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Business Description

The franchisor is Motto Franchising, LLC ('we,' 'us,' or 'our'). We are a Delaware Limited Liability Company formed on August 25, 2016. Our principal business address is 5075 South Syracuse Street, Denver, Colorado 80237-2712. We operate under our corporate name, 'Motto' and no other name. We began offering franchises for the first time in October 2016. We do not operate any Motto Offices (defined below). We may form a subsidiary that is a licensed mortgage brokerage that will facilitate the testing of concepts for use by franchisees, but, as of the date of this disclosure document, we do not anticipate that any such subsidiary would offer brokerage services to the public or operate under the Motto name or that we would otherwise operate any Motto Offices in the future. We have no other business activities. Other than RE/MAX, LLC and the entities described below under 'Affiliates' we have no affiliates who offer franchises in any line of business or who provide products or services to our franchisees. If we have an agent in your state for service of process, we disclose that agent in Exhibit H. Our predecessor is Full House Mortgage Connection, Inc. ('Full House'), a Michigan corporation formed on March 31, 2015. Its principal business address was 770 S. Adams Road, Suite 103, Birmingham, Michigan 48009. Full House offered franchises for residential mortgage businesses offering mortgage broker services from May 2015 to July 2016. We acquired certain of the assets of Full House on September 12, 2016.

Prior Experience

We began offering franchises for the first time in October 2016. We do not operate any Motto Offices (defined below). We may form a subsidiary that is a licensed mortgage brokerage that will facilitate the testing of concepts for use by franchisees, but, as of the date of this disclosure document, we do not anticipate that any such subsidiary would offer brokerage services to the public or operate under the Motto name or that we would otherwise operate any Motto Offices in the future. We have no other business activities. Other than RE/MAX, LLC and the entities described below under 'Affiliates' we have no affiliates who offer franchises in any line of business or who provide products or services to our franchisees. If we have an agent in your state for service of process, we disclose that agent in Exhibit H. Our predecessor is Full House Mortgage Connection, Inc. ('Full House'), a Michigan corporation formed on March 31, 2015. Its principal business address was 770 S. Adams Road, Suite 103, Birmingham, Michigan 48009. Full House offered franchises for residential mortgage businesses offering mortgage broker services from May 2015 to July 2016. We acquired certain of the assets of Full House on September 12, 2016. 'You' means the person to whom we grant a franchise. If you are a corporation, partnership, limited liability Company, or other business entity, certain provisions of our franchise agreement also will apply to your owners. If you are a corporation, partnership, limited liability company or other business entity that is owned, in whole or in part, by one or more other business entities (--a parent entity), reference to owners in the franchise agreement will also include the individual or individuals who own the parent entity. This disclosure document will indicate when your owners also are covered by a particular provision.

Business Offered

We grant franchises for businesses operating under the name 'Motto' and other trademarks and service marks (collectively, the 'Marks'). (For reference purposes in this Disclosure Document, we call the businesses in our system 'Offices' or 'Motto Offices;' we call the Motto franchised business that you will operate the 'Office.' Motto Offices offer high quality mortgage brokerage services (collectively, the 'Services'), including the processing, originating and solicitation of mortgage loan applications for purchasing a residence or other property or refinancing an existing mortgage. As of the date this Disclosure Document was issued, Motto Offices are offered primarily to owners who operate an existing real estate brokerage business (the 'Existing Business'). We anticipate that such owners may commonly locate the office space for the Motto Office (the 'Premises') in office space adjacent to and/or subleased from their Existing Businesses. Motto Offices are responsible for soliciting and obtaining mortgage customers for whom they will provide the Services. The Services are performed utilizing the System (as defined below). These Services are provided by Motto franchisees operating Motto Offices, which use our business formats, methods, procedures, signs, designs, layouts, standards and specifications all of which serve to protect the value of the Marks (the 'System'), all of which we may improve, further develop or otherwise modify. 2 MOTTO/FDD April 2019 A copy of the franchise agreement ('Franchise Agreement') you will be required to sign is attached to this disclosure document as Exhibit A. The Franchise Agreement grants an address-only location, with no territorial protection at all. You or, if you are a corporation, partnership, limited liability company or other business entity, each of your owners, will also be required to sign a Guaranty and Assumption of Obligations, which is affixed to the Franchise Agreement. If you are a corporation, partnership, limited liability company or other business entity, and you, in turn, are owned by another business entity or entities, each owner of that business entity or those business entities will also be required to sign a Guaranty and Assumption of Obligations. Each Motto franchisee must be authorized, under the law of the state(s) in which the franchisee will do business, to provide mortgage brokerage services, and must provide its services through licensed loan originators. Franchisees will serve the general public, competing with other businesses offering mortgage brokerage services. As a mortgage broker you will execute mortgage brokerage agreements with wholesale lenders that underwrite and fund mortgages. These agreements allow your Motto Office to originate loans made by the lenders, who will, unless you are compensated directly by the consumer, compensate you for your services typically at a predetermined percentage of the loan amount, with the total amount of compensation for many loans subject to regulation. See Item 8. You will, in turn, recruit and compensate the licensed individuals who work with potential borrowers to help them find the right loan ('Loan Originators'). Loan Originator compensation may include salary, other benefits and, most typically, a commission calculated as a percentage of the loan amount. You will set the pricing for loans your Office originates depending on your pricing strategy which will take into account the compensation levels set with lenders as well as the interest rates and loan products then available to you as well as your analysis of what is competitive in your market. Each Motto Office is an independently owned, operated and licensed business and is solely responsible for its day-to-day conduct and activities. Accordingly, no Motto Office is an agent (actual, implied or ostensible) of Motto Franchising, LLC. All prospective franchisees, as well as renewing franchisees and transferees (as discussed below), must sign a form authorizing us to obtain a consumer report and conduct a credit and background check, and meet our then current subjective and objective standards for new franchisees, including those relating to relevant experience, education and licensing, background and past record of compliance with laws, financial capacity, skills, integrity and other qualities of character. The following subparagraphs address the requirements of the various other possible scenarios under which you received this disclosure document: Renewing Franchisees If you are renewing an existing franchise relationship with us due to an expiring franchise agreement, you will be required to sign the Franchise Agreement as well as the 'Renewal Addendum to Franchise Agreement - Address Only' (attached as Exhibit A-1). This addendum creates or clarifies certain terms and conditions that apply to your relationship as a franchisee only if you are renewing an existing franchise relationship; the terms of this renewal addendum do not apply if you are a new purchaser of a franchise or if you are purchasing an existing franchise.

Initial Fees

You must pay us a nonrefundable initial franchise fee when you sign the Franchise Agreement. Our standard initial franchise fee currently is $25,000. If you complete your purchase of a RE/MAX franchise at the same time as you purchase your Motto franchise

Financing

We may offer you financing for the initial franchise fee necessary to purchase a Motto Office. If you wish to finance the initial franchise fee, the initial franchise fee will be $26,500 (as opposed to $25,000 if you pay it in one lump sum) and you must pay at least $12,500 in cash as a down payment when the Franchise Agreement is signed. If you complete your purchase of a RE/MAX franchise at the same time as you purchase your Motto franchise and you choose to finance a portion of the initial franchise fee your initial franchise fee will be $16,000 (as opposed to $15,000 if you pay it in one lump sum) and you must pay at least $7,500 in cash as a down payment when the Franchise Agreement is signed. Your payments begin 60 days after the Franchise Agreement is signed by us (the 'Agreement Date'). A copy of the Promissory Note for the initial franchise fee ('Promissory Note') is attached to this disclosure document as Exhibit B. In any case in which you finance the initial franchise fee the balance of the franchise fee will be due in 24 equal monthly installments. These monthly installments will be automatically charged to a debit or credit card that you provide to us (we currently accept MasterCard, VISA, or American Express). In addition, we may, but are not obligated to, require or allow you to pay monthly installments via electronic withdrawal from your bank account. 26 MOTTO/FDD April 2019 If a payment due under any of the promissory notes is late, we may accept the late payment with a 10% late charge or, upon 10 days' written notice, accelerate payment of the outstanding principal and interest. All payments will be applied first to outstanding late charges and then to principal. If we accelerate payment and subsequently refer any of the promissory notes to an attorney for collection, all outstanding amounts will bear interest at the default rate of 20% per year (or if this rate exceeds the highest rate permitted under applicable law, then at the highest rate legally permitted) and you will have to pay our reasonable attorneys' fees and costs we incur as a result of the default. As an additional remedy if you default, we may terminate your Franchise Agreement (although this will not release you from having to pay all unpaid amounts). If you transfer any of your interest in the Franchise Agreement, the unpaid principal and interest (if applicable) balance will be immediately due and payable. If the Franchise Agreement is terminated, then your Promissory Note shall immediately become due and payable. You may not assign any of the promissory notes without our prior written consent. You and any endorsers waive and excuse presentment for acceptance and payment, notice of dishonor and protest of dishonor and agree to any extension of time of payment. You may prepay the principal balance at any time without penalty. Whether any promissory note will have to be secured by collateral other than the franchise itself, and whether a separate guaranty will be required, will depend primarily on your financial condition and the available collateral. Other than described above, we do not charge any additional finance fees to apply for or secure the financing described in this Item 10. Except as described above, we do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. We do not receive direct or indirect payments for placing financing. Except as provided above, the promissory note does not contain a waiver of defenses or similar provision. We do not have any practice or intent to sell, assign or discount to a third party all or part of any promissory note. We may require that the Note be guaranteed by your owners if you are a corporation or other business entity.

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. 49 MOTTO/FDD April 2019 We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Ward Morrison, President, 5075 South Syracuse Street, Denver, Colorado, 80237-2712, (866) 668-8649, the Federal Trade Commission, and the appropriate state regulatory agencies.