2. Welcome to the PowerHouse Franchising Overview of … Regional / Area Development Opportunities The Best Option for Long-Term Security in Franchising

3. U.S. Franchise Levels Single Unit Multiple Unit Area Developer Regional Developer Master (Originally International)

4. 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

5. The Right Person for Us? Business Visionary Management Experience

6. TEAM Builder / Coach

7. 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”

8. 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)

9. The Due Diligence Process After Referral: 1) Information Gathering (reciprocal) Marketing Packet Application FDD Review 2) System Verification Validation Calls Corporate Conference Calls

10. 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

11. How We Pick Our Franchisors WE 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?

12. 2 Concepts: -ActiveRX Rehabilitation, Wellness/Fitness -Lady Bug “Eco-Friendly” Pest Control Current Portfolio:

13. 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

14. 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”

15. 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

16. 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

17. 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

18. 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

19. 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

20. PowerHouse Franchising Elza Gennicks - egennicks @phfranchising.comegennicks www.powerhousefranchising.com www.powerhousefranchising.com Phone: 480-850-0100 Fax: 480-287-8801