3.2016

…..in a meeting today Mr. Denney advised Mr. Ditlevsen to stay away from franchising because of all the legal issues. Mr. Denney explained he needed a room full of lawyers to constantly deal with the legality that was always changing. Mr. Ditlevsen agreed and a better way forward is going to be talked about in later meetings.

5.2016

…..in a meeting today Mr. Ditlevsen and Mr. Denney talked about the problems inherent with franchising. Mr. Ditlevsen suggested LLC’s and Mr. Denney was in full agreement. He further suggested making them operate like the franchising. 

7.2016

…..in a meeting today Mr. Denny went over the details of the franchising agreements in collaboration. Through the collaborations, Mr. Denney suggested giving the LLC 90 % of the net profits as was customary with his SERPRO Industries Company. Mr. Ditlevsen suggested the new entities be called Satellites. There was an issue of potential harm being brought on the corporate side if there was an issue with these satellites and how the corporate side could mitigate its exposure. This is the policy now. More will be discussed in upcoming meetings.

10.2016

…..in a meeting today Mr. Denney and Mr. Ditlevsen were working on mitigation of harm from the Satellites to corporate. Mr. Denny hypothesized that ownership could help alleviate this potential harm. Mr. Denney suggested that corporate should own enough of the Satellite to stop the harm it may be doing to corporate at that time. Both agreed and this is the policy now. More discussions are to addressed in upcoming meetings.

11.2016

…..in a meeting today the Satellite issue was prominently discussed. Mr.Denney suggested that corporate own 60% and Satellite own 40% so that upon mismanagement that could not be resolved there would be a way for corporate to fix it. The Satellite would pay corporate to set the LLC up. Mr. Denney said if a remedy cannot be agreed on that the full reimbursement of the Satellite origination and licensing fees be returned to the Satellite owner. Mr. Denney further suggested that corporate doesn’t want to take the Satellite unless there is no alternative to fixing it. Mr. Ditlevsen added we are not in the business of running the Satellites. We are on the national and international side of this for the business expansion and the 10% the corporation makes is all the corporation wants at the end of the day. Both agree and are policy today. More details about satellites will be discussed in the next meeting.

12.2016

…..in a meeting today Mr. Denny defined what SERVPRO did with its franchisees. He told Mr. Ditlevsen the franchises run the entire franchise, hire, fire, purchase equipment, pay their taxes, etc. Mr. Ditlevsen agreed and is the policy now.