Franchise Investment

Wealth Strategy

Multi-Unit Concept Management

Concept

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INVESTOR PROFILE

• Seeks above average ROI and Asset

Appreciation

• Prefers professionally managed passive

business opportunities

• Holds diversified portfolios

• Accredited Investors

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Franchise Acquisition Target:

Emerging Growth Company

Acquiring & Opening 5, 10, 15, or 20 Unit

Blocks

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Managed Concept Investment

$1M for 55% of a 3 Unit Block

$2M for 55% of a 6 Unit Block

$3M for 55% of a 6 Unit Block

• Investor 55% / Management Company 45%

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Stakeholder Payout

10% Interest Paid Annually on Invested Capital; then

• Proceeds Payout throughout Capital Investment Recovery

Investor 80% / Management Company 20%

• Proceeds Payout after recovery of Capital Investment

Investor 55% / Management Company 45%

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Buyout/Exit Strategy

• Investor has option, given 60 days written notice, to buyout Management Company anytime after the initial 24 months of operation for 1 times most recent 12 months of cumulative Revenue.

• Management Company anticipates divestiture and/or reinvestment between year 5 and year 7.

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BUSINESS STRATEGY

Open and operate a minimum block of 3 units within 180 days of Funding.

Fiduciary and Legal Oversight Provided

Management Provided

Turnkey including all HR functions

Legal and Accounting Functions Provided

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KEY OBJECTIVES

Passive/Active Ownership in USA based Emerging Growth Franchises

Leverage business strengths to positively impact the financial returns of the business.

Build equity through asset appreciation that can be realized upon exit from the business.

Look for Fragmented Markets to penetrate

Management and Oversight Provided

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KEY OBJECTIVES

Target Strong “Brand” Recognition

Proven “Beta Unit”

Validation of a 20-25% percent Achievable

Annual Net Operating Income Pre-Distribution

Targeted ROI of under 36 months

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Franchise Profile

• Low Cost, Turnkey

• Absentee Passive/Active Ownership

• Prime Territories Available

• Recession Resistant

• Brand Name Recognition

• Multiple Revenue Sources

• Low Overhead and Small Inventory to Maintain

• Strong training and post acquisition support

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Typical Investment Vehicle

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TARGET MARKET

• Highly Fragmented.

• Substantial opportunity for growth

• Multi-Billion Dollar Booming Industry

• In USA this is a $100+ Billion industry

• Industry Growth projected in the next 4 years

• Massive new public awareness

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MARKETING

• Complete Turnkey Marketing Strategy

• Gorilla Marketing Plan

• Market Ready Media Spots Radio &

TV

• Signage and Collateral Solutions

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NUMBER / SOURCE OF

EMPLOYEES

2 or 3 full time per unit + part time pool

Employee base grows with the business and

the number of new customers each year.

Readily available sourcing & training

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TRAINING/STARTUP

• 3-5 days Onsite at each Location • Operations Manual

• Site Selection / Real Estate Advice • Grand Opening

• Marketing Training • Client Management

• Recordkeeping / Reporting • POS System

• Hands On Recruiting/Hiring Assistance • Staffing

General Management and Reporting • Marketing

EXCEPTIONAL SUPPORT

• Detailed Operations Manuals • Telephone Support

• Weekly Telephone Conferences with Founder

• On Site Management & Site Support Visits

• Annual Conference Training

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TERRITORY / LOCATION

• Each Territory has a protected radius

• Average of 35,000-50,000 population

• Franchises are located in a “A or B” level strip center, plaza or office complex

• Upper Middle Class Neighborhoods

• Unit sizes 1,500 -2,000 square feet

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FRANCHISE FEE

Standard market = $75,000 per unit

Discounts for 5 unit block purchases.

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Entry Cost per Unit

• Franchise Fee $75,000

• Build out 80,000

• Fixtures and Equipment 80,000

• Marketing 40,000

• Initial Start-up and Operating Capital 50,000

Total Cost $325,000* *See Item 7 of Franchise Disclosure Document (FDD)

*Assumes single unit stand alone no management provided

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3 Unit Proposal

• Franchise Fee $195,000.00

• Build out 240,000.00

• Fixtures & Equipment 240,000.00

• Marketing 120,000.00

• Initial Start-up and Operating Capital 150,000.00

• Legal, Admin., Project Mgmt., Misc. 55,000.00

Total Cost $1,000,000.00 *See Item 7 of Franchise Disclosure Document (FDD)

6 Unit Proposal

• Franchise Fee $375,000.00

• Build out 480,000.00

• Fixtures & Equipment 480,000.00

• Marketing 250,000.00

• Initial Start-up and Operating Capital 300,000.00

• Legal, Admin., Project Mgmt., Misc. 100,000.00

Total Cost $2,000,000.00 *See Item 7 of Franchise Disclosure Document (FDD)

Alex H. Cunningham

Senior Consultant Office: 859-402-0729

Cell: 859-533-3841

Fax: 859-201-1105

ahc@francnsult.com

http://www.linkedin.com/in/ahcunningham

Solving the Puzzle of Owning a Franchise

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