OFFICE EVOLUTIONBusiness Overview

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AgendaWho is Office Evolution?What does it take to win as an Office Evolution Franchisee?How you and Office Evolution will work together to help you win

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About Office Evolution

Leader in Executive Office Suites and Flexible Office Space5,000-8,000 sqft locations low rise offering buildingsOffering three types of flexible office solutions:• Private Offices with shared conference room, rest

room, kitchen, and executive administrative support• Virtual Office Options: Collaborative work spaces with

shared conference and centralized administrative support

• Pay as you go

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Shared Office Space Industry

• 28 million businesses (SBA)• 75% of businesses have no employees (US Census)• Small businesses leases between 30%-50% of all

commercial space (SBA)• Global Workspace Association Survey

• Almost 3 out of 4 respondents projecting an increase in profits and only about 4% expecting decline.

• Expected rate of revenue growth (3.9-5.2%) exceeds economy (2.4% in 2014)

• Revenue increase due to member increase of 6.3% and not fee increases

• Shared service office spaces is a $2 Billion dollar industry (IBISWorld)

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Business ServicesVirtual Office• Mail and address services

• Phone answering services

• Professional meeting rooms

• Complete virtual office package

Meeting Rooms

Conference room rentals

Executive Office SuitesFully-furnished office space

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Private Office Suite $600-$799 per month• Fully furnished office space• 100 minutes of Live Phone

Answering• 1-12 Agreements• $60/month of Meeting Room

Time• 50% Discount on Additional

Meeting Room Usage• 24/7/365 Facility Access• Unlimited Domestic Long

Distance Calls• Front Office Receptionist to

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Private Office Suite $600-$799 per month• Free Wi-Fi and Cable Internet

on our Private Network• Free Guest Wi-Fi on our Private

Network• High quality

Copier/Printer/Digital Fax• Complementary Tea, Coffee

and Water• On-site Kitchen• On-site Business Center

Manager• Professional Business Mail

Address

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Virtual Office: $79 per month (estimated)Mail Service Plan: • Professional business address

for mail and package deliveryBusiness Lounge Plan: • 24/7 access to all OE Business

Lounges• Free Wi-Fi and digital fax• Use of community kitchen

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Virtual Office: $79 per monthMeeting Package:All the benefits of the Business Lounge Plan plus:• $60 monthly allotment

toward Conference Room/Private Office Access

• 50% off hourly rental of additional Conference Room/Private Office

• Free inbound/outbound long distance

• Unlimited Wi-Fi Internet and Digital Fax

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Virtual Office: $79 per monthPhone Service Plan:Up to 100 minutes of live phone call management• Answer• Screen• Announce• Transfer• New local telephone numberComplete Virtual Office:All the benefits of the Meeting Package and Phone Service Plan

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Pay Per Hour ($20+)Mail Service Plan:Professional business address for mail and package deliveryPhone Service Plan:Up to 100 minutes of live phone call management• Answer• Screen• Announce Transfer• New local telephone number

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Pay Per Hour ($20+)Meeting Package:The Business Lounge Plan PLUS• $60 monthly allotment toward

Conference Room/Private Office Access

• 50% off hourly rental of additional Conference Room/Private Office

• Free in/outbound long distance• Unlimited Wi-Fi Internet and

digital faxComplete Virtual Office:The Meeting Package PLUS the Phone Service Plan PLUS the benefits of a private office

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Private Offices

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Collaborative Work Space

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Shared Conference and Meeting Rooms

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Shared Kitchen and Beverage Service

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• Established local small business owners• Home-based but not “work from home”• Mobile workforce, mid-sized or large companies• Geographically dispersed workforce of mid-sized

and large companies• Sales professionals, all size organizations

Member Profiles

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History• Founded in 2003 by entrepreneur Mark Hemmeter• Love technology to empower • Love entrepreneurs• Love real estate. How people feel in a work space• Founded with the intention to offer small business

highly flexible solutions which met their individual needs

• Currently 21 offices open, 8 under development in 8 States

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David BloomPRESIDENT

Mark HemmeterFOUNDER AND CEO

Leadership

Holle JanzenDIRECTOR OF RECRUITMENT

AND TRAINING

Emily LarsonSENIOR DIRECTOR,

OPERATIONS

Brook BunnDIRECTOR OF FRANCHISE

SUCCESS

Eileen ProctorDIRECTOR OF BUSINESS CENTER DEVELOPMENT

Jeff HensiekDIRECTOR OF MARKETING

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Future• Office Evolution helped my business get ahead

and realize their goals• Create Worthy brand that made a difference in

the community

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OHANA

Ownership

Win-WinSimplicity

Authenticity

Core Values

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• Regus✓ Publicly traded/European✓ Highly “corporate” look and feel

• Intelligent Office✓ Franchisees hire and manage their own answering service,

invoicing, adds complexity.✓ Emphasis on virtual and little physical ‘phone answering’

Office Evolution emphasis collaborative work space and drop in

• WeWork✓ Co working, millennial and start up businesses✓ Pivoted. moving to larger groups (10-30)

Competition

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Advertising and Marketing• How do we find new customers?• Online media (Craigslist)• Commercial real estate brokers• Open houses/social events• Networking• Online searches• LoopNet, CityFeet, Liquid Space, Divinci Virtual,

CloudVO• Email blasts

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Management and Operations• Centralized billing and collections• Centralized answering service and appointment

setting• Manages Member access for all locations• Wireless access, securities, firewall,• Telephone systems• One full time office manager/receptionist

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Location• What makes a good

location?• 5-8,000 sqft. low rise

office

• 5-10 minutes from residences

• Easy parking

• Easy access

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Single and multi-unit territories available

Growth Options

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ITEM (HIGHLIGHTS) LOW HIGH

Total 200000 350000

Franchise Fee 45000 45000

Furniture and Fixtures 50000 110000

Leasehold improvements 0 10000

Technology 40000 50000

Opening Adv 15000 15000

Working Capital 25000 50000

Average Total Investment ($250-$300K)

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• Publish Item 19 here

Financial Performance

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Financing Options• SBA• Self-directed IRA

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Start up Timeline• Find a location 1-4 months• LOI and lease negotiations

month• Permitting 1-2 months• Negotiate lease 2 months• Finish work 2-3 months• Open for business 7-12

months

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What Makes Office Evolution a Good Business for the Right Person?

• Worthy purpose• Helping small business grow• Recurring revenue, multiple revenue

streams• Excellent unit level economics• High member retention• Simple operation• One full time employee• Centralized support services• Lifestyle business: Owner is part time• Trend forward • Community business• Business for people passionate about

business• Virtual clientele makes business highly

scalable• White collar, professional clientele• Strong corporate culture• Experienced leadership who know the

business from the trenches• High barriers to competition

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2016 FDD Item 19Financial Performance Representations

Revenues2012 $346,4352013 $361,1062014 $387,8022015 $424,159

Net Operating Income After Franchise Adjustments2012 $94,5882013 $120,4462014 $85,2812015 $112,075

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Questions?

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• Submit franchise application (if you have not already done so

• Review First 23 items of the FDD and make a list of questions

• Schedule a time now to review FDD

Next Steps

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THANK YOU