Confidential-All information is proprietary to Splish Salon Systems, Inc. Investor Presentation This presentation is prepared for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the Company or any related or associated company. Any such offer or solicitation will be made only by means of the Company's confidential Offering Memorandum and in accordance with the terms of all applicable laws.
Splish is the first certified "green" salon on the planet. Taking the lead, the founders Matt and Andrea Walsh created a successful pilot location, superior service process in an environmentally and socially responsible hair salon system
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Confidential-All information is proprietary to Splish Salon Systems, Inc.
Investor Presentation
This presentation is prepared for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the Company or any related or associated company. Any such offer or solicitation will be made only by means of the Company's confidential Offering Memorandum and in accordance with the terms of all applicable laws.
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Introducing Splish
Splish: Creating the Blueprint for a Green and Sustainable Hair Salon Business
Splish is the first certified green salon on the planet. Taking the lead, the founders Matt and Andrea Walsh created a superior service process, environmentally friendly and socially responsible salon system. After developing the pilot facility, solid leadership team, franchise system, training program, growth model, expansion and business strategy Splish is poised to enter its expansion phase.
Splish’s threefold revenue stream—corporate salon revenue, product sales and franchising—is enhanced by its environmentally friendly sustainable hair salon business. Splish uses earth friendly products, responsible construction practices, recycling and creates green jobs.
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Green Movement
According to the 2009 Cone Consumer Environmental Survey, for all Americans • 35% have higher interest in the environment • 35% have higher expectations for companies to make and sell environmentally responsible products and services • 70% indicate that they are paying attention to what companies are doing with regard to the environment
In the US, almost 80 million consumers will seek products and services from eco-friendly and sustainable businesses • LOHAS (Lifestyle of Health and Sustainability): 43 million, dedicated to personal and planetary health • NATURALITES: 34 million, focused on natural/organic consumer packaged goods with a strong health focus
The total size of the natural and organic markets will exceed $490 Billion by the end of 2010.
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Salon Industry in US
• About 80,000 hair care salons (75,000 beauty salons; 5,000 barbershops)
• The total size of the natural and organic markets will exceed $490 Billion by the end of 2010
• Global Salon Industry Annual sales of near $168 billion • The most important demographic of the salon guest is
and will be both the Baby Boom and the Gen-Y generations
Competition • Highly fragmented: the 50 largest companies hold just 15
percent of the market • The large majority of salons are independently owned • Largest player is Regis with over 13,000 corporate or
franchised owned establishments
Confidential-All information is proprietary to Splish Salon Systems, Inc.
The Challenge
Growing environmental hair care market but no standardized, franchised, business model for delivering against such demand
Entrepreneurs sense the value and prestige of being in this space but don’t know how to develop the idea
No other franchised salon company is focusing on the eco-friendly segment
No franchised salon is focusing on the $17 billion green salon market!
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Splish Solution and Vision
Splish provides an eco-friendly, social-responsible franchise system in the hair salon and beauty industry. The company has developed:
• A franchise system for providing an uncompromised 5-star experience at a 3-star price
• Splish line of products for retail and professional use
The Splish vision: “To own the eco-friendly market
in the hair salon industry through responsible corporate and franchised salon growth.”
”
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Revenue Models
Corporate store revenues • Average annual revenue of $500K US
for a 6 chair salon • Average net margin at 17%
Franchise store • Franchise fee ($5000-$25,000 one-time fee) • Franchise royalty (average $30K US per 6 chair salon,
6% of salons gross revenues)
Splish branded product sales. For corporate or online sales this represents a gross profit margin of 3 X cost of goods. For franchise sales, this represents a 40% markup of cost of goods.
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Competitive Analysis
Regis – 6% of U.S. market Independent Salon – Majority of the competitors Other franchised salon – most of them are targeting to the
lower end market
Salon Name Units Cost to Build Salon Size Expected 5 Year Annual Revenues
Splish 1 $75,000-$250,000 6-8 chairs 1200-1500 sq ft $480,000+
Regis Salons 1071 $175,000-$235,000 8-10 chairs Up to 2000 sq ft $461,000
Super Cuts (Franchise) 2136 $120,000-$200,000 8-10 chairs
Up to $269,000
Cost Cutters (Franchise) 865 Not Disclosed
8-10 chairs Up to 2000 sq ft $282,000
Confidential-All information is proprietary to Splish Salon Systems, Inc.
History and Achievements
October 2007, first salon in Conifer, CO October 2009, Platinum Certified by the National
Association of Eco-Friendly Salons & Spas November 2009, received the Green Seal of Approval
from Green Americas Green Business Network
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Growth Plan
Headquartered in Keystone, CO Focus on Colorado state and develop a growth hub Short term:
• Recycle existing salon using environmentally friendly finishes and construction practices.
• Increase valuation of company with corporate salons • Build brand reputation and solidify franchise model
Long term growth is based on growing the franchise model
• Expand across the US • Control growth by creating growth hubs in targeted
areas for example: New York City/Long Island; Greater San Francisco Bay; San Diego; Orange County, CA; Miami/Tampa Bay; Washington DC; Seattle & Portland
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Salon Recycle Locations
Criteria • Location must be a high traffic quality location • Demographics must have sustainable traffic flow • Potential to be recycled—Previous Salon
Net EBITA -25,434 333,450 699,950 856,325 1,013,694 1,224,406 4,127,825
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Management
CEO/Matt Walsh: Highly experienced entrepreneur, built and sold three businesses including a brokerage firm, a stock trading software company and a spa
COO/Andrea Walsh: Extensive background in customer service holding executive positions in several Fortune 500 companies, started the spa business with Matt
Chemist/Product Marketing/ Melissa Christenson: Chemist with MBA, seasoned innovator, strong research & development expertise and marketing savvy
Vice-President /Franchise Operations /Emily Logsdon: Enormous working knowledge of both the salon and the franchise industry
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Use of Funds The summary use of funds is below, a detailed UOF is provided to investors on request.
Bridge Capital, $300,000 US • Acquire and recycle 2-3 existing salon in Colorado
Series A, $1,000,000 US • Open a corporate headquarter salon in
Boulder, Colorado • Initial marketing for each new store • Develop and implement a strategic
marketing and advertising plan • Ongoing development of exclusive Splish hair care
product line Our goal is to repurpose existing salons into Environmentally friendly Splish Salons ~Matt Walsh
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Proposal and Valuations
When one tugs at a single thing in nature, he finds it attached to the rest of the world.
~John Muir
Funds Previously Invested: Use of Funds
Cash $ 627,500 US * Open Pilot Store * Develop Splish System
First Close:
Bridge $ 300,000 US w/ 10% equity Use of Funds
• Close March 29, 2010 * Initiate Growth Phase * Prove Franchise Model * Increase Value