FRANCHISE PROSPECTUS

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1 BIO-RITE Working with the NHS Healthcare Decontamination Services PROSPECTUS THE MARK OF QUALITY IN INFECTION CONTROL

2 THE BIO-RITE OPPORTUNITY As one of the UK s leading providers of healthcare infection control and decontamination services, Bio-Rite has established an exceptional reputation within the industry. The rapid growth in this sector is only set to continue as healthcare providers struggle to cope with the increasing threat from infections. Although we currently service large parts of the UK from our Hampshire Head Office, we are now looking for individuals to set-up and run Bio-Rite businesses in strategic locations throughout the UK. We have chosen franchising as our preferred expansion model as we believe that franchisees will have a vested interest in maintaining the high standards and reputation of Bio-Rite and will directly benefit from their hard work as their franchise business grows. Independent research shows that franchising is a strong business model for franchisees with the British Franchise Association reporting that 92% of all UK franchisees being profitable over the last 12 months. From a franchisors perspective the British Franchise Association state that franchising provides a network of owner-operators which provides a more robust business compared to simply installing managers. Therefore franchising Bio-Rite will bring benefits to both us and our Bio-Rite. FIND OUT MORE us at franchising@bio-rite.com to request a Bio-Rite Franchise Application Form.

3 ABOUT BIO-RITE Our management team has a combined experience of over 40 years within the Infection Control industry providing a wide range of services to the NHS, Local Authorities, Care and Nursing Homes and other institutions where infections are a threat. Our core services are: EQUIPMENT RECYCLING Our service enables care equipment, such as beds and mobility equipment, to be totally disinfected using both manual and mechanical techniques with safe and effective decontamination technology. MATTRESS DECONTAMINATION We offer a tailor made mattress decontamination service that meets the needs of NHS hospitals, private clinics and care or nursing homes. Our service complies with all infection control regulations and manufacturer guidelines. AREA DECONTAMINATION We are one of the leading suppliers of decontamination services in the UK. We treat infected environments within NHS hospitals and other healthcare environments such as ambulances, private hospitals, care/nursing homes and sports facilities. We can provide our clients with a certified decontamination of a single room or an entire facility. Over 250 hospital ward decontaminations have been performed by our team over the last 8 years, with the most common outbreaks being Norovirus, MRSA, e-coli and c-difficile. OTHER SERVICES In addition to the above services we also provide: Air Purification Systems Hand Hygiene Training Equipment Rental

4 PACKAGE LICENCE FEE: The Franchise Licence Fee is 9,000 plus VAT and provides franchisees with: 7 year renewable licence to operate as a Bio-Rite franchisee Exclusive territory Operations manual (on loan) Representation on the main Bio-Rite website (on loan) Franchisee Training Infection Protection Society (IPS) one year membership SET-UP PACKAGE: In addition to the Franchise Licence Fee, franchisees must purchase the Franchise Set-Up Package from Bio-Rite Head Office. The Franchise Set-Up Package includes: Equipment & Machinery Premises Fit-Out Premises CCTV & Alarm Premises Exterior Signage Office Furniture Office IT Equipment, Phones etc. Stationery & Branded Material Vehicle Deposit Vehicle Livery Initial Branded Uniform Initial Marketing Launch Campaign The Franchise Set-Up Package will vary dependent on the size of each premises and the facilities already in place. We would estimate that the Franchise Set-Up Package will be in the region of 11,000 plus VAT. NOTES WORKING CAPITAL: All franchisees will need a minimum 10,000 working capital facility for the first year of trading and then sufficient working capital as required by their business. TOTAL INVESTMENT: The total cost of Bio-Rite Franchise is estimated at 20,000 excluding VAT and working capital and is made up of: Franchise Initial Licence Fee: 9,000 Set-Up Package: 11, Franchisees must also allow for VAT on the Franchise Fee and Set-Up Package bringing the total cash requirement to 24, The Bio-Rite franchise has been preapproved for up to 60% lending by the leading UK franchise banks. 3. We recommend that working capital is financed in the form of an overdraft facility.

5 E E EARNING NG POTENTIAL TI The earning potential for Bio-Rite Franchisees has been based upon the performance achieved within our existing Alton premises. The ultimate success of a Bio-Rite Franchise is however down to the hard work and commitment of each individual franchisee. BIO-RITE 5 YEAR P&L PROJECTIONS SUMMARY (Figures rounded to nearest ) Year 1 ( ) Year 2 ( ) Year 3 ( ) Year 4 ( ) Year 5 ( ) Income Direct Costs 79, , ,321 37, ,077 42, ,126 47, ,033 52,613 Gross Profit (GP) GP as a % of Sales 56, % 90, % 105, % 119, % 133, % 7% Franchisor Fees Costs 7,997 31,320 12,832 32,833 14,808 43,549 16,713 42,048 18,603 46,641 Net Profit Before Tax (BT) Cumulative Net Profit BT 16,830 16,830 45,019 61,849 46, ,597 60, ,067 68, ,242 NOTES a) Income: This includes the income from all Bio-Rite decontamination services, training and hire of equipment. b) Direct Costs: This is the cost of providing the Bio-Rite services including the cost of labour. c) Gross Profit: This is the income less direct costs. d) Franchisor Fees: This is the Franchisor Management Fee and the National Marketing Fee both of which are charged monthly. e) Costs: These are the costs of running a Bio-Rite business. All figures shown are exclusive of VAT Despite figures provided being based upon prior performance, there is no guarantee that prospective Franchisees will achieve the projections. It is the prospective Franchisees responsibility to ensure that they are comfortable with the projections prior to entering any agreement.

6 WHAT WE LOOK O FOR IN OUR ES S Having the right franchisees is essential for our business. We therefore will only offer franchises to those people that we believe are suitable for running a successful Bio-Rite Franchise and can work with both the management of Bio-Rite and the other franchisees within our network. Bio-Rite Franchise does not specify requirements as to age or gender, what does count is that the franchisee is self-motivated, has good interpersonal skills, and gets on really well with the people as franchisees will be responsible for running their Bio-Rite business. The list below is not exhaustive or intended to be disadvantageous to any applicant; however it summarises the skills, competencies and requirements specific to running a Bio-Rite Franchise. Experience in managing staff Experience in a sales role Good with people In good health Self-motivated Hard working and ambitious Determination and enthusiasm to succeed Positive enthusiastic outlook Have a desire to own their own business Have support from the family Be able to follow instruction and a system and be willing to stick to that proven system Have good attention to detail Have full UK driving licence with no (or only minor) endorsements

7 FAQs Q. Do I need to have a background in Decontamination? A. No. There is no requirement for franchisees to have previously worked in the decontamination industry. As part of the Franchise Set-Up package we will provide full training on how to run a successful Bio-Rite business. Q. Is it possible to finance part of the capital cost? A. Yes. Most of the high street banks have a franchise department and are very supportive of franchising. We have negotiated a special financial package with a number of High Street Banks subject to franchisees individual status. Q. What is the Franchise Management fee and how is it calculated? A. The Franchise Management fee is 8.5% of the franchisees monthly turnover and is paid monthly in arrears. This provides franchisees with ongoing support and advice to franchisees; central website management; central Social Media management; providing technical assistance; coordinating franchisee premises audits; providing ongoing franchisee training; and ongoing service and product development. Q. Are there any other ongoing fees? A. There is a small National marketing fee which is 1.5% of the franchisees monthly turnover and is paid monthly in arrears The National Marketing Fee will be used for marketing that benefits the Bio-Rite brand. Q. Are the projected earnings guaranteed? A. No. However, the projected earnings are a realistic estimate of what franchisees should earn. Successful Franchisees can earn in excess of the projections, however the ultimate success is down to each individual franchisee. Q. What training is provided? A. We provide initial training in the set-up and running of your franchised business. The initial training is for 1 week and we will provide additional support online, by telephone or on-site, as required. Q. How much does training cost? A. The cost of the initial franchisee training is included within the Franchise Licence Fee. The only items not covered are your own travel, accommodation, and food. Q. Can I sell my business in the future? A. Yes, although we would always insist on 'vetting' any new franchisee to ensure they are right for the business and have the required skills and experience. Q. What are the next steps? A. If you are interested in owning and running your own Bio-Rite franchise please contact us and request a "Franchise Application Form".

8 BIO-RITE Healthcare Decontamination Services I hope after reading this prospectus you get a sense of what a great business opportunity becoming a Bio-Rite Franchisee is. I am certainly excited about having people as passionate as I am about the work we do building a successful business across the UK. Alan Wright Managing Director THE MARK OF QUALITY IN INFECTION CONTROL Bio-Rite Ltd, Unit 23, Mill Lane Industrial Estate, Caker Stream Road, Alton, Hampshire GU34 2QA The information contained within this Franchise Prospectus is covered by both copyright and Intellectual Property laws. The information must be kept secret and confidential and must not be disclosed to anyone else or used by yourself for any purpose whatsoever save to enable you to consider whether or not to become a Bio-Rite franchisee.

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