GEORGE ERIC CARDONA IV- MARKETING

Merry Maids Date of Incorporation: 1980 Franchising Since: 1980 Address: Memphis, Tennessee Country: U.S. Description: A Merry Maids franchise business provides affordable, efficient cleaning for the person who does not have the time or the desire to clean regularly. While the Merry Maids system provides thorough residential cleaning even for a customer desiring only a one-time visit, the system is not for disaster restoration or extraordinary cleaning projects. The Merry Maids system utilizes a regular cleaning concept composed of a certain number of integral parts, all of which are absolutely necessary for a successful operation. The Merry Maids system is designed and best suited for residential customers. Franchise Offer: Two types of franchise: i.) ii.) Merry Maids franchise - Franchisor grants franchises for house and window Conversion Franchise - This offer is for Merry Maids franchises to those cleaning services for residential customers. persons wishing to convert their existing residential cleaning business to a Merry Maids franchised business. Financial Assistance: The franchisor does not offer direct financing. Their affiliate, ServiceMaster Acceptance Company (SMAC), does offer financing for the initial franchise fee, as follows: Small-Sized Market Amount Financed Up to $16,800 Down Payment Min of $4,200 Term 7 years Interest Rate (APR 11% Initial Monthly $160 Mid-Sized Market Up to $20,000 Min. of $5,000 7 years 11% $190 Full-Sized Market Up to $24,800 Min. of $6,200 7 years 31% $227

Payment Training and Assistance: The franchisee must attend the annual three-day National Seminar, located at a hotel/convention center near headquarters. The franchisor also holds Regional Seminars two or more times per year, at hotels in various cities. The franchisee must attend, at their own expense, specialized training at least once during the term of the franchise agreement and at least 2 of the 3 meetings offered each year, which includes the National Seminar and Regional Meetings. The initial training is based in Memphis, Tennessee at the Home Office and Resource Center, and includes both classroom and on-the-job training. Territory: The franchisee will receive an exclusive territory with a minimum of 10,000 qualified households for a full-sized market, a minimum of 5,000 qualified households for a mid-sized market, and a maximum of 5,000 qualified households for a small-sized market. Term of Agreement and Renewal: The initial franchise term is for 5 years, with an option of renewing the franchise for additional periods of 5 years each. Obligations and Restrictions: Merry Maids recommends, but does not require, that the franchisee personally supervises the franchised business. If the franchisee does not personally supervise the business, they must employ a manager who will be responsible for direct, on-premises supervision of the business. The manager must have successfully completed the Merry Maids training program. Total Number of Units: 8,000 residential cleaning professionals across the globe. More than 1,600 units. Investment Tables: Initial Investment: Name of Fee Small-Sized Market Initial Fee Mid-Sized Market Initial Fee Full-Sized Market Initial Fee New Owner Training Travel Expenses While Training Real Estate and Improvements Equipment Miscellaneous Opening Costs Opening Inventory Package Advertising 3 Months Low $4,200 $5,000 $6,200 Included in Initial $600 $2,000 $4,950 $2,000 Included in Initial $4,000 High $21,000 $25,000 $31,000 Franchise Fee $1,000 $4,000 $5,950 $4,000 Franchise Fee $5,000

Additional Funds 3 Months Seminar Attendance Fee Direct Mail Fund Total Ongoing Fees: Name of Fee Service Fee Software Lease Training for Additional Persons: 1 person, no hotel 1 person. 1 king suite On-Site Training and Emergency Response Service $660 $1,775

$4,000 $1,000 $2,000 $25,150

$5,500 $1,000 $2,000 $59,450 Amount

7% of Gross Sales 5% above $500K $14.40/week if $3,000 or below in weekly Gross Sales

$500/day + expenses Currently $3,000 for the first license

Transfer Fee

transferred and then $2,500 for each additional license transferred Currently $2,435 for up to two attendees sharing one hotel room and trained within the first year of operation Cost of audit Percentage of total gross sales per week as follows: 2.5% of weekly sales under $1,999.99 1.5% of weekly sales between $2,000.00$3,999.99

Training Fee for Transfers Audit

National Ad Fund

1% of weekly sales greater than $4,000.00 (up to $1million annually) .5% of weekly sales on all sales over $lm annually .25% of weekly sales on all sales $3million and over

Customer Satisfaction, Measurement Tool $1 per customer contacted Program Seminar Registration Fee Currently $59 Employee Drug Generally $20.00-$25.00 per test Screening Employee Background Generally $12.00-$13.00 per test Cheek