There was a significant amount of news in the Q just 2 weeks ago!
Including Franchising!
But I'm sure we will get plenty in the spun-off ticker!
$$$$ AMFE $$$$
From the Q2:
2). Interloc-Kings Inc.
Interloc-Kings Inc. was incorporated in the Province of Ontario in April 2009 and was 100% owned by Roger Mortimer. Over the last four years,
clients and revenues have consistently increased. The business leases many trucks, tools, machinery and equipment to facilitate the growing
business all while paying the employees and owner salaries and having no outside funding or capital ever injected into the business.
During this initial growth phase due to the very well received model by our clients, we have been able to meet and develop very positive and
powerful relationships with other contractors, manufacturers and suppliers of the industry throughout Markham and Toronto. Through
experience, we learned about all the different products and installation methods throughout the industry and have our own processes which help
the installations go smoother and faster compared to the originally accepted and used methods.
The main goal of Interloc-Kings Inc. is to become one of the largest installer and supplier of interlocking and paving stones in North America as
well as becoming the largest winter service company in North America by way of franchising and reproducing the current proven business model
across targeted regions; as well as by developing the stone brand and eventually manufacturing the pavers in our own facility.
Products & Services Description
Interloc-Kings Inc. supplies and installs residential and commercial hardscape construction projects including interlocking stone driveways,
walkways, back patio’s, retaining walls and steps, fences, decks, pools, etc during the summer season and is one of the largest residential winter
service provider in Markham for winter maintenance services covering approximately six hundred homes in the off season.
We have completed a vast array of projects stone and wood related from wheel chair ramps at Pizza Pizza locations to custom waterfalls, sauna’s,
backyard kitchens or the coordination of group stone and fencing projects with homeowners or homebuilders to allow for larger scale projects
where work is completed for half of a street or a whole street as opposed to individual households. We target anything stone or wood related for
installation on the exterior of residential/commercial and industrial properties.
Using our connections to suppliers and manufacturers we are exploring the option of having our own specific type of stone made that will be
stocked and promoted by some of our current suppliers for the use by all contractors and homeowners in the area. There are billions of square feet
of paving stone purchased and installed globally on a yearly basis and some of the stone suppliers we use have locations as far as Illinois,
Michigan, New York, New Jersey, Ohio, Wisconsin, Massachusetts and of course all across Ontario, to name a few. A supplier in Markham has
expressed interest and willing to stock our product and promote it to their clients when it is market ready. By capturing a percentage on all stone
sold across North America or even globally, to be used by all contractors for installation, we believe that revenues could rapidly grow within the
first three years of the product being available to the market. Since stone installations are seasonal and only approximately two thirds of a given
year provide the weather to allow for installations in Ontario, having the stone brand and/or franchises in Southern states will help keep the sales
going year round.
The winter aspect of our business was created to keep our employees busy year round and offers a needed service that has never been captured by
an individual company on a large scale. Part of the reason we have been able to expand as much as we have is due to the aging population we
have. Over the past four seasons we have grown to become one of the largest residential winter service company in Markham to cater for the
desire and need by the average person for our service. As we decide to expand to more and more houses across Markham, York Region and the
Greater Toronto Area, our number of seasonal customers will increase exponentially and it is a business model that can be replicated in all of
Canada and Northern United States. Most households just physically cannot provide the service for themselves for reasons such as injuries,
disabilities, aging population or simply because people do not wish to do it themselves and therefore want to pay to have it done for them.
Marketing Strategy
Between 2009 and 2014, Interloc-Kings Inc. has been able to establish a proven business model that has been successful in Markham, Ontario.
Our goal is to replicate this model to allow for franchising opportunities within the industry throughout the rest of Ontario, Canada and the United
States. By supplying the know-how, trucks, equipment and advertising based on experience and our proven track-record while showing other
existing contractors or individuals looking to get into the industry how to run a successful Interloc-Kings Inc. franchise for themselves, we will be
able to receive the initial set-up cost and yearly franchise fees all the while developing and establishing the brand name across different regions of
the country.
We originally broke into our industry using a very competitive pricing strategy that was still profitable. As our name brand and reputation
spreads, we will be able to increase our prices by almost double over a period of time. This is possible since one of our main competitor on
average charges almost double what we charge. While the installation costs and time will remain the same on a per job basis, the margins and
profitability on each project will increase significantly. Using this model we have put numerous contractors out of business in the area and will
continue to do so while capturing more and more of the market share of the regions we are involved in.
In the early stages of the Company, we have not had large advertising budgets because word of mouth referrals have started a snowball effect that
has been growing. With a larger team of estimators, we would be able to handle more business and get more jobs done at a faster rate. We are
looking at acquiring other contractors in our space to add to our sales, experience, employees and equipment.
We plan to increase and expand our advertising radius in order to substantially raise our contract numbers and revenue amounts. We currently
serve only a portion of the City of Markham were able to capture enough clients to be one of the leading contractor in all of Markham for
residential service numbers. If we complete a large advertising campaign and our plan is successful, we could increase our total number of
contracts from approximately 300 to 5,000 within a two year period. We believe this plan would allow us to have approximately $1.5M to $2M in
additional revenue.
For the snow removal business, each truck we put on the road can service anywhere from 80 to 110 residential homes depending on the route.
Each year that goes by, our customers become more and more dense within the areas that we service and we are able to get routes done faster and
add more houses per vehicle. This allows us to keep each truck within a one or two block radius during service times and therefore we can service
a larger amount of customers than any other contractor within the same amount of time and have less of a gas expense and wear and tear on the
vehicle. We have streets in Markham where almost half the street use our service or anywhere from six to twelve homes on the same street as
opposed to most contractors who travel around from one area to another servicing one home at a time. This strategy similarly to the interlock in
order to break into the market, our pricing was able to be on the lower end, however as more and more contractors get knocked out of business by
our company and we further monopolize the industry, we will be able to peg prices at a higher level and more in line with what some of the other
higher priced competitors charge.
We plan to run franchises in Markham where blocks of 500 customers could be allotted to independent owners or kept as a larger franchise and
expanded to other cities across Ontario and Canada. We are also looking at the City of Brampton which is similar in scale and can be easily set up
using the model we have in Markham. We are also targeting the City of Toronto which has over 1 million households.
Target market
According to the Interlock Concrete Paving Institute (“ICPI”), the North American Concrete Paving industry covers a total surface area of 478
million square feet or 44.4 million square meter representing 1.4 square foot or 0.13 square meter per capita. Growth rates are projected to be
2.7% in the United States and 7% in Canada.
In 2012, ICPI succeeded in lobbying Congress to include the first-ever permeable pavements provisions that were conceived by ICPI and offered
for consideration on Capitol Hill. In doing so, ICPI has created new law, and established that permeable pavements are now a technology for use
under the auspices of the U.S. Department of Transportation (USDOT). There has been a steady increase over the last three years in permeable
pavement sales with a growth of 3.8% to 5.1% between 2009 and 2011 covering just under 30 million square feet. 78.4% and 21.6% of the
permeable pavement sales were placed in commercial and residential applications, respectively.
According to David Smith, director of the new Concrete Paver Institute, the use of pavers in the US may double within the next 4 to 5 years.
News 
Market Data 
Discover 
