1. The initial franchise fee paid to us is non-refundable. The low fee assumes qualification for the Vet Fran discount. All fees and payments are non-refundable unless otherwise noted or allowed by third-party vendor. All fees listed in Item 7 that were payable to us were applied uniformly during our last fiscal year. The initial franchise fee covers the license to use the trademarks, the cost of training, and the cost of our assistance to you as you open your business.

2. The initial equipment fee paid to us is non-refundable and covers one computer equipped with Microsoft Windows and QuickBooks, showroom displays, demonstrator samples, a photo shoot, a $5,000 sign allowance, and the first twelve months of Technology Fees.

3. You are responsible for the cost of your transportation to our Corporate Office and Training Center in North Wilkesboro, North Carolina, to sign your franchise agreement and to attend new store owner training. WWI will pay for food and lodging during your visit. There is no separate training fee. You are responsible only for your travel expenses. This is an estimate for each franchisee. We assume you will combine the signing and training into a single trip.

4. You must lease or provide a suitable facility for the operation of the Franchised Business. You may choose a larger facility, but it will increase your operating costs. We require that you obtain at least 5,000 square feet to operate your Franchised Business. You must have a showroom, an office, a loading area, and warehouse space. Your warehouse space must have a door suitable for loading or unloading product, and a loading area that can be accessed by a 53-foot trailer. With our prior approval, you may have your warehouse and showroom/office space in different locations, but we must approve each location. We recommend that you have a single location with 5,000 square feet of flex space and our estimates here are for a lease of that type of space. We recommend that you use one-third of the floor space for your showroom and offices and use the remaining two-thirds as a warehouse for product storage. Your cost to lease is difficult to quantify because there are factors that will impact what you pay. These factors include the facility’s location, its square footage, cost-per-square foot, renovation costs and any required maintenance fees. Your landlord may refund your security deposit, but most will not refund rental payments. You should ask your leasing agent or landlord about their refund policy before you sign a lease agreement. We do not require you to purchase or build a facility to house the franchise. Your cost may increase over our projections should you choose to purchase or build. You should consider construction delays and their unpredictable cost before electing to build or purchase. You should seek professional advice if you choose to purchase or build. You will likely incur costs to renovate or remodel the space you lease. Your up-fit costs will vary depending on many factors, including the size, condition and location of the facility, local wage rates and the cost of materials. The amounts you pay for leasehold improvements are typically non-refundable. You should ask the vendor you hire to renovate or remodel the facility about its refund policy before you patronize the vendor.

5. This figure varies depending on the equipment you select.

6. This figure varies depending on your site selection and desired modification(s) to the premises. No up-fit is necessary in some locations, while extensive up-fit may be necessary in other locations.

7. You are not required to purchase security equipment of your business, but we recommend that you do. The high estimate represents the cost to purchase security equipment hardware for a 8,000 square foot space.

8. This figure is merely a rough estimate of the average cost of leasing or purchasing office furniture necessary to fill a 5,000 square foot office space using one-third of that space as an office/showroom, and the remaining two-thirds as a warehouse.

9. The purchase of inventory for windows, doors, and siding (“Core Products”) and all other products you may sell is not factored into your start-up expenses. No supply of these products is required to begin operation of your Franchised Business. Typically, you will custom-order products to fulfill your Sales Contracts upon execution of the contract and receipt of a security deposit. The cost of supplies is factored into this amount.

10. The purchase of inventory for roofing products is not factored into your start-up expenses. No supply of these products is required to begin operation of your Franchised Business. Typically, you will custom-order products to fulfill your Sales Contracts upon execution of the contract and receipt of a security deposit. The cost of supplies is factored into this amount.

11. If you are eligible to participate in the roofing program, you will incur additional costs for roofing inventory and supplies.

12. This figure is a rough estimate of the range of potential costs of the total amount of deposits paid for utilities at a new store location. Figure will vary. WWI recommends that you initiate your telephone service at least 3 weeks prior to your opening so that you may receive calls generated from advertising that you roll out during this time period.

13. The jurisdiction where you locate your store may require you to receive a contractors license or home improvement license.

14. You are not required to purchase a vehicle for your business. If you do not, you will have to make other arrangements to transport the product. If you do you will incur additional expense. If you elect to purchase a vehicle for the business, you are required to have a late model (less than 5-year-old) vehicle in good condition. You must send us pictures of the vehicle for us to approve the vehicle. You must use our approved vehicle wrap. Low assumes you already own a quality vehicle and only require magnetic signs or vehicle wrap. High assumes new car purchase with vehicle wrap.

15. We recommend, but do not require, that you begin advertising 3 weeks prior to your opening. Your advertising budget should represent approximately 10% of your projected gross sales. Depending on the size of your market, you may expect to budget between $10,000 and $30,000 for your initial month of advertising.

16. You may choose to employ and/or contract for individuals to assist in the operation of your Franchised Business, including but not limited to front office people, salespeople and installers.

17. You will need to retain an attorney, an accountant and other consultants to help you to establish your Franchised Business. Your cost will depend on the location of the Franchised Business, the prevailing rates of local attorneys, accountants and consultants. Your costs for these services are typically nonrefundable. You should inquire about the refund policy of the attorney, accountant or consultant at or before the time of hiring.

18. We estimate the start-up phase to be 3 months from the date you open your business. These amounts do not include any estimates for debt service. You must also pay the applicable fees described in Item 6 of this Disclosure Document to the extent they have not already been paid. These figures are estimates and we cannot assure you that you will not have additional expenses. Your actual costs will depend on factors like your management skills, experience and business acumen. You should base your estimated start-up expenses on the anticipated costs in your market and consider whether you will need additional cash reserves. We relied upon the experience of our existing franchisees as reported to us. You should review these figures carefully with your business advisor. You should have a 3-month cash reserve to cover the operations of the franchised outlet. Your cash reserves should be based on the total monthly cost of operating the franchised outlet. You should consider rent, salaries, utilities, maintenance, supplies, payroll, taxes, loan payments and other related operating costs to arrive at your 3-month reserves. Your costs will be affected by factors in the local market, local economic conditions, and local competition where your franchised outlet is located, which we cannot predict. For example, the wages and rental rates in the area where your franchised outlet is located will affect the size of your cash reserve. You may need to have more or less money in your cash reserve. You may need to have additional working capital to cover for low sales or high operating costs. You should speak with a financial advisor to get a more accurate estimate of the amount you should have in reserve. The operating costs on which you may use the cash reserve are typically non-refundable, but you should ask about refund policies before you patronize any vendor. The payments made to third parties may be refundable depending on the terms offered by each third party. These estimates do not include any finance charges, interest or debt service obligations. The amounts shown are estimates only and may vary for many reasons including the capabilities of your management team, where you locate your Franchise and your business experience and acumen. You should review these estimates carefully with a business advisor or accountant before making any decision to buy a Franchise. You will be required to designate a bank account with a balance equal to our liquidity standards and you will be required to provide us with a bank approval letter showing sufficient capital and additional funds.