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Business Description

We are a Colorado corporation that was incorporated in August 22, 2000 under the name of Handyman Matters Franchise Corporation . We changed our name to Ace Handyman Franchising Inc. on September 18, 2019. We do business under our corporate name and under the name and service mark HANDYMAN MATTERS®. Our principal business address is 12567 West Cedar Drive, Lakewood, Colorado 80228. We are a franchising company that sells and grants franchises for the operation of businesses (a “HANDYMAN MATTERS! Business”) using the name “HANDYMAN MATTERS®^.” however in the future our franchisees will offer their handyman services to the public under service marks established by Ace Hardware Corporation, our ultimate parent company. We are not engaged in any Other type of business activity.

Prior Experience

Starting in 1998, HE and HE-Boulder, and after the merger of those entities into AHO. AHO owned arid operated eight businesses in California and Colorado which are similar to the franchised business being offered under this Disclosure Document. AHO sold those businesses in 2001 and 2002 to franchisees, of ours. Starting in June 2013, AHO has operated four franchise locations in the Denver, Colorado market which are similar to the franchised business being offered under this Disclosure Document. On September 5, 2019. AHS was acquired bv Ace Services Holdings LLC (“Ace Services”), which is a subsidiary of Ace Hardware-Corporation (“Ace”). Ace Services is a Delaware limited liability company formed on August 12, 2019. while Ace is a Delaware corporation incorporated on .Turie 16. 1964. In 1972. through a corporate merger. Ace succeeded to the business of an Illinois comoratiori orgariizedi in 1928 that Was also known as Ace Hardware Corporation. Ace became a retailer-owned coonerativelin 1976. As Of December 31, 2018 there were 4.476 Ace Hardware locations (4.353 franchised and 123 company owned) operating_in the United States. Both Ace and Ace Services maintain their principal business address at 2200 Kensington Court Oak Brook. Illinois 60523-2103. Ace and Ace Seroices are also deemed parents of ours. We have been offering HANDYMAN MATTERS Businesses since February 2001. We have not and do not operate any businesses similar to the franchised business being offered. Except as discussed above related to Ace, neither we nor anv of our Parents, predecessors or affiliates have conducted business or offered franchises in any line of business or provides products or services to our franchises.

Business Offered

We franchise to you or authorize you to operate a business (“HANDYMAN MATTERS Business”) under the mark HANDYMAN MATTERS® and related service marks, trademarks and trade names (“Marks”). In the future our franchisees will offer their handyman services to the public under service marks established by Ace, most likely Ace Handyman Services of Ace Hardware Handyman Services or both. although the exact service marks have not been established as of the date of this Disclosure Document. Once the actual future Ace service mark(s) has been established and incorporated into the HANDYMAN MATTERS System, you will be required to adopt and use those marks. A handyman matters Business provides handyman and remodeling (including design and build projects) services and sales to residential and commercial customers by operating under a uniform system consisting of high standards of service, use of quality products, proprietary and exclusive technology, and the: business format created and developed by us and our predecessors (the “HANDYMAN MATTERS System”). These handyman services include basic carpentry, plumbing and electrical, drywall, painting, roofing, flooring and any other miscellaneous repairs, remodels and services to residential and commercial clients. When you obtain a franchise from us, we license to you the right to use our Marks and the HANDYMAN MATTERS System within a protected territory that will be assigned to you (“Territory”). A HANDYMAN MATTERS Business, franchise grants you a Territory of at least 80,000 households, generally delineated by zip codes. All Territories include the businesses in the Territories. You pay us the initial fees discussed in ITEM 5 of this Disclosure, Document, and sign our standard franchise agreement (“Franchise Agreement') prior to operating your HANDYMAN MATTERS Business.

Initial Fees

The Initial Franchise Fee for a,single HANDYMAN MATTERS Business franchise is $20,000. In addition to the Initial Franchise Fee, you also pay us a Territory Fee based on the size of the Territory you acquire. The minimum Territory Fee for a single HANDYMAN MATTERS Business hanchise is $35,000 for a Territory of up to 80,000 households. If your actual Territory size exceeds 80,000 households, the Territory Fee is increased $0.50 for each additional household located in the Territory. All Territories include the businesses in the Territory. Discounts: We are a member of the International Franchise Association' s VetFran initiative. If you have served as a veteran of any branch of the United States Armed Forces, you may receive a discount of $2,500 off of the Initial Franchise Fee for the applicable type of franchise purchased. We are also a merriber of the International Franchise Association's MinorityFran initiatiye. If you are a minority, woman or minority or woman owned entity you may receive a discount of $2,500 off of the Initial Franchise Fee for the applicable type of franchise purchased. Only One discount will apply and it will be applied only to the first Franchise Agreement you sign. Performance Refund For the first Franchise Agreement you Sign to acquire your first HANDYMAN MATTERS Business franchise and if you do not generate at least $200,000 in Gross Revenues (as defined in the Franchise Agreement) through your business during, the first 12 months following the date you commence operations (the “Performance Evaluation Period”), you will be eligible to receive a refund credit in the amount of 50 percent of the Initial Franchise Fee for a single franchise (the “Performance Refund”). To receive the Performance Refund, you must have maintained full compliance, with toe Franchise Agreement and our standards and specifications with no material defaults for the entire terin of your Franchise Agreement through such time as the Performance Refund is granted. If you meet all conditions for the Performarice Refund, we will notify you following the end of the Performance Evaluation Period. You must then comply with all of our requirements and conditions for claiming the Performance Refund, which include signing within 10 days of our request an agreement in the form we provide verifying your entitlement to the Performance Refund and setting forth the terms for thatrefund.

Financing

Neither we nor any affiliate or parent of ours offers direct of indirect financing to franchisees. Neither we nor any affiliate Or parent of ours guarantees any notes, leases or other obligations of our franchisees .

Franchisee Revenue and Profit

As of December 31, 2018, there were 115 franchised HANDYMAN MATTERS Businesses in operation, which are referred to as “¥nits” in this ITEM 19. These Units are owned and operated by 49 different franchise owners, referted toin this ITEM 19 as, the “Operators.” Of the 49 Operators as of December 31, 2018, 24 own and operate multiple HANDYMAN MATTERS Business franchises. There were three Operators that had signed franchise agreements but had not yet opened for business as of December 31, 2018. Of the 49 Operators as of December 31, 2018, four Operators did not provide reliable financial reports to us. Another two Operators as of December 31,2018 had not been open for the full year. The following tables show the relevant financial information of the remaiiting 43 Operators, who all operated the entire 2018; Calendar year and filed their financial reports with us (“Reporting Operators”). Of these 43 Reporting Operators, 22 own and operate multiple HANDYMAN MATTERS Business franchises. We also have four HANDYMAN MATTERS Businesses operated by our affiliate, AHO. The results of those businesses are: not shown in the tables in this ITEM 19. Finally, these tables do not include the results of outlets that closed during the year 2018. There Were nine Operators and 12 outlets, which closed during the-year 2018, one of which was open for less than 12 months, before closing.