Franchise Information Memorandum

Leaders in Restroom Hygiene

www.impacthygiene.com.au

WelcomeThank you for taking the time to get to know us, our people and our unique opportunity. We’re very passionate about our business. It may sound strange but we actually LOVE RESTROOMS! After reading this booklet we think you’ll understand why.

It’s an exciting industry, we often think to ourselves… Will anyone ever stop washing their hands or using the toilet? Will anyone ever stop using toilet paper? We hope not!

We’re very clear on our direction and our vision. After 15 years in the business we feel certain about the key factors our customers are looking for. We meet the market with much needed every day products and dependable services at competitive prices. A key attribute found in successful businesses is the culture of its people. We seek win-win outcomes with a solution oriented attitude. Great people backed by a strong product and service leads to healthy customer relationships and a rewarding, profitable business.

We are delighted to be in partnership with franchising mastermind Paul Wheeler (Cartridge World) and leading Franchise consultants, Group-7. With our combined experience we are confident in a prosperous future for all.

We are very happy to present to you, a flexible franchise model bounding with opportunity. Enjoy learning about this unique offer, we look forward to meeting you very soon…

Paul WheelerDirector Impact Hygiene Australia(Founder Cartridge World)

Impact Hygiene are proud members of the Franchising Council of Australia

The Impact Hygiene Franchise

The Impact Hygiene brand revolves around offering hygiene solutions in the restroom, however our versatiletechnologies and systems can be used in many ways. We have grown to facilitate hygiene services for commercial kitchens and front of house, schools ,recreation facilities and with our most recent addition, we can now clean any exterior surface, panel of glass, shop front or sign using specialised equipment.

If it’s a difficult place to reach, we have a hygiene solution!

As a Franchisee of Impact Hygiene, there is so much you can offer! Provide a unique range of services on a reoccurringbasis and supply consumable products that are used by businesses daily. These include soap, toilet paper, hand towel, chemicals and much more!

Our reliable service delivery, competitive rates and great customer service creates strong customer relationships. Wemanage and control our own supply chain allowing us to pass on the savings to you. You then have the power to offer your customers competitive rates and at the same time benefit your business.

Our love for the industry drives us to stay abreast of the latest advancements in hygiene. We travel the world to visit trade shows that exhibit and educate on the latest equipment. We can then offer new and innovative services to current and future customers. Our ongoing research and development supports you as an Impact Hygiene franchisee to be highly competitive and an industry leader.

As your Franchisor we take care of most of the extra work allowing you to focus on your core business. We handle administration, telephone enquiries, national invoicing and accounts receivable, purchasing and qualityassurance.

Our carefully designed , user friendly and intuitive training system supports the growth of your business. We will support you with ongoing mentorship, business support and on the job training. We are committed to your success.

Why choose a Franchise?People in this day and age want their problems solved. We meet many business owners that are sick and tired of unsightly restrooms, unpleasant odours, filthy old looking tiles or simply running out of toilet paper.

Fortunately when it comes to restrooms, kitchens and building exteriors, we have many reliable solutions we can offer. We can relieve business owners of many of their frustrations relating to facility presentation.

The outcome …. A very happy customer and a fulfilled Franchisee satisfied that they’ve genuinely been able to solve a problem.

The very reason we chose franchising for our business is because we see the opportunity and how it can help businesses Australia wide. With a network of dedicated Franchisees our “impact” will be far greater.

Owning a franchised business makes a lot of sense. You have the advantages of controlling your own financial destiny and at the same time benefit from the support of an established corporate structure and robust systems.

Benefit from advantages such as;

► Brand recognition ► Group buying power ► Technical support ► User friendly systems

► Shared advertising and marketing programs► On-going training and support► Leverage off an established business

Why choose a Franchise Cont’Interestingly eight out of ten small to medium non-franchised businesses fail within their first 3 years of operation. Prior to franchising a small business should have been operating for at least this period of time to prove the concept is viable.

The introduction of the Franchise code of conduct in 1998 brought an improved standard to the franchise sector and now provides comfort to both franchisees and franchisors. It’s not surprising that franchising has continued to boom over the last 14 years.

At Impact Hygiene we have more than 15 years experience in restroom hygiene, our systems, techniques and internationally known clients form the backbone of our success.

We welcome the opportunity to introduce our business to you as you consider one of the most important decisions of your life.

Franchisee Advantages► Through an Impact Hygiene franchise it is possible to run your own business yet share in many of the advantages and economies available

to a larger company.► Being part of a recognised and growing brand► Proven successful business model► Comprehensive initial and ongoing training and support► Advice and guidance provided on an ongoing basis► Group advertising campaigns, professional marketing.► National Accounts

The MarketThe Hygiene and consumable Industry alone in Australiais a $7 billion industry. Industry Analysts describe thehygiene and consumable paper industry as being anecessity and recession resistant due to its ongoing demand.

As the business mindset evolves, managers and owners are becoming increasingly savvy about the decisions they make within their workplace or premises. Their preference is to maintain a focus on their core service or business and outsource hygiene, cleaning and other non-core activities.

OH&S and Social responsibility are growing priorities among business owners as they try to offer a clean, hygienic workplace or facility for their customers.

The Impact Hygiene range of products and services caters for an endless list of customers in both the commercial and domestic markets.

Customers in our commercial market include Hospitals, nursing homes, shopping centres, restaurants, fast food chains, high rise buildings, schools, recreation facilities , industrial buildings,offices and many more.

Our Franchise Opportunity The Impact Hygiene Brand is well established. With the combined skill set of our leadership team we are equipped to back you in every way. We are excited to offer you a flexible opportunity that allows you to be empowered in your own business, in a role you enjoy, supported by mentors who have experienced long term success.

The flexibility in our franchise model enables you to choose a role suited to your personality and skill set. The model allows each role to benefit the other. All parties can successfully operate in a role they enjoy with the ongoing support of a like minded team. Enthusiastic business ownership leads to a healthy, flourishing business.

Over time we have built stable customer relationships with many national and international corporations who place high demand on our services and range of consumable products. These relationships allow us to support you with the growth of your Franchise business in your local area.

Here are some of our current clients;

The Role of FranchiseeWe require our Franchisees to commit to developing their territory using the proven Impact Hygiene system. Your role will be to maintain the high professional standards we have set and to maximise the Impact Hygiene opportunity in your respective location.

Your business will operate under our full Franchise format system and you will be asked to adopt new methods as they are introduced. As part of a growing network, you will be a team player, be prepared to share experiences and have a genuine desire to provide the very best service to your customers.

Our model is unique as it allows you to choose an area of the business you’d like to focus on. Choose a business management type role or a Service Delivery role.

Your Role ► Fully embrace the principles, benefits and business objectives of Impact Hygiene.► Employ service delivery technicians► Introduce Impact Hygiene products and services ► Up sell new products and services to existing customers► Work closely with the service delivery technicians to maintain existing customer relationships. ► Assist with customer service where required.► Assist service technicians with Quality Assurance.► Talk to customers and inform service delivery technicians about service issues that arise.► Promote the Impact Hygiene brand, its services and products at every possible opportunity. ► Communicate with Impact Hygiene head office to stay abreast of company initiatives, product and service information.

Our Role - Franchisor

► Administration of System► National Accounts receivable► Co-ordinate Sales and Customer

enquiries► Monitor, maintain and update Systems ► Quality assurance ► Ongoing Research and Development► Ongoing Training Programs► Sales and Marketing Support► National Sales► Manage and update Website ► Supply chain management► New product and service launches

We like to take care of all of the mundane jobs. That way

you can focus on your core business and create success.

Paul WheelerDirector

Franchisor Leaders

Duncan PowellDirector

Duncan Powell has extensive operational and consulting experience working with some of Australia’s most successful organisations and

iconic brands. He has led large business transformational projects most of which were going through significant change. Duncan has

more than 15 years executive experience and recently held the position of Chief Operations Officer and Director of Sales within the

BPO/services industry.

Paul WheelerDirectorPaul Wheeler has a back-ground in banking and small business, he was a founder of the Cartridge World group and pivotal in the rise of the brand from a single store in 1997 to over 1550 franchises worldwide, the Wall Street Journal referred to this growth as a phenomenon. Paul is a past “Entrepreneur of the Year” award winner and is highly regarded within the franchise industry as one of Australia's most successful franchise entrepreneurs. Paul is still actively engaged in consulting to both publically listed companies and SMEs in relation to their local and international franchise plans. Paul brings a wealth of franchise knowledge to Impact Hygiene.

Travis Wiffen Operations & Training

Travis and his father Paul Wiffen commenced the Impact Hygiene business approximately 15 years ago, Travis has evolved this business

into a well organised, profitable and customer orientated business. Travis has also developed relationships with large iconic businesses that

benefits the franchise system through national contracts. Travis is integral to this business and will be actively involved in training and the

day to day operations of the franchise business.

Franchisor Leaders cont’

The Franchise PackageThe following franchise package has been developed to get you quickly into business. Below are the key elements provided:

Business Format Franchise► The franchise grants you the exclusive rights to trade in your territory► Rights to use the Impact Hygiene trademarks► Rights to use the Know-How, Operating Methods and Systems

Business Manuals► Operations Manual► Procedures Manual► OH & S Manual

Initial Training & Support► Head Office Training Centre- Franchisee► Franchisee- pre & post commencement IT Training Solution► Dedicated Website► Business forms and Stationery templates► PDA and training► Pricing Matrix

Marketing Materials► Van signage► Business cards► Electronic PDF’s

Financial Information

Term of Franchise 20 Years (made up of initial term of 5 years followed by three subsequent terms each comprising 5 years)

Ongoing Fees - A monthly franchisee service fee of 8% of the franchise gross revenue- A monthly advertising contribution of 4% of the franchise gross revenue. These funds are credited into a separate bank account and primarily used for group marketing and advertising campaigns and purchasing promotion items

Initial Costs Licence Fee paid to Impact Hygiene on execution of the franchise agreement and prior to commencement of franchise business

$45,000 plus GST

Training Fee paid to Impact Hygiene on execution of the franchise agreement and prior to commencement of the franchise business. This includes accommodation but excludes airfares. Some meals will be supplied, but franchisees will mostly supply their own meals.

$7,500 plus GST

Stamp Duty may be payable on documentation (Stamp duty vary from State to State so franchisee must obtain their own legal advice)

Legal Documentation Fee (paid to suppliers) $3,500 plus GST

Franchise Equipment (Service Delivery) $18, 000 plus GST

Optional Vehicle (white Hyundai iload or similar)- franchisee can consider financing this vehicle

$29,000 plus GST (indicative costs)

Frequently Asked QuestionsWe are happy to answer any of your questions in detail. Following are a few questions we are commonly asked. Please make a list of any further questions you have. We will be pleased to provide you with all of the information you require.

Q. What is included in the Franchise Package?A. The Franchise Package includes :► A licence to operate an Impact Hygiene franchise business► 10 days of training covering Impact Hygiene proprietary business methods.► A comprehensive Operations Manual loaned to you for the duration of the term of your franchise agreement.► A tailored professional launch

Q. What other costs are there?A. The anticipated major capital and operating costs are outlined in the franchise Disclosure Document. You will berequired to establish precise budget in your business plan. Operating costs include things like, vehicle expenses,telephone, chemicals etc.

Q. What are the details of the Training Package ?A. Appointed Impact Hygiene franchisees will receive training in all aspects of the business. A ten day program in Melbourne at our Head Office and on the job training .

Q. What Skills do I need ?A. We are looking for people that have the energy, motivation and a positive attitude. You must be keen to run your own business, focus on success and be prepared to put in the time to make it happen. It is not a requirement for you to have all the skills to operate the Impact Hygiene franchise. You will learn the necessary skill set during your training.

Q. Where can I trade ?A. We are seeking franchisees for locations throughout Australia. You will be asked to carry out a territory evaluation as part of our application process. Impact Hygiene will make the decision on location base on statistics.

Frequently Asked Questions Cont’Q. How is my location established?A. We determine your area based on your enquiry. Our areas are established based on statistics, homes andbusinesses in the area. We allow for generous territories allowing you to maximise your earning potential.

Q. Is my location protected ?A. If your territory is established in a new area it may offer an early bonus period to encompass a greater territory, however when the adjoining territory is sold your originally negotiated territory will be your designated business territory.This will be discussed when determining the parameters of your territory so there are no surprises. Your designated area may and not entered into by any other Franchisee. A win-win referral and team effort can be a successful outcome.

Q. Are there any limitations on my trading ?A. You may market your services in an adjacent territory if the territory has not been allocated to another franchiseeon the terms set out in the franchise agreement. You may offer all and any of the services outlined and offered by thefranchisor. You may sell any product branded and distributed by Impact Hygiene .

Q. What ongoing support will I receive?A. Impact Hygiene will support the franchisee throughout the term of the franchise agreement with a host of invaluable services. These include the personalised support of a dedicated franchise manager, annual support visits and operational reviews, additional training opportunities and updates to the operations manual.

Next Steps1. Please consider the information in this document carefully.

2. Have your questions answered – Make a list of your questions. Ask us every questions you can think of. Get fully informed so that you can make a decision you’re comfortable with.

3. Once you’re informed seek advice from people that you view as successful or from trusted friends and family. If you have further questions, repeat step 2.

4. Complete the franchise application form and receive draft copies of the franchise agreement and disclosure document. Use this documentation to aid in your Due Diligence.

5. Due Diligence ► Ask us for any information you require to support your due diligence process.► Carry out initial market and industry research to identify the potential and demand► Seek professional business and legal advice.► Define your responsibilities, if you’re unsure of your responsibilities discuss it with us. When roles and responsibilities are clearly defined your success will be amplified.► Attend a due diligence day in Melbourne for a face to face interview and receive further information on Impact Hygiene Franchise Business.

6. Deposit Agreement

7. Sign the Impact Hygiene deposit agreement and pay a refundable deposit of $3500

Getting Started1. Determine your exact franchise territory with Impact Hygiene2. Provide Impact Hygiene with full details of the proposed franchise entity3. Review and sign Franchise Documentation4. Receive copies of all the legal documents5. Sign Franchise Agreement, associated guarantees.6. Sign Disclosure Document (you will be required to sign an date the receipt on the day you receive this document and return to Impact Hygiene)7. Review Franchise Code of Conduct8. Authority to register business name9. Execution of Franchise Documentation10. Franchise Documentation can be executed after 14 clear days from receipt.11. Payment of franchise monies

Once documents are received by Impact Hygiene we will together determine the training dates and begin your preparation for training.

Begin your Training

Once your franchise is awarded, you will begin the pre-training process. The initial training process will be for 10 days in Melbourne with a combination of in house and on the job training. We continually offer updated training, conference calls, webinars and other media so you can learn according to your schedule.

Exciting yearly team events occur allowing you to meet other people in the business, compare experiences and share in the vision of our future.

Non Disclosure & Reliance StatementThis document is the property of Impact Hygiene and is intended for use by

prospective franchise investors and constitutes a confidential disclosure.Impact Hygiene is the owner of the copyright in all material contained in this

document. No part of this document may be reproduced, copied or transmitted in any form or by any means (electronic, mechanical, microfilming, photocopying , recording,

storage in a retrieval system or otherwise), without the prior written permission of a director of the company.

It is made available subject to the express condition that it must remain in your personal care at all times and must not be revealed or imparted to any unauthorised

person (s) or business(es).The information contained in this document is confidential and is given to you for your use in evaluating the Impact Hygiene franchise opportunity and must not be divulged

to anyone other than your financial business and legal advisors.Nothing in this document is intended to constitute financial or professional advice.Prospective franchisees are requested to make their own enquiries to establish the

accuracy of the information provided.Impact Hygiene or any other person representing it will not be held liable for any loss sustained by any prospective franchise investor from relying upon the contents of this

document. This document is for guidance only and does not in anyway detract from the terms and conditions laid out in the franchise disclosure document and the

franchise agreement which shall form the legally binding contract between Impact Hygiene and the franchisee.

www.impacthygiene.com.au