A UNIQUE, DISRUPTIVE AND NEEDED NAIL SALON CONCEPT FOR WOMEN A REMARKABLE FRANCHISE OPPORTUNITY

A UNIQUE, DISRUPTIVE AND NEEDED NAIL SALON CONCEPT FOR WOMEN A REMARKABLE FRANCHISE OPPORTUNITY

WHAT S THE BIG IDEA? MIND. BODY. NAILS. NAMASTE NAIL SANCTUARY COMBINES THE NECESSITY OF NAIL SALON SERVICES WITH THE LIFE CHANGING BENEFITS OF MEDITATION, RELAXATION AND REJUVENATION. Relaxation practices like meditation are rapidly gaining popularity. In fact, 8% of U.S. adults (18 million) use meditation and even more could benefit from the practice as 75% of adults experience moderate to high-levels of stress. Undoubtedly, the timing is right for a first-to-market franchise opportunity that combines meditation with one of the most in-demand services in the country. The nail services industry is recession-proof and continues to grow. In 2016, more than $8.5 billion was spent on nail services. The frequency and amount spent on nail services fits perfectly with a nail salon concept with a monthly membership model. The average woman who gets manis and pedis does so every two weeks, running her an average of $112 a month. The average person who gets manicures and pedicures spends one to two hours in their nail salon, each visit. With the introduction of NAMASTE NAIL SANCTUARY, these regular one to two hour visits can now be dual-purposed. Customers can receive their routine mani-pedi while spending the time it takes to receive the service, doing something that improves their health and their lives: meditation.

WHY MEDITATION AND REJUVENATION? Researchers have proven that meditation helps people overcome many health-related issues such as stress, high blood pressure, heart disease, substance abuse, and much more. They ve also found that the practice helps people enhance their mental capabilities such as abstract thinking, memory, and creativity. It even helps people improve their leadership and social skills. With NAMASTE NAIL SANCTUARY, women that already practice meditation and women that would like to, now have a nail services destination that is both conducive and supportive of the practice. And for the women that may not practice meditation but do need to relax, decompress or simply disconnect, their needs will also be met by NAMASTE NAIL SANCTUARY.

WHAT S WRONG WITH TODAY S NAIL SALONS? Most nail salons are crowded, bright, loud and chaotic environments that make it virtually impossible for clients to relax. Most nail salons are unkempt and/or unattractive. Most nail salons have poor customer service including fostering the rude practice of nail technicians communicating amongst themselves in their own language. Most nail salons are dangerous; their unsanitary practices are a health risks to the clients they serve. Most nail salons are speed-focused with a primary goal of getting clients in and out their service chairs as quickly as possible and the salon is designed to fit as many clients as possible into their footprints with no regard for client comfort. Most nail salons are not experiential!

THE MODEL Each sanctuary will see consistent walk-in business in addition to all of the appointments booked ahead of time via the website, in person or by phone. In fact, 64% of women routinely schedule their regular nail services in advance! Membership offerings will cater to the individual needs of your clients while allowing you to realize all of the benefits that a recurring revenue model can offer. In addition, every location will have a robust selection of retail products for sale as well as the opportunity to host private events of all kinds. The full spectrum of nail services for women will be available at every NAMASTE NAIL SANCTUARY as will be a members only meditation retreat room for unlimited use during regular business hours. REAP THE REWARDS OF A TRULY UNIQUE FRANCHISE OPPORTUNITY ROOTED IN THE RECESSION-PROOF $8.5 BILLION NAIL SERVICES FOR WOMEN INDUSTRY.

A SOLID PLAN TO MEET OUR BIGGEST CHALLENGE The biggest challenge with any new nail services franchise is real estate. Our 6-Point Real Estate Game Plan offers our NAMASTE NAIL SANCTUARY Franchisees a variety of location types and location strategies to overcome this challenge: 1 - Non-exclusive strip centers. While there are strip centers that already have a nail salon as a tenant, not all strip centers have given their nail salon tenant, exclusivity. In fact, in some cases, landlords are prohibited by their lenders to grant exclusives. 2 - Non-strip center sites. The uniqueness of the NAMASTE NAIL SANC- TUARY offering will make it a destination unlike traditional nail salons that rely on walk-in traffic or strip center visibility. 3 - Great retail and restaurant streets. The cool factor and elevated interior of NAMASTE NAIL SANCTUARY makes it a great addition to streets that upscale, cool or eclectic shops and restaurants call home. 4 - Lifestyle centers. According to some estimates, 33% of the population desires to live in a walkable, mix-use neighborhood. This demand has resulted in a surge of retail and housing live-work-play developments across the country. As more and more mix-use developments sprout up in every town and city in America, they present more and more great site options for NAMASTE NAIL SANCTUARY locations. 5 - Developers with taste. In every city there are developers who only want unique, cool or high-end retail and service concepts in their retail development. For developers with more elevated sensibilities, NAMASTE NAIL SANCTUARY will be a well-received concept firmly grounded in a proven, high demand and recession-proof industry. 6 - New and future construction. As new strip centers, redevelopments, new retail projects and new mixed-use developments get slated for construction, NAMASTE NAIL SANCTUARY franchises have the opportunity to be the first-and-only nail salon in retail projects that are on the way.

WHAT WE KNOW Staffing NAMASTE NAIL SANCTUARY locations is a non-issue. Historically, most nail salons are owned by people of Asian descent and most of those businesses exclusively employ nail technicians who are also of that same descent, leaving thousands of licensed Caucasian, African-American and Hispanic nail technicians without employment at nail salons or in the nail salon industry at all. Contrary to the popular belief that virtually all nail technicians are Vietnamese, industry statistics suggest that 40% of nail technicians are Caucasian, 5% are African-American and 3% are Hispanic. That talent pool is huge with over 400,000 active nail licenses held in the U.S. in 2016! With 24% of nail technicians practicing their craft for less than 3 years, it s plain to see that the number of women getting into the industry is growing year after year. 64% of women make appointments for nail care services and many will visit a nail salon more than one time per month. This means that you have predictable revenue and the ability to manage your staffing needs, and costs, based on that pre-scheduled demand.

OUR LOOK. OUR FEEL. Our mission is to create a nail spa that s an optimal environment for meditation, relaxation and rejuvenation. And when women walk through the doors of NAMASTE NAIL SANCTUARY, they re going to see and feel that immediately. Zen architecture, stone fountains, serene colors, live walls, soft lighting, relaxing audio, ultra-comfortable custom seating, privacy draping, personal flat screen TVs, BOSE noise-cancelling headphones, MUSE headbands and Deepak Chopra s Dream Masters all combined with ultra-hygienic nail care services and clean business practices.

MAKING MEDITATION EASIER AND MORE ACCESSIBLE Many of the women that will make NAMASTE NAIL SANCTUARY their nail services destination of choice may be new to meditation or just not skilled at the practice enough to meditate while having their nails done. For both the beginner and expert meditation practitioners, they ll have use at no additional cost of our technologically-advanced personal meditation assistants: MUSE: BRAIN SENSING HEADBANDS Meditation has been proven to reduce stress and increase focus, but it can be hard to know if you re doing it right. Muse provides you with real-time audio feedback on what s happening in your brain when you meditate, letting you know when your mind wanders and teaching you to regain focus. When you re calm, you ll hear peaceful weather sounds. When your mind wanders, the weather will intensify, guiding you back to a calm state. With inthe-moment feedback, you ll learn to effortlessly improve focus as you unwind and relax each time you use Muse. DEEPAK CHOPRA S DREAM MASTERS The Dream Master Light and Sound Mind Machine lets you relax like never before. Developed by the remarkable Dr. Deepak Chopra, the Dream Master uses light and sound pulses at specified frequencies to help the user relax quickly and reach a variety of beneficial states of consciousness. In turn, those new states of consciousness can increase your motivation, drive for personal growth, intuition, and even creativity. There are 85 audio visual programs built into the Dream Master s memory card including five programs narrated by Deepak. And each Dream Master comes with the requisite pair of meditation glasses for added focus.

THE FIRST LOCATION The first NAMASTE NAIL SANCTUARY is currently in the construction phase and is on track to open in November 2017. It s located on Ventura Boulevard in a prime section of Studio City, CA, which is part of Los Angeles County. The first shop, which is corporate-owned, is 1,520 square feet and will include a Members-only meditation room.

THE FOUNDERS MICHAEL ELLIOT, CO-FOUNDER & CEO MECCA ELLIOT, CO-FOUNDER The visionaries behind NAMASTE NAIL SANCTUARY are entrepreneurs and meditation practitioners Michael and Mecca Elliot. Michael Elliot is the founder of Hammer & Nails Grooming Shop for Guys and President/CEO of The Hammer & Nails Salon Group, LLC. Elliot has an eye for identifying untapped market niches and in 2013 he discovered that, while there was a need for a business that provided hand and foot grooming exclusively for men, no such business existed. Elliot s vast and successful entertainment career allowed him to see the shift in attitude regarding male hygiene and self-care, creating a long-term potential for a salon such as Hammer & Nails. In January of 2016, Elliot began franchising Hammer & Nails Grooming Shop for Guys with a goal of making Hammer & Nails a national brand. As of August 2017, more than 230 Hammer & Nails franchise and RD licenses have been sold in nine states. Mecca Elliot owned and operated a successful salon in Dallas, Texas for more than 10 years. A long-time meditation practitioner and meditation teacher, Mecca introduced the benefits of meditation to her husband, Michael. The couple s positive experiences with the practice, market awareness, and individual successes in the health, wellness and grooming industries ultimately led to a decision to launch NAMASTE NAIL SANCTUARY in 2017.

MANAGEMENT TEAM JOSHUA REED - DIRECTOR OF OPERATIONS Josh has been our Director of Operations since August 2017 and he s been the Director of Operations for Hammer & Nails since January 2016. He s also served as the Operations/District Manager for The Joint Corp., he was the Director of Operations for LaVida Massage Franchising and Director of Field Operations at Massage Envy. LIA SMITH - DIRECTOR OF TRAINING Lia has been our Director of Training since August 2017 and she s been the Director of Training for Hammer & Nails since November 2016. Lia has provided nail services to an elite client list as an independent manicurist for more than 30 years. Lia also owned and operated a full-service salon, barber shop and beauty supply business called Prizms Salon and Supply, based in Los Angeles, CA. MIKE WATORSKI - DIRECTOR OF FRANCHISE DEVELOPMENT Mike has been our Director of Franchise Development since August 2017 and he s been the Director of Franchise Development for Hammer & Nails since January 2016. Prior to that, he served as the Vice President of Licensing and Sales for Logistics Trust, Inc., the Vice President of Business Development of ZO Skin Health Group, LLC and Senior Vice President of Franchising for GameTruck Licensing, Inc. LEON BEAUFORD - FRANCHISE CONCIERGE Lee has been our Franchise Concierge since August 2017 and he s been the Franchise Concierge for Hammer & Nails since July of 2017. He was also the Founder and CEO of Beauford Insurance Agency, LLC, a multi-line insurance brokerage company. With management experience spanning more than 25 years, he s served in a variety of roles in the entertainment, banking and insurance industries.

COMPLETE FRANCHISE SUPPORT COMPREHENSIVE TRAINING that includes initial franchise training at our corporate location, on-site support as your unit opens and ongoing training through our online portal. START-UP ASSISTANCE including advice on site selection and lease terms, recommended location layouts, Construction Specification Manual, décor specifications, and equipment and furniture sourcing. PROVEN BUSINESS SYSTEMS, including a suite of technology solutions that will help you establish, manage and grow your business. DETAILED OPERATIONS MANUAL that guides you through our unique service offerings including our meditation tools, client service policies, sales-focused processes and more. ONGOING SUPPORT including periodic visits to your location, on-going training and access to our experienced support team. ALLIANCES AND RELATIONSHIPS with established and reliable national suppliers that understand your business. LOCAL MARKETING, BRANDING AND ADVERTISING ASSISTANCE including a Marketing Manual, suggested local marketing programs, proprietary marketing materials, local marketing co-ops, location specific micro websites and more.

THE INVESTMENT The total investment range required to own and operate your NAMASTE NAIL SANCTUARY location is $220,595 to $470,295. This includes your Franchise License Fee and some operating capital. You ll also need to have a net worth of at least $500,000 and liquid assets totaling $100,000 or more. Type of Expenditure Low Amount High Initial Franchise Fee $29,000 $29,000 Lease Expenses (3 months) $12,000 $43,000 Leasehold Improvements $60,000 $180,000 Furniture, Fixtures, and Equipment $60,000 $75,000 Computer Hardware and Software $4,500 $7,500 Technology Fee (3 months) $295 $295 Initial Training Costs (per person) $250 $3,000 Security Deposits $2,000 $6,000 Architect, Plans and Designs (including Site Plan/Design Fee) $2,500 $7,500 Signage $7,500 $15,000 Initial Inventory/Supplies $7,500 $12,500 Grand Opening Marketing $10,000 $10,000 Business Supplies $250 $1,500 Business Permits/Licenses (1st year) $800 $12,000 Insurance Deposits and Premiums (1st year) $1,500 $3,000 Professional fees (first three months) $2,500 $5,000 Additional Funds (3 months) $20,000 $60,000 Total $220,595 $470,295 Your actual startup costs may vary. Please contact us about opening a NAMASTE NAIL SANCTUARY location in your market for more details.

PRIME TRADE AREAS ARE AVAILABLE ACROSS THE UNITED STATES WHERE WOULD YOU LIKE YOUR NAMASTE NAIL SANCTUARY TO BE? To learn more, contact Mike Watorski: 818-657-7220 mike@namastenailsanctuary.com www.namastenailsanctuary-franchising.com