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Business Description

We do business under the name “Junk King ” Junk King Franchise Systems, Inc , a California corporation, was formed on January 11, 2010 Our principal business address is 389 Oyster Point Blvd #6, South San Francisco, CA, 94080 We do not do business under any other name The names and principal business addresses of our agents for service of process are listed in Exhibit 1

Prior Experience

Junk King, LLC, has operated a junk removal and recycling business m the San Francisco Bay Area since February 2005 We do not operate a business of the type being franchised Previously, from 2011 to 2013 and again from 2016 - 2017, we offered Area Representative Agreements m the United States pursuant to a separate Franchise Disclosure Document Some Area Representatives may be called Master Franchisees Area Representatives and Master Franchisees do not have management responsibility related to the franchise JKFS Canada offered Area Representative franchises under the name “Junk Works” in Canada m 2012 and has offered unit franchises under the same name in Canada since November 2012 As of December 31, 2018, we had six unit franchises m Canada We have no other business activities

Business Offered

We have combmed our own best practices into a comprehensive process for operatmg a franchise junk removal and recycling business (the "Program") The Program will, upon order remove and haul junk from residential and commercial customers for disposal, re-use, and recycling As part of the Program, you may also offer a mim dumpster removal service to residential and business customers The mini dumpster service includes dropping off a mim- dumpster at the customer's property for a short-term rental period The customer then fills the mim dumpster, and your Junk King trucks return to pick up the mim dumpster and dispose of its contents The "junk" that our ffeinchises remove and haul consists of items not typically removed through normal municipal pick-up We are not, and the Program is not, in the business of regular pick-up of trash along designated residential or commercial routes, or the hauling or disposal of any hazardous materials, including, but not limited to oil or gasoline, asbestos, any material contammg or contaminated with PCBs, liquid waste of any sort, sludge of any sort, septic tank sludge or waste, or solvents, liquids paints, or chemicals The Program is a step-by-step gmde to runmng a Junk King franchise (“Franchised Business”) It includes franchisee traimng, marketing and sales methodologies (including use of the Junk King trademark and brand development), proprietary software (Junk Netware), and access to and support by our Customer Care Center (the "Center") The Center is the hub for our customer services It processes all telephone and e-mail customer contacts and sales, schedules customer appointments, makes after-service contacts to ensure customer satisfaction, and mamtams the Junk King customer database

Initial Fees

Your intial franchise fee for a Franchised Business depends on the number of persons that live m your territory based on the most recently published data from the U S Census Bureau or such other source as we may indicate The imtial franchise fee is twelve cents (120) for each person living in your territory Therefore, for territories of up to and including 300,000 people, the imtial franchise fee would be $36,000, and if the territory consists of 500,000 people, the initial franchise fee would be $60,000, and if the territory consists of 1,000,000 people, then the imtial franchise fee would be $120,000 The Initial Franchise Fee is due upon signmg of this Agreement and is non- refundable

Financing

We do not offer direct or indirect financing We do not guarantee your notes, leases or other obligations We are however a member of the SBA registry and eligible for SBA financing should you qualify

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 m 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 busying, 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