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.
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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.
Splish is the first certified green salon on the planet. Taking thelead, the founders Matt and Andrea Walsh created a superiorservice process, environmentally friendly and socially responsiblesalon system. After developing the pilot facility, solid leadershipteam, franchise system, training program, growth model,expansion and business strategy Splish is poised to enter itsexpansion phase.
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Splish:Splish:Splish:Splish: Creating the Blueprint for a Green
and Sustainable Hair Salon Business
expansion phase.
Splish’s threefold revenue stream—corporate salon revenue,product sales and franchising—is enhanced by itsenvironmentally friendly sustainable hair salon business. Splishuses earth friendly products, responsible construction practices,recycling and creates green jobs.
Green MovementGreen MovementGreen MovementGreen 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 sellenvironmentally responsible products and services
• 70% indicate that they are paying attention to what companies aredoing with regard to the environment
Confidential-All information is proprietary to Splish Salon Systems, Inc.
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.
Salon Industry in USSalon Industry in USSalon Industry in USSalon 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
Confidential-All information is proprietary to Splish Salon Systems, Inc.
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
The ChallengeThe ChallengeThe ChallengeThe 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
Confidential-All information is proprietary to Splish Salon Systems, Inc.
� No other franchised salon company is focusing on the eco-friendly segment
No franchised salon is focusing on the No franchised salon is focusing on the No franchised salon is focusing on the No franchised salon is focusing on the
$17 billion green salon market!$17 billion green salon market!$17 billion green salon market!$17 billion green salon market!
Splish Solution and VisionSplish Solution and VisionSplish Solution and VisionSplish 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
Confidential-All information is proprietary to Splish Salon Systems, Inc.
• Splish line of products for retail and professional use
• Niche dominance in the eco-friendly salon market
The Splish vision:““““To own the eco-friendly market
in the hair salon industry through responsible corporate and franchised salon growth.”
• 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)
Confidential-All information is proprietary to Splish Salon Systems, Inc.
• 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.
� Other franchised salon – most of them are targeting to the lower end market
Salon Name Units Cost to Build Salon Size Expected 5 Year
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Salon Name Units Cost to Build Salon Size Expected 5 Year
Annual Revenues
Splish 1 $75,000-$250,0006-8 chairs
1200-1500 sq ft $480,000+
Regis Salons 1071 $175,000-$235,0008-10 chairs
Up to 2000 sq ft $461,000
Super Cuts
(Franchise)2136 $120,000-$200,000
8-10 chairs
Up to 2000 sq ft$269,000
Cost Cutters
(Franchise)865 Not Disclosed
8-10 chairs
Up to 2000 sq ft $282,000
History and AchievementsHistory and AchievementsHistory and AchievementsHistory 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 PlanGrowth PlanGrowth PlanGrowth 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
Confidential-All information is proprietary to Splish Salon Systems, Inc.
• 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
Salon Recycle LocationsSalon Recycle LocationsSalon Recycle LocationsSalon Recycle Locations
� Criteria
• Location must be a high traffic quality location
• Demographics must have sustainable traffic flow
• Potential to be recycled—Previous Salon
� Colorado Candidate stores
Confidential-All information is proprietary to Splish Salon Systems, Inc.
Net EBITA -25,434 333,450 699,950 856,325 1,013,694 1,224,406 4,127,825
Full Financial package upon requestFull Financial package upon request
ManagementManagementManagementManagement
� CEO/Matt Walsh: Highly experienced entrepreneur, builtand sold three businesses including a brokerage firm, astock trading software company and a spa
� COO/Andrea Walsh: Extensive background in customerservice holding executive positions in several Fortune 500companies, started the spa business with Matt
Confidential-All information is proprietary to Splish Salon Systems, Inc.
� 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 thefranchise industry
Use of FundsUse of FundsUse of FundsUse of FundsThe 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 salons in Colorado
�Series A, $1,000,000 US
• Open a corporate headquarter salon in
Confidential-All information is proprietary to Splish Salon Systems, Inc.
• 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 SplishSplishSplishSplish Salons ~Matt Walsh
Proposal and Proposal and Proposal and Proposal and
ValuationsValuationsValuationsValuations
� 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
Confidential-All information is proprietary to Splish Salon Systems, Inc.
When one tugs at a single thing in nature, he finds
it attached to the rest of the world.~John Muir
•Close March 29, 2010 * Initiate Growth Phase* Prove Franchise Model* Increase Value
� Series A
� Seeking $1,000,000 US w/ 20% equity Use of Funds