Signal 88 Security

3880 S. 149th Street, Suite 102 Omaha, NE 68144

[email protected]

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Signal 88 Franchise Group, Inc. is a Nebraska corporation which was incorporated on November 13, 2007. Our principal business address is 3880 S. 149th Street, Ste. 102, Omaha, Nebraska 68144.

We have developed a comprehensive system (the “System”) for the opening and operation of a security-services business specializing in security patrols and surveillance, security consulting, executive protection, and training in personal safety, risk avoidance, and threat management for the workplace. Some of the distinguishing characteristics of the System include: (1) use of highly trained security personnel; (2) use of integrated patrol and guard management system software; (3) distinctive uniform designs and logos; (4) standards and specifications for equipment, supplies, and signs; (5) technical assistance and training; (6) sales and management assistance and training; and (7) specialized methods and techniques for cost controls, recordkeeping and reporting, and personnel management, all of which we may periodically change, improve and develop. We identify the System by certain trademarks, trade names, service marks, logos, emblems, and other indications of origin, including “Signal 88”, “Signal 88 Security®”, “Signal 88 – Planning. Prevention. Protection.”, “Signal 88 Security – Security Re-Engineered”, “88University”, “Signal 88 – We're Here”, “88Edge”, and other trade names, service marks and trademarks that we have already designated (and that we may later designate) for you to use under the System (the “Marks”). You will be licensed to use the Marks and the System, as they may be periodically changed, improved, and further developed. Your Agreement and Franchise Operations Manual will specify the types of services you will offer. We begin the franchise award process by having you sign the Agreement. The grant of a franchise is conditioned on the following: (1) your completing and signing the Franchisee Questionnaire Acknowledgment in Exhibit H; (2) your signing an Agreement and associated security documents; (3) your submitting financial statements and demonstrating your fitness to operate a franchised business to our satisfaction; (4) your required payment of a Franchise Fee; (5) your obtaining the necessary insurance and providing us proof of insurance; (6) your attendance and satisfactory completion of all phases of our initial training program; (7) your obtaining all required business licenses needed to operate the franchised business; and (8) your compliance with the terms of the Agreement. Once you complete the initial obligations under the Agreement, we will authorize you to open and operate a security services business operated under the name “Signal 88 Security” (“Franchised Business”). The Franchised Business will specialize in the sale and performance of security services, including security patrols and surveillance, security consulting, executive protection, and training in personal safety, risk avoidance, and threat management in the workplace. The term of your Agreement is for three (3) years and will begin on the date you sign an Agreement. The security services market is developing. If you qualify to operate a Signal 88 Security franchise, you will sell security services primarily to business customers in need of site surveillance and security consulting. You will also sell services to individuals and businesses who need executive protection services or safety training. You will compete with independent, regional, and national security firms offering similar services. Sales are somewhat seasonal with business increasing slightly during the summer months, during which customers tend to request more security patrols. We and our affiliates also reserve the right to establish other franchises or Company-owned offices selling and performing the same or similar services both under the same or a different trade name or trademark outside your designated territory. The services you perform in your Franchised Business will be subject to certain federal, state, and local laws and regulations, which may include state and local licensing laws or ordinances for security guards and security agencies. There may be other local laws and regulations which are not mentioned in this disclosure document. The Lanham Act, 15 U.S.C. § 1051, and the rules and regulations of the Federal Trade Commission may constrain the advertising or representation you can make about services and prohibit you from selling certain services in some cases. You must submit all advertising to us for approval before you use it. You must permit us and our agents to enter your business premises at any reasonable time, with or without advance notice, to conduct inspections and to evaluate your compliance with, among other things, the Agreement, the Franchise Operations Manual, and any applicable laws and regulations. If these inspections reveal that you are not in compliance with all applicable requirements, you must, either on your own initiative or after you receive notice from us, take immediate action to correct any deficiency and bring the Franchised Business into compliance. If you fail or refuse to take all necessary corrective measures, we will have the right to do so and to charge you for all costs and expenses associated with these corrective measures. You must reimburse us fully for our costs and expenses on demand or as soon as applicable law allows. We also have the right to terminate your franchise in accordance with the contract and applicable law if you fail to comply with the applicable requirements. Despite our oversight of your compliance with applicable law as described in the previous paragraph, it is still your responsibility to comply with all applicable laws and regulations of the federal, state, and local governments. You must also obtain all certifications, permits, and/or other licenses which are necessary for you to operate the Franchised Business. You must research and become familiar with the laws and regulations applicable to your business.

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