Welcome to the PowerHouse Franchising

Overview of …

Regional / Area Development Opportunities

Presenter – Elza Gennicks

Regional / Area Development:

The Best Option for Long-Term Security

in Franchising (for the right person)

Franchise Types • Single Unit

• Multiple Unit

• Area Developer (PHF Area of Focus)

• Regional Developer (PHF Area of Focus)

• Master (Entire Country)

Differences: • Operational Profits

(Single/Multiple Unit)

• Market Dominance (Area Developer)

• All of Above + Shared Royalties / Fees (Master / Regional)

What Candidate is the Right Candidate?

Business Visionary Management

Experience Coach/ Team- Builder

Qualifications of a Regional / Area Developer

1)  VISIONARY- Sees Value in early Opportunities

2)  Bus. / Mgmt. / Marketing Experience –owned a business, franchise, Biz Dev, etc.

3)  Financial- Net Worth ($500K to $1M+) Liquid $300-500K

4)  Team Builder / Coach – Wants to help others be successful

5)  Available time to focus on Region / Area Development

4 Job Duties of a Regional Developer (RD) for

Front Office Staff and Zoomin Groomin

1) Build a Real Estate Team (unless Home – based)

2) Recruit Franchisees 3) Coordinate Local Co-op advertising in

Region 4) Ongoing “Quality Assurance” /

Business Coaching for Franchisees to follow the “System”

RD Revenue Stream Opportunities:

• Pilot Unit Revenue (If required by Zor)

• Franchise Fee Split (Usually 50%)

• Royalty Split (Usually 50%)

• Product Distribution (if applicable)

• Maximum Equity at “Exit” (6 to 9 Times Multiple)

RD ROI Example: $180,000 Regional License Fee:

(Includes “Pilot Location” license fee)

($ 30,000) Included Franchise Fee:

$150,000 Regional License Investment (may develop 20-40 locations in Region)

RD ROI Example: Franchise Fee

$30,000 Single Unit Franchise Fee

x 50% (Regional / ZOR split)

$15,000 (per unit fee kept by Regional)

x 10 (single units sold)

$150,000 total kept by Regional

RD ROI Example: Royalty Split

6% Single Unit Royalty

x 50% (Regional / ZOR split)

3% Regional Royalty per Unit x $500,000 (Ex: Annual Revenues / unit)

$ 15,000 Annual Royalty fees per unit

Your Due Diligence Process:

• Qualify – Share Info – UFDD

• Validations / Corp Intro

• Discovery Day

• Discuss / Negotiate Agreements

How We Pick Our Franchisors

• Differentiation - What is unique?

• Industry - Growth? Stagnant? BIG/Small?

• Sale-ability - Would anyone else want to buy it?

• Qualification – Any special educ. /financial reqs.?

Would we BUY IT OURSELVES?

3 AD Concepts: -Aqua-Tots Swim School

GPS® – Global Prevention Services LabXpress

3 RD Concepts: -Lady Bug Pest Control

-Care Patrol Assisted Living Placement -Zoomin Groomin

Represented Concepts:

Aqua-Tots Swim School

•  Children's Swimming School (Unit + RD Opportunity) –  14 units open – 2 Countries –  In Biz since 1991, Franchised

since 2006 –  $300k to $570k Total Unit

Investment (Regional Development Available)

GPS® = No Mold •  Property related service business •  Specializes in environment solutions to water and

microbial issues •  Project opportunities exist to expand the scope of services

(*see list below) •  Client work requires GPS to have internal construction

talent, equipment, materials and other resources •  A successful GPS franchisee will understand how to

operate a business, follow marketing & sales plans and complete client projects to their total satisfaction

GPS® = No Mold * Existing and potential service categories: •  Emergency Response •  Water Extraction •  Dehumidification •  HVAC System Cleaning •  Mold Remediation •  Asbestos Removal •  Structure and Contents Cleaning •  Document Restoration •  Temporary Heat and Cooling •  Temporary Power •  Emergency Restoration •  Building Remodels •  New Construction

GPS® = No Mold

STOP MOLD & Other Microbial Issues before they appear!

Global Prevention Services has been on the forefront of protecting properties from microbial contaminants for years using the latest technologies.

The company utilizes the proprietary PureSpace® Process to guarantee an environment that protects occupants and property from microbial contaminants.

GPS® = No Mold  ONLY COMPANY to provide Remediation AND PREVENTION.

 ONLY COMPANY with NO MOLD 5 year Warranty.

 GSA approved!

 National Agreements with Builders, etc.

 Top referral sources –Claims Adjusters, Independent Testers, Real Estate Agents.

 FINANCING AVAILABLE

Microbial Economics •  In the early 2000s, the number of mold claims submitted to insurers surged, particularly

in California, Florida and Texas. In Texas, in 2002, mold claims cost insurers $2.2 billion (for 227,000 claims), up from $420 million two years before. Mold claims are also very costly, about $30,000 per claim, compared with other homeowners claims, which generally cost an average $3,000 to $4,000.

•  Lawsuits over mold claims also became common. At one point early in this century there were over 10,000 active lawsuits involving allegations of mold contamination in homes. In 2002 insurers paid out several billions of dollars in mold-related claims nationwide, more than twice the $1.4 billion paid the previous year. Insurers responded to these high losses by restricting or excluding mold from their policies; 43 states and the District of Columbia have made it legal for insurers to do this.

•  Coverage for mold is available to some extent. Certain companies cover all mold claims and price their policies accordingly. Others exclude mold, but offer the coverage as an add on, called an endorsement. Some exclude it completely. But, most major insurers have some form of restriction on their water damage policies.

http://www.iii.org/disaster2/facts/mold/

LabXpress Enterprise Edition

1 Lab serves 1 Million population

with 3 add’l PSCs (Patient Service

Centers)

Over 80% Dr. Referrals

Great margins

$50Billion Industry & GROWING

Lab / PSC

PSC PSC

PSC

LabXpress Enterprise Edition

1 Million Population

Samples

Samples

LabXpress  Own your own Medical Laboratory  Xpress results, low-cost, Customer Service-Driven  Over 60% cash business  Semi-Absentee (Med-Professionals Must Run)  Financing AVAILABLE to Franchisee

Lady Bug Pest Control

•  About Lady Bug : •  Lady Bug is an environmentally friendly pest control

company. •  With state of the art systems and over 20 years of

experience they are an industry leader. •  National and local awards for service excellence.

Lady Bug Pest Control •  Ideal Candidate: •  Lady Bug is designed as the ideal concept for business

people willing and able to develop/serve/manage pest control in their markets.

•  Lady Bug Franchisees serve individual, commercial, and industrial customers generated by word of mouth, advertising, networking and PR.

•  Being a strong part of the community is an essential element in Lady Bug growth.

Lady Bug Pest Control •  Purchase Points: •  Outstanding training and support •  An environment friendly to customers and the

environment. •  Word of mouth referrals reinforce outstanding service. •  Unit Volumes ranging from $75,000 to $250,000 •  Purchasing power increases margins and gives

competitive advantage.

•  Looking For Assisted Living Options? •  Families usually do not start their search in hopes to find the assisted

living or independent living community with: –  The most citations or violations –  The worst care history or –  The highest staff turnover

•  But that is exactly what can happen when you request a list of assisted living options from other assisted living websites. A list of facilities is not what you are looking for !

•  We know that you expect and deserve more. That’s why CarePatrol looks beyond the chandeliers and fancy lobbies and monitors each community’s care history and state violations.

•  Placement Services •  Referral Services •  Franchisees get paid as a broker/referrer •  Pre-Survey Homes/Assisted Living

Facilities •  Provide info and marketing services to

families looking for facilities

Zoomin Groomin Mobile Pet Spa

• Top-Ranked $56 Billion Industry • Centralized Call Center for Appointments • Centralized Financial Management System • Franchise Experienced – Marvin Storm • Pre-funded Marketing – Fill the pipeline with customers • RD doesn’t groom pets – Only Recruits and Supports Franchisees. • Large Territories 100+ units potential / Region • 3 Franchise levels – • In-Home - $10K FF • Mobile - $20K FF • Area Development $52,500 (3 pack)

Zoomin Groomin • Most Advanced Grooming Van – MB Sprinter - Diesel • No Generator – All Inverter Power • ECO-Friendly operation & products

Zoomin Groomin Mobile Pet Spa

• Revolutionary ZipWash Grooming system • Accelerated Hydrogen Peroxide – AHP • Cleans from the skin up instead of top down • Virtually Mess-free • Bathing without wash tub or stall • Slashes Drying time • Less Traumatic for pet

 Comprehensive Automotive mechanical repair facility  Maintenance –Including: Oil, Lube, Filter Ignition, Fluids, distributors, etc. (also including “UnderCar Services”  Repair – Including: Heating and Cooling, Radiators, heavy-Duty Servics, Overhaul, general maintenance and everything in between  Diagnostics – Including: Electrical, Electronic Systems, Computer, Emissions, Controls, etc.  General – Including: Domestic and Import, Gas or Diesel, Off-Road  Misc Services such as, Towing to the shop, fuel economy, tires, pre-purchase inspections, pre-trip inspections, etc.  Fleet Services

About Wilhelm Automotive:

 Wilhelm Automotive is a comprehensive automotive mechanical repair facility.  With start of the art systems and over 80 years of experience they are an industry leader.  National and local awards for service excellence including being recognized as a Motor Age national “Top Shop”.

Ideal Candidate:

 Wilhelm is designed as the ideal concept for business people willing and able to develop/serve/manage automotive service and repair in their markets.  Wilhelm Franchisees serve individual, commercial, and industrial customers generated by word of mouth, advertising, networking and PR.  Being a strong part of the community is an essential element in Wilhelm growth.

Quick Breakdown:

Total Investment Range: $118,400 – $302,500 Multiple unit development: $473,600 – $1,210,000 Net worth: $750,000+ units: 5 Working capital: $50,000 – $120,000 Franchise Fee: $35,000 per unit minimum 4 Minimum Market size: 300,000 Minimum Population Average # of employees: 6-10 to start Year Started: 1928 Operating units: 5 (company owned) Printed earnings claim: YES (Unit revenue ranging from $900k to $2.2mm) Passive ownership: Management Ownership States, not in or sold out: All states available Commission to Murphy Broker: $33.600 – $84,000

Concepts

•  Infrared Sauna (RD Opportunity) –  Highly Profitable, Very-Sexy Industry –  Similar to the Tanning Industry Business Model –  Producer of the Sauna’s is 50% Owner of the

Franchisor (They aren’t going anywhere!) –  Have a Significant Marketing, PR and R&D

Department behind them for expansion!

Concepts •  Medical Billing (Unit Opportunity)

–  20 years in Biz –  1,500 Units Opened in the last 20 years –  $25,000 Total Investment

•  Virtual Office Assistant (Unit + RD Opportunity) –  14 Units Open –  In biz since 2005, Franchised since 2006 –  Low End Unit Investment (Regional Development Available)

•  Children's Swimming School (Unit + RD Opportunity) –  14 units open – 2 Countries –  In Biz since 1991, Franchised since 2006 –  $300k to $570k Total Unit Investment (Regional Development

Available)

Concepts •  LED Retrofit/New Fit Lighting for Commercial /

Residential Real Estate (RD Opportunity) –  Multiple Investment Models available –  Unit Investment ranges from $20k to $260k –  Regional Development Available

•  Commercial Cleaning (Master Opportunity) –  12+ years of experience –  6+ revenue streams to the Master Franchisee –  Represents Exemplary customer service in an under serviced

market –  10 Revenue streams at the unit level

PowerHouse Franchising

Elza Gennicks - egennicks@phfranchising.com

www.powerhousefranchising.com

Phone: 480-850-0100 Fax: 480-287-8801