ITEM
I
THE FRANCHISORS^ AND ANY
PARENTS. PREDECESSORS AND AFFILIATES
The Cleaning Authority, Inc. ("we,"
"us," "our," "ours" or the "Company")
is a Maryland corporation, incorporated May 3, 1996, with our principal office
located at 7230 Lee DeForest Drive, Suite 200, Columbia, Maryland 21046. Our
telephone number is (410) 740-1900. Our agents for service of process are
listed in Exhibit A.
We have two affiliated companies
("Affiliate" or "Affiliates"). One a4mia4eMlii___, S&T
Management, Incorporated ^(d/b/a* "TCA Advertising" and
"TCA Supplies") was incorporated as a Maryland corporation in 1991.
TCA Advertising provides direct mail advertising services on behalf of our
franchisees and the franchisees pay TCA Advertising for these services. Our
franchisees must send out a minimum number of mailings each week (See Item 11).
TCA Advertising may also offer cleaning products and supplies to our
franchisees. The other utTi liatoAffiliate, Mighty Maids, Inc. d/b/a
"The Cleaning Authority" ("MM"), was incorporated | as a Maryland corporation in 1978 and formerly operated "Mighty Maids" cleaning
services. This company currently operates a company--owned business under the
name "THE cleaning AUTHORITY" and is located in the
Baltimore and Washington, D.c. area. Our Affiliates have the same principal ^fr^hus_i_n_ess addre&s.
as we do.
We offer franchises allowing you to operate a
residential home cleaning business under "The cleaning AUTHORITY" name and service mark ("Busm^ Agreement that^)u__and
we will sign ("Franchise Agreemejit^). The residential home
cleaning business includes the cleaning of the inside of a residential home
similar to a maid service, and specifically does not include carpet cleaning,
window cleaning and other specialized cleaning services, an4-ojLCleaning commercial properties.
We began offering franchises in 1996. Mighty | Maids developed the system of
cleaning homes (the "System") and the rights to this System have been
assigned to us. MM is our only predecessor and they have never offered a
franchise program. You operate within a specific territory (the
"Territory").
We have two programs that we currently offer. The
first is our Major Market program and this is for territories with at least
30,000 qt*t4*fied househoid .-iQ.uaIjfie_d, H_ou_seho.ld� in the territory. | The
second is the Executive Market program for smaller territories that generally
have less than 29,999 qualified�householdsQujalifiejj
Households in the territory. A "tfuaWkti householdQualified
Household" is a home with an estimated annual gross income of at least
$60,000,�e.xceRt�in_CaIi.forni.a_j>v
HriusehoId_is_S71,000. We license you to use the
System with our service marks, trademarks, logos, trade secrets and other
confidential information. It is essential to the franchised
business (the "Business11) that you develop new
customers, as well as service those existing or potential customers that we
refer to or develop for you through our mailer service program. We have not
offered franchises in any other line of business. Our Affiliates have not
offered franchises in the cleaning business or any other line of business.
The market for the Business
is developing at this time and is competitive. Because of the continuing
increase of dual income families, we believe the size of the market will
continue to grow. Your competitors will be local, residential and national
cleaning companies, as well as individuals who clean houses on a full or part
time basis.
You may need to obtain a license or permit to operate
the Business and will need to comply with Federal, State and local I a w sjicgujat.
in gjmsjin&sjLejLRericra 1 ]y_. You should familiarize yourself with
these laws.
