PROSHRED® Houston – Confidential Case Study
Prepared forSunbelt Business Brokers
September 2012
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PROSHRED® Industry Innovator and Pioneer
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The Perfect PROSHRED® Franchisee
White Collar Seasoned Business Executive
Sales & marketing abilities Management & leadership skills
High Net Worth
$750,00 to $1,000,000+ net worth $250,000 to $300,000+ liquid
Typically our franchisees
“C” Level Executives Well educated & traveled Entrepreneurial High achievers Good communicators Well connected in their communities Had successful track records Looking to replace “6 figure” salaries
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What does it take to be a successful franchisee?
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Introducing Brock Bruce – Sugarland, TX
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Brock Bruce Qualifications
The Candidate: Brock Bruce is an experienced Sales and Marketing Executive with 20 years’ experience leading the sales and marketing efforts for insurance and reinsurance carriers. Most recently Brock was the Vice President of Marketing and National Business Development for First Continental Life & Accident Insurance Company. Brock has been directly involved in the rapid growth of these insurance carriers, including spending more than 10 years with Service Insurance Group as their Eastern Regional Manager.
43 years of age
Net worth +/- $1,400,000
+/- $600,000 in 401K/IRA 401K roll over via FranFund
Emily Bruce – Teacher (secondary source of income)
Excellent credit
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Primary Motivators for Brock Bruce
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What he liked about PROSHRED®
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What he liked most about PROSHRED® - The bottom line!
Current FDD “Item 19” Disclosure for locations in operation for 36 months or more with 3 or more shredding trucks
Year 2011
Average Revenue $1,181,000
Average Contribution Margin 73%
Average EBITDA 36%
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Large and Exclusive Territories– Houston, TX
STATE COUNTY QUANTITY POPULATION # TERRITORIES10+ Businesses @ 10,000 10+
1 TEXAS AUSTIN 187 19,832 0.02 2 TEXAS BRAZORIA 1,729 191,707 0.17 3 TEXAS CHAMBERS 151 20,088 0.02 4 TEXAS FORT BEND 2,397 225,421 0.24 5 TEXAS GALVESTON 1,912 217,399 0.19 6 TEXAS HARRIS 33,397 2,818,199 3.34 7 TEXAS LIBERTY 411 52,726 0.04 8 TEXAS MONTGOMERY 2,685 182,201 0.27 9 TEXAS SAN JACINTO 48 16,372 0.00 10 TEXAS WALLER 220 50,917 0.02
Total 43,137 3,794,862 4.31
Total Initial Franchise Fee @ $35,000 per Territory 150,850$
Exclusive Franchise Territory Houston, TX
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PROSHRED® Initial Investment Houston, TX
PROSHRED ESTIMATED INITIAL INVESTMENT
Lower Upper Item Range Range Comments Truck Investment: Shredding Truck $ 180,000 $ 250,000 - Can be leased or purchase financed.Customer Service Van 15,000 20,000 - Can be leased or purchase financed. Total Truck Investment $ 195,000 $ 270,000 Startup Capital Expenditures: Initial Franchise Fee * $ 150,850 $ 150,850 - Franchise fee financing available Inventory 7,500 12,500 - Consoles, containers, bins, boxes, etc.Computer/Phone System 10,000 15,000 - Can be leased or purchase financedOffice Furniture, Fixtures & Equipment 10,000 15,000 - Can be leased or purchase financed
Leasehold Improvements - 5,000 - Office renovation, etc.
Deposits and Prepaid 10,000 20,000 - Rent, licensing, insurance, etc. Total Capital Expenditures $ 188,350 $ 218,350 Miscellaneous Expenditures: Travel and Training $ 5,000 $ 10,000 - 2 people for 3 weeksAd Fund, Initial Marketing 9,500 9,500 - Initial launch and Ad Fund initiation feeProfessional Fees 2,500 7,500 - Legal, accounting, researchMiscellaneous Funds 5,000 7,000 - Office supplies, truck, safety, etc Total Miscellaneous Expenditures: $ 22,000 $ 34,000 Investment in Trucks/Startup/Miscellaneous $ 405,350 $ 522,350 Before Working Capital Working Capital $ 50,000 $ 75,000 - Estimate for first 3 months
Total Investment $ 455,350 $ 597,350
* NOTE - The MSA for Houston contains 43,137 business with 10+ employees and is therefore 4.31 Territory Units.
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Ben Adamo – Business Alliance Affiliate. ….“pay day”
Territory Fee Commission@10,000 10+ @35,000 $'s
43,137
1.00 35,000 14,000 2.00 35,000 12,250 3.00 35,000 10,500 4.00 35,000 8,750 0.31 10,850 2,170 4.31 150,850 47,670
Brock and Emily Bruce, PROSHRED® Houston
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Brock & Emily Bruce “PSU” Graduates
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PROSHRED® Strategic Development Plan
Existing FranchisesTarget Locations
(Indicative of development plans – Targeting all MSA’s with +750,000 people)
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PROSHRED® Available Markets
# City Status # City Staus
1 Albany, NY Sold 31 New Orleans, LA Available2 Arlington, VA Sold 32 New York, NY Sold3 Atlanta, GA Sold 33 Newark, NJ Available4 Austin, TX Available 34 Oakland, CA Available5 Baltimore, MA Sold 35 Oklahoma City, OK Available6 Birmingham, AL Available 36 Omaha, NE Available7 Boston, MA Available 37 Orange County, CA Sold8 Buffalo, NY Available 38 Orlando, FL Available9 Charlotte, NC Sold 39 Philadelphia, PA Sold10 Chicago North & South, IL Sold 40 Phoeonix, AZ Sold 11 Cincinnati, OH Available 41 Pittsburgh, PA Available12 Cleveland, OH Available 42 Portland, OR Available13 Columbus, OH Available 43 Providence, RI Available14 Dallas - Fort Worth, TX Sold 44 Raleigh, NC Sold15 Denver, CO Sold 45 Richmond, VA Available16 Detroit, MI Available 46 Rochester, NY Available17 Hartford, CT Sold 47 Sacramento, CA Available18 Houston, TX Sold 48 Salt Lake City, UT Available19 Indianapolis, IN Sold 49 San Antonio, TX Available20 Jacksonville, FL Available 50 San Bernardino, CA Available21 Kansas City, KS Sold 51 San Diego, CA Sold22 Las Vegas, NV Available 52 San Francisco, CA Available23 Long Island, NY Sold 53 San Jose, CA Available24 Los Angeles, CA Available 54 Seattle, WA Available25 Louisville, KT Available 55 Springfield, MA Sold26 Memphis, TN Available 56 St. Louis, MO Available27 Miami-Fort Lauderdale Sold 57 Syracuse, NY Sold28 Milwaukee, WI Sold 58 Tampa Bay Sold29 Minneapolis-St.Paul, MN Available 59 Washington, DC Sold30 Nashville, TN Available 60 Virginia Beach, VA Available
PROSHRED USA STRATEGIC DEVELOPMENT PLAN
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The Franchise Process
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Questions & Answers
PLEASE DIRECT ALL FRANCHISE INQUIRES AND QUESTIONS TO ….
John Prittie, M.B.A
President
Proshred Franchising Corp.
6790 Century Ave., Suite 200
Mississauga, Ontario, Canada, L5N 2V8
O: 416-204-0071
C: 416-984-7022
F: 905-812-9448
www.proshred.com