quality residential real estate services, commercial real estate services, and/or property management services and related services to consumer and commercial customers under the name “Metro Brokers®” and other trademarks and servicemarks (collectively, the “Marks”) and other techniques, tools, standards, and requirements as outlined herein, in the Franchise Agreement, and in the manual(s) (“Operations Manual”) (collectively with the Marks, the Operations Manual, this is referred to as the “System”) made available pursuant to the franchise agreement’s terms and conditions (“Franchise Agreement”) (Exhibit E). Each Metro Brokers Office is an independently owned and operated business, and is solely responsible for its day-to-day conduct and activities. No Metro Brokers Office is an agent or employee of MBF, nor are any of its employees or contractors. We anticipate that you may have an existing real estate brokerage you wish to convert to a Metro Brokers Office to operate under the System. All Offices’ real estate activities are managed by a Designated Managing Broker (as defined in the Franchise Agreement) and the Offices’ business operations are managed by a designated Office Manager (as defined in the Franchise Agreement).

Initial Fees

Initial Franchise Fee To open a single Office, you must pay us an initial franchise fee of five thousand dollars ($5,000) if you are not presently a licensee/franchisee of MBI; if you are presently a licensee/franchisee of MBI and wish to either open a new single Office or convert an existing MBI location to a Metro Brokers Office, you must pay us an initial franchise fee of two thousand five hundred dollars ($2,500) (referred to herein as the “Initial Franchise Fee” for either amount due). You must pay the entire Initial Franchise Fee in full when you sign the Franchise Agreement. The Initial Franchise Fee is fully earned by us upon execution by you of the Franchise Agreement and is not refundable under any circumstances. Because we are a newly formed company, we have not granted any franchises or collected any Initial Franchise Fees as of the Date of Issuance appearing on the Cover Page. Advertising Fund Contribution To open a single Office, you must pay us an initial advertising fund contribution (“Initial Advertising Fund Contribution” or “IAFC”) between zero dollars and one thousand two hundred dollars ($0 - $1,200) proportionate to the number of days of the year remaining when you execute the Franchise Agreement. For example, if the Franchise Agreement was executed January 1, the full one thousand two hundred dollars ($1,200.00) would be due; if Franchisee executed this document on June 14, the number of days left in the year as of the date of signing are 200. 200 days / 365 days = 0.55, which when multiplied by $1,200, means Franchisee would owe $660.00 upon signing of the Franchise Agreement. The IAFC fully earned by us upon execution by you of the Franchise Agreement and is not refundable under any circumstances. Because we are a newly formed company, we have not granted any franchises or collected any IAFC fees as of the Date of Issuance appearing on the Cover Page. Setup Fee To open a single Office, you must pay us a setup fee of one thousand two-hundred fifty dollars ($1,250) (“Setup Fee”). You must pay the entire Setup Fee in full when you sign the Franchise Agreement. The Setup Fee is fully earned by us upon execution by you of the Franchise Agreement and is not refundable under any circumstances. Because we are a newly formed company, we have not granted any franchises or collected any Setup Fees as of the Date of Issuance appearing on the Cover Page.

Financing

We do not currently offer, directly or indirectly, any financing arrangements to you. We do not guarantee your note, lease or obligation.

Franchisee Revenue and Profit

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 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 the franchisor’s management by contacting M.H. Ripley, 4 Inverness Court East, Suite 200 Englewood, Colorado 80112 or at (303) 843-0100 or [email protected], the Federal Trade Commission, and the appropriate state regulatory agencies.