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Business Description

Total Car Franchising Corporation ('TCFC') is a South Carolina corporation which was incorporated on September 17, 1991. TCFC is sometimes referred to in this franchise disclosure document as 'we' or 'us'. TCFC does business as Total Car Franchising Corporation and under the 'COLORS ON PARADE' and 'Car Love' marks. TCFC's principal address is 125 Daytona Street, Conway, SC 29526

Prior Experience

Our predecessor, TCI, Inc. ('TCI'), was formed as a South Carolina corporation in 1988. TCI developed the system and methods of mobile vehicle exterior paint repair and refinishing (the 'System'), now franchised by TCFC, which is characterized by the Colors on Parade marks and logo, as well as distinctive design, signage, specifications, and appearance; uniform operating methods, procedures and techniques; and other confidential procedures, methods and techniques for inventory, cost controls, record keeping, reporting, personnel management, training, purchasing, marketing, sales promotion and advertising. TCI began business opportunities in 1988, but ceased any offerings after our formation, when TCI licensed the System to us. Following our formation, TCFs licensees became our franchisees. TCFs principal address is 8247 Forest Lake Drive, Conway, SC 29526. We do not have any parent companies.

Business Offered

We offer an Operator Franchise (the 'Franchise') whereby you ('you,' for the purposes of this franchise disclosure document, includes all equity owners of the franchisee) establish and operate a business that provides mobile vehicle repair and restoration services, including vehicle exterior paint repair and refinishing, pointless dent removal, and interior repair (the 'Core Services'), under OUR Marks. With our training and prior approval, you may also perform other authorized restoration and improvement services ('Ancillary Services') under TCFC's Marks, such as restoration of planes, coffins, boats and restaurant upholstery and wheel and glass repair. A Colors on Parade Operator Franchisee ('Operator Franchisee' or 'Franchisee') A Colors on Parade Operator Franchise provides paint repair and restoration services, pointless dent repair services and/or interior repairs, and other ancillary services (collectively, the 'Services') within a defined territory (the 'Territory'). The current form of the Operator Franchise Agreement is attached to this franchise disclosure document as Exhibit C. A person or entity that enters into an Operator Franchise Agreement with us is referred to as an 'Operator Franchisee.' An Operator Franchisee operates one or more operating units, each of which consists of a certified Colors on Parade truck, trailer or van with proprietary mobile laboratory (an 'Operating Unit'). An Operator Franchisee receives assistance and advice from us and/or a Colors on Parade area representative ('Area Representative'). A Colors on Parade Area Representative provides one or more of the Services within a designated area (the 'Development Area'), using one or more Operating Units, and assists Operator Franchisees in its Development Area to establish their businesses and obtain and service customers in their territories. We compensate the Area Representative for your Territory for assisting you by sharing the monthly royalty fees that you pay to us. An Area Representative may not offer franchises for sale in a registration state until such time as it has an effective registration application in that state. We began offering Operator Franchises (which were formerly called 'Limited Rights Franchises') in November 1991. Although we have also offered an area representative franchise in California in the past and currently offer an area representative franchise in other states, we do not currently offer an area representative franchise in California.

Initial Fees

Initial Franchise Fee. The initial franchise fee (the 'Initial Franchise Fee') is $5,000. You pay the Initial Franchise Fee to us when we have satisfied our pre-opening obligations to you under the Franchise Agreement and you open for business. The Initia

Financing

We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligation. We do not know whether you will be able to obtain financing for all or part of your investment and, if so, the terms of the financing. We do not place financing for you or receive direct or indirect payments for placing financing. The U.S. Small Business Administration ('SBA') has approved TCFC's application to be listed on the Franchise Registry as of July 3, 2006. This listing ensures expedited loan processing for franchisees and prospective franchisees obtaining SBA financing. No fees or terms have been agreed upon for SBA financing.

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 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. These charts reflect the mean average annual gross revenues, sales and expenses for the fiscal year ended December 31, 2018, of certain Colors on Parade franchisees in the U.S. and should not be considered as the actual or probable results that will be realized by you or any other franchisee. We do not represent that any franchisee can expect to attain these results. A new franchisee's results are likely to differ from these results. As of December 31, 2018, there were 212 Colors on Parade operator franchisees operating in the U.S. Of the 212 operator franchises, 10 operated for less than 12 months, 30 operated more than one year but less than 3 years and 172 operated more than 3 years. The first column in Chart 1 reflects the mean average gross revenues for fiscal year 2018 reported by the Colors on Parade 172 operator franchisees that operated for more than 3 years as of December 31, 2018. The second column reflects the mean average annual gross revenues for fiscal year 2018 reported by the Colors On Parade 30 operator franchisees that operated for more than one year but less than 3 years as of December 31, 2018. The statement is based on monthly sales reports submitted by Colors on Parade operator franchisees for the purpose of computing royalty fees. These reports have not been audited by certified public accountants nor have we sought to independently verify their accuracy for purposes of this chart. The following chart breaks down into ranges of gross revenues the information on which Chart 1 is based Exhibit F to this franchise disclosure document is a list of the names and addresses of the operator franchisees from which Colors on Parade compiled these figures (area developer franchisees are designated by an asterisk). All of these franchises are substantially similar to the franchises we offer in that (1) all franchises offer essentially the same services and products as described in Item 1 of this Disclosure Document, and (2) all franchises are mobile units. Colors on Parade makes available the same support to all franchises. Written substantiation of the data used in preparing Charts 1 and 2 will be made available to you on reasonable request, provided that we will not disclose data that identifies specific franchisees. Note 1: We obtained the information listed in Chart 3 from our own records based on information reported by our operator franchisees on Profit and Loss statements in the ordinary course of business. The reports have not been audited by certified public accountants nor have we sought to independently verify their accuracy. Not all franchisees supplied us with their profit and loss statements. In fact, only 39 Colors on Parade's operator franchisees, representing less than 20% of Colors on Parade's operator franchisees, provided this information to us. The profit and loss forms used by the franchisees were not uniform, and the method of calculating their expenses varied. We only used the profit and loss statements that we reasonably believed conformed to our preparation standards and requirements. If the information on the profit and loss statements indicated that a category of expenses was missing or we had reason to believe that a type of expense had been miscategorized, we did not use that statement in the calculation of the information in the above chart. Accordingly, we only used the information provided by 36 operator franchisees to prepare this chart. Sales and expenses vary for Colors on Parade operator franchises depending on many factors, including local and regional variation in fuel cost, financing terms which the franchisee was able to obtain, location and regional variation in telephone rates, insurance rates, local and state taxes and wage rates, cost of paints and supplies used, services offered and the efficiency and managerial skill of the franchisee, local economic factors, the density of vehicle ownership, the number of other automotive after-market outlets in a particular market area and the proximity of such competition to the Colors on Parade franchise, length of time the franchise has been in operation and the length of time operating at its current location, type of area and whether the franchise is managed by the owner or an employee manager. Note 2: 'Gross Margin' means sales less cost of product used. Note 3; Employee wages vary for Colors on Parade franchises depending on many factors including local and regional variation in wage rates and degree of skilled labor employed and availability of such labor. The percentages listed do not include any salary or wages received by the owner of the franchise. Note 4: 'Other expenses' includes charges and expenses for cell phone service, vehicle and equipment maintenance, uniforms, office supplies, and other miscellaneous costs. This list of expenses is not all inclusive and Colors on Parade franchisees will incur additional expenses in the operation of their Colors on Parade franchises, including, for example, interest payments, royalty fees, and the salary or draw of the owner of the franchise. Also, not all franchises incurred all the expenses listed. Written substantiation of the data used in preparing Chart 3 will be made available to you on reasonable request, provided that we will not disclose data that identifies specific franchisees.