What specifications does 1-800-GOT-JUNK? provide for items that franchisees may source themselves?

You must purchase or lease certain items for your Franchised Business from us or our approved supplier(s) or under our specifications. All orders for Services and customer inquiries must be placed and processed using our designated Sales Center, and our designated customer relationship management system (the “CRM System”). We are the only approved supplier of the Sales Center and CRM System. Items you must purchase or lease from our approved suppliers include trucks, truck dump bodies, signage, uniforms, marketing materials, tools, equipment, credit and debit card processing services, communications equipment, computers and software.

Sometimes we will provide only specifications, and it will be up to you to find suppliers that meet our specifications. Some supplier relationships are mandatory but for some items we may recommend a supplier, but we will not require you to use that supplier. These specifications include model of truck, standards for gross tonnage, performance, type and appearance for your truck; insurance; memory, 4899-8658-3815.1

capacity and software capabilities of your computer; credit card processing software; and capabilities of your communications equipment. We require you to obtain insurance of the types and policies or coverages and the minimum policy limits or maximum deductibles or any policy as specified in the Operations Manual, and such requirements are apt to change from time-to-time during the term of your franchise. Unless we have specified otherwise, you may currently purchase or lease these items from sources you choose so long as they meet our specifications. We reserve the right, in the future, to serve as, to change, or to designate, an approved supplier for any of these items. Specifications and standards for these items are included in the Operations Manual, and may be updated or modified periodically by us.

You must obtain and maintain at all times during the term of your franchise the types of insurance policies or coverage and the minimum policy limits or maximum deductibles of any policy as specified in the Operations Manual (“Coverages”), which are apt to change from time-to-time. You must also maintain at all times all insurance policies as required by the law in which your Franchised Business is operated. You must name us and our affiliates, agents, representatives, shareholders, directors, officers and employees as additional insureds on all policies of insurance, and include a waiver of subrogation against these additional insureds. The following are our current minimum requirements for Coverages:

Type Coverage Comprehensive Liability Not less than $2,000,000 per occurrence Business Interruption As required by Franchisor Vehicle Liability Not less than $1,000,000 or as required by Franchisor Employer’s Liability Insurance As required by Franchisor; not less than $1,000,000 Umbrella Coverage Not less than $2,000,000 Worker’s Compensation As required by state law Primary and Noncontributory Endorsement

Blanket Contractual Liability Endorsement

Other As required by Franchisor

We require you to secure space from which to operate your Franchised Business. We estimate that you will need a minimum of 300 square feet.

Our criteria for supplier approval may also be included in the Operations Manual, or may be requested from us directly in writing. Generally, we apply the following criteria, among others, in considering whether the supplier will be designated as an approved supplier:

1. Ability to produce the products, services, supplies or equipment to meet both our standards and specifications for quality and uniformity and our customers’ expectations;

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–23)