Firemans Contractors, Inc. (FRCN)

[Value_Investor]

Great updating for FRCN! Fireman's Contractors Franchise


MARCH 15, 2015


Fireman's Contractors is committed to providing superior service in painting, seal coating, parking Jot
striping, and construction services with quality you can count on. With Fireman's Contractors you get
a quality experience at a competitive price. Our values reflect that of Firefighter's- which motivate
us to achieve outstanding results as we deal honorably with our customers, communities and each
other. We support firefighters for safer communities by giving a portion of our profits to local fire
departments.

Our Values

Fireman's Contractors, you'll never be surprised, and we deliver what we promise. You can be
assured that we will always deliver superior service that is on time and on budget. We are a
company with respect. We respect our employees. We respect our customers. We take personal
pride in all of our work. We always have a continuous strive for improvement. We believe there is
always room to improve how we work, how we communicate with our customers, and how we build
relationships.

Insured

At Fireman's Contractors, we carry a general liability of $2,000,000 with Ohio Casualty and carry
workman's compensation insurance as well.

One Year Limited Warranty

One year from the date the job is finished, Fireman's Contractors warrants against defective
workmanship. The following items are not warranted: caulk, horizontal surfaces, galvanized metal,
any items dust, mildew, or exterior moisture damage.

Franchise Opportunity

Are you looking for a franchisor with an immediately recognizable brand that has a reputation of trust
and dependability? Are you looking for a franchisor with an experienced management team that has
a solid track record of supporting franchisees? Are you looking for a franchisor that you can trust to
help make the most of your investment? Let Fireman's Contractors help you today.

Philosophy

We are the "Contractors you can trust®" and we believe in doing our best work, showing up in a
timely manner, having uniformed crews and making a difference in the parking lot maintenance and
commercial painting business.

Why Fireman's Contractors
With a Fireman's Contractors Franchise you get:

A Trusted Brand
People recognize and have trusted Firemans Contractors. We bring brand awareness, and an
established base of cliental.
Experienced Support Team
Franchisees benefit from a powerful support system developed by our team's years of industry
experience and knowledge. Plus, you'll stand out with marketing expertise supporting you ..

Proven Business Model

The Fireman's Contractors business model incorporates our expertise and support for a wellrounded
investment and give you pride of ownership.
Fireman's Contractors is committed to providing superior service in painting, seal coating, parking lot
striping, and construction services with quality you can count on. With Fireman's Contractors you get
a quality experience at a competitive price. Our values reflect that of Firefighter's- which motivate
us to achieve outstanding results as we deal honorably with our customers, communities and each
other. We support firefighters for safer communities by giving a portion of our profits to local fire
departments.

The Ownership Process:

Inquiry

Submit an Initial Inquiry so we can learn a bit about your interests and basic qualifications to be a
Fireman's Contractors franchisee.
Initial Discussion
The first real step is a discussion on the phone. This is a great way to start to get to know each
other, outline our requirements and expectations, as well as answer your key questions. If we both
agree it's worth further exploration, we'll send out an initial package of information and ask that you
complete a Personal Profile.

Personal Profile

The Personal Profile allows Fireman's Contractors to verify that you are a viable franchise candidate.
We perform a general background check on all franchisee applications.

Discovery Day

We'll meet with you for a day in North Richland Hills, Texas (Dallas-Fort Worth Metroplex). At that
time, we'll discuss our operations to learn more details about the business and engage in a thorough
question and answer session. There is NO payment or commitment required from you at this time.

Final Consideration

You will typically leave Discovery Day with a FDD document for your consideration. There is a 14-
day, legally required, waiting period before you can sign this agreement. This is for your protection
and we invite communication back and forth with you and/or your legal counsel during this time to
make sure you are 100% comfortable before you commit to becoming a Fireman's Contractors franchisee.

Training

You will receive 3 days of training at our headquarters in North Richland Hills, Texas. Prior to these
3 days, you will receive webinar and/or telephone instruction.

Ongoing Support

Fireman's Contractors staff is here to support you at all times, answering questions, plus offering
advice and recommendations. Support is available via toll-free telephone or e-mail, our franchiseeonly
system. Additionally, we schedule periodic visits to every franchisee for on-site support.

Franchise Packages

Firemans Contractors parking lot maintenance & pavement specialists franchise
Initial Franchise Fee: $35,000 Investment Range (excluding equipment & working capital): $$76,835
-$ 153,300
Liquid Capital Required: $100,000 to $250,000+
Net Worth Required: $250,000+
Royalty: 5% of net sales (net sales = gross sales minus taxes, refunds and discounts)
Marketing Fee: 4% of net sales (net sales = gross sales minus taxes, refunds and discounts)
(2% Regional, 2% Local)
Terms of Contract: 10 years, plus a two additional five-year terms options

Franchise FAQ

Q: What is the next step in getting my Parking lot maintenance & pavement specialists franchise
started?

A: The next step is to complete and submit the Online Qualification Application. This does not
obligate you in any way. The information is simply used to determine whether or not owning a
Fireman's Contractors business may be right for you. Upon receipt and review, we will have
someone contact you.

Q: What are the financial requirements associated with this franchise opportunity?

A: Initial Franchise Fee: $35,000 Investment Range (excluding equipment & working capital):
$$76,835- $ 153,300
Liquid Capital Required: $100,000 to $250,000+
Net Worth Required: $250,000+
Royalty: 5% of net sales (net sales = gross sales minus taxes, refunds and discounts)
Marketing Fee: 4% of net sales (net sales = gross sales minus taxes, refunds and discounts)
(2% Regional, 2% Local)
Terms of Contract: 10 years, plus a two additional five-year terms options

Q: What is franchising? How does it work?

A: Simply put, franchising is a way for a business to expand beyond its original owners. The most
common form of franchising is a business format franchise, where the franchisor contributes certain
elements of the business and the franchisee contributes certain elements. The power of franchising
is realized through the combination of the contributions from the two participants. Franchisees pay
initial franchise fees and then ongoing royalties for access to the format the franchisor has
developed and for ongoing enhancements to the system.
The franchisor contribution will include the brand/trademark for the concept, the business system
(commonly called the operating system). and initial and ongoing support as the franchisee builds his
or her business.
The franchisee contribution involves the management skills to run the business day-to- day using the
franchisor provided brand and system, and capital to fund the opening and continued operations of
the business. In addition, the franchisee brings a level of desire and interest in having the business
succeed that is essential to franchising- and is something the franchisor can't replicate on its own.
There is a contract- called the Franchise Agreement- signed by both parties that governs the
relationship between the franchisor and franchisee and explains in detail the responsibilities of both
sides. The franchisor is required to provide a copy of the Franchise Agreement and this contract will
provide a road map for the duration of time the agreement is effective.

Q: What qualifications does Fireman's Contractors seek in its potential franchisees?

A: The following qualifications, among others, are essential to be considered for a Fireman's
Contractors franchise:
• An entrepreneurial spirit and strong desire to succeed.
• The ability to motivate and train people.
• The ability to manage finances.
• The willingness to personally devote full time and best efforts to the day-to-day operation of the
parking lot maintenance & pavement specialists as an franchisee.
• The willingness to complete a comprehensive training and evaluation program to become
proficient in all aspects of running the business.
• The ability to meet financial qualifications.

Q: What is the availability of territory in my area?

A: The availability of franchises in specific areas will be discussed during your initial interview.
However, as you can appreciate, Fireman's Contractors cannot predict which territories will be
available when your application and qualification process is complete.

Q: What is the term of the franchise agreement?

A: Your franchise agreement will have an initial term of 10 years, plus a two additional five-year
renewal options.

Q: Is there a continuing royalty fee?

A: The continuing royalty fee is 5% of net sales (net sales = gross sales minus taxes, refunds and
discounts), paid weekly through electronic funds transfer.

Q: Is there an advertising fee?

A: Currently, there is a requirement to contribute 2% to the Advertising and Development funds. In
addition, there is a requirement to spend 2% of net sales on local advertising.

Q: How long does it take to open a Fireman's Contractors Business?

A: We hesitate to give time frames due to the number of variables that exist. Usually, a Fireman's
Contractors Business can be opened within weeks from the time the qualification and training
process is complete to start working. Many factors influence the time.
This timeline may vary due to the following factors:
• The number of existing franchisees who are on the waiting list in your area.
• Arranging financing.
• Purchasing your machines, equipment, tools, supplies, etc.

Training.

Q: Do I receive training from Fireman's Contractors?

A: Our current training program offers hands-on experience in operating a Firemans Contractors
franchise at a training facility/on-the-job/onsite. We also provide additional training for your
management staff and a Firemans Contractors franchise Support representative will be on your site
during opening.

Q: What type of support will I receive?

A: The Fireman's Contractors team will provide guidance regarding standards,
specifications, operating procedures, marketing and purchasing equipment and products. A series of
manuals are also provided that will assist you in the operation of your Fireman's Contractors
franchise business.


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FRCN can bounce back to the 52-week high 0.0014 again with the FIXED Low OS (847M shares) since no more OS dilutions due to the current Non-Reporting (which also means no any R/S risk) status (i.e. the "STOP" sign)...