$22

Business Description

We incorporated as a corporation under the laws of the State of Texas on December 11,, 2009 with the name GMIT Operating, Ipc., and subsequently changed our name to GMIT Solutions, Inc. On December 17, 2018 we converted from a corporation to a limited liability company under Texas law, and changed our name to GMIT Solutions, LLG^ We maintain our principal place of business at 500 N. Gapital of Texas Hwy., Bldg. 6, Ste. 2Q0, Austin TX 78746, and Our telephone number is (800) 710-GMIT (2648). We have Offered franchises since February 2010 to establish and operate technology support businesses under the “GMIT Solutions” service mark. We have not conducted business in any other line of business, and we have not offered franchises in any other line of business. Although we do not own or operate any company-owned or franchised offices of the type we: franchise, we have the right to do so. You will find the agents for service of process we have appointed listed in Exhibit A,

Prior Experience

Qn February 9, 2010 we acquired the business of our predecessor, GMJT Solutions rncorporated (our 'iPredecessOr”). Our iPredecessor's business address is the same as ours: 500 N, Gapital Of Texas Hwy., Bldg. 6, Ste. 200, Austin TX 78746. Our Predecessor was incorporated in October 1996 with the: name “computer moms international corporation;” and in; January 2004 changed its name to “GMiT Solutions Incorporated”. Our Predecessor offered franchises from I\i1areh 1998 unfil January 2010. From 1998 to January 2004 our Predecessor's franchisees operated under the primary trademark “computer rtidms^'. As of January 2004 franchisees began operating under the primary trademark “CM/7 Solutions'^. Our Predecessor did not offer franchises in any other line Of business. Beginning in 2017 we formed a wholly owned subsidiary, GMIT Solutions of Ganada, LLGj which offers the GMIT Solutions franchise program in Canada, As shown; :in Item 20, Table. #3, 2 franchises have; been granted. As of December 31, 2018 there were no GMIT Solutions franchises located in Ganada. GMIT Solutions of Ganada, LLG maintains its principal offices at our headquarters address, as noted above. Our affiliate GMIT Solutions Marketing Fund, LLC serves as a franchise support marketing fund. Neither GMIT Solutions of Canada, LLC nor CMIT Solutions Marketing Fund, LLG has offered franchises in any other line of business or has conducted business in any other line of business. We do not have any other affiliates that offer franchises in any line of business or provide products or services to GMIT Solutions franchisees, and we have no other predecessors.

Business Offered

The GMIT Solutions Franchise System includes the common use and promotion of the trademark “CMIT Solutions'^' and other marks we specify for use with the CMiT Solutions Franchises (the “Marks”); standards, specifications and procedures for the offering of our specialized IT Professional ahd Managed Services: (Managed services Is the practice of transferring day-to-day information technology management responsibility to an outside provider as a strategic method for improved effective and efficient; business operations) franchises: distinctivei and uniform standards; quality and uniformity of services and products offered; procedures for finanbial control; training and assistance: and advertising and promotional programs.

Initial Fees

You must pay the Initial Fee (“Initial Fee”), which includes a Franchise Fee and any Territory Fee, as follows:. There are two Franchise Fee Tiers: (a) Tier One: The Franchise Fee is $49,950 and applies to a geographic territory ("the Territory”) comprised of entire, contiguous US Postal Zip Codes containing a minimum of 3,000 and maxinnum of 3,500 Small Business Establishments (SBEs) within your territory (the “Territory”) that meet our then current criteria for busirtess size. (b) Tier Two: The Franchise Fee ls $54,950 and applies to a geographic territory (‘the: Territory”) comprised of entire, contiguous US Postal Zip Codes with aminimum of 3,501 and maxirnurn of 4,000 Small Business Establishments (SBEs) Within, your territory (the “Territory”) that meet our then current criteria for business size, as described in Item 12. (G) fee Territory Fee will apply for Tier Two of $11.00 for each SBE ip excess of 4,000 SBEs within the Territory;. For example, in a Territory containing 4,025 SBEs the Territory Fee would be $275.00 ($11.00 multiplied by 25). The Territory size will not exceed 4,250 Small Business Establishments (SBEs) and the Territory Fee will not exceed $2,750.

Financing

We offer limited financing of a portion of the Initiai Fee to qualified applicants who are converting an Existing business to the GMIT Solutions System. If we provide financing, we currently offer a Note yvith a 2-year term at a variable interest .rate that is Prime Rate plus 4 points. If financing is offered, we will require/that you pay at least;25% down on the total Initial. Fee or a minimum of $10,000, yyhichever is greater. You do not have to obtain rinancing from us, nor do we have any obligation to extend financing to any individual franchisee. We reserve the right to approve or deny any requests for the extertsidn Of credit In our absolute discretion. Additionally, by making eredit available to you, we assume no obligation tO rnake any additional credit available to you under the specific type of credit arrangement we approved, or under any other type of credit arrangement, nor do we guarantee your note, lease or any obligation

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 andtor franchisor-owned outlets, if there is a feasbhable 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 brily if; (T) a franchisor provides the actual Tecprds 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 perfornnance at a particular location or under particular circumstances.