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Business Description

MH is a Delaware limited liability company and operates primarily under its own name and the MOSQUITO HUNTERS trademark. Its principal business address is 142 State Route 34, Holmdel, New Jersey 07733. MH has offered franchises for Mosquitos Hunters Businesses since May ,2018. MH's direct parent company is LD Parent, Inc,, which has the same principal business address as MH, MH's indirect parent company is CNL Strategic Capital, LLC, vyhose principal business address is 45Q S, Orange Avenue, Suite 1400, Orlando, Florida 32801. If MH has an agent, in your state for service of process, it discloses that agent in Exhibit H.

Prior Experience

MH's predecessor is MH Franchising, LLC, from which MH: acquired the Mosquito Hunters franchise system in May 2018. MH Franchising, LLG's principal business address was 751-C Kenmoor Avenue SE, Grand Rapids, Michigan 49546. MH Franchising, LLC began offering Mosquitos Hunters franchises in January 2015 and had sold 8 franchises as of May 2018 when MH acquired the franchise system. MH Franchising, LLC never operated a Mosquito Hunters Business (although its affiliate operated the concept beginning in November 2013) or offered franchises in another line of business.

Business Offered

The business is highly developed and highly competitive Your competitors include both independent and franchised pest control Services (all Of which rnay be part of local, reigional, or national chains) and the sale of retail pest control products directly to the customer for self- application: Each franchisee's ability to compete depends on a Variety of factors, including location^ accessibility, individual service, merchandiring, your own managerial skillsi and Various federalj state and local regulations. Your business will typically be mobile in that you will Offer your products and services directly to consumers at their residence or. With commercial customers, at their places Of business. Your market will be members of the general population. Your sales will be seasonal in certain markets (for example, those that have cold fall and winter seasons) and more year-round in Other markets vvith warm Or hot Weather throughout the year. You must comply with federal and state jicensing and regulatory requirements for pesticide applicators, including the Federal Inseetieide, Fungicide and Rodenticide Act. You must comply with all local, state, and federal laws that apply generally to all businesses. You should investigate all of these laws.

Initial Fees

The initial franchise fee, which (except as provided below) is uniform for all Strategic- Partners acquiring their franchises from MH, is comprised of the following components: (1) an initial license fee of $35,000 for the right to use the Marks during the term of the Agreement; and (2) an initial training, supply and support fee of $3 5,000, of which $30,000 is used to cover costs incurred in providing marketing programs, and the remainder to cover costs incurred in providing the initial training program, guidance and assistance, advertising and sales promotion support, set-up Of bookkeeping, systems. Office supplies, equipment and accessories. YOu must pay MH a nonrefundable tota:l initial franchise fee of $7O,OO0. You have the option to pay MH the entire $70^000 on the date you sign the Agreement, or MH will make a no-interest loan to you for up to $35,000 Of the initial franchise fee, which is payable to MH within 180 days after you complete initial training (in which case the balance of the initial franchise fee is due at Agreement signing). MH is a participant in the “Vet Fran,” “MihorityFran” and ‘Tirst Responder” Initiatives and offers a $10,000 reduction in the initial franchise fee to qualified U.S. military veteran; minority and first responder candidates, respectively (but these discounts cannot be combined).

Financing

MH may offer you financing for the initial cash investment necessary to establish a Mosquito Hunters Business. The amount of financing is limited to $35^000 of the total initial investment, and typically includes financing of a portion of the initial franchise fee. If you obtain financing from MH, you must sign a Promissoiy Note in the form attached as Exhibit D (the “Note”). The Note provides for payment to MH over a 96-month period at 12% per annum in monthly installments. The first payment on the Promissory Note is due 180 days after you complete initial training. If you finance the full amount, your monthly installment will be $568.85 including principal and interest. MH also requires that the Note be guaranteed by your owners if you are a corporation or other business entity. You may prepay the Note in whole Or in part without penalty. The following are events of default under the Note: (1) you fail to pay an amount due and dp not cure within 15 days, (2) you default under your Agreement, (3) your Agreement is terminated or expires without renewal, or (4) you become banikrupt or insolvent. If you default, all outstanding principal and unpaid interest due will be immediately due and payable. Also, you must pay the costs, fees and expenses MH incurs in enforcing the Note, You must pay a $29 late: fee each time your Note payment is late. Under the Note, you waive presentment, demand for payment, protest, and notice of non-payment by the makers, endorsers, and guarantors of the Note. An uncured Note default allows iVDi to tenninate the Agreement,consideration, either directly or indirectly, from any third party for the placement of financing with such third party. You are free to obtain financing from any source. MH is unable to estiinate whether you will be able to obtain financing from third parties Or 'the terms of financing, which will depend on your creditworthiness, security offered by you, the policies of lenders and the ayailability of financing generally. Financing is also available for the optional program described in Item 5 for existing Strategic-Partners. If you are acquiring an additional Mosquito Hunters Business and do not want to pay the foil initial franchise fee when you Sigh the Agreement, the down payment for the initial franchise fee for the additional Mosquito Hunters Business is $12,500, and you can finance the rerhainirig $12,500 with a monthly repayment of $278.06 for 5 years. The interest rate, plus, finance Charges, on.the note is 12% per annum. MH does hot have ahy past or present practice or intent to sell, assign or discount to a third party, in whole or in part, any note. Contract or Other instrument executed by yoii, but reserves the right to do sO in the future. MH does not receive any payments or other

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide infoirnation about the actual) or potential financial perforrnance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in this Disclosure Document. Financial performance information that differs from that included in Itern 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, suppilements the information provided in this Item 19, for example, by providing information about possible performance at a particufar location or under particular circumstances