Welcome to the PowerHouse Franchising

Overview of …

Regional / Area Development Opportunities

The Best Option for Long-Term Security in Franchising

U.S. Franchise Levels

•Single Unit

•Multiple Unit

•Area Developer

•Regional Developer

•Master (Originally International)

Qualifications of a Regional / Area Developer

1) VISIONARY- Wants to be FIRST in the market / Appreciates Emerging Opportunity

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 (Altruistic)

5) Available time OR Available Infrastructure to manage

The Right Person for Us?

BusinessVisionary

Management Experience

TEAM Builder / Coach

Job Duties of a Regional Developer (RD)

1) Open a Pilot Unit (Show Case)

2) Build a Real Estate Team

3) Recruit Franchisees

4) Take over In-Market Training

5) Coordinate Local Co-op advertising in Region

6) 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 / Leases (if applicable)

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

The Due Diligence Process After Referral:

1) Information Gathering (reciprocal)•Marketing Packet

•Application

•FDD Review

2) System Verification•Validation Calls

•Corporate Conference Calls

The Due Diligence Process After Referral (cont.):

3) Discovery Day / Corporate Visit•Break Bread

•Site(s) Visit

4) Agreements•Entity Set Up

•Franchise Counsel

•Funding Particulars

How We Pick Our FranchisorsWE complete the exact same due diligence

process that your candidates do!

•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?

2 Concepts:-ActiveRX Rehabilitation, Wellness/Fitness

-Lady Bug “Eco-Friendly” Pest Control

Current Portfolio:

ActiveRX Rehabilitation

About ActiveRX:• 4 Years old Business Model based on decades of

research

• New opportunity for the 65 and older population

• Prescribed Fitness / Rehabilitation paid by insurance

• Wellness-Oriented Rehabilitation for the second-fifty

• Cash-Cash Based Wellness Membership Model

• Medically-Supervised Fitness Programs

ActiveRX Rehabilitation

Purchase Points:• Founders are the Innovators of the Industry• Services that rapidly growing 65+ population• Medically-Supervised Fitness means, Insurance based Collections• Proprietary Technology and Marketing systems to maximize

franchisee growth and ROI• Proprietary Geriatric-Based Programs• Recurring-Revenue model in Wellness• Board of Directors with members that are the “Who’s Who in the

Medical World”

ActiveRX Rehabilitation

• Unit Invest:– $49,000 Fran Fee

– $125,000 Total

– 7% Royalty

– Pilot Unit $75k for RD

• RD Invest:– $110 - $400k Fee

– $150,000+ Working Cap

• Available:– RD’s First

– Registering in ALL States

• Unit Numbers:– $500,000 Avg. Gross

– 25-30% Avg. net

– 2 Franchisees (AZ)

– 5 in LA signed

– 2 Corp Units (AZ)

• RD Numbers:– 50/50 Split Fran Fee

– 50/50 Split Royalty

– RD’s in CO, Dallas, MI

– Coming Soon Tampa, OC, San Diego, Puerto Rico, Chicago

Lady Bug “Eco-Friendly” 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. The ONLY leader in 100% Green!

• National and local awards for service excellence.• “Secret Sauce” is application methods of Green

products

Lady Bug “Eco-Friendly” Pest

Control

Purchase Points:• Extensive training and support for 6 months• Founder was National Sales-Training manager for a couple

of the big Companies• An environmentally friendly product to customers and the

environment.• Word of mouth referrals reinforce outstanding service.• Purchasing power increases margins and gives competitive

advantage.• Competitive Market pricing and stellar service

Lady Bug “Eco-Friendly” Pest

Control• Unit Invest:

– $30,000 Fran Fee

– $65,000 Total

– 10 / 7% Royalty

– $10,000 Working Capital

– Pilot Unit $35,000

• RD Invest:– $90 - $300k Fee

– $100,000+ Working Cap

• Available:– RD’s First

– Registering in ALL States

• Unit Numbers:– $200,000 Avg. Gross

– 65% Avg. net

– 22 Franchisees

– 2 Corp Units

• RD Numbers:– 50/50 Split Fran Fee

– 50/50 Split Royalty

– Seeding New Zees

– 3 RD’s in Southern FL

Where to Go from Here?

• Pre-Register Your Candidates

• FULL Application Form (At least a single pager to start)– NOT just a name and Number from the Internet

• Closing Ratio Severely affected by dual participation

PowerHouse FranchisingElza Gennicks - egennicks@phfranchising.com

www.powerhousefranchising.com

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