SYNERGY HomeCare

960 W. Elliot Road, Suite 101

[email protected]

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SYNERGY HomeCare Franchising, LLC was organized in the State of Arizona on December 19, 2003 under the name AZHC Franchising, LLC, for the sole purpose of offering Synergy HomeCare® franchises. They changed their name to Synergy HomeCare Franchising, LLC on December 16, 2004. Their principal business address is 1757 E. Baseline Road, Bldg 6, Suite 124, Gilbert, Arizona 85233. They have offered franchises for SYNERGY HomeCare Businesses since March 2005.

We grant franchises for businesses operating under the name 'Motto' and other trademarks and service marks (collectively, the 'Marks'). (For reference purposes in this Disclosure Document, we call the businesses in our system 'Offices' or 'Motto Offices;' we call the Motto franchised business that you will operate the 'Office.' Motto Offices offer high quality mortgage brokerage services (collectively, the 'Services'), including the processing, originating and solicitation of mortgage loan applications for purchasing a residence or other property or refinancing an existing mortgage. As of the date this Disclosure Document was issued, Motto Offices are offered primarily to owners who operate an existing real estate brokerage business (the 'Existing Business'). We anticipate that such owners may commonly locate the office space for the Motto Office (the 'Premises') in office space adjacent to and/or subleased from their Existing Businesses. Motto Offices are responsible for soliciting and obtaining mortgage customers for whom they will provide the Services. The Services are performed utilizing the System (as defined below). These Services are provided by Motto franchisees operating Motto Offices, which use our business formats, methods, procedures, signs, designs, layouts, standards and specifications all of which serve to protect the value of the Marks (the 'System'), all of which we may improve, further develop or otherwise modify. 2 MOTTO/FDD April 2019 A copy of the franchise agreement ('Franchise Agreement') you will be required to sign is attached to this disclosure document as Exhibit A. The Franchise Agreement grants an address-only location, with no territorial protection at all. You or, if you are a corporation, partnership, limited liability company or other business entity, each of your owners, will also be required to sign a Guaranty and Assumption of Obligations, which is affixed to the Franchise Agreement. If you are a corporation, partnership, limited liability company or other business entity, and you, in turn, are owned by another business entity or entities, each owner of that business entity or those business entities will also be required to sign a Guaranty and Assumption of Obligations. Each Motto franchisee must be authorized, under the law of the state(s) in which the franchisee will do business, to provide mortgage brokerage services, and must provide its services through licensed loan originators. Franchisees will serve the general public, competing with other businesses offering mortgage brokerage services. As a mortgage broker you will execute mortgage brokerage agreements with wholesale lenders that underwrite and fund mortgages. These agreements allow your Motto Office to originate loans made by the lenders, who will, unless you are compensated directly by the consumer, compensate you for your services typically at a predetermined percentage of the loan amount, with the total amount of compensation for many loans subject to regulation. See Item 8. You will, in turn, recruit and compensate the licensed individuals who work with potential borrowers to help them find the right loan ('Loan Originators'). Loan Originator compensation may include salary, other benefits and, most typically, a commission calculated as a percentage of the loan amount. You will set the pricing for loans your Office originates depending on your pricing strategy which will take into account the compensation levels set with lenders as well as the interest rates and loan products then available to you as well as your analysis of what is competitive in your market. Each Motto Office is an independently owned, operated and licensed business and is solely responsible for its day-to-day conduct and activities. Accordingly, no Motto Office is an agent (actual, implied or ostensible) of Motto Franchising, LLC. All prospective franchisees, as well as renewing franchisees and transferees (as discussed below), must sign a form authorizing us to obtain a consumer report and conduct a credit and background check, and meet our then current subjective and objective standards for new franchisees, including those relating to relevant experience, education and licensing, background and past record of compliance with laws, financial capacity, skills, integrity and other qualities of character. The following subparagraphs address the requirements of the various other possible scenarios under which you received this disclosure document: Renewing Franchisees If you are renewing an existing franchise relationship with us due to an expiring franchise agreement, you will be required to sign the Franchise Agreement as well as the 'Renewal Addendum to Franchise Agreement - Address Only' (attached as Exhibit A-1). This addendum creates or clarifies certain terms and conditions that apply to your relationship as a franchisee only if you are renewing an existing franchise relationship; the terms of this renewal addendum do not apply if you are a new purchaser of a franchise or if you are purchasing an existing franchise.

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