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About Us Welcome! We are a highly specialized, first-of-its-kind strategic advisory firm providing first-time entrepreneurs comprehensive small business consultancy services. Our experienced Strategic Advisors represent our clients’ best interests while guiding them through our three distinct phases of decision making, research sourcing, analysis, planning and execution. Lifestyle LAUNCH Income, Equity, Lifestyle, Retirement HOW to Get Started? PLANNING & EXECUTION Legal • Real Estate • Funding • Accounting WHAT Business Format? RESEARCH, SOURCING & ANALYSIS WHY Self-Employment? New Business • Franchise • Existing Business Independent • Franchise Resale • Business Opportunity 7-STEP DECISION-MAKING CERTIFICATION 2 THERE IS A BUSINESS FOR YOU

Mission, Core Values and Principles Our Mission: To increase the probability of long-term success by matching entrepreneurs to the right business. Core Values: Trust Providing client-first representation through unbiased, ethical, strategic consultancy. Mindfulness Helping to connect on a deeper state of personal awareness, openness and focus to control emotions, which strengthens a clear vocational decision-making process. Empowerment Empowering our clients by identifying, clarifying and connecting with their personal values, talents and interests, which is a reflection of what is most important in our clients’ hearts. Committed Actions Analytically guiding our clients to take the right action at the right time, supported and motivated by our clients’ values, priorities and life circumstances. Guiding Principles: ▪ The realization and understanding that each client is making a life-changing decision to invest substantial resources into achieving their emotional and financial dreams. ▪ To make our strategic advisory services an educational, fun and pleasant experience for our clients. ▪ To uphold and adhere to our corporate values, priorities, strategies and processes at all costs. ▪ To respect and implement our strategic advisory processes with consistent execution, a sense of urgency and fierce attention to detail for each client without taking shortcuts. ▪ To maintain the highest standard of transparency and first-hand communication. ▪ To develop emotionally fulfilling relationships with our clients that promote friendly, caring and trustworthy experiences. We believe wholeheartedly that: ▪ Our clients’ interests are our fiduciary duty and responsibility; ▪ Our clients must feel they are number one – at all times; TIABFY.COM 3

Who is Our Client? Millennials 20-30 years of age at some point during their lives, our parents dream of owning their own business. These individuals may have completed high school, vocational school, junior college, university or higher education but are Each of our childhood experiences shape our personal frustrated because they feel they have nowhere to go. After expectations of our career goals. Whether or not you attend the hard work of completing a degree or learning a trade, college, we can, in some cases, undermine the raw creativity they feel they have no control over their destiny. They see no of lifelong entrepreneurs and eventual business owners. The alternatives other than to work for “corporate America,” with expectation is to interview, hit the ground running and climb no end in sight until that gold watch at retirement in 30 years. the corporate ladder even when, by nature, you may possess They understand early in their career that they may never an entrepreneurial DNA gene. High school, junior college become wealthy being employed by a company, but they do and college graduates have this preconceived notion that not see any viable alternatives. If their parents were gain- they cannot afford to start a new business venture upon their fully employed, once they’ve completed their education, it is graduation. There are actually hundreds of low-cost business expected for them to seek a job working for a company rather ideas and funding sources that will enable you to start your than pursue self-employment. own business. You do not have to keep your life’s dream in a briefcase. You can start today, and if you search deep into your With today’s education system, a college degree doesn’t childhood, you can find your burning desire. always mean that the graduate is the cream of the crop. There are many young individuals with a high school diploma who The Wannapreneur 31 to 40 years of age are doing well in small businesses. Maybe they do not feel they have the same opportunities as college graduates, so The largest segment of potential entrepreneurs consists of they try harder, or maybe they just feel they don’t have any- individuals who may be dissatisfied with their lives and want thing to lose. They are running successful, if not very lucrative, to do something about it. These individuals may also be at a small businesses. These people, too, would like to find ways to transition point in their lives at which they have an immediate do significantly better financially. need to earn income, or maybe they’ve always had a desire to own their own business. There is a wide variety of people “I don’t know what I want to do with who fall within this segment of the population, including cur- the rest of my life.” rent entrepreneurs, husband and wife teams, stay-at-home parents, investors and partnerships. Additionally, there are As we reflect on our childhood, we have observed behavioral individuals who would like to supplement transition or manage patterns from our parents. Often we see and hear the discon- a new business until they are in a position to break away to be tent of our parents’ careers in their voices and behaviors. We a full-time owner/operator. These are individuals who have a feel their sense of helplessness while they are desperately try- passion for and dream about self-employment, but have never ing to find more meaning and purpose in their lives. After all, felt like they had the capital, confidence or ability to strike out 4 THERE IS A BUSINESS FOR YOU

on their own. Some will have a get-rich-quick mentality but ing momentum. It is very common in this early stage of your have been frustrated by their inability to match themselves marriage to receive unconditional support from your spouse.  to the right business to achieve their financial dreams. These individuals may be hopeful yet very cautious as they have In the back of your mind, you are questioning the timing, finally saved enough capital to consider entrepreneurship as a investment and effort required to break out on your own. You career alternative. are walking toward your fear with a relentless pursuit, and yet six major questions remain completely unanswered: This category includes a successful entrepreneur who is seek- ing to expand their portfolio of businesses; a passive investor 1. Do I launch a new business idea, franchise or inde- who will invest capital for equity or debt to secure a return pendent business or purchase an existing business on their investment; an individual who has won the lottery or (each with advantages and disadvantages)?  a court settlement; or one who is receiving gift money from friends or family. These investors want to invest capital into a 2. What business type is most suitable for me (e.g., business as opposed to the stock market, real estate or mutual retail, service-retail, mobile, kiosk, manufactur- funds as a potentially safer alternative investment.. ing, distribution, consulting, business-to-business, home-based, business-to-consumer or business-to- “Still young enough and can afford to government)? make mistakes... wrong.” 3. What industry will align with my passion and During the last 10 years of your professional life, in the pro- purpose? cess of being gainfully employed, you have been learning your likes and dislikes about small, medium and large private, public 4. What is the maximum initial capital I should invest and government enterprises. Most likely, you have had up as a percentage formula of my unique composition to three jobs and multiple middle managers and supervisors. of net worth? There may be an entrepreneurial burning fire within, and you are still young and can afford to take new and calculated risks. 5. How do I transition from my career employment and The great American dream is within your grasp, and you are income into a new business venture without start- young enough to seize this opportunity.  ing out from behind? Do I supplement, transition, replace or completely break away (each with subtle Life’s priorities are gradually shifting to more secure, stable and differences)? permanent life choices, including getting married and purchas- ing your first home. Having children may be right around the 6. Most importantly, how do I gain the support of my corner as well. You are in a “catch 22” with your perceived secu- spouse, family and investors, which is the founda- rity of full-time employment, including your salary, commission, tion to my long-term success? bonus and other health and retirement benefits. You are saving for your first home, and this desire to be your own boss is gain- The stress of these emotions and the excitement to achieve your self-employed goals can greatly contribute to increased anxiety and the importance of protecting yourself from decision-making vulnerability. It is essential to step back and acknowledge how important each of the six steps is to choos- ing the right business. With today’s education system, a college degree doesn’t always mean that the graduate is the cream of the crop. There are many young people with a high school diploma who are doing well in small businesses. TIABFY.COM 5

Outplaced Executive 40-50 years of age women can be a tug of war, while, in other cases, complete fi- nancial unity exists. You may be saving for a new business, pay- These are corporate individuals with a $200,000 to $1M+ net ing off your home early or saving for your children’s education worth who, for one reason or another, are no longer in the and a financially secure retirement. Financial setbacks are par workforce. Their positions may have been eliminated through for the course along life’s journey, whether they be in the stock a merger or acquisition, downsizing or a catastrophic event. market, real estate values or unforeseen health issues. They may have accepted an early buy-out, retired (voluntarily or otherwise) or left their corporate position due to circum- Emotional/Physical: Over many years, it all takes its toll! You stances related to travel, health or family. Their comfort with unselfishly offer your life to everybody else, and gradually you corporate security, including salaries, bonuses and retirement, can begin to feel less appreciated, which causes negativity to contribute to their cautionary nature when considering self- settle into almost every aspect of your life. The discipline to employment as a career alternative. This individual may not form healthy habits through mindful eating and regular exer- be willing to relocate to accept a new corporate position but cise becomes increasingly difficult. requires immediate income, or perhaps they have always had a quiet, burning fire to own their own business. During this new stage of your life, your life partner may be simultaneously experiencing these same feelings. It is this “It is the second half of my life, and I undercurrent that’s forming your life’s BIG tidal wave, and you need to do it now...” Stop! cannot see it coming until it is onshore. How you catch this wave and how you make stressful, life-changing decisions will In your mind, the first half of your career, the first 20-40 years, determine your ultimate destiny. You are at the highest point is over. You are entering a new and exciting transition point in of decision-making vulnerability, and you can either reclaim your personal and professional life. By now you have possibly your life’s dream by matching yourself to the right business experienced multiple jobs, careers and supervisors. You may or fade into a life of complacency, lower energy levels and, in have traveled extensively and relocated on several occasions. some cases, cycles of mood swings and depression. Launching You are becoming more aware of what role this stress is play- large during the second half of your life with a new successful ing in your relationship, your role as a parent and your overall business venture will become a great personal achievement.  emotional and physical health. During this natural course of climbing the corporate ladder, Picture yourself in this situation you are acquiring new leadership and management skills with the confidence necessary to start your own business. Mon- day morning meetings, reporting to unlikeable managers and working 60+ hours a week without appreciation is taking its toll. Your compensation is minimized by business decisions completely out of your control, including layoffs, downsiz- ing, increased competition and company buyouts. Corporate politics is tiresome. Meanwhile, for the last 20 years, your entrepreneurial fire has burned, yet your life circumstances have continuously prevented you from sinking your teeth into your own self-employed project. It is not uncommon to work for decades while experiencing the pain of disliking your job and boss and the continuous demand of travel and being away from your precious family. At the height of this personal dilem- ma, you are experiencing increased personal, marital, parental, financial and emotional/physical demands, as follows: Personal: Friendships are slowly drifting apart, and you are working to keep your parents, siblings and high school and col- lege friends within your grasp. Going to the movies or enjoying a round of golf is becoming increasingly difficult to schedule.  Marital: You have an overwhelming desire to remain healthy You’ve mentally made the decision to strike out and attempt something new for and connected with your spouse. However, your personal yourself, but your spouse is hesitant. What can be worse than being trapped in ambitions to achieve financial success – and the demands at a working situation in which you are commuting three hours a day in a pressure work – are causing undue stress on your marriage. cooker job with a boss you don’t like, in an industry you are not really excited about and an income level that does not allow you to get ahead financially? Parental: Your children are swiftly growing from infancy to Imagine if you were in this difficult situation. their early teens before you realize how unconnected you are emotionally and what little time is left.  Financial: Like all young couples, financial priorities for men and 6 THERE IS A BUSINESS FOR YOU

Senior Executive 50 to 65 years of age ships, taxation, franchising or government laws. Often, there is a language barrier that limits opportunities, even though these “A goal is a dream with a deadline” ... individuals are highly ambitious with a work ethic to make Act now with caution! almost any business profitable.  Time is running out! There is an urgency to you realizing that, The Celebrity/Athlete if you do not act now, then you may never get another chance to capture the dream of owning your own business. When you This group consists of individuals who have enjoyed a career as turn 50, you acknowledge that there is not an endless amount a celebrity or athlete. They may have accumulated a substantial of time. There is a closing window of opportunity. During this net worth but have not amassed the level of fortune of a super- phase of your life, you may be experiencing an energizing re- star, a fortune that allows them to live off of their investments birth with your children grown, and you are entering an exciting indefinitely. Thus, they need to invest in opportunities that will phase of your life. You no longer have to listen to those unsup- allow them to continue to live the lifestyle to which they have portive friends and family who have second-guessed you “being grown accustomed. For this group, life was good while they your own boss.” You are at a fork in the road!  were on top of their game, but, when the career ended, they began to look for a new livelihood. Most will have had acting Seize opportunity and take responsibility! This is a time in your coaches or athletic coaches and agents to negotiate their con- life when doing what is comfortable may not be in your best interest. It is time to take a bold leap of faith in your- self! As we get older, we convince our- selves that we are too old to take risks because we have too much to lose. The best defense is a better offense. In fact, we are completely on top of our game. Many senior-level executives have had the luxury of having adminis- trative assistants and managing other people’s work. Your number one goal is to internalize that your limitations are only the five inches between your ears, and overcoming fear is completely within your grasp. If you believe it, you will achieve it!  Today, we approach 50 in a very differ- tracts. But most will not have had a business or entrepreneurial ent way. You are thinking about how coach who looks out for their best interests on what business or you are going to make things happen career they would be best suited for. They are now in transi- for the rest of your life. The idea of tion to an arena in which they are no longer masters. They are coming to a screeching halt in your in conflict, however, because they are skeptical, perhaps even 60s is considered an old way of play- cynical, about those wanting to help them. ing the game. You are in play and at the peak of your career, and launching a new business is more common than not. Our By this time in their career, they have been given poor society is completely redefining the concept of retiring at 65. investment advice, invested in small businesses without It doesn’t make sense anymore. By taking care of yourself, ex- returns and they have had literally every business oppor- ercising and being mindful of what you eat, there is no reason tunity in the world presented to them. Through a natural why you cannot be totally energized and productive well into process of life’s mistakes and over a 10-year period follow- your 70s and beyond. If you plan on retiring at 65, you can po- ing retirement, their net worth may have declined as much tentially have 20 or even 30 years left to live. That is decades as 50%. They are willing to invest good money for help and, in which you are going to have to figure out how you are going in most cases, are extremely coachable. Unfortunately, they to stay engaged. are introduced only to investments versus self-employment opportunities or career strategies. United States Immigrants These individuals may have relocated to the United States seeking entrepreneurial opportunities. They often get frustrat- ed due to a lack of understanding of laws and customs or the various aspects of sole proprietorships, corporations, partner- TIABFY.COM 7

01 02 03 0 Getting It Right Passion vs. Profit Business Why Format Choices Entrep PHASE 1: 7-Step Decision-Making Certification Program The following 7 steps will ensure that the business you choose motives of owning a successful business. When you find your maximizes your annual income and business equity, improves true passion, which includes talent, interests and experi- your overall lifestyle and prepares you for a healthy retirement. ences, you have found your vocation, which is a much deeper Making the wrong decision is too costly in terms of time and commitment than just owning a business. It becomes virtually money, and often hard to recover from. This model offers you a impossible to ever give up. logical, structured and intuitive method of decision-making. 3 Business Format Choices Prior to this major life decision, you must determine what per- centage of your overall success and profitability will be a result When you determine self-employment is the right career of matching yourself to the right business. path for you, the next decision is more critical in nature. The important point is to understand the major differences between 1 How do I get it right the first time? a new business idea, independent business, local existing busi- ness, franchise and franchise resale and how you will match to You must make the decision not to allow your emotions, cir- the advantages and disadvantages of each business format. A cumstances and vulnerability to control your decision-making maverick entrepreneur will not want to purchase a franchise; it process but, rather, your decision-making process to control requires a unique personality to launch a new business idea as your emotions, circumstances and vulnerability. You need to you are taking nothing and turning it into something. You can make a commitment to follow each step. successfully achieve a good decision on the other six decisions. However, the right jockey on the wrong horse greatly increases 2 Passion vs. Profit your odds of business failure before you break out of the gate. Each of us has natural talents, personal interests and experi- Timeout: The main reason there should be a serious break ences from our past. These are the components that define in your decision-making process is to highlight the shift from our passion. Looking at each component separately and ana- decisions that are related to your own unique personal char- lyzing them with a high degree of self-examination will assist acteristics to the required working capital, management and you in discovering your authentic self without compromising marketing components of the businesses you are research- any aspect of who you have become. Remember, your choices ing. The key is to separate your self-discovery from the type are who you are, and being honest with yourself plants a seed of business you think you want to own, based on your own that will bear healthy fruit. Once your passion is confirmed, emotions, but not the reality of what it will take to succeed you will begin to unite this discovery with well-intended profit in the type of business you select. The three most common 8 THERE IS A BUSINESS FOR YOU

4 05 06 07yan Marketing “Get It” Factor preneur Working Management/ Business Type Capital Needed mistakes are: (1) investing too much of your total net worth ing, sales, operations, customer service, employee develop- into a business, depleting working capital; (2) misaligning your ment and financial functions of your business. An honest ap- personality and realistic management experience; and (3) not praisal of both your personality traits and real life management properly matching your real personality (hunter vs. gatherer) to experience is essential to matching yourself to a business you the required marketing DNA of the business. are confident you can successfully manage. Being aware of who you are and what management skills you have developed 4 Why an Entrepreneur will prevent you from reaching your emotional and managerial level of incompetence... before you decide on what business is Determining why you want to be self-employed and how right for you. suited you are to being self-employed versus having a career is the next logical decision. Why do you want to be self- 7 Marketing “Get It” Factor employed (motive)? Do you have what it takes (personality)? If you are aware of the necessary behavioral character traits, The “get it factor” in business is simple! You must gener- and you can confirm without question that you have the ate $1.00 of revenue before you can administer $1.00 of proper motive and skill sets, you are prepared to move to the expenses. This takes the mystery away from what is most next decision. important and makes marketing the “get it factor” to a successful business. However, if your personality does not 5 Working Capital Needed match the required marketing DNA of the business you are researching, you can do everything right and still fail. You will only begin to make money when you protect work- ing capital. Businesses fail because of too little working capital. No Creation of Agency/Fiduciary Relationship: Any informa- Unfortunately, it is the four decisions that you make before you tion provided by, or discussion with, our client (or any subsidiary) select the right business that affects the amount of working regarding researching, sourcing, analyzing or acquiring should capital your business will need to succeed. not be considered, nor is it intended to be, any form of legal, real estate, brokerage or financial services in any manner and is for 6 Management/Business Type informational purposes only. Unless a fully executed broker agency agreement is in place with our company or affiliate, any such Businesses live and die on leadership and management. You information exchanged and/or conversations are not intended to, must position yourself to excel in the management of market- nor does it, create a fiduciary or other intended similar relation- ship with our company or any subsidiary. TIABFY.COM 9

PHASE 2: Research, Sourcing, Analysis & Acquisition Research, Sourcing, Analysis & Acquisition in the event an independent business is a conclusion within the decision-making process. Ironically, many potential entre- Matching yourself to the right business format (see below) preneurs are not aware of independent business formats that is essential to increasing the probability of your long-term can yield the lowest investments with long-term, profitable sustainability and profitability. We utilize the analogies of “the self-employment careers. For example, a friend of yours owns right jockey on the right horse” (success) and “the right jockey a local mattress store and has been successful for 15 years in on the wrong horse” (failure). Getting this business format your local market. Their store generates $750,000 in annual decision right has the highest risk/reward ratio. In Step 4 of revenues, earning 20% (or approximately $150,000) in profit. our decision-making program, we will conclude which business A mattress store has less than a $50,000 start-up cost/sales format matches your criteria. process and an outsourced delivery system. You may have multiple options, including being an Owner Operator, Manage New Business Idea the Manager or Investor (hiring a key family member or friend as the operator of the business). Your friend may agree to ac- Very often, a potential entrepreneur will have a fantastic idea cept an affordable consulting fee to train you on the business (“dream in a briefcase”). These ideas can be extremely low or onsite under the legal condition that you open your mattress high cost investments with major financial upside or potential store 10 miles away from their mattress store. downside risk. Many of the best product or service ideas are underestimated and are not properly analyzed prior to mak- Franchise Business Format ing this decision. However, our senior business strategist will provide a deeper insight into the necessary steps to explore There are many well-known attributes of a proven and tested feasibility, funding, business plan development, strategic and franchise business model that can provide superior entre- operating plan development and your financial pro formas to preneurial opportunities to pursue. However, because the identify your breakeven point and profitability. franchise industry has a sales culture to call, text, call, “let’s do a personality test and interview you before we award you Local Existing Business (for sale) a franchise,” there are equally as many secret negatives that emotional first-time franchise buyers knowingly and stub- This represents immediate cash flows and income, often at a bornly resist hearing, seeing and calculating prior to investing purchase price less than starting a new or franchise business. their life savings in a franchise business. Generally, there is an initial perception that the purchase price of a local existing business for sale is too high, or the business This starts with: must be failing if they are selling. Should your decision-making process identify that you are a candidate in need of immedi- 1. Knowing how a franchise is sold (refined franchise ate family income, there is tremendous value to exploring the sales executives, third-party brokers and a highly comparable opportunities that may or may not exist. Our se- compensated, refined, nationwide referral consul- nior business strategist will be taking into account all aspects tancy system) of your previously completed decision-making criteria to be certain you are not overlooking what may be a perfect match 2. Unknown mistakes in purchasing as a first-time and unique opportunity within your local market for far less franchisee capital invested, better financing terms and more immediate and higher income by sidestepping what can be a longer ramp- 3. Annual franchisee turnover rates up of a start-up business. Often, tremendous local businesses with the “wrong jockey,” improperly matched, provide for our ▪ Cumulative franchisee attrition client, as Warren Buffet would say, a good business with the most value at a fair price. ▪ Franchisee success and failure rates compared to independent businesses over a 5-year period Independent Business ▪ Non-exclusive territory We have researched and identified over 1,000 unique indus- tries and business classification opportunities to select from, 4. Franchisor stability, profit and litigation 5. Franchisor balance sheet (stability) 6. Franchisee annual income and profitability ▪ Royalty does not cover the monthly operating expenses of a franchisor ▪ Franchisee leaving systems: resales ▪ Franchisor failure rates and class action lawsuits 10 THERE IS A BUSINESS FOR YOU

▪ 70% of all U.S. franchisors have fewer than 50 Business Opportunities operating units. There are hundreds of unique lower-cost business opportuni- ▪ The majority of these franchise systems will oper- ate fewer than 30 units throughout the life of ties throughout the United States. These investments can range their business. from as low as $2,500 up to $20,000 to start the business. ▪ Less than 10% of all franchisors will ever have more than 100 operating units within their sys- Occasionally, a larger investment can reach up to $50,000 to tem nationwide. $100,000. These unique self-employed options can surpris- It is also a known financial fact that, in some of the largest and most well-known franchise systems, a franchisee will make less ingly generate high levels of annual income and are frequently than $60,000 a year and will be required to perform fast sched- ules of development to open more units, making large capital overlooked within the research phase by new, first-time entre- investments in the process. This can include location leases and equipment purchases to own multiple units to achieve a six- preneurs (see example below). Our strategists, working closely figure income, yielding a very high risk/reward ratio. with our clients in this research, sourcing and discovery phase, A smaller franchise system with lower start-up capital, minimal overhead and higher natural net profit, which is not driven by will explore and strategize together on the potential acquisition how many franchises they sell monthly, can sometimes provide a greater return on investment with a higher quality business model. of this type of niched business format. Below are the four main This has the highest potential of lower start-up costs, higher profit- ability and annual income and more affordable area development reasons these opportunities go unnoticed: programs to yield higher incomes. In franchising, bigger does not necessarily mean better. In fact, you may be buying a job. 1. These types of business formats are not utilizing or requiring use of a standard trade name. There are no Typically, a franchisor will charge his franchisee a 6% royalty national brand names associated with these invest- with 1% to 2% in a marketing/technology fee, which calculates ment opportunities and few media, directories or to approximately 33% of the net operating profit of the busi- industry associations to provide access to discovery. ness. For example, if your business generates $100,000 a year These opportunities sell and lease various types of and yields 20% net profit, you, as the franchisee, will pay the products, solutions and equipment (sometimes im- franchisor 7% royalty on the $100,000. This would equate to ported from other countries) to provide new entre- $7,000 (35% of the $20,000) in profit. preneurs with local services for residential, commer- cial and public customer bases. In conclusion, there are up to 20 different competing franchi- sors in each industry segment, all with similar yet slightly differ- 2. Similar to franchise regulations, there are very strin- ent business models and points of difference. This gives you, as gent, federal and state business opportunity laws the candidate, a much greater opportunity to screen all of the that regulate the marketing and sales to statewide available franchise concepts that you’re most qualified for and consumers under deceptive state consumer and busi- interested in learning about and operating. Our senior business ness opportunity laws. strategist will identify many more industry specific franchise opportunities to assist you in the evaluation process. 3. It is not economically feasible to hire sales execu- tives, consultants and brokers, simply because the initial investment fee or equipment cost is too low to cover the cost of marketing to excite entrepreneurs and compensate sales professionals while still earn- ing a profit for the owner (founder) of the business opportunity. Thus, the founder is usually promoting and selling their unique opportunity and equipment while providing initial basic training on how to oper- ate the equipment. As the owner, you are then on your own without any substantial training, support or financial expectations from either party, other than repurchasing ongoing product, solutions or equip- ment from the founder. TIABFY.COM 11

Franchise Resales There are hundreds of unique lower-cost With over 3,500 registered operating franchisors in the business opportunities throughout the United States, each franchise system will have a normal bell United States. These investments can curve of franchise operators. Regardless of the franchise range from as low as $2,500 up to $20,000 system (e.g., McDonald’s, Subway or Taco Bell), 20% repre- to start the business. sent the higher annual revenue-producing franchisees, 60% represent the average productivity of revenue of franchisees, 4. Often, founders will convert their business oppor- and 20% are the lowest annual revenue-producing franchi- tunity legally to a franchise format (requiring the sees. Within the franchise industry, it is common knowledge operator to use the trade name and logo) because of that all franchisors have a 20/60/20 or 33/33/33 rule of the same requirements to prepare sales disclosure franchisee operational performance. documents and register with the state. This allows their company to collect an ongoing weekly royalty as In almost all cases, the lower 33% represents the franchisees well as marketing and technology fees on the franchi- who are not achieving economic viability in terms of annual see sales revenue and sell private-label products to its income, business equity, intended lifestyle or the security franchisees. Additionally, there is added equity in the of retirement savings. They are simply holding onto their intellectual assets of the trade name growing as a re- entrepreneurial dream, sometimes to the detriment of their gional or national brand. This provides a franchisor the personal and families’ emotional and financial well-being. Our opportunity to build a family legacy brand, go public or strategists will skillfully assist our clients in researching and grow into an acquisition target. The exit value is much sourcing these potential value propositions that are, for the greater as a franchisor versus a business opportunity. reasons described below, rarely presented or made available As a business opportunity, the founder has nothing to a first-time franchisee. Purchasing a successful or failing for an acquirer to purchase except the right to sell the franchisee’s business with proper due diligence (e.g., utilizing a same product, solution or equipment. high-caliber CPA and attorney) can often represent immediate annual income while sidestepping the rigorous start-up stage. Example business opportunity: a founder (former framing It is not unusual to purchase an existing franchisee’s business contractor) has developed and is generating $1,000,000 in (who just wants out) at depreciated asset values or as low as annual revenue within a home-based business model with a 30 cents on the dollar. This is a win/win as a new franchisee mini storage space rented in close proximity to their home. ignites interest, passion, capital and training to kick-start the They utilized their equity line of credit to purchase up to struggling franchise business. $40,000 worth of temporary modular walls from an equip- ment manufacturer. They approached general construction A franchisor may be extending tremendous human resource builders performing jobs who needed to temporarily relocate costs in training, supporting and troubleshooting this fran- employees, as well as hospitals in need of more flexible office chisee with marginal franchisee improvement. Very often, it spacing, new sanitation spaces or patient rooms. They also will not be the business model that is a failure, but something contacted various schools, corporations, libraries and govern- uncontrollable for the franchisee within their personal or ment organizations that may need to expand by renting and entrepreneurial life that is causing their interests to change, installing new rooms or offices for various purposes. There is including: an installation and removal fee and monthly rental payment for the use of these temporary wall systems. You would be ▪ limited time availability ▪ divorce hard pressed to identify any franchise offering this unique service, yet this hidden entrepreneur has $50,000 a month in ▪ declining spousal support ▪ career residual rental income and $50,000 a month in installation and removal revenue. It is a husband and wife team with a brother- ▪ depleted working capital ▪ too much effort in-law making sales calls. The annual revenue and low monthly overhead provide unusually high profit ratios. These are the ▪ personal finances ▪ executive relocation hidden gems our strategists will explore with our clients. ▪ family issues ▪ or simply depleted passion In addition, current fluctuations of the local or national econo- my affecting employee and customer acquisition negatively af- fect this outcome. It should also be known that every individual has the right to succeed or fail and should not be judged for any outcome to their personal investment of effort. Through no fault of anyone, the franchisee, in this particular case of the initial decision-making process, matched well to enter this franchise system, yet, like all events in the future that come with uncertainty, the outcome was uncontrollable. In another less positive case, the franchisee was improperly matched, learning after the fact that they were admittedly too 12 THERE IS A BUSINESS FOR YOU

eager, excited or overconfident and made a quick “gut instinct” will suggest that the franchisee seek to sell their franchise (e.g., decision when they innocently defended their feelings that assets, limited cash flow or losses) to a new well-capitalized there are no coincidences in life. While these unconscious franchisee and transfer the remaining franchise agreement term feelings may be true, they may not relate to verification of (usually 7-8 years) to release the franchisee from their obliga- evidence and facts. Subsequently, effective decision-making tions. While this is a favorable and exciting option for a franchi- processes were absent as this individual fell upon a franchise see, franchisors do not make any money on resales other than a concept as a customer or through a Google search or trade transfer fee, which is the cost of marketing, selling, retraining and show, only to meet a seasoned, motivated, likable franchise legal services involved in transferring the franchise agreement. sales person, or a franchise referral broker who is motivated Regardless, if a very successful franchisee would like to sell their to make the sale for their company’s growth and personal franchise, or a struggling franchisee wants to quickly exit their commission. There is less interest in protecting the emotional- business, the internal franchise sales departments don’t make ity and vulnerability of a first-time franchisee making a major any commission to speak of and are not motivated to conduct a life decision. Through no fault of the first-time franchisee or strenuous transaction over a prolonged period of time. excited sales person, both parties agreed to fast-track an emo- tional, intuitive decision within 6 weeks to attend a corporate No Creation of Agency/Fiduciary Relationship: Any information discovery day, secure funding and sign a franchise agreement provided by, or discussion with, our client (or any subsidiary) so they could make the next new franchisee certification class. regarding researching, sourcing, analyzing or acquiring should not be considered, nor is it intended to be, any form of legal, In both cases, the struggling franchisee places a telephone real estate, brokerage or financial services in any manner and call asking their franchisor for royalty and marketing fee relief is for informational purposes only. Unless a fully executed bro- while asking how they can transition out of the franchise busi- ker agency agreement is in place with our company or affiliate, ness with the current legal, lease, loan, employee, customer any such information exchanged and/or conversations are not and vendor obligations that exist. intended to, nor does it, create a fiduciary or other intended similar relationship with our company or any subsidiary. A franchisor on the receiving end of this telephone call has exhausted all of their resources to save this franchisee – and TIABFY.COM 13

PHASE 3: Planning & Execution Business Preparation Independent Business and Business Opportunities: If it is determined to pursue an independent or business opportunity Upon completion of phase 2, which determines which busi- business format, our strategic advisors will assist and coor- ness format is most suitable for your circumstances, our dinate the research, sourcing and analyzing of the particular strategic advisors will provide invaluable consulting and aspects of the selected business model. It will be essential to placement services to assist you in identifying what type of prepare a business plan with financial proformas within these research and planning documents will provide you with the unique but potentially very rewarding entrepreneurial endeav- proper foundation to understand all aspects of the business ors. By definition, they fall in-between a new business idea you will be launching. (less proven/tested) and a franchise (proven and tested) and require more attention to detail with initial understanding of: New Business Idea: If it is determined that you’ll be pursuing a the industry, logistics, competitors, suppliers, customer seg- new entrepreneurial business idea, while there are shortcuts, ments, marketing, capital requirements, sales, pricing models, it is generally wise to consider an initial feasibility test: write a and financial performance. business plan and a strategic and operational execution plan (including the start-up capital and financial performance of Real Estate Services the business). Reverse engineering the financial results of your new business idea can often save you the heartache of two We partner with a best-of-class, full-service national firm years of passion and financial loss by investing the proper time specializing in franchising, non-franchising and corporate and money into planning documents. commercial real estate. The success of location-based busi- nesses are reliant upon the highest quality location and lowest Local Existing Business (for sale): This can offer immediate start-up and monthly occupancy costs. A comprehensive and cash flow and income, sidestepping the initial first year of systematic process of location Site Search (shortlisting and start-up challenges. Our strategic advisors will provide private walkthroughs), Financial Negotiation, Letter of Intent prepara- third-party buyer representation services to research, source tion, Counter-Negotiation and Legal Review is available on an and analyze the local existing businesses for sales opportuni- as-needed basis. ties. Conducting research and gathering the right information will greatly assist in the initial determination of the business Upon execution of a signed lease contract, pre-construction viability of the initial price and opportunity. Depending on the management services are available to source local architects, findings, your local transaction will then be transitioned to engineers and general contractors to provide our clients your CPA and attorney to complete due diligence (e.g., assets/ with the proper floor plan designs, mechanical, electrical and liabilities, profit/loss) and draft purchase agreements. plumbing (MEP) and other concept specifications needed to secure an expedited construction permit. Franchise (Purchase): Contrary to popular belief, due diligence can lead to the highest yet riskiest opportunities. As allur- Upon receipt of permit, four (4) general contractors will be ing as a franchise purchase can be, there are many cultural, sourced, interviewed and selected to compete with hard bid operational, financial and legal factors that must be assessed pricing. This disciplined and systematic approach uncovers and evaluated by a usually highly emotional (vulnerable) hidden costs buried in low, medium and high price compari- candidate engaging with seasoned, “fast track” franchise sales sons on an “apples to apples” line-item spreadsheet, resulting and broker environments. With federal and state regulations in substantial cost savings. governing what can be financially disclosed by franchisors, our strategic advisors can not only assist in broadening the poten- In addition to the financial negotiation savings prior to your tial franchise brand selections with introductions according to lease signing, pre-construction, perfectly executed by our your phase 2 results but also provide decades of experience in experts, can offer substantial financial savings to prevent advising you on the details that often go overlooked by first- investing more than what was budgeted. These savings are a time franchisees, their CPAs and attorneys. When a first-time result of first-time mistakes, hard lessons and a lack of under- franchisee is emotional while making a major life decision, this standing or the availability of pre-construction services. The strategic guidance to assist in the preparation of organization- financial mistakes, overages and delays all occur before you al steps with highly detailed checklists and due diligence will even lift a hammer. remove buyer intuition, bias and hearing and seeing what your unconscious mind is determined to control. 14 THERE IS A BUSINESS FOR YOU

How to Get Started Congratulations on investing in the important steps to protect your amazing en- trepreneurial journey! Exploring self-employment as a career alternative is ulti- mately an exciting, intuitive, analytical and joyful experience. Yet, long-term fi- nancial goals can only be achieved with a disciplined commitment to avoiding the most common emotional decision-making mistakes. Stay 100% focused on matching yourself to the right business at all costs, even if it means you end up doing nothing! Step 1: Personal Acknowledgements It is vitally important to realistically acknowledge that owning my own business is not a guaranteed panacea of profit and success, but rather an opportunity to fulfill my income, equity, retirement and lifestyle dreams. I will execute the highest quality “see and prevent” decision-making strategies pri- or to my commitment while understanding that the uncertainty of future events beyond my control, will exist. Step 2: Make a Commitment to Invest in Yourself. You Deserve Success! The greatest gift you can give yourself is a real investment into personal and pro- fessional growth, which includes mentorship, consultants, a life coach, a coun- selor, a strategic advisor, a doctor, a personal trainer or athletic or vocational de- velopment and coaching. Step 3: Schedule Your Initial Consultation Our dedicated strategic advisors and senior business analysts will first seek to listen and understand. We will provide you with the foundation and guardrails needed to support your intuition and desires with one mission: to offer insight and structure so that you have the greatest opportunity to match yourself to a sustain- able entrepreneurial vocation, not just a business. “Success Is Maximized Before You Get Started, by Matching Yourself to the Right Business” TIABFY.COM 15

16 THERE IS A BUSINESS FOR YOU