ShelfGenie

1010 North University Parks Drive

[email protected]

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ShelfGenie Franchise Systems, LLC is a Georgia limited liability company formed on November 29, 2007. Their principal business address is 5500 Interstate North Faraway, Suite 250, Atlanta, Georgia 30328. They have offered franchises for SHELFGENIE Businesses since May 2008.

The franchise being offered is for a mobile business that markets, designs, sells and installs customized solutions for new and existing cabinets identified by the trade name and service mark “SHELFGENIE” as well as other trademarks, logos, designs, and indicia of origin we may designate from time to time for use in connection with the SHELFGENIE Business (“Proprietary Marks”). SHELFGENIE, as the result of the expenditure of time, skill, effort and money, has developed and owns a unique system relating to the management and operation of a business that markets, sells and installs products customized and built around homeowners' and business owners' needs for moving shelving or drawer systems, under the trade name and service mark “SHELFGENIE®”, for cabinets, counters, closets or other structures, under the Proprietary Marks (the “System”). The distinguishing characteristics of the System include, but are not limited to the following: uniform standards and procedures for business operations; training in operations and management; advertising and promotional programs; customer development and service techniques; centralized business support center; web based proprietary business system and other technical assistance, all of which may be changed, improved or otherwise developed by us from time to time. You will use a vehicle approved by us in the operation of your SHELFGENIE Business. Each SHELFGENIE Business will be operated in accordance with the terms and conditions of the Franchise Agreement which you will be required to sign if you qualify as a franchisee and decide to become one of our franchisees. A copy of the Franchise Agreement is attached as Exhibit A to this Disclosure Document. A separate Franchise Agreement must be entered into for each Assigned Territory in which you operate a SHELFGENIE Business and each Franchise Agreement. Currently, we categorize the franchise offered by the size of the Assigned Territory granted under your Franchise Agreement. The categories and characteristics are as follows: - Executive Franchise –This Executive Franchise model is our standard franchise offer under our standard form of Franchise Agreement. Each Assigned Territory under the Executive Franchise model is approximately 125,000 houses or households. The Assigned Territories under the Executive Franchise model are typically found and granted in more populated areas. The initial franchise fee and ongoing fees are the standard fees included in Items 5 and 6 of this Disclosure Document. - Owner/Operator Franchise – This Owner/Operator Franchise model is tailored for more sparsely populated areas. Each Assigned Territory under the Owner/Operator Franchise model consists of approximately 75,000 houses or households. Typically, although not always, areas adjacent to Assigned Territories under the Owner/Operator Franchise model do not contain a sufficient number of houses and households to form additional Assigned Territories. The initial and certain ongoing fees are less than those for an Executive Franchise, and are specifically outlined in Items 5 and 6 of this Disclosure Document. If your Assigned Territory size places the franchise you purchase in our Owner/Operator Franchise category, you will execute our form of Franchise Agreement as well as the Owner/Operator Franchise Addendum attached as Exhibit 10 to the Franchise Agreement, which modifies the applicable fees. Throughout this Disclosure Document, if a term, fee, or obligation is not applied expressly to either the Executive Franchise or Owner/Operator Franchise model, the term, fee, or obligation applies equally to both models. You may also sign an Option Amendment to Franchise Agreement, a copy of which is attached as Exhibit 9 of the Franchise Agreement, under which we will agree to hold and to not sell to other franchisees the Option Assigned Territories set out in Attachment 1 of the Option Amendment for a period of 12 months. You will enter into a separate Franchise Agreement for each Option Assigned Territory you elect to purchase and acquire franchise rights in, as set out under the terms of the Option Amendment. We grant option rights as set out in the Option Amendment for Assigned Territories whose size falls under our standard Executive Franchise model.

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