THE CLEANING AUTHORITY - FDD UFOC ITEM 7 Detail

ITEM 7

ESTIMATED INITIAL INVESTMENT

VOUR ESTIMATED INITIAL INVESTMENT

The Cleaning Au thori ty. Inc.

April 24, 2008 Franchise Disclosure Document

We have used our ewa-1.2_.ye.ars_ o. fexperi ence, as well as information we have received from our franchisees, to make these estimates. Costs will vary depending upon a number of factors. There is no assurance that your experience will correspond with these cost estimates.

(1) Amount varies as disclosed in Item 5. If your tefflto^XejiilQry has more than 55,000 Qualified Households, your initial franchise fee will be greater than $55,000 (See Item 5)v�We have the right-to tenninate-t-be Franchise A-greement p^Mo-y^ur-eofnplet-ing-^he 130 days from the- dale of the Franchise Agreement. In those situations, u portion of the initial franchise fee will be refunded to you (see item 5). We currently do not finance any portion of this fee,

(2)                This fee is owed only if we grant you an option to purchase additional territory Additional Territory. The Option Payment is $5,000 if the additional territory Additional.JXerri.tory has less than 15,000 Qualified Households, $10,000 if there are between 15,001 and 30,000 Qualified Households in the additional territory, and $15,000 if there are more than 30,000 Qualified Households in the additional territory. The low range assumes you do not have an option for atkl+tiona 1 teititoryAildjtiorj^LTe,rritory.

(3)                The set up fee is refunded to you if we terminate the Franchise Agreement before you complete the initial training.

(4)                Depends on supplier terms. Payments may or may not be refundable, depending upon supplier terms.

(5)                You will need a small office of approximately 800 to 1,200 square feet. Only the geographic location oJLlhe jvfQcg_needs to be approved by us. Your office cannot be located in a residence. We will not unreasonably withhold our approval, and we will give our approval promptly. Office rentals will vary. You should consult a local real estate expert. Your office must be located within your Territory.

(6)                Mailer fees will be due on the Wednesday for the following week for the balance of the term of the Franchise Agreement__cxce.pl dujlng.j_nv autlKiri&eiL^

select for vour business. The payments must be made by EFT or by such other method as we may designate. We have assumed you will send out mailers to 9% of the Qualified Households in your Territory for the first 13 weeks and you have between 30,000 and 50,000 Qualified Households in your Territory.

(7)                This estimates your initial start-up expenses as an owner-operator for the first three months, it includes such costs as incorporation, monthly on-line access fees to the Internet, and wages (excluding any salary to you) and advertising expenses for the first three months. It does not include any royalty fees you are required to pay. These figures are estimates and we can''t guarantee that your expenses won''t be higher. Your costs will vary depending upon factors such as how well you follow our procedures; your management and sales skills; competition; economic conditions; the local wage market for your employees; the local market for our services; and other factors.

the cleaning authority. inc.

April 24, 2008 Franchise Disclosure Document

The Cleaning author] iy, Inc.

April 24.2008 Franchise Disclosure Document

We have used our ov^l2_years_Ql_experience, as well as information we have received from our | franchisees, to make these estimates.� Costs will vary depending upon a number of factors. There is no assurance that your experience will correspond with these cost estimates.

(1)                Amount varies as disclosed in Item 5. We have-the right to terminate the Franchise Agr-eeffleiH prior to your cojr^>l^ig-4he-H^Htia4-^rahwig or if you do no4-^ernple4e-4-he initial training and open for business within J 20 days from the date of the Franchise Agreement.�In those situations, a portion of the initial franchise fee will be refunded to you-(-seeSee Item 5)-.�W-e-euFrerttIv-do-not--ftnance any ■ portion■ of this ■ fee_fqr iTi_oj;e inform a.t ion.

(2)                This fee is owed only if we grant you an option to purchase atkfoienal lerritoryAildiliojiaJ TeiTltory. The Option Payment is $5,000 if the additional territoryAddiU__r_aLTerritoi^.

has less than 15,000 Qualified Households. The low estimate assumes you do not have an option for additional territoryAdditLoiiaLrj^iTitpry.

(3)                The set up fee is refunded to you if we terminate the Franchise Agreement before you complete the initial training.

(4)               Depends on supplier terms. Payments may or may not be refundable, depending upon supplier terms.

(5)                You will need a small office of approximately 800 to 1,200 square feet. Only the geographic location needs to be approved by us. Your office cannot be located in a residence. We will not unreasonably withhold our approval, and we will give our approval promptly. Office rentals will vary. You should consult a local real estate expert. Your office must be located within your Territory.

(6)                Mailer fees will be due on the Wednesday for the following week for the balance of the term of the Franchise Agreement. The payments must be made by EFT or by such other method as we may designate. We have assumed you will send out 2,000 mailers a week for the first 13 weeks.

(7)                Yeti-ttfeH=eqwfe4-te-bttvo two vehicles that meet our standards and-speeifiuatkms-at-the time you begin operating. The vehicles must prominently display our logos in a manner we- designate: One vehicle is lor your use and one vehicle is fer-the-u-se of-your-eleaning team. As your business grows, you wi44-H^e^l4o-add-a-^^j#riek for each new team that you employ. The cost for leasing a new vehicle depends on the vehicle you choose from our approved list of vehicles, its options, dealer terms and the length of lease and emission control requirements.�When leasing, the amount of deposit will vary depending upon supplier pricing strategies, promotions and other incentives that may be available. This estin^at^-inelades-the esti-mated-lease costs for your initial three months, inclu&ng-a deposit.�If you decide to purchase o new vehicle, your costs could bo between SI 5,000 and $25,000 per vehicle, depending on the options you select.

f�)------- This estimates your initial start-up expenses as an owner-operator for the first three

months. It includes such costs as incorporation, monthly on-line access fees to the Internet, gasoline and general auto maintenance, and wages (excluding any salary to you) and advertising expenses for the first three months. It does not include any royalty fees you are required to pay us. These figures are estimates and we can''t guarantee that your expenses won''t be higher. Your costs will vary depending upon factors such as how well you follow our procedures; your management and sales skills; competition; economic conditions; the local wage market for your employees; the local market for our services; and other factors.

The Cleaning Authority. Inc.

April 24.2008 Franchise Disclosure Documenl