Innovative Candidate Financing

Solutions Through Technology

Evolution of Franchise Financing

Welcome

www.FranEquity.com

FranEquitySM

Building Qualified Partnerships

Introduction

FranEquity has developed a financing platform that connects under financed candidates, angel investors, existing operators, 401k and debt lenders and aggregates their capital resources so they may create an Investment Group and purchase a franchise as a corporation. Essentially, finance dating for entrepreneurs and investors.

The platform enables your candidates to raise enough capital to either purchase a franchise outright or use their combined equity to finance a percentage of the business utilizing traditional debt financing options.

FranEquity acts as a CRM tool where you will be able to register, manage and track your under financed candidates and their financing progress.

The platform is Success Based, meaning there is only upside by implementing the platform. We provide your organization with a custom micro-website and are only compensated in the event that a franchise is successfully sold through the platform.

FranEquitySM

Building Qualified Partnerships

Our proprietary Financing Introduction Platform enables under financed candidates and operators to seamlessly create investment groups that will attract a variety of financing options which may result in the development of well capitalized investment groups.

Financing Platform

Lender

EquityInvestment

Group

Candidate

401K

$$

Savings

Other

Purchase Franchise

Groups are eligible for debt financing based on a 50% equity to franchise value

Angel

Existing Operator

$

FranEquitySM

Building Qualified Partnerships

Types of Financing Found on FranEquity

New Operator <-> New Operator Partnership: Candidates meet like minded business people that wish to purchase the same franchise and pool their capital with them and either purchase a franchise with 100% equity or obtain a business loan once they have at least 50% of the equity needed pledged.

New Operator -> 401K or Debt Financing: Candidates Access capital from their 401K or retirement funds or obtain a business loan through our affiliates.

New Operator <-> Existing Operator Partnership: Candidates meet existing franchise operators and pool their capital with them and either purchase a franchise with 100% equity or obtain a business loan once they have at least 50% equity needed pledged.

Angel Investor -> New or Existing Operator: Candidates meet Angel Investors that are looking to be silent partners in a new franchise or interested in helping an existing franchisee expand into a new territory.

Private Equity Groups - > New Operators: Candidates meet Private Equity Groups that are seeking to purchase multiple units and seeking operators to run the units and be equity partners.

FranEquitySM

Building Qualified Partnerships

Your FranEquity Website

Upon licensing our technology, FranEquity will create and publish a custom website with a unique URL that will communicate to your candidates how the platform works, invite them to register for free and enable them to research your franchise and search open investment groups or create their own potential investment group.

If a candidate wishes to join or create their own group they will be required to create a Member Profile and accept the Terms of Use before utilizing the service.

FranEquitySM

Building Qualified Partnerships

How It Works For Candidates

1. Candidates create a Member Profile on your custom micro-website.

2. Candidates may then create or join an Investment Group around your franchise in a specific geographic location.

3. Once enough equity has been pledged or debt financing acquired, candidates undergo a verification process that includes a background, credit and reference check.

4. If the Members pass the verification, they are introduced to their potential partners, where they will undergo a mutual discovery and discuss the structure of the financing.

5. If the Members wish to move forward, they will negotiate shareholder and employment agreements and form company.

6. Partners then are introduced to you for a mutual discovery and discuss the purchase of your franchise.

Candidate

Create/Join An Investment

Group

FranEquity Platform

Total Capital Needed is Pledged

Partners Meet & Form

Corporation

Partners PurchaseFranchise

Under Financed Candidates Use The FranEquity Platform To Find Debt or Equity Financing

FranEquitySM

Building Qualified Partnerships

How Do Candidates Get Started?

Candidates log onto your FranEquity website and click on “Join Now” to create a Member Profile.

Franchisors FranEquity Website

FranEquitySM

Building Qualified Partnerships

How Candidates Register

To register on your FranEquity Website, candidates create a Member Profile by filling out the Registration Form that includes their professional and financial background and the amount of capital they currently have to pledge towards your franchise opportunity.

Registration Form

Member Profile Example

FranEquitySM

Building Qualified Partnerships

Candidates Account Login

Franchisors FranEquity Website

After a candidate has registered, the candidate will log into their Member Account to create or join a “Potential Investment Group” and start the process of finding capital or debt partners.

FranEquitySM

Building Qualified Partnerships

Member Account Dashboard

Once a candidate has logged in to their Member Account Dashboard, they will click on “Create Group” to create their own Potential Investment Group” or click on “Search Group” if they would like to look for existing opportunities that they can join.

How Candidates Create An Investment Group

FranEquitySM

Building Qualified Partnerships

Member Account

The candidate will then be directed to the Franchise Listing Page, where they will be required to select your franchise name from a drop down menu that will bring them to an overview of your franchise opportunity.

How Candidates Create An Investment Group

FranEquitySM

Building Qualified Partnerships

Member Account

Once the candidate has selected the franchise name from the drop down menu, they will be redirected to your franchise overview and will click on “Create a Group” button, which will bring them to the “Create a Group Form.”

How Candidates Create An Investment Group

FranEquitySM

Building Qualified Partnerships

To create a Potential Investment Group, candidates will be required to fill out information regarding their potential investment opportunity. The following is an explanation of the fields on the form:

Group Name: Creates a unique identifier for the group. IE: MyGroup

Amount To Invest: Candidate enters how much capital they currently have to put towards the franchise opportunity.

Min. Investment Per Partner: Candidate enters the amount of capital they need to launch the franchise.

Parentage of Margin: Candidate enters the percentage above or below the Min. Investment they are willing to accept.

Location information: This is the proposed location of the franchise they would like to open.

Partners Information: This is the type of characteristics they would like in a partner or investor.

Note: This is additional information that the candidate can enter that will tell potential investors more about their financial situation and why they would be a good partner.

Member Account

How Candidates Create a Potential investment Group

Member Account

Once a candidate has filled out the form, they will click on the “Create Group” button which will publish the Potential Group Opportunity so other candidates, angels, operators and lenders can view the opportunity and join if they wish to pledge debt or equity to the group.

How Candidates Publish a Potential Investment Group

Member Account

Group Is Successfully Published

After a candidate has filled out the Create a Group Form, the system will return them to their dashboard and display the group they have created.

FranEquitySM

Building Qualified Partnerships

Now What Happens?

1. Commit To Verification Process: Candidates will receive an emailthat will inform them that their potential group has met its financial goals and is now ready to move into the verification process. To move forward in the process, the candidate will be required to click on the “Commit” button in the email. Candidates can also do this through your Member Account.

2. Member Verification: Once all Group Members have clicked on “Confirm” candidates will be contacted by a FranEquity Representative who will verify their information including a background, reference and credit check.

3. Group Meeting: Once all Candidates have undergone theverification phase, a group meeting will be scheduled and candidates will have the opportunity to meet their potential partners or investors and discuss a mutual investment including the terms of the partnership.

After the group meeting candidates may decide if they wish to moveforward with a partnership. If all members wish to proceed,FranEquity will introduce the group to the Franchisor for a mutualdiscovery and discussions on the possibility of purchasing thefranchise.

Once a candidate has successfully created a Potential Investment Group, they will be notified via email when another individual joins by pledging equity or debt to the group.

Once enough capital and or debt has been pledged to the group, they will then proceed through the Verification and introduction process described on the right.

FranEquitySM

Building Qualified Partnerships

AdministrationFranEquitySM

Building Qualified Partnerships

Franchisor Administration Platform

franequity.com/youradmin

Through an easy to use Administration Platform, you will have the ability to:

Customize your website Manage and communicate

with candidates Track and manage

investment groups as they move through the process

Add and manage affiliates that can refer under financed candidates to your FranEquity website

View website activity reports

In addition to the administrative functions, clients will receive email notifications anytime an event occurs on your FranEquity Website.

Administration Account

FranEquitySM

Building Qualified Partnerships

Integration & FeesFranEquitySM

Building Qualified Partnerships

Integration & Support

FranEquity will work with your Marketing and Sales Group to Integrate the platform into your organization. Once integrated, we will train your administrators and sales team to effectively employ the technology and create investment groups from your under financed candidates.

Free Integration Includes:

Assistance in Creating Custom Web Interface Platform Training For Sales Team Marketing Materials for Candidates Ongoing Customer Service and Training

Fees

FranEquity is a success based platform. We are compensated only when an Investment Group successfully purchases your franchise through the platform.

Success Fee:

Franchisors – 15% of Franchise Fee.

Integration & Fees

FranEquitySM

Building Qualified Partnerships

Next Steps

It is easy to get started with our technology and there is no risk as it is a pay for performance platform.

Steps:

Review Software License Agreement and Execute

Schedule Webinar with FranEquity to learn how to use your FranEquity Website

Launch!

Next Steps

514 E. 81st StreetSuite #10New York, NY 10028

T: (646) 684-3068E: Info@FranEquity.comW: www.FranEquity.com

FranEquitySM

Building Qualified Partnerships

FranEquitySM

Building Qualified Partnerships

Legal Disclaimer

FranEquitySM

Building Qualified Partnerships

LEGAL DISCLAIMER:

In no way is FranEquity offering or selling securities of any type whatsoever, does not make

investments of any type in opportunities posted by its members and does not charge its

member’s any “consideration” or fees for utilizing its introduction service. The service is simply

a platform to meet other individuals for the purpose of exploring a possible mutual investment in

a franchise opportunity.

Moreover, FranEquity does not provide legal or investment advice and the use of this service is

at each members own risk. Finally, FranEquity does not guarantee any introductions to investors

nor does it guarantee that a franchisor will accept a member into their system.

Members are required to accept the Terms of Use that will be available for their review after

creating a Member Profile should they wish to utilize the service. Members are encouraged to

carefully review these terms prior to accepting the terms and using the service.