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Business Description

Our name is PILLAR TO POST, INC. We are a Delaware corporation that was incorporated on July 11, 1994. We do business as “Pillar To Post,” “Pillar To Post Professional Home Inspection,” and “Pillar To Post Home Inspectors”. Our principal place of business is located at 14502 North Dale Mabry Hwy., Suite 200, Tampa, FL 33618. Our affiliate, Pillar To Post, Inc., a Canadian corporation (“Pillar To Post (Canada)”), operates our international home office located at 5399 Eglinton Avenue W., Suite 110, Toronto, Ontario, Canada M9C 5K9.

Prior Experience

We have offered franchises in the United States for residential home inspection services for single family and various multi-family homes since March 15, 1995. We originally offered franchises only in exclusive territories. In 2009, we began offering franchises in protected, nonexclusive territories. We have never offered franchises in other lines of business. Neither we nor any of our affiliates have ever conducted a residential home inspection business prior to Pillar To Post. As of December 31, 2018, we had 486 individual home inspection franchise units in the United States. Pillar To Post (Canada) offers franchises in Canada for residential inspection services for single family and various multi-family homes and has done so since September 1, 1994. As of December 31, 2018, Pillar To Post (Canada) had 77 individual home inspection franchise units in Canada

Business Offered

We franchise the operation of independently owned and operated businesses which offer distinctive residential inspection services for single family and some various smaller multi-family residences, as well as added services including mold testing, radon testing, and other health and safety-related services. We offer our services and products under the names “Pillar To Post,” “Pillar To Post Professional Home Inspection” and “Pillar To Post Home Inspectors.” We are not engaged in any other business activities. The market for the services to be provided by you is developed, and consists primarily in connection with the purchase or sale of residential homes, townhouses, or condominiums. You will provide homeowners, homebuyers and others involved in the real estate industry with clear, unbiased, objective information about a home's condition in accordance with Pillar To Post's brand standards and operating basics. Each franchisee will offer its services to its customers directly or through referral sources such as real estate brokers and agents, lawyers, mortgage lenders and relocation services. You will have to compete for this market in your territory with other businesses offering the same or similar services on a local, regional, and national basis, including other authorized Pillar To Post home inspection franchises

Initial Fees

You must pay us the initial franchise fee when the franchise agreement is signed. The amount of the initial franchise fee is Twenty-One Thousand Nine Hundred Dollars ($21,900). The total paid to us is $21,900. The initial franchise fee is not refundable in whole or in part.

Financing

If you meet our credit standards, we will finance $9,000 of the $21,900 initial franchise fee for a protected, non-exclusive territory over a 3-year period at an interest rate (rate of interest, plus finance charges, expressed on an annual basis) of 7.4%, using the standard form promissory note attached as Exhibit G-6. The only security we require is a personal guarantee of the promissory note by you and your spouse, by all of the shareholders of your corporation or by all the members of your limited liability company. If you do not pay on time, we can call the loan and demand immediate payment of the full outstanding balance and obtain court costs and attorney's fees if a collection action is necessary. We also have the right to terminate your franchise if you default under the promissory note. In the event of a default, you waive your rights to notice of a collection action and to assert any defenses to collection against us. You also consent to judgment. It is not our practice or intent to sell, assign, or discount to a third party all or part of the financing arrangement.

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 the information is included in the Franchise 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 performance at a particular location or under particular circumstances.