COVERALL CLEANING CONCEPTS - FDD UFOC ITEM 10 Detail

''Depending on the Franchise Package size you choose, the Initial Franchise Fee ranges from $10,750 to $32,200. If you pay this initial fee in cash or by credit card (Visa and MasterCard are accepted), you will receive an 8% discount as described in Item 5. In lieu of the cash discount, veterans qualify for a 10% veterans'' discount on the Initial Franchise Fee. Veterans participating in the VetFran Program described in Item 5 receive a 25% discount on the Initial Franchise Fee. In order to assist credit-worthy franchisees in the purchase of the business, we typically finance between $5,000 and $6,800. The financed amount is currently evidenced by a Promissory Note and is payable over a 2 or 3 year period (at our option) in equal monthly installments at 12% interest per annum on the unpaid principal as described in Item 5. We reserve the right to change the terms, interest rate, and amounts financed. (A copy of our Promissory Note appears in this disclosure document as an attachment to Exhibit A. 1.) We reserve the right to change the method by which we offer financing to franchisees so that in lieu of our accepting franchisees'' promissory notes, we may offer franchisees lines of credit and/or make available financing through third party lenders upon terms and conditions to be determined by the third party lenders. We reserve the right to sell, assign, or discount promissory notes to a third party.

²The Initial Franchise Fee is uniform except as described in Item 5.

³The Promissory Note must be secured by all your business assets. The Promissory Note and Equipment Purchase Agreement, if any, as well as all sums due under the Franchise Agreement must be guaranteed individually by you, all of your partners, and/or shareholders. (See Guaranty form)

⁴lf you do not pay on time, we can charge a late penalty. In the case of nonpayment or other default under the Promissory Note, or any financing provided by Coverall, or breach of the Franchise Agreement or any other agreement with us, we can require immediate payment of all amounts due, and/or terminate your franchise, and we can also collect our attorneys'' fees and costs. (See Promissory Note.) Under the Equipment Purchase Agreement, we can require immediate payment of all amounts due and take back the equipment. (Equipment Purchase Agreement, Paragraphs 2 and 10)

⁵There is no waiver of legal rights in any financing contract.

"The interest rate on financed equipment purchases is 18% or the highest rate permitted by your state, whichever is less, on the unpaid balance.

''Monthly payments are due on the last calendar day of each month, beginning in the first month following the month in which service of the account begins. (Franchise Agreement, Paragraph 7A) Under the Franchise Agreement, we deduct payments due us from funds paid by janitorial customers for services and supplies. See Item 11 for a description of our billing and collection services. (Franchise Agreement, Paragraph 6) With the exception of equipment purchases, we do not presently make available financing for franchisees with other sources, but we may in the future make financing available to you through a third party lender upon terms and conditions satisfactory to the third party lender.

⁸We usually finance up to 50% of the sales and marketing fee for Additional Business offered to you by Coverall. Additional Business requested by you must be paid for in full prior to Coverall offering you the requested amount of Additional Business.

Visa and MasterCard credit cards may be used to pay for the down payment or the financed portion of the Initial Franchise Fee. These credit cards may also be used to pay for all or any part of the down payment or the financed portion of the sales and marketing fee for Additional Business. The interest rates on Visa and MasterCard vary according to your vendor. You must check your card agreement to determine your interest rate.