Confidential

Thomas Franchise Solutions, LTD

Presents

Confidential

TFS and its Mission

TFS invests in and develops North American franchisors.

We accelerate growth through our network of franchise resources, strategic expertise, partners, and connections.

Incubator

Early Stage

Proven Models

Mature Companies

Co-founded Century 21 Canada

Developed Four Seasons Resort in Scottsdale

Founded Samoth Capital Corporation (SCC)

Founder and Chairman of LifePilot

Co-founded Entrepreneurs Organization

2010 International Caring Award Winner

1998 Ernst & Young Entrepreneur of the Year Award, Pacific Region

Founded by Peter H. Thomas

TFS Introduces Spa810

"Affordable luxury spa experience awaits you”

TFS Sales Team

Peter Thomas,

Chairman

Thomas Franchise Solutions

Randall Clark,

President & CEO

Thomas Franchise

Solutions

Jim Gormley, President

Thomas Franchise Solutions, Canada

Diana Henderson,

Franchise Sales

Thomas Franchise Solutions, Canada

About Spa810

Business:

Founded 2007 in Phoenix AZ , began franchising in 2012

1 corporate & 3 franchised locations in operation

throughout U.S.

Average unit gross sales of $850,000

“one of the fastest growing med spa franchises of 2013”

- Entrepreneur, Inc

Founder/Owners: The Reilly’s

• Founded by Dr. Tim Reilly & Kanna Reilly

• The spa810 management team consists of health care

professionals, as well as some of the top executives

in the franchise industry

WHAT DOES SPA810 STAND FOR?

Spa810 uses the safest, most advanced Alma Laser, the Soprano XL.

The Soprano XL is the GOLD STANDARD for laser hair removal. Delivering an 810 nm diode laser to skin AND is the only pain free laser in motion.

Market Overview

Size and Growth

• Marketdata reports medical spa revenue in 2012 to be $1.94B and estimates it will hit $3.6B by 2016!

13 Million The market for minimally invasive cosmetic surgical procedures in the U.S. rose by 6% in 2012, with over 13 million procedures performed, according to the American Society of Plastic Surgeons (ASPS).

BOOMING INDUSTRY!

The demand for anti-aging procedures along with the desire to increase overall health is being driven by the “Baby Boomers” and “Millennials”

0

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

3,000,000,000

3,500,000,000

4,000,000,000

2012 2016

Total US Med-Spa Revenues* Market is forecasted to grow 18% per year!

*Marketdata Enterprises Inc, 2012 Independent Study

Current Development

SOLD

• Arizona 25 + units

• Colorado 18 + units

• Nevada 18 + units

• Puerto Rico 15 + units

• Austin 15 + units

• Dallas 40 + units

• San Antonio 15 + units

• LA County 35 + units

• Indiana 18 + units

• KY/Cincinnati 16 + units

• Columbus 16 + units

• Cleveland 16 + units

• Canada 120 + units

UNDER NEGOTIATION

• San Francisco 30 + units

• San Diego 30 + units

• Michigan 35 + units

• Illinois 35 + units

• Tennessee 30 + units

• North Carolina 48 + units

• South Carolina 22 + units

• Tampa 30 + units

• Queens NY 18 + units

• New Jersey 22 + units

Current Development

13 Regions Sold Accounts for 400 + units to be developed in the US and Canada!

Membership–Based Franchise Model

A Membership Model Provides Three Revenue Streams

• Laser Hair Removal Club • $29 - $49 / month

• $59 Membership Club • Select either

• One 50-minute customized facial OR

• One 50-minute Heavenly Body Massage

• Signature VIP Aromatherapy Capsule Bed

• $99 Membership Club • One 50-minute customized facial AND

• One 50-minute Heavenly Whole Body Massage +

• Signature VIP Aromatherapy Capsule Bed

Spa810 Revenue Streams

Business Model

• Only med-spa franchise offering laser hair removal

• Services represent 80-80% of top-line revenue

60% 25%

15% Laser

Facial

Massage

Breakdown of Service Revenue

Characteristics of a Typical Unit

Efficient Footprint

• 1,600 – 1,800 square feet

• Use 6-8 treatment rooms

• Elegant decor

Three Distinct Services

1) Pain-Free Laser Hair Removal

2) Facials

• Crystal Free Microderm

• Skin Lifting Facial

• Chemical Peel

• LED Treatments

3) Massage

List of Services

Value Proposition & Opportunity

Relaxing, Personal Service in ONE Convenient Location

• Customized treatments at an affordable price

• Best-of-breed business model

• Membership-driven revenue stream

• Minimal overhead expenses

Named one of the “fastest growing medical spa franchises in 2013” – Entrepreneur, Inc.

Unit Economics - Gross Revenues*

1 LOCATION 2012 SALES Average Gross Sales $842,000 * High Gross Sales $1,076,959

*Refer to Item 19 of the spa810 Franchise Disclosure Document (FDD)

Cost of Services Sold

1 LOCATION Operating 37 + Months

Rent 11.5%

Payroll 31.7%

Other Operating Expenses 30.3% TOTAL AVERAGE COSTS OF SERVICES SOLD (as a percentage of gross sales) 57.5%

SBA Registered & Approved!

Investment Details*

* Total Build-Out includes: initial franchise fee, total build-out, signage, equipment, initial inventory, working capital, grand opening advertising

TOTAL INVESTMENT

Franchise Fee $45,000

Store Build-Out & Other Start-up Costs* $250 - $400K

TOTAL INVESTMENT RANGE (including price of region) $295K - $450K

2012 Average Gross Sales of mature stores* $842,000

Royalty Fee 6%

National Branding & Public Relations Fee 1%

SBA Registered & Approved!

Franchisor Support

Before Franchise Launch:

• Real estate site selection

• Designate a protected territory

• EB5, E2, US Visa Program

• Semi Absentee Ownership Available

• Lease Negotiation Assistance

• Field training

• Equipment Package

• Full T.I. build-out service available

• 2 weeks of initial training

During Franchise Operations:

• Provide initial on-site assistance for one week

• Marketing

• Operational Support

Refer to the FRANCHISE DISCLOSURE DOCUMENT

Final Thoughts from the TFS Founder

“I believe that the ownership of a franchise or a few franchises in spa810 will be one of the best investment opportunities in the next decade available in the franchise business.

Only once in a while does a McDonalds, a Century 21, a Massage Envy or a spa810 come along where everything is right for the times. I have all the statistics and the facts to demonstrate why I feel so strongly about this opportunity!”

-- Peter H. Thomas