FRANCHISE OPPORTUNITY

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1 FRANCHISE OPPORTUNITY Initial Interest Package

2 FRANCHISE PARTNER OPPORTUNITY EXECUTIVE SUMMARY KANDY Outdoor Flooring is offering an exciting and unique business franchise opportunity for the right candidates to participate in its brand growth. Several exclusive geographic areas are available. KANDY Outdoor Flooring is a first in class opportunity providing outdoor flooring solutions for condo balconies in a way never before offered in North America. KANDY is the only brand that provides service, selection, and installation of the highest quality floating outdoor flooring systems available today and designed specifically for condo balconies. KANDY s range of products, including many types of exotic hardwood, granite, bamboo and wood-plastic composites, are perfect for, and stand up to, the diverse climates across Canada. KANDY s target market includes individual condo owners, along with builders and developers for residential and commercial multi-unit applications. It s a market that is continually expanding. Over the last 15 years, multi-unit housing starts have been growing at a much higher rate than the overall market and its percentage is on the rise as well. According to research from Statistics Canada and CMHC, almost 20 per cent of Canadian households represent owner occupied condos. Beyond the specific target market (condos) are peripheral markets ripe with opportunity. Where there are condos, there are also townhomes and single-family dwellings with basements and outdoor spaces and pools, and restaurants with outdoor patios. And demand for KANDY s services is not directly affected by the state of the economy or the real estate market.

3 KANDY s practical and low maintenance outdoor flooring offering is simple to explain and creates amazing visual results. Its purpose of expanding home experiences is met for each and every client. The customers and clients are always thrilled with their new outdoor space, which can lead to substantially more than average referral business. KANDY offers a turnkey implementation program including everything a new franchisee would need to successfully operate immediately: intensive training, process and administrative tools, products, samples and marketing materials. For an initial Franchise fee of $47,000, a 7% royalty and a 2% marketing fund fee, all of the above is included with an exclusive territory, ongoing support, and the best interlocking floating floor system products available. KANDY FRANCHISEE PROFILE ARE WE LOOKING FOR YOU?? KANDY Franchise Partners come from all walks of life, but they share a common desire: to expand home experiences, and thus quality of life, for community residents. They share our passion for livable outdoor space, many actually live in condos, and all share our purpose and core values, along with other important characteristics and circumstances. They: Will live and breathe the KANDY purpose and core values Have acute business sense Are willing to and successfully complete KANDY University Have a passion for condo living and the outdoors Desire to be part of a team, as franchise owner, and to grow a national brand Will commit to KANDY standards of excellence across all areas Bring a strong personal and professional support network

4 Have appropriate financial resources KANDY PURPOSE AND CORE VALUES We are building a brand and a culture by design. Everyone at KANDY today, and everyone invited to join our brand, lives and breathes our core purpose and values. KANDY s core purpose is to Expand Home Experiencestm. We do this for every single satisfied client. Our beautiful new outdoor flooring creates additional, usable square footage that wasn t attractive before. Our core values guide our decisions and interactions. 1. Bring out the best in everyone. Inside the KANDY brand, and outside to our clients and collaborators, we aim to create positive experiences to bring out the best. 2. Be the solution. No shuffling off challenges or problems to someone else. We are accountable, at every level of the KANDY brand. If there is a challenge, we work to find creative solutions. If there is a problem, we fix it. Period. 3. Deliver the promise. We absolutely know, 100 per cent, that KANDY Outdoor Flooring expands home experiences. We watch it happen with every client, every single time. 4. Passion for condo living. We love our urban towers in the sky and the lifestyle that comes with multi-family dwellings. We love the collective convenience, the collegiality, and the community that is condo living. It s more than talk. Every KANDY representative and every KANDY franchisee either has

5 lived, has loved ones who live, or currently lives and thrives in a condo. We walk the talk. 5. Ever evolving. Change is the only true constant. We embrace it, welcome it, look for it, cultivate it. Frankly, we thrive on it.

6 THE KANDY PROCESS KANDY teams take care of every little detail, because we believe our clients have chosen the condo lifestyle at least in part because they don t want or need the hassle and headache of the do-it-yourself home renovation project. We bring all the expertise and experience, because we believe our clients have reached that point in their lives where they simply appreciate, and deserve, to be taken care of. CONSULT AND DESIGN Identifying Each Unique Style It starts with a personal consultation. We bring samples to each client s home, allowing them to see the product choices in their own environment and in the natural light once installed. This allows a comparison with their interior design, and we help them decide which product and layout approach will best suit their environment. CUSTOMIZE & INSTALL - Professional Installation We lay out the product according to the design discussion we ve had with at the consultation phase and with installation-day input and feedback from the client. We customize around posts, corners, curves, and cutouts there is no shape too complicated for us to turn around a completely professional installation job. We guarantee our installation and we do not leave until the client is happy. CLEAN & MAINTAIN - Clients Just Enjoy We never leave a mess, ever. We remove the product boxes and any other installation debris for recycling. We vacuum up any dust resulting from cutting the tiles. Except for the spectacular new outdoor space for the expanded home experiencestm, no one would ever know we d been there! We also offer a full-service cleaning and maintenance program for a truly worry-free expanded home experience year after year.

7 OVERVIEW & BENEFITS Regardless of the surface option, the majority of KANDY s solutions are interlocking deck tiles that provide a raised profile allowing dirt and water to flow through and below. The system is simply laid on top of any solid, flat surface without the need for glue, grout, or nails and instantly transforms and beautifies any condo balcony area. BENEFITS for KANDY Outdoor Flooring clients: KANDY provides in-home consultation service allowing the customer to choose the product that best matches their taste, style, color, and budget and maintenance preferences. The floating floor design will keep the area cleaner and drier than any other solution because the majority of the water, dirt, and debris will fall through and wash away leaving only the deck surface (and not the dirt) for everyone to enjoy. The flooring will protect the existing base surface from the elements and from wear and tear. The flooring does not adhere in any way to the floor, wall, or any other part of the structure, maintaining the integrity of the building and deck construction and remaining within strata guidelines and condo rules. Since the flooring is not permanently affixed, it can be changed in configuration or pattern and/or moved to another location if desired. Market value and appeal to potential buyers will be increased if the customer decides to sell or relocate.

8 The outdoor flooring provided by KANDY allows its customers to enjoy their great taste in style and design by taking it from the inside - to the outside! KANDY Outdoor Flooring creates additional square footage of usable space and considerably increases enjoyment in outdoor home experiences, and increased visual appeal of the area as seen from the inside. KANDY Outdoor Flooring does not contravene any strata or condo board bylaws or rules regarding adhesion to exterior of the building or deck surfaces. It is absolutely hassle-free. The transformation takes no time or effort on the part of the customer. KANDY does it all for them: deliver, design, installation and customization, and cleanup. ADDITIONAL BENEFITS if the customer is a developer or builder: Market value and appeal to potential buyers will be increased. The outdoor flooring will create a differentiated strategic advantage over the competition. The designer (s) will have the ability to extend the unique style and taste of the interiors of the units or structure through to the outside- from the insideout. The flooring will protect the deck infrastructure from wear and tear, which is a benefit for buyers since the long-term costs of infrastructure upgrades could be reduced. The outdoor flooring effectively increases the amount of usable, live-able, and appealing square footage of each unit. In the case of multi-unit, KANDY outdoor flooring could provide additional differentiation between units.

9 Potential revenue source (provide as an option and mark up ). BENEFITS for KANDY Franchisees: Provide a new and unique offering in a new, growing, and substantial market where there is virtually no competition. Operate your own company with very low overhead/fixed costs, healthy income and earning potential, and ongoing support from a fantastic brand. Strong brand, web, and social media presence to aid with credibility, visibility, and to drive leads. Unlimited marketing and sales opportunities through B2C, B2B, commercial and residential applications with strong referral opportunities due to intense customer satisfaction. Provide customization of the product only and not the current infrastructure. This results in several benefits: o Product is considerably more than labour in the ratio of total project costs (the reverse of most renovation projects) giving the franchisee more control. o Since the costs are predictable, it is possible to give customers a firm estimate, which is a unique differentiator in the market. o Franchisee has total control and predictability of labour requirements for ease of scheduling and resource allocation or outsourcing. o Liability is virtually eliminated since customization is of the product only and not the customer premises. Intense pride with total customer satisfaction and astounding results.

10 KANDY SUPPORT KANDY offers a turnkey franchise program including everything a new Franchise Partner would need to successfully operate immediately: intensive training through KANDY University, complete operations manual and other process and administrative tools, products, samples and marketing planning expertise and materials. It doesn t end there, though. After you re operational, we ve got your back. KANDY s franchise support teams are always there to help you, no matter the issue. KANDY Franchise Support Teams Product & Installation Marketing, Advertising & PR - Hiring, managing floor - Direct mail campaigns designers - Effective local PR - Product quality control - Print advertising - Installation quality control - Trade shows - Maintenance program Operations & business Customer Service & Care planning - CRM system support - Consultation coaching & - Sales tool databases support - Purchase orders and - Customer satisfaction payments assessments - One page plans - Before- and after-sales customer service

11 KANDY UNIVERSITY KANDY University is an intensive, 6-day certification and training program designed to give you a solid launching ground for your successful franchise. Day One Orientation & Products Day Two Operations & Installation Day Three Marketing Day Four Sales & Customer Service Day Five Administration & Systems Day Six Strategy & Certification

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