Franchising Status
Eligibility for SBA Loan

Business Description

Company was formed on December 1, 2010 as 1-888-WOW-1DAY! LLC. On March 5, 2014 we changed our name to WOW 1 DAY PAINTING LLC and we conduct business under that name. 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 WOW 1 DAY PAINTING and have offered these franchises since November 2010. We have no other business activities and have not operated businesses of the type being franchised. We are a wholly-owned subsidiary of 1Day Corporate whose principal business address is also 301 – 887 Great Northern Way, Vancouver, BC, V5T 4T5. The Scudamore Family Trust (2010), of which our CEO, Brian Scudamore, is the sole trustee, holds the controlling interest in 1Day Corporate. The address for Brian Scudamore and the Scudamore Family Trust is also 301 – 887 Great Northern Way, Vancouver, BC, V5T 4T5.

Prior Experience

Chief Executive Officer/ Director; Member of Board of Directors: Brian C. Scudamore Brian Scudamore co-founded Company in December 2010 and has served as its Chief Executive Officer and as director since its formation. He has served as CEO 1-800-GOT-JUNK? in Vancouver, B.C. since 1989. Mr. Scudamore has served as the CEO of 1-800-GOT-JUNK? LLC since October 1998, of You Move Me LLC since September 2012 and of Shack Shine Home Services LLC since July 2015, all located in WOW 1 DAY PAINTING FDD 03/2019 4845-4705-2685.1 3 Vancouver, B.C. Mr. Scudamore has served as the Chief Executive Officer of O2E Brands since April 2015. Chief Operating Officer: Erik Church Erik Church co-founded Company in December 2010 and became Chief Operating Officer in November 2011. Mr. Church has also been Chief Operating Officer of O2E Brands since April 2014. He has also served as Chief Operating Officer of 1-800-GOT-JUNK? LLC since November 2011, of You Move Me LLC since September 2012, and of Shack Shine Home Services LLC since July 2015, all located in Vancouver, B.C. Managing Director, Corporate Operations: James Alisch James Alisch joined Company in February 2014 as Managing Director, Corporate Operations. He has also been Managing Director; Corporate Operations of You Move Me LLC since January 2017 and of Shack Shine Home Services LLC since December 2017, both in Vancouver, B.C. Before joining Company, Mr. Alisch was an Owner of MIRA Floors and Interiors in Surrey, B.C. from August 2009 to February 2014. Vice President, Digital Marketing and Customer Insights of O2E Brands: Geoff Henshaw Geoff Henshaw joined O2E Brands in February 2017 as Vice President, Marketing, and became Vice President, Digital Marketing and Customer Insights in March 2018. Prior to joining O2E Brands, Mr. Henshaw held positions at Shoes.com in Vancouver, B.C., as Vice President of Marketing from May 2016 to January 2017, and as Vice President of Brand & Retail from May 2015 to May 2016. Mr. Henshaw also held positions at Coastal Contacts Inc. in the Sydney Area of Australia as Managing Director from June 2013 to May 2015, and as Senior Regional Manager from December 2012 to May 2013. Executive Vice President, Customer and Strategy of O2E Brands: Owen Gormley Owen Gormley has served as Executive Vice President of Customer and Strategy for O2E Brands since July 2018. Prior to that, Mr. Gormley served as the Vice President of Strategy and Business Operations for O2E Brands from April 2015 to July 2018. Prior to that, Mr Gormley served as the Director of Strategy and Implementation for O2E Brands from July 2014 to April 2015. Manager, Franchise Development: Cameron Wears Cameron Wears joined us in January 2012 and was Senior Manager, Franchise Partner Recruitment until December 2017, when he was promoted to Manager of Franchise Development. He has also been the Manager of Franchise Development for You Move Me LLC and for Shack Shine Home Services LLC since December 2017, both in Vancouver, B.C. Vice President, Operations: James Graham James Graham joined Company in February 2015 and was Director, Field Operations until December 2017, when he was promoted to Vice President, Operations. Before joining us, Mr. Graham owned and operated Fresh Painting from April 2010 to January 2015 in Toronto, Ontario, and also served as Business Development Manager for LoyaltyOne in Toronto, Ontario from November 2013 to April 2014. Mr. Graham served as Client & Partner Development Manager for AIMIA in Toronto, Ontario and Sydney, Australia from December 2011 to October 2013. WOW 1 DAY PAINTING FDD 03/2019 4845-4705-2685.1 4 Director, Operations: Leigh Adler Leigh Adler joined Company in January 2011 and was Operations Manager for the Sales/Call Center until December 2017, when he was promoted to Director of Operations. In January 2014 Mr. Adler became our Start-Up Operations Manager.

Business Offered

The WOW 1 DAY PAINTING system is a unique method for operating and franchising professional commercial and residential painting services (the “System”). Our main competitive advantage over other painting companies is the way we deliver our service. We complete most projects in one day. WOW 1 DAY PAINTING 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 proprietary software, brand development, training, business processes, marketing programs, and access to the exclusive service of the “Sales Center,” as well as the mark “WOW 1 DAY PAINTING” and related marks (collectively, the “Marks”). 1Day Corporate manages the Sales Center in Vancouver, BC on our behalf, which receives telephone, webbased and faxed 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 WOW 1 DAY PAINTING FDD 03/2019 4845-4705-2685.1 2 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 will operate your WOW 1 DAY PAINTING franchised business in an assigned territory. Your Territory will generally consist of two to four subterritories. A subterritory is a geographic area we determine based on recently published census data. A territory consisting of two subterritories is typically the minimum territory you may purchase.

Initial Fees

The initial franchise fee is a minimum of $32,000, which includes $20,000 for the first subterritory, plus $12,000 for one additional subterritory. The minimum initial investment is a territory consisting of two subterritories. We may allow you to purchase additional subterritories, in our sole discretion, for $12,000 per subterritory. The initial franchise fee of $20,000 for the first subterritory is payable to us in a lump sum when you sign the Franchise Agreement. The fee for additional territories is payable to us on the due date mutually agreed upon and set forth in the Franchise Agreement. These fees are not refundable. Except as noted herein, each portion of the initial franchise fee 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 $25,500 and $60,000. WOW 1 DAY PAINTING FDD 03/2019 4845-4705-2685.1 5 If you are granted multiple subterritories within which to operate the Franchised Business, we may (in our sole discretion) allow you to pay the initial franchise fee with respect to some of the subterritories in equal monthly installments for a period not to exceed one year. We may not allow you to operate or service customers in any such subterritories until you pay the initial fees for those subterritories in full.

Financing

If we grant you multiple subterritories within which to operate your Franchised Business, we may (in our sole discretion) allow you to pay the initial franchise fee with respect to some of the subterritories in equal monthly installments, without interest, for a period not to exceed one year. We do not otherwise offer financing at this time. We do not guarantee any debts, leases or other obligations for you. While not obligated to do so, we may, in our discretion, introduce you to third party financing sources that may, if you meet their qualifications, supply financing options for items required as part of the initial investment. We and our affiliates do not receive any consideration from introductions to third party financing sources.

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. HISTORICAL FINANCIAL PERFORMANCE INFORMATION The financial performance information provided in this Item 19 is a historic financial performance representation about all of the franchises existing in our franchise system for the relevant period based upon financial information those franchisees reported to us. The following charts provide information regarding the Gross Revenue for franchised businesses in the United States and Canada. The Gross Revenue charts below reflect total and average Gross Revenue for the last three years new franchised businesses were operated. For purposes of these charts, franchisees are grouped into franchised businesses open longer than 24 months, and in the case of system-wide figures for each country, include franchised businesses that were in existence for at least 1 day in the specified calendar year. Unless otherwise specified, “Gross Revenue” means the actual gross revenues billed to consumers for products and services less taxes collected and credits or refunds given in accordance with the Franchisor's refund policy. We have provided you with information to help you make a more informed decision about our franchises. The actual numbers you experience will vary depending upon several factors, including competition, management and market demographics. You should conduct your own research to assist you in preparing projections for your own Franchised Business.