BUILD YOUR FUTURE. DIVERSIFY YOUR PRESENT.

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1 BUILD YOUR FUTURE. DIVERSIFY YOUR PRESENT. You ve spent years building your construction business. You re successful and profitable. Yet, there are two questions you may not have asked yourself: 1) When you re ready to retire, will your business be marketable? 2) Are you maximizing your current situation (personnel, assets, and relationships)? By adding a Delta Disaster Services franchise to the mix, you ll answer yes to both questions. Advantages of owning a Delta Disaster Services insurance restoration franchise:: Recession-resistant industry Outstanding, continuous support at every level A proven system to succeed in insurance restoration You re building a national brand while diversifying your assets Excellent profit margins in both emergency services and reconstruction Inc. Magazine and Qualified Remodeler Magazine have consistently recognized our success story. Learn why others in the construction trades owners just like you have chosen to add a Delta Disaster Services franchise.

2 Ideal Owner With over 150 years of combined experience in insurance, construction, and franchising, we know what kinds of owners are best-suited for success in this recession-resistant industry. Successful Builders You should own a business in the building trades (a licensed general contractor, plumbing contractor, painting contractor, etc.) and have a stellar reputation. Quality matters in insurance restoration and it is critical that your reputation match the outstanding caliber of your work. The Skill Set To succeed in any franchise, it is important that you be open to coaching. The system is everything and is proven it works. We are looking for enthusiastic, positive builders who can follow a blueprint as easily as they can read one. Financial Requirement You should have a minimum of $150,000 in liquid funds to invest and a personal net worth of $250,000.

3 A Construction Industry You Can Count On The $200 billion insurance restoration industry is a quiet secret within construction. How many segments in the building trades can make the following claims? Recession-Resistant Regardless of the economic situation, claims for fire, water damage, and other catastrophes occur. Good economy or bad, accidents happen and when accidents happen property owners call their insurance company. Insurance companies call Delta Disaster Services. Not a Fad Technology-Friendly By intelligently adopting technology, a strong operator in this industry can handle a large volume of claims, without missing important details, and can consistently maximize all resources. Built-in Demand No amount of planning, preparation, or prediction can fully eliminate accidents. Fire, water damage, and other catastrophes happen daily, in every state at every socio-economic level. Unlike vending machines or the latest health-care craze, claims for insurance damage are not going to go out of style. No Barriers to Entry While there are many mitigation-only companies in most markets, full service firms are the exception rather than the rule. The insurance industry is always looking for quality, professional builders who can handle both mitigation and construction.

4 A Delta Disaster Services Success Story Emmis Chellman formerly lived in Denver, Colorado and was a successful subcontractor, for five years, at the prototype operation in Denver. In 2012, he decided to join the Delta Disaster Services family as a franchise owner. This is his success story. In 2012 Emmis packed up his family and moved to Colorado Springs where he opened his Delta Disaster Services franchise with zero customers. He didn t know a single insurance agent, property manager, or referral source in his market. He had no employees and operated with only one vehicle. Through honest, hard work and dedication to building a successful business, he has created ongoing relationships with the agents, plumbers, adjustors, and property managers in the area. Since opening, in only two short years, Emmis has added three more vehicles to his operation and now has six full time employees including himself. While he still manages the construction side of his franchise, his mitigation manager, Shawn Connolly, runs the emergency services side. Business Development Coordinator, Rosey Rubino, continues to bring in new business, which has greatly contributed to huge growth in year two. Office manager Tiffany Quest keeps the entire operation running smoothly. The team Emmis assembled resulted in him winning 2013 Franchise-of-the-Year honors. Emmis lives by the Winston Churchill quote, Success is not final; failure is not fatal: It is the courage to continue that counts. Emmis franchise continues to grow as he builds solid relationships with referral sources. In two short years, he has built one of the strongest franchises in the system and has become a thoughtleader among owners.

5 Competition The insurance restoration industry is competitive. Then again, what business doesn t face a lot of competition? However, there is a huge difference between companies in the same segment and true competitors. Let s break it down, using Denver, Colorado (home to our prototype operation) as a typical example. Doing it well is a different story. The Denver metropolitan area has a population of 2.6 million. As of last count, there are 270 competitors in the market. Denver is as competitive as any area nationally; yet, we ve thrived. Of those 270 competitors, about 75% are mitigation only meaning they only provide emergency services (water extraction and dry-down). Calling yourself a water damage expert is not overly complex. Anyone with bare bones equipment and a strong back can go after water damage losses. Around 15% of the market is construction only meaning they do not do any emergency services. They only rebuild after the emergency services is complete and are usually scrambling to find new jobs since they enter the claim long after it has been settled. Whittled down, only about 10% of the Denver market competition is full service meaning they provide both emergency and reconstruction services. From that 10% (approximately 27 companies) there is only a handful we consider true competitors. True competitors are full service, have exacting standards, and provide excellent service. So, while there are lots of businesses in this field, few provide the high caliber, full service experience of Delta Disaster Services. We can show you how to rise above the rest and establish yourself as the restoration company in your market.

6 Franchise Owner Reviews The support is excellent. I ve been on jobs in the middle of the night and had questions, and the answers to the question are a phone call away. I ve worked on estimates on the weekends, and support is there to answer questions on estimates, billing issues, for pretty much anything that s needed. During business hours, after business hours, anytime it s needed. Marc Elakman, Delta Disaster Services of Palm Beach We think our franchise in five years, we re hoping it will be a five to six million dollar a year franchise. We came in to this knowing we would grow slowly. We had a learning curve that we had to get beyond, but I think we the help of Delta Disaster Services, the support the home office gives us, along with the market share we will gain, I think that goal is very attainable in five years. Bruce Milyard, Delta Disaster Services of Western Colorado What I like most about being in the insurance restoration industry is that no day is the same. Every single day is different. Every water loss is different, every fire loss is different, every homeowner you re dealing with they all have their own personalities. Each job has its own unique guidelines that you have to follow. It s fun to see it all, it s fun to be a part of it. Every single day is different. You don t have to worry about the same job every day or typing on a keyboard. Emmis Chellman, Delta Disaster Services of Southern Colorado I would recommend another contractor to join Delta Disaster Services. I think it diversifies a construction company. In construction there s a lot of peaks and valleys within the industry. This is something that can even those peaks and valleys out. Tyler Milyard, Delta Disaster Services of Western Colorado

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