Vapor Shark Franchising BE THE BEST IN YOUR INDUSTRY

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1 FRANCHISING 2017

2 2 BE THE BEST IN YOUR INDUSTRY VS VS

3 3 WHAT IS VAPOR SHARK? Vapor Shark is an industry-leading manufacturer and distributor of premium electronic cigarette devices, e-liquids and accessories. Our products are regarded as some of the best the industry has to offer, enjoyed by countless happy customers that span all walks of life, multiple generations and every corner of the globe. We re an internationally recognized brand that s dedicated to helping people discover the possibilities that exist beyond tobacco, as well as the largest, most successful electronic cigarette franchise in the world. As a Vapor Shark franchise owner, you ll discover how this energetic group of innovators, creatives and tech enthusiasts can be instrumental in helping you achieve your business goals, no matter how ambitious. OUR STORY In January of 2012 we opened the doors to our first retail store, tucked inside a small shopping center in Miami, Florida. As the first business of its kind, in a community largely unaware of electronic-cigarettes, we had a steep climb ahead of us. Our early customers consisted almost entirely of a small but vocal number of enthusiasts that were around at that time, followed by current or newly minted ex-smokers that were looking to make a change in their daily lives. For them, Vapor Shark provided a relaxed, pressure-free atmosphere where they were free to learn about the available products, consult experts, and comfortably decide for themselves. Word began to spread. Before long, our customer base grew to include people of all backgrounds. From college students and grandmothers, to anyone looking to free themselves of a costly smoking habit, the world was taking notice. Our name became synonymous with highend electronic-cigarettes, and electronic-cigarettes themselves were something to be taken seriously. Vaping was here to stay. VS

4 4 THE TEAM hold the keys to its success, and by joining our team, you ll be invited to share in this success as we continue our journey forward. With over 40 years of combined leadership experience for you to succeed by developing not just a proven business model, but a winning formula for making happier customers. We are excited to work with you, and we can t wait to show MICHAEL HERNANDEZ JASON HENSHAW Director of Franchise Development

5 5 Company Brochure 5 WHY FRANCHISE WITH VAPOR SHARK? Vapor Shark is disrupting traditional franchise models by lowering the barriers for owning and operating your own business. If you re an entrepreneur with aspirations of making a positive impact in your community, then Vapor Shark franchising can provide you with the resources and support that make all the difference. As a Vapor Shark franchisee, you ll benefit from years of careful planning and the continuous refinement that s allowed us to maximize profitability and deliver an outstanding customer experience in our stores. We apply the same formula to help your franchise hit the ground running. Some of Vapor Shark s most successful franchising partners had little to no business ownership experience prior to joining our team! No Royalty Fees First Access To Exclusive Products Unlimited Training Top Reasons to Own a Vapor Shark Franchise Industry-Leading Customer Support Dedicated Franchise Support Representatives Instant Brand Recognition Tri-Weekly Regional Marketing Make a Difference in People s Lives Protected Territories Easy Design and Set Up Unlimited In-Store Training

6 6 WHY ALL THE HYPE? Vapor Shark has been recognized by Entrepreneur Magazine and Franchise Business Review as one of the top new franchises in the world, and we re making it easier than ever for you to share in our success and become part of one of the industry s fastest growing brands. With 30 new franchise locations opened in just the last two years, Vapor Shark has grown to become the largest electronic cigarette franchise in the world! We ve witnessed the success of thousands of customers who were able to make the switch and change their lifestyle with the help of independent Vapor Shark franchise owners like you. MAIN VALUE Proven Track Record Brand Recognition Exclusive Products Helping customers make the switch for over seven years. Internationally recognized as a leader in the industry. High quality products you won t find anywhere else.

7 OUR SERVICES 7 SUPPORT We take your success seriously. Opening a Vapor Shark franchise is an important decision, and we want all franchise owners and staff members to feel confident and prepared during every stage of the process, from store buildout to the moment your doors open for the very first time. We re committed to providing the highest quality training and ongoing support to help to inspire your confidence and ensure the immediate and continued success of your business. 40 Hours Preliminary On-Site Training Unlimited Product Training Unlimited Continuing Education Group Training (for up to three at a time) Monthly General Meetings Monthly Evaluation Meetings (KPI Data) New Products and Troubleshooting PRE-OPENING SUPPORT Location Assistance Point of Sale Setup Store Design Guidance Equipment and Furnishing Support Introduction to Support Team Support Representative Assignment Comprehensive Welcome Packet ONGOING SUPPORT In House Design Team Financial Check Up through KPI Reports POS Management Social Media Management Proximity Protection First Option on Proprietary Product Competitive Pricing

8 8 QUALIFICATIONS IDEAL FRANCHISE OWNER If you want to be in the business of helping others, then we want to work with you! Vapor Shark franchising enables you to own a business centered on providing tools and resources for customers to make better choices in their daily lives. As such, an ideal Vapor Shark franchise owner should be a passionate advocate for their customers, and seek to foster a relationship of trust with those in their community. A Vapor Shark franchisee should understand the differences between smoking and vaping, and be able to explain these differences to customers. Though not required, experience within the industry and knowledge about vaping products are a big plus for consideration as a Vapor Shark franchisee. Also not required, though strongly preferred, is some level of retail, marketing and management experience.

9 9 FINANCIALLY QUALIFIED Vapor Shark franchise candidates are required to have at least $25k in liquid capital and $100k in net worth, and should be comfortable with an overall investment of between $120K and $160K. We welcome candidates who feel they can meet these requirements by combining resources with other partners. If desired, we can also provide you with references to third-party lenders that specialize in start up capital. ESTIMATED INVESTMENT The total investment required for opening a Vapor Shark franchise will depend on a variety of factors. A one-time franchise fee of $25k is all that s required to begin the process, and we ll help you navigate the rest of the path to opening. The estimated costs for building out your store, space leasing, furniture, equipment, inventory, signage and working capital can be viewed in the table below. ESTIMATED INVESTMENT LOW RANGE HIGH RANGE FRANCHISE FEE $25,000 $25,000 BUILD OUT & INVENTORY LEASING FURNITURE & EQUIPMENT SIGNAGE $48,000 $12,000 $20,000 $4,200 $85,000 $24,000 $30,000 $6,500 WORKING CAPITAL $10,000 $30,000 TOTAL INVESTMENT $120,000 $200,000

10 10 TESTIMONIALS Being in the business, I noticed that Vapor Shark is the leader of the pack, and I wanted to be with a winner. It s changed my life and family s life. Alex Armada, Vapor Shark Franchisee The whole thing was just a great opportunity. There s a huge staff there at corporate, everybody is very helpful, they are all very personable. They ve given me an opportunity to be successful at doing something I love, as well as helping other people. Aaron Cartwright, Vapor Shark Franchisee Everyone in the stores are great, their products are some of the best in the market. I don t see them going anywhere but up. Meryl Sarrecchia, Vapor Shark Franchisee

11 Company Brochure 11 TERRITORIES VS VS VS Franchise territory depends on a number of factors, including population density and geographical distance. Generally, franchisees are given a territory of 6 miles from any existing or potential new franchise. This protected territory also excludes any competing retailer from selling Vapor Shark products within 6 miles of your franchise location. Territories are available throughout the United States and abroad. The PROCESS Step 1: Qualification Complete the form located on www. vaporshark.com/franchise and submit your inquiry. Complete The Vapor Shark Franchise Application. Step 2: Interview Speak with the Director of Franchise Development about your background and interest in becoming a Vapor Shark Franchisee. Review the processes and have your questions answered. Set expectations and establish a time frame for opening. Attend Webinar and discuss Due Diligence Process. Step 3: Review Receive and review Franchise Disclosure Document and Franchise Agreement. Have the Director of Franchise Development address any questions about the documents. Step 4: Due Diligence If possible, visit a Vapor Shark store. Speak with existing Vapor Shark franchise owners. Review financing options with third-party lenders and seek pre-approval (if applicable) Begin looking for real estate options in your chosen market. Step 5: Final Approval and Agreement Execution Vapor Shark approval of your franchise application. Visit Vapor Shark corporate office to meet with the leadership team. Sign Franchise Agreement. Step 6: Store Buildout, Training and Opening Your Store Finalize lease. Begin store design and construction. Attend in-store training. Begin Marketing Campaign for Grand Opening. Grand Opening

12 12 FAQ What is the mission of Vapor Shark? Vapor Shark was founded to provide adult customers with a revolutionary alternative to traditional cigarettes. How big is Vapor Shark? Vapor Shark is a national company with both franchise and corporate locations operating from New Jersey to South Florida, and as far west as Texas and Wisconsin. Combined, there are 35 Vapor Shark stores located in the United States, and two in Latin America. How long has Vapor Shark been in business? Vapor Shark started as an online business in We opened our first brick and mortar location in 2012 and began franchising in What are my financial requirements? Candidates should have a net worth of at least $100,000 and a minimum liquidity of $25,000. Good credit and the ability to obtain financing may be required under certain circumstances. How much will my investment for a Vapor Shark franchise be? The cost of opening a Vapor Shark can range between $120,000 to $160,000 including the franchise fee. What are the royalty fees associated with franchising? Nothing. Vapor Shark does not charge royalty fees for franchising. Does Vapor Shark provide financing? While we do not offer financing, we have relationships with several financing partners that can assist you. Can I own more than one franchise? Yes, Vapor Shark franchising opportunities are available nationwide, and many of our current franchisees own more than one location. How much space do I need for a Vapor Shark store? The typical Vapor Shark store is between 1,000-1,500 square feet. How do I contact Franchise Development? You can contact us today by visiting We love helping customers make the switch

13 13 FRANCHISING Get In Touch 5000 SW 75 Ave Suite 123 Miami, FL (855)

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