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PUROCLEAN - FDD UFOC ITEM 1 Detail

.ITEM 1

THE FRANCHISOR, EJ^AJVDANY PARENT, PREDECESSORS^AND AFFILIATES

The Franchisor

PuroSystems, Inc. ("we", "us" or "our") was incorporated in the state of Florida on October 3, 1990, under the name Purofirst International, Inc. U-s-Qur^name was changed on December 31, 2002. We maintain our principal place of business at 6001 Hiatus Road, Suite 13, Tamarac, Florida 33321. We conduct our business under our corporate name only. We do not maintain a sales office at any location other than our principal place of business.

Since 1991, we have offered franchises for the establishment of businesses that operate restoration and construction services and other related services and products for fire, water and other forms of property casualty damage and since 1999 certain non-casualty related cleaning and purification, under the trademark PUROFIRST�. We_p.p_lonRer_Q_ner_franchise_oin.der_th_e PUROFIRST mark, In 2001, we began to offer an alternate type of franchise, under the trademark PuROl-M-AN''H''-QheEfaft&>Hwd-P.URQC!-IIANf�ithe__''Tranchise.. Business"), to supply drying, repair, cleaning, mitigation, remediation and related services. We do not own or operate businesses of the types being franchised. We hav^not-{^Wedno_lpnger_Q.iTer franchises in any other line of business. At this time we do not provide training or equipment for certain purification services, but we may do so in the future. 44tts�eflmng�errettkir�rel*rtes-te

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Our agents for service of process are listed in ^Exhibit DB.

Our Predecessors and Affiliates

Before our incorporation, Purofirst, Inc., a Florida corporation incorporated on June I, 1986, sold consulting services and products to dealers under the service mark "PUROFIRST", of which lenjje.ven such dealer relationships currently remain. Purofirst, Inc. maintains its principal place of business at 6001 Hiatus Road, Suite 13, Tamarac, Florida 33321. Purofirst, Inc. ceased to enter into these relationships in 1990, and today provides only the right to use the mark "PUROFIRST," consulting services and products to these dealers.

We do not have any predecessors. We have one�afliliatef;ve^ajlllJaje^, PuroSystems Products, Inc. (formerly Rurtn;leaftPu_ffiCk_an, Inc.), a Florida Corporation which maintains its principal place of business at 6001 Hiatus Road, Suite 13, Tamarac, Florida 3332It�; Molly M.aid,Jnc;ii"M.o.ily.Ma^^^

Michigan 48108: 1 -800-DrvClean. LLC ri-800-DrvClean"). a Michigan jimjt^JiabiUtv. company__located_.at_.3.948. Ranchero.,Drive, Ann Arbor, Michigan_48108; _and_Mr._.Handyman International. LLC ("Mr. Handyman"!, a Michigan limited liability company located at 3948 RancherQj^rivc^.AiTn..Arbor,,Miehigan 48.108.

PuroSystems Products, Inc. ("PuroSystems Products") supplies equipment and products to our franchisees and dealers as further described in Item 8.


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PUROSYSTEMS - 2007 fb us 1B42537.0I


Service Brands .International, LLC.C.SBl''),_a.Michigan limited liabi)ity..company_ .which maintains its principal place of business at 3948 Ranchero Drive. Ann Arbor. Michigan 48) 08. is the^parenLcpmpaiiy of Molly Maid,Jr80i)-I>y.Clea!), aiHl.,Mrvl:.land^nian. SB1, Molly.Maid, J-80Q-DrvQh;an, and Mr. Handyman are,_pur affiliates through partial common ownership as descrijJedJ^

Suites. As"of PccjanterJLL-2Q07. Molly Maid-had. 409 franchises in_lhe United States and P-uert9_RicQ,_J^8P.QrPry.Clean.Qfl<;rsLfranc.hisej_for_Rroje5sJQnal and reliable dry cleaning pick-up and-de.Liv.erv service. Asj^f_J3�cember_2l. 2007. 1-800-DrvClean had 120 franchises in the United. States.. ...Mr...Jlhndyman..offers... franchises., which, provide. business... and, residential inaintenatLoejjTiLr.epaLr^sery.ices in the UnJledJkates^a.nd.Qanada. As of December 31. 2007. Mr, Handyman has 272 franchises in the United States and 10 franchises in Canada.

SBJr Molly_Ma_idt_l-800-iPrvOean...and Mr. Handyman_do not control the day^t.Qip''av. ajUi.yJJie^jiD^jjiS^i^m^..JiicJ

 

The Franchise Offered

If you receive our approval, you (individuals, partnerships, corporations, and the owners of partnerships and corporations will be referred to as "you" or "your") will have the right to sign a franchise agreement (Ilie "Franchise Agreement") for the establishment and operation of a )>i-H<-h^;fam"?Puiiof^LriAN business. A Pt,wx--bfrAN Pu ROC lea N business provides drying, cleaning, painting, repair, mitigation, remediation, construction and replacement services and subcontract services to insurance companies, business and residential clients and others who have been subject to fire, flood, vandalism, trauma, mold and/or other casualties, as well as, purification, cleaning and odor removal services and products, all according to our established system whether or not casualty related. As a P4tfiO^bHAMPUK0CLt:an franchisee, you will provide all of the above services as well as, restoration, remediation, mitigation, construction, purification and other related services and products to businesses and residential clients whether or not insurance covers them. You may work out of your home (where permitted) or a new or existing place of business (the "Office"). Your Office must be located in your Protected Office Location (^POL^) as defined in Item 12. You will use most equipment, other than office equipment, from your van, which we recommend you lease in connection with the operation of the FratHjhis-ed---Franchi.se..Business (See Item 7 for more information on your estimated initial investment). The Franchise Agreement -grants you the right to use the trademarks, trade name, service mark, and commercial symbols associated with your Franchisee! Business as we now designate and as we may designate in the future (the "Proprietary Marks") for use in the operation of the Franchisee Business. VettHffitra-CTtt4ucH-tl^toane4*i^

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aml-sell-only IhowHti^^-atKTprf^ducts-that-we-f^e^ffyT-Hnd- MiHlte-fHmtiier-we-speeifyr� l^ept as fK�ed4n4t�;n>-8r-you-may-purth^

Hiid-spee4Tie^ttons-iuid-H4nclv-we4^Rve Bpproved-itbiKJYfwee;

The market for the services and products you offer is developed or is developing. You will compete with other similar restoration services including other PurQCIeiinTranghisees, PUROl-lR^l" franchisees, building and HVAC contractors, carpet cleaners, carpenters, building and remediation contractors and cleaning services.

 

PUKOSYSTF.MS - 2007

2


Industry-Specific Regulations


Where required by law, you must be a licensed building, remediation or HVAC contractor or be qualified by a licensed contractor. Jn some Stales states you may also be required to have specialty licenses to perform certain aspects of the services that you will offer. For exampje. you may, need to.obtain.a.mold.remediation,.drywalI. removal, bactericide,.biocide,..pr_.othcr...similar license. If you do not have or are not qualified to have one or more of these licenses, you may be prohibited from performing these segments of the Franchised Business. You should investigate the existence of these laws in your state.

 





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