Floor Coverings International

5390 Triangle Parkway, Suite 125

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Floorcoverings international, Ltd is a Georgia corporation established in February 1998 with corporate offices located at 5250 Triangle Parkway, Suite 100, Norcross, Georgia 30092.

We sell a mobile retail floor coverings franchise business for both soft and hard flooring products and window treatments (the “Franchised Business”) under the terms of a Franchise Agreement included in this disclosure document as Exhibit A (the “Franchise Agreement”). You are required to establish an studio (office/warehouse). Each Franchised Business includes the right to use our name, service marks and business methods (the “License”) in a protected territory (a “Designated Market Area” or “DMA”). A DIMA generally encompasses between 50,000 and 80,000 single family dwellings. Under the Franchise Agreement, you may only offer, sell and/or perform the following: carpeting, window treatments, hard and soft floor covering products in residential dwellings that have less than five units/apartments, as well as individual residential apartments, condominiums or townhomes, provided (i) such work is not subject to the National Account Program, and (ii) the total aggregate contract amount does not exceed $50,000 for any one particular job (collectively, “Residential Services”). FCI has a National Account Program in which FCI has the exclusive right to negotiate and enter into agreements to provide services to National Account customers. FCI may offer you the option to perform such work in the DMA but it may also provide such services itself or contract with a third-party including another FCI franchisee to perform such services in the DMA. Further, we may offer qualified franchisees the right to perform services for any particular residential job in which the aggregate contract amount exceeds $50,000 (“Commercial Services”), and any other flooring services not specifically identified as Residential Services above, including but not limited to any business or other commercial building, hotel or academic institution, upon the payment of a one time, non-refundable Commercial Services Licensing Fee, signing our Commercial Services Addendum, and the completion of our Commercial Training Program and such other conditions as we require. FCI franchisees operating a commercial services franchise are permitted to offer and sell their Commercial Services in the DMA. See Item 12 for more information about FCI's National Account Program and Commercial Services. \ From time to time, FCI may establish certain programs for the benefit of its franchisees and the FCI System whereby FCI franchisees will be permitted to offer, sell and perform certain flooring services in accordance with the specifications described in any particular program established by FCI (“Program Services”). Franchisee's participation in any particular program will be subject to the terms and conditions of such program. We will provide you with training and assistance in marketing, sales, advertising, staffing, product selection, operational procedures, and financial administration. As the owner of a mobile floor coverings and window treatments business, you will operate from a design- consultation studio from which you and your team will service your local market. No prior experience is required, although we reserve the right to award franchises at our sole discretion. As a franchisee, you and your team take samples of floor coverings and window treatments (the “Franchised Products and Services”) to your customer's home or business, where you help them select floorcovering and/or window treatment type, color, and style best suited to your customer's furniture and color scheme. When your customer places an order, you telephone the order to a designated mill or mill manufacturer representative or other supplier and schedule ' installation by a qualified installer. You will compete with fixed location retail facilities and department stores as well as other mobile floor covering businesses that offer similar floor covering and window treatment products and services.

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