PUROCLEAN - FDD UFOC ITEM 7 Detail

.ITEM 7

ESTIMATED INITIAL INVESTMENT

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.Expense	Estimated Cost	Method of Payment	When Due	To Whom Payment Made
Jnitial Franchise Fee - (see Notes^ l-atKt-9)	$35,000 (Muro Fee}3_7.?�Q (see Note 1 )	Lump Sum	Upon Signing of Franchise Agreement	Franchisor
Van (see Note 2)	S4.000ki ^O00$2,j00	As Incurred -first 3 months	30 Days Before Opening	Enterprise Fleet Lease or Other
Initial Equipment and Supplies Package (sec Note 3)	$-3,W103j>0	As Incurred� r_rsx3_ro_c_Mhs,	30 Days Before Opening	Franchisor Or '' t\ i F\ \ iriit?____)r Leasing Company.
Ifistimnue-Pre inium EreJ_ght.(sge Note 4)	$40_i_�S3i,500-hi	iTwnp-SumAs Incurred	OfH3-Wee4r-3_p_ Days. Before Opening	Insurance Aee+uFranchisor
Offiw-Suppttt?s Insurance Premium /see Note 5)	$-3-504,000 to $^HK)6.)fjf�0t	tjttftip-SwmAs Incurred - 3 monilumge	44-to^0-I)aysp_ns rWe,�k_t Before Opening	Sutwltefslnsuran
4:i^>hotw-i^l-Ui+ky DepuMb OJ�J ce. Furniture /see Note 6)	$-35,0 to ^4W)_$_2l2iOO	A-s-UieHffed Lump Sum.	A s-R-eqtHfed J_5_to. 30 davs Before Opening,	Utility Go.�rHwies.Sj_pj_|j erg.
Pmft-ssiatVBW''-utJs (.MHH!hiy)OJjl�e Supplies (see Note -7)6).	S-^5t).L00_ to �-500	As Incurred^ 3 DLonthjianiie.	As-Requirodlg to 30 Davs Before	Professionals S_u_g pii^ri.
			Opening
�pemitg-Ad ver Hsi-ng ctfuHvlHrkettng Matet-iwls (.-see-Now &)Mcph-Qne_& U''ilityJ^pjisitsLand Feej (se.e_.Note .7),	$-500225. to S- JJ �0)525,	As Incurred	As Required	SuppliersUjil ily Companies.
''■Y-ru inin g4*xpun ses /see Note 8)	$-2^0 to $5Q0-h.	As Incurred.-monthly.	As Required	44iir4 PwUosProfession
EtietliW-Rent Un ifcans	$-200 to S-1.3.500	t-rtimp-Sitfn/is Agreed	As Required	frrind 1 wiS_u ppjier s.
/see Note 6)9J4

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_E spense	Estimated Cost	Method of Payment	When Due	To Whom Payment Made
! itisi rtess4-rieeRSt; ( see-Mote-''j^Open i ng Advertising.and Marketing Materials	$-0 to	l.n.�p-SwnAs Incurred-3 mqn|Jl,range.	As Required	CHWt''r-t+irrtiRttil E4een*eF_Sppp! i.er &
GwHfwterr4ratneri..-PriirterT Software Training Expenses (sec.Note.l.O^	$-2,500_Lo limo.	IrHinp-iSmnAs Incurred	^Ways-lietw-e Optin-tftfeL/S s Required	Third Parties
A_ktitttmtil4Hmds isoo-Noic4(^Facrijiy Jk�ll	$-36.000 to S43^W_S_2,5_p_q	As-NvHMk^l_j,imp	As Required	Third Parties L_a n diord.
^)k\kBjisiiiejss	$-85^-50 to �l-3l)rl-5(tS5.5p_	U''LTIP-Sj-''IU,	A s� Required,	Governmental
Licenses (seg.No.te. II),				.Ucensor.
Comouter and	$1.200 to $2.500	Lump Suni	30 Davs Before	Third Parties
Printer			Qp.ening
Softiyare.CJNote 12)	$0 Lo $450	As_Io�urr_ed____2 month rangq	As�R_e__.uired	Suppliers
Camera	$100.to$250	Lump.Sum	30.Days.Before Opening	Third.Parties
Ad d j ti oj..al_F_u r_d_s	$18,000 to	Ajs Needed - 3	As.Required	Third Parties
(see ..Note. 13)	$3.0,000	month.range
	$69,925 to $98.,8_75

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Unless otherwise noted, all amounts are nonrefundable. Notes:

1.              44ie43�se-Fett4iHlw-tiiar44s4^^^ 4-5e-wil44>e-added--.o-lhe-Base4^:ee^ :4>a If - yiHF4w--sble ^

■^us^-fffl^fHaddiiiwiaMe.^����������������������� is-a -SSitKKl-fight-e^rif-st-refusal- fee. ■ See Item 5

for more information on the Initial Franchise Fee.

2.              To ensure that the system wide vehicle fleet is well kept and new-m^f-to project the highest brand standards, we require you to use a standardized vehicle package infor the StiUtiPP�Qperation of the Eranchiscd Business, that-nwywjijlcji_ipiisj be leased from

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Enterprise Elect Leasing Company (See Exhibit MJ). The approved van will come with a
full shelving package,_yan_decaling of our specifications--mid--_t_other valued featurcs_a_ng
QptionaLinsuranQe_,_and_main���������������������� The lease term is 48 months and at the

end of the lease Enterprise will sell the van on the open market and you will receive the proceeds less any fees that you may owe. The resale price of the van will depend on many factors including its condition, odometer reading and re-sale market. �oti- may lease- f he-4*ppreved-vebiele-pae4tage4W->m- Hny-sottf^e-|>rovuled-that-ihe-vehic!e-Hnd~the lease both meet our standards. Vehicle tense agreements-must-be -pie-approved-hy-tis-nnd t he-lei tse-ma y- m>t-be-fofH->wre4han-48Httonm^

yo�-nn.st-received�an-end-of� lease ptiw.^^t>f^>pf^miately-^ook -ValtHp-of�the vekkie.�The van payment shown in the initial investment chart is for 6-to-f23 months which is the siart-up-perkHliniUal_Tphase.l''or the Franchise Business. _t

3.              We strongly recommend that you lease your initial Equipment and Supplies Package from an unrelated third party. The amount in the above chart represents an estimate of firsti-last-and-seewUy-ihe^n^

iPit'' gJ.SillQSg^fgMhe.Franchjse Busmess., You_ may or may not. b.e_reqtn red jo.pay, a.p^rtj.on Qf_jheJe.ase_as_�a_dQwn^ay.pTepj. The Equipment and Supplies Package includes, among other items, dehumidifiers and other drying and cleaning equipment, carpet cleaners and an initial supply of cleaning products. The third party les_sor_will acquire these items from our affiliate PuroSystems Products and then lease them to you. Under certain circumstances and if you request, we may permit you to purchase the Equipment and Supply Package directive from our affiliate.

The actual amount due at inception of a lease will depend on your credit history and* rating. Depending on the type of lease you choose, you may owe additional amounts at the end of the lease term. If you buy (rather than lease) the Equipment and Supplies, then the amount you pay to our affiliate is $?94J),000, which-ineluties-lVeightT-bui excludes .fcejjj&l_.and. sales lax. The-4>-ei''ght--<.4iarg-e^

$4Hy>pmgH!�e-sla*HHp-mve) t toryr-eier-to-a- new ''franchisee.- There- isne-extra-ehar-ge-kvyeu if-tl^-eost-of-^ f tl>e-eost-^f4>eight-to-yotH4t>eat+en-is--less-then the averager

____ �The initial package does not include certain equipment and products necessary for you to

perform certain services that are not yet offered by the Franchise Business, but may be in the future. You will be given a reasonable time to purchase or lease equipment needed for any such future services. ■W^ant-ieipate-UwHbeHKldttHM^^ be-nw vre-tf Hm-S30.0n0_:

4.               The f+gur^freight__charge^ package to a�new franchisee,,

5.����� ...The amount in the above chart repfesent~r.epre$ents at] estimate of the morjihly insurance

pr.eipiu.p.jjnymeot.s^

Franchise Business, Average annual expenses of-S44iraime from $13.000 to $3412,000. You may be required to pay the entire annual premium initially or a portion as a down payment. ''ITiese figures do not include Worker''s Compensation Insurance. Worker''s Compensation Insurance is calculated on the amount of your annual payroll and is rated

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by each individual Stale and by individual employee categories and therefore there may be a large variation in premiums.

-5^. Supplies you will need include a-H.lesk-QiT.ee furniture, calendar, stationery, and other general office supplies. XhejmijiujTt o^ an estimate of tj^crnqnthly expenses for the initial phase of 3 rnonth_

(>.-. -■--4J~you-fef>tH4w-Qffiee-.-you-7.^_i You,,will be required to pay telephone and utility deposits.

The amount of the deposits will depend on the practices of the utility companies and the lessor.

7- �.y_W-ffli.-y-FH^l-te-etftploy....... The.amount..in the, above...chart_ represents an aHemevestimate

ran lie of the month ly_pay.pi cut������������������������������������������������������������������������������� or rental

facility,

jt\__ ._. YQUj_nay_glec_t to.cOTSuljLthe services of_an accountantr^att_o_rney _or other_pj^)fession_al

uniforms,. Current. charge.s._are_ayeraging_S|_.0-$25_rO..per....e.n.iploy_:e_:e,₌which^.initia!ly in�ludejij3neje^J3nic_ijju.anuLciwjELr,

Jjj. You will incur expenses associated with our initial training program. For this training program, we provide instructors and instructional materials, but you will need to arrange and pay for transportation, lodging, and food for yourself and any employees, and for any wages for the employees. The cost will depend on the distance you must travel to the training location, the type of accommodations you choose, and the number of people who attend training. In-addiiion-to� ihose-stipplied-by� tts^�y<>�-wili-f>eed-advert-ising-and marketing-materials-ibah.vm^^^^ gift-caf-tts-andbroehur-esr

9JJL As stated in Item I, some states (or other governmental bodies) require you to obtain a license before beginning operations. The specific requirements and the costs of the license will vary.

-^f012.-You must purchase and...use...the..software

fxancJlise___t.o use the Su^jJ_x>f<^sjt>na_^RM Contact Management, SoluJjcj^rjrQjirarri, Puro 360. and. Zeeyyjst^, Within, 60 days_p/�i;ecciyjng_w rjtt.e,n_nc_ic.e_frQ''rj-ti�,_ry.Qu^a!5Q musLiiS-Cjbc SvstinjXjyjjb-based software program. The cost for the Su�arJ?i_j__siQjiaJ CRM_._Qontact_.jyjanagem

program, you select. We do not chame_youAQ_u�eJ_uro_3_6.Q or Zeewise. The cost of the Sys!ino_softwareJs $25 per nionth ($300_Ber year). _ We niay pay usjUh^ystinojsM

XJ. You will need capital to support ongoing expenses, such as payroll and utilities, to the extent that these costs are not covered by sales revenue. New businesses often generate a

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negative cash flow. We estimate that the amount stated will be sufficient to cover ongoing expenses for the initial phase of operating the Franchised Business, which we calculate to be 6-40-1-23. months. This is only an estimate, however, and there is no assurance that additional working capital will not be necessary during or after this initial phase. We relied on our 20 years in the business to compile the amounts included in the chart. However, all figures are estimates. We have not calculated sales tax or any other type of tax or fee that may be levied in connection with the purchase of this franchise or any of the items listed above. You should review these figures carefully with an independent business advisor before making any decision to purchase the franchise.