Re: Microbe Guard Franchsing, Inc.

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I see that you are not man enough to reveil your name and still do not
have your facts correct. I am sorry that you have to spend so much time
trying to stay up with us. If you would like, I can keep you posted with
weekly updates.

Microbe Guard Inc did not start out to be a franchise. We started out
treating homes in home state area. Shortly thereafter, we received many
calls from other independent applicators who did not enjoy the same
success that we were. They were using many different products from many
different manufacturers. We were approached by a company in California
that offered to purchase the rights to our business plan. We decided to
start an association of similar minded individuals to bring some
uniformity to the mold prevention business. That was June 16, 2004. By
August of 2004 we had 12 members.

Business was growing fast in many different parts of the country. Our
Board of directors decided to protect our brand and our image that we
needed to become a franchise. This would allow us many more
oppertunities, while protecting ourselves.

On December 18th 2004 we hired a law firm to get our buisiness plan
formulated into a franchise. Unforutantely it is not as easy as it
sounds. There are many rules and obligations that you must meet in each
State. One of these requirements is that you must have certified fianacil
statements done every year and you must have one done prior to
registration of the UFOC. We had two options, spend tens of thousands of
dollars and several months getting Microbe Guard Inc's books certified or
start a new company and fast track the UFOC. We started Microbe Guard
Franchisng Inc at the end of 04' and capitalised the company to meet
reglatory requirements. The audited finaicials are listed on our UFOC
only on the new start up business.

On January 13th 2005 we released our franchise business at the 2005 IBS
show in Florida. We currently are signing up multiple franchisees every
week and should hit 200 by the end of 2005. We are required to have our
books certified every year and post all our franchise locations.

One of the requirements for UFOC registration is that you must list your
prior business operations that relate to the franchise. We listed all of
our member, but were not required to list all of our locations. The
States of Minnesota and California have very strict rules concerning
franchise businesses. The State of Minnesota fined us $4000 for possible
franchise violations, for allowing people to use our name without being
registered with the State as a franchise. We paid it and disclosed it.
The State of California stated that we needed to get a Right of Recession
signed by the party in California letting them know that they had the
right to become a franchise, stay a memeber of the association or to have
us refund their monies. They decided to become a franchise! He was the
first person to become a member, was a board member and voted to become a
franchise. He is also listed on our UFOC.

I admit that when we started that we had no intention of becoming a
franchise and I admit that we did not know the franchise laws. We do now
and we are in good standing with every State and every one of our original
members.

By the way, The State of California did not fine us! Not one penny.

In the future, please feel free to contact our Corporate office for any
misunderstandings that youo may have!

On 8/16/05, Delano wrote:
> Robert Dahl,
>
> Today you told us that Microbe Guard has 68 locations. On 12/05/04 you
> told us that Microbe Guard had 42 locations and that your firm was the
> largest mold prevention contractor in the Country (see below).
>
> These documents filed with the State of California suggest to me that
> maybe you are not and have not been telling the truth:
>
> http://134.186.208.228/caleasi/PDFDocs/004175858.PDF
>
> http://134.186.208.228/caleasi/PDFDocs/004173631.PDF
>
> Did the man mentioned in the above document ever get back the $50,000 he
> paid your firm?
>
> Another document also shows that you had to pay the State of Minnesota a
> $4,000 fine and cease offering franchises for sale until you registered
> them with the State:
> http://134.186.208.228/caleasi/PDFDocs/004173627.PDF
>
> How much did California fine you?