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Business Description

Company was formed on July 8, 2015 as Shack Shine Home Services LLC. Our principal business address is 301 – 887 Great Northern Way, Vancouver, BC, V5T 4T5. We grant franchises to qualified candidates in the United States for the operation of franchises (the “Franchised Business”) using the System and identified by the name SHACK SHINE and have offered these franchises since February 2016. We have no other business activities and have not operated businesses of the type being franchised. We are a whollyowned subsidiary of Shack Shine Corporate whose principal business address is also 301 – 887 Great Northern Way, Vancouver, BC, V5T 4T5. 0766143 B.C. Ltd., a British Columbia, Canada company, holds the controlling interest in Shack Shine Corporate. Our CEO, Brian Scudamore, holds the controlling interest in 0766143 B.C. Ltd. The address for both Brian Scudamore and 0766143 B.C. Ltd. is also 301 – 887 Great Northern Way, Vancouver, BC, V5T 4T5.

Prior Experience

Our affiliate, O2E Brands Inc. (“O2E Brands”) is a British Columbia, Canada company incorporated on April 15, 2014 with a principal place of business at 301 - 887 Great Northern Way, Vancouver, BC, Canada, V5T 4T5. O2E Brands provides shared franchise services, such as marketing, human resources, business technology, legal, and finance to all franchised brands founded by one of our co-founders, Brian Scudamore, including to the Shack Shine System. O2E Brands does not offer franchises in any line of business in the United States.

Business Offered

The Shack Shine system is a unique method for operating and franchising professional residential house detailing services, including pressure washing, gutter cleaning, exterior window washing, and Christmas light installation (the “System”). “Residential” is defined as where services are requested by an individual for his or her own single detached residence or the single detached residence of an individual with whom he or she has a personal relationship and not a professional relationship as it relates to the request for services. Our main competitive advantage over other house detailing companies is the way we deliver our service. Shack Shine projects are completed by means of combining a strategic operating plan and a sufficient number of trained staff to carry out the plan. The System includes customized software, brand development, training, business processes, marketing programs, and access to the exclusive service of the “Sales Center,” as well as the mark “SHACK SHINE” and related marks (collectively, the “Marks”). Shack Shine Corporate manages the Sales Center in Vancouver, BC on our behalf, which receives telephone and web-based orders and acts as a “point of sale” contact for each customer. The Sales Center schedules all appointments, maintains a detailed client database, conducts follow-up calls with all customers to gauge customer satisfaction and provides you with detailed reports so that you may more effectively manage the Franchised Business. We leverage a national Sales Center, operate a sophisticated web-based dispatch system, and provide you with a comprehensive training program and ongoing business coaching and support. You must also purchase or lease a vehicle that meets our requirements for use in your Franchised Business. Your vehicle must be outfitted, wrapped or decaled to our specifications. You will operate your Shack Shine Franchised Business in an assigned territory. Your Territory will generally consist of two subterritories, but in some circumstances we may sell a franchise consisting of one subterritory or more than two subterritories. A subterritory is a geographic area we determine that has approximately 150,000 to 200,000 people based on recently published census data.

Initial Fees

The Initial Fee for most franchises is $32,000, which includes $20,000 for the first subterritory, plus $12,000 for one additional subterritory. The minimum Initial Fee is for a territory consisting of one subterritory, in which case the Initial Fee is $20,000. The Initial Fee is payable to us in a lump sum when you sign the Franchise Agreement. The Initial Fee is non-refundable and is fully earned upon receipt. The range of initial franchise fees payable for franchise agreements signed in the year ending December 31, 2018 was between $16,000 and $41,000.

Financing

1. This amount includes the Guarantee Fee of approximately $150 that is collected by Alamo and paid to Franchisor or its Affiliate. If we grant you one or more subterritories within which to operate your Franchised Business, we may (in our sole discretion) allow you to pay the initial franchise fee and initial marketing expense in varying monthly installments, with interest, until the initial franchise fees are repaid. A copy of our form of Financing Agreement is attached as Exhibit L.We do not otherwise offer financing at this time

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.