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?

BusinessVisionary 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)

How to Estimate RD Revenue:

$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)

How to Estimate RD Revenue:

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

How to Estimate RD Revenue:

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?

GPS® – Global Prevention ServicesLabXpress

Zoomin Groomin Wilhelm Automotive

Exclusively Represented Concepts:

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 MoldONLY 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/

LabXpressEnterprise Edition

1 Lab serves1 Million population

with 3 add’l PSCs(Patient Service

Centers)

Over 80% Dr. Referrals

Great margins

$50Billion Industry& GROWING

Lab / PSC

PSCPSCPSCPSC

PSCPSC

LabXpress Enterprise Edition

1 Million Population

Samples

Samples

Samples

LabXpress

Own your own Medical LaboratoryXpress results, low-cost, Customer Service-DrivenOver 60% cash businessSemi-Absentee (Med-Professionals Must Run)Financing AVAILABLE to Franchisee

Zoomin GroominMobile 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 GroominMobile 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 facilityMaintenance –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 betweenDiagnostics – Including: Electrical, Electronic Systems, Computer, Emissions, Controls, etc.General – Including: Domestic and Import, Gas or Diesel, Off-RoadMisc 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 – $302,500Multiple unit development: $473,600 – $1,210,000Net worth: $750,000+ units: 5Working capital: $50,000 – $120,000Franchise Fee: $35,000 per unit minimum 4Minimum Market size: 300,000 Minimum PopulationAverage # of employees: 6-10 to startYear Started: 1928Operating units: 5 (company owned)Printed earnings claim: YES (Unit revenue ranging from $900k to $2.2mm)Passive ownership: Management OwnershipStates, not in or sold out: All states availableCommission to Murphy Broker: $33.600 – $84,000

Additional Potential Concepts• Medical Billing

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

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

• Children's Fitness/Education/Swimming– 6 units open (8 more in development)– In Biz since 1991, Franchised since 2006– $300k to $570k Total Unit Investment (Regional Development Available)

Additional Potential Concepts• LED Retrofit/New Fit Lighting for Commercial / Residential Real

Estate– Multiple Investment Models available

– Unit Investment ranges from $20k to $260k

– Regional Development Available

• Garage Door Installations– Nationwide Locations – Select Territories Available– Ranked in Entrepreneur Top 500– Investment Ranges from $56k to $513k

• Quick-Service Restaurant– Founded biz in 1926, Franchised in 1928

– Multiple Unit Models Available starting at $165k+

– Regional Development Available

PowerHouse FranchisingElza Gennicks - egennicks@phfranchising.com

www.powerhousefranchising.com

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