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Business Description

The name of the franchisor is CALY, LLC. In this disclosure document CALY, LLC is referred to as “we” or “us” or “our” or “CALY”; “you” or “yours” means the person or persons, individually and collectively, who buys the franchise from us and includes the current and future owners of a franchisee that is a corporation, partnership or other entity. You are required to form an entity from which you will operate your franchise business. You are permitted to select the type of entity you would prefer, but your owners must sign an agreement that all provisions of the franchise agreement will also apply to your owners, and they must personally guarantee and be personally bound by your obligations under the franchise agreement. Our limited liability company was organized on May 24, 2005 in the State of California under the name CALY, LLC. Our principal place of business is 4901 Morena Blvd, #209B, San Diego, CA 92117. Our agents for service of process in various states are disclosed in Exhibit “D.

Prior Experience

Our business concept was first started by KCEG, Inc., a California corporation (“KCEG”). Its principal address was 2515 Camino Del Rio South, Suite 225, San Diego, California 92108. We acquired its principal assets in 2005. Our predecessor previously offered franchises similar to the franchises we offer. Our predecessors did not offer franchises in any other line of business. We have no other parents, predecessors or affiliates required to be discussed in this item

Business Offered

We license and train franchisees to operate a Forte™ business. As a Forte™ business, you will offer janitorial services specializing in commercial cleaning. Franchisees may generate customer contracts themselves or they may accept or reject contracts that we generate and offer to franchisees. The grant of a franchise authorizes you to engage in our complete system under the name Forte™ and other proprietary marks. Our system, which includes, among other things, confidential manuals, cleaning methods, standards for supplies, chemicals, equipment, teaching methods, merchandising, marketing, décor, the sale of products and services and other confidential business information, procedures, specifications and services as we may develop. As a Forte™ franchisee, you will have the opportunity to use the Forte™ system only within a specific territory. You will be required to establish an entity to act as the franchisee and to purchase specific materials, supplies and equipment and to strictly follow our standards, methods, policies and procedures in the operation of your franchise business, which are more particularly described in our franchise agreement attached as Exhibit “A” to this disclosure document.

Initial Fees

If you would like to purchase a package higher than Forte VI, the initial fee is $2,500 per $1,000 in additional monthly accounts offered. You will also receive an additional 30 days to accept the contract. If you desire to upgrade from a lower Forte™ package to a higher package, then you may upgrade after operating your franchise for 3 months. The cost to upgrade will be the then-current down payment associated with the upgraded package. For example, (under the current fee structure) if you purchased a Forte I package, but later chose to upgrade to a Forte III package, then you would have to pay an upgrade fee of $7,500. 2 This amount is the amount of business we will offer you each month. You have option to accept or reject any contract offered to you. 3 Time period to accept or reject a contract offered to you as part of the basic monthly offering. 4 Initial franchise fee for each package if not financed and paid in full. 5 Down payment if you elect and qualify to use our financing program. 6 Amount we offer in financing. 7 Monthly payment due to us under our financing agreement. This does not include late fees or interest for late or missed payments. 8 This total assumes that all payments are made in full and on time. Failure to pay the monthly payment in full and on time will subject you to late fees, interest, and other penalties. The current interest rate is 10% per year. In addition, we offer a 25% discount on the initial fee for new franchisees who agree to accept primarily restaurant and bar accounts for the term of the franchise agreement. There is no training fee for up to two attendees. We allow extra attendees to attend the same initial training as you for an additional fee of $100 per attendee per day. See Item 7 for more detailsThese costs and fees are uniform and are non-refundable for all franchisees.

Financing

Other than allowing for monthly installment payments, neither we nor any agent or affiliate offers direct or indirect financing to you, guarantees any note, lease or obligation of yours, or has any practice or intent to sell, assign or discount to a third party all or any part of any financing arrangement of yours.

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.