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Business Description

We are an Illinois corporation formed on December 27, 2013, with a principal business address at 11115 Kenwood Road, Blue Ash, Ohio 45242. Since January 31, 2014, we have offered franchises under the name Handyman Connection® in the United States. Neither we, nor our predecessor, have offered franchises in any other line of business.

Prior Experience

Our predecessor. Handyman Connection, Inc. (“HCI”), formerly known as Mamar, Inc., an Ohio corporation with a principal business address at 11115 Kenwood Road, Blue Ash, Ohio 45242, was the national franchisor of Handyman Connection franchises in the United States and Canada since its inception in January 1993. HCI's parent, FS Brands, Inc. (“FSB”) owned 80% of the stock in HCI and our President and CEO, Jeffrey A. Wall (“Wall”), owned the remaining 20% of the issued and outstanding shares of stock in HCI. Effective December 31,2013, FSB sold all of its stock in HCI to JW, LLC, an Illinois limited liability company which is wholly-owned by Wall. Effective January 31,2014, we merged with HCI leaving us as the surviving entity which acquired the rights to the Handyman Connection® trademark. Handyman Connection franchise system, all other proprietary rights, and interest in the current Handyman Connection franchise agreements. We have no parents or affiliates. In addition to our domestic franchising activities, HCI entered into a Master Franchise Agreement with Newbridge Management Group, Inc. in November of 1995, which now offers Handyman Connection® franchises in Canada. As of the end of our most recent fiscal year, we have 45 franchise outlets in the U.S., and 19 franchise outlets in Canada through our master franchisee Newbridge Management Group, Inc.

Business Offered

We offer franchises for the establishment and development of businesses providing (a) referral and other services to independent contractors; and (b) small to medium home repair services and light remodeling of a non-emergency nature, including plumbing, electrical, carpentry, dry wall, plastering, and painting services, among other services (“Franchised Business”). The light repair and remodeling services provided by Franchised Businesses do not require heavy machinery and are usually not performed beyond a two-story elevation. All services are performed by independent contractors or employees who are recruited by you and who are part of your Franchised Business's network of service providers. In general, each customer is charged a flat fee per job, a portion of which is paid to the service provider. Unless otherwise approved by Handyman Connection, until you complete the Second Calendar Year, jobs cannot exceed $15,000 per project, or $30,000 in the aggregate. We do not grant franchisees any exclusive territorial rights and franchisees are only purchasing the rights to receive and service the new, residential leads located in their territory that are received through our lead generation internet platform or our centralized telephone phone number used in connection with the System. The residential work you perform will be referred to as “Residential Services”. Other franchisees may perform commercial work and residential work inside your Territory for customers who directly reach out to such other franchisees or franchisees to such customers, without any compensation to you. Subject to: (i) your completion of any Certificate Programs; (ii) our right to perform services for National and Regional Accounts in your Territory; and (iii) you being in full compliance of the Franchise Agreement, you may perform commercial work in your Territory, subject to our written permission. You agree and acknowledge that you do not own the exclusive rights, nor any exclusivity, to perform any commercial work in the Territory. There are franchisees in the System that do maintain exclusivity in their market-place for both residential work and commercial work and for these specific franchisees, no work may be performed in their territory without their permission. Franchised Businesses are operated under a system distinguished by uniform standards and specifications for recruiting and providing referral services to independent contractors; sales techniques; merchandising, marketing, advertising, and inventory management systems; as well as general procedures for operating and managing a Franchised Business (the “System”). We identify Franchised Businesses and the System using certain trade names, service marks, trademarks, logos, emblems, and indicia of origin, including, but not limited to, the mark “Handyman Connection®,” distinctive trade dress, and any other trade names, trademarks, and service marks as we now or in the future may designate in writing for use in connection with the System (the "Proprietary Marks"). We continue to develop, use, and control the use of any Proprietary Marks to identify for the public the source of products and services marketed under the System, and to represent the System's high standards of quality, appearance, and service. During the term of the Franchise Agreement, you must, at all times, develop and operate your Handyman Connection Franchised Business in compliance with all Handyman Connection System Standards and the Manuals, as we may modify in the future. You should note that we may obtain Handyman Connection Advisory Council (“HCAC”) input before making changes to the standards, requirements or procedures that represent an additional investment by most or all franchisees in excess of $5,000 within the 12 months following the effective date of any changes.

Initial Fees

Franchise Agreement: You pay an initial franchise fee of $60,000 which is due in full upon signing of the Franchise Agreement. The initial Franchise Fee is deemed fully earned and non-refundable upon payment. We offer qualified veterans of the U.S. Armed Forces who otherwise meet all applicable requirements, a reduction in the Initial Franchise Fee by $7,500 for a total initial franchise fee of $52,500. Prior to the initial training session, you will pay Flandyman Connection a software license fee of $5,000, which is non-refundable. We may choose to offer a modified initial fee and/or royalty structure if warranted by the circumstances of a particular transaction. We may also offer promotional offers to candidates.

Financing

We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligation. Small Business Association (SBA) Loans: In order to streamline the Small Business Association's (“SBA's”) approval process for our franchisees that seek SBA financing, we will enter into the SBA's prescribed form of universal addendum

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances. Background This Item sets forth certain historical data reported to us by franchisees of the Handyman Connection System. We have not audited this information, nor independently verified this information. Part I of this Item is created using information we have obtained directly from our CRM system, and provides the Annual Gross Sales, Leads from Repeat and Referral customers, and a list of the top categories of services “Quoted” (or “Estimated”) in our IT system for the period of January 1, 2018 through December 31, 2018 (the “2018 Data Period”). Part I of this Item presents information for 29 out of the 30 U.S. franchisees (representing 32 of the 33 franchised territory outlets in the U.S.), who were both in operation for more than 12 months as of December 31,2018 and were not sold during that twelve month period (“Reporting Businesses”). Excluded from this Item 19 are 26 US franchises which were not open and operating for the entire 2018 Data Period or were sold during the 2018 Data Period. Also excluded from this Item 19 is the one US franchise that does not report information via our CRM system. Part II of this Item provides information regarding the Gross Margin on Service Revenue for the 2018 Data Period, based on un-audited Profit and Loss Statements provided to us by the Reporting Businesses.