LED Source Franchise Opportunity Brochure

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FRANCHISE OPPORTUNITY OUTLINE

OWN A PIECE OF THE GROWING LED MARKET ENVIRONMENTALLY FRIENDLY Free of toxic mercury and lead

BETTER LIGHT Higher color rendering than fluorescent

SAVES MONEY May qualify for tax incentives and lowers energy

MORE ENERGY EFFICIENT 75%-80% less energy than incandescent

LOW MAINTENANCE COSTS Durable and operates in cold environments

LASTS LONGER 25,000 - 50,000 hours or longer


“I am so very excited that LED Source® has provided this opportunity to me.” Mark Etcovitch

COME JOIN US

T

hank you for your interest in our company and in owning

a piece of this rapidly growing market for LED Lighting solutions! LED Source® already holds a strong lead in the market for LED products and solutions. This is, in large part due to our team’s commitment to quality products plus a little bit of overachieving.

pre-sale client “LEDucation” then after-sale

“The LED is to Fluorescent lamps what the automobile was to the horse-and-buggy. It’s a revolutionary technological innovation that promises to change the way we light our homes and businesses.”

customer support, has brought us to where

U.S. Department of Energy

Our level of LED knowledge, in addition to our supplier relationships and big league

we are today. In the past couple of years as a franchisor, we have managed to tackle every challenge and now have a rapidly growing group of franchisees. A few of those are on

FRANCHISE NUMBERS Existing Franchisees

13

their way to opening second locations as we

Current Contracts (Opening Soon)

speak!

Franchises In Negotiation

10

ur initial franchise training then

Locations Planned For 2013

24

continual product and application

Locations Planned By 2014

48

O

education, plus fanatical development of our franchisees

is what will take us to the next level. Every

4

Architectural lighting is the early adopter due the technological advantages in color control LED lighting provides, with 39% market penetration as of today.

day we break new ground in the franchising world. In fact, simply by announcing the First and Only LED Lighting franchise system we changed franchising forever. However, instead of resting on exclusivity in the market, we will do everything we can to send our franchisees into the market each and every day with the best products, tools and knowledge of the retrofit lighting market than any other business currently operating outside of manufacturing. Not to mention, the industry’s leading brands and competitive pricing.

P

lease take your time in reviewing our materials, our website, and more importantly, perform your own due-diligence. I think you will

end up very excited and will take the next steps towards becoming an LED Source® franchisee and part of our valued team. Best Wishes, Marcel Fairbairn, President and CEO

Above: The hospitality market by 2020 is estimated to be using 86% LED lighting.


EXPLOSIVE GROWTH MARKET TIMING

LED Source® has positioned itself ahead of the growth curve of this rapidly expanding market. Fueled by the need to reduce energy consumption, financial costs, the U.S. Government’s initiative to ban all incandescent bulbs by 2014, and the Green Movement, the LED lighting industry is set for critical mass adoption. While the LED lighting industry is roughly only 10 years old, according to McKinsey & Company report, projections reveal that in 2020 the global lighting market will have revenues of approximately $145 billion and LED lighting will account for $86 billion or 60%.

ADOPTION

According to the U.S. Department of Energy (DOE), by 2030, widespread use of LED lighting in the United States could save:

EXCLUSIVE BENEFIT

Approximately 300 terawatt-hours of electricity

Equivalent annual electrical output of 50, 1,000 megawatt power plants

Approximately $250 billion at today’s energy prices

Greenhouse gas emissions by 210 million metric tons of carbon

LED Source®, through our project financing division LouMan Money™, is now able to provide up to 100% complete project financing on LED lighting retrofits. Everything from the lighting products to the design and installation, is packaged into one simple monthly payment that is funded entirely from the energy savings received each month. This is an exclusive benefit only available to our franchisees.

ABOUT US

LED Source® is the leading international solutions provider of professional, high quality LED lighting products. We specialize in providing design, support, development, project management and financing, for commercial and residential applications. Our strong relationships throughout the industry, vast product knowledge, manufacturing and customer support, has positioned us as the LED Lighting Experts™. LED Source® represents only leading LED manufacturers such as Cree, Lighting Science Group, Philips Color Kinetics, Philips Lighting, Toshiba LED Lighting and many more.

Starbucks Times Square Theatre District, New York

“The significant differences in LED technology vs other lighting technologies will lead “Lighting currently to a fundamental disruption of represents 20% of the the lighting industry along U.S. energy consumption the entire value chain.” with annual costs of McKinsey Report $40 billion.” International Energy Agency


FRANCHISE OPPORTUNITIES AVAILABLE OUR FRANCHISE EXPLAINED

LED Source® Pro franchisees will have access to retrofit LED product and sales channels. Pro franchisees are not required to have a lighting background and will receive training to enable them to provide retrofit LED solutions to their commercial clients. Our LED Source® Pro franchisees will offer a complete package to commercial clients ranging from restaurants and hotels to warehouses, schools, shops and virtually any business who uses lighting. We also offer an AG (Advanced Group) channel access, but only to prospects or existing franchisees with the qualifications to serve architects, architectural lighting designers or specifiers on complex lighting or pre-construction projects. These clients may require additional expertise that comes through training and years of experience.

WHAT ABOUT RESIDENTIAL SALES?

LED Source® currently only offers our Pro model, but will soon add the LED Source® Home Team franchise that will focus exclusively on residential LED sales. Through our system, these franchisees will be trained to educate homeowners on the benefits of LED lighting and will offer LED lighting with better quality and knowledge than other provider available to the homeowner.

FRANCHISES AVAILABLE ALMOST EVERYWHERE

We’ve already sold some regions and key cities, however, many great markets are still available. Contact us immediately for further details on joining this unique and exciting opportunity. Lets ride this wave together and change the world at the same time. ITEM

LOW ESTIMATE

HIGH ESTIMATE

$60,000

$60,000

$0

$500,000

Establishment Purchases

$11,000

$15,000

Initial Inventory Purchases

$25,000

$100,000

New Salesperson Package

$0

$1,800

AG Access Channel Fee

$0

$25,000

$2,000

$4,500

Utility Deposits

$500

$1,000

Car Wrap

$500

$2,500

Construction / Improvements

$2,000

$15,000

Professional Fees

$3,000

$5,000

Rent - 3 Months

$3,000

$8,100

Security Deposit

$4,000

$7,000

Office Equipment / Supplies

$5,000

$8,000

Insurance

$800

$1,300

Licenses

$300

$500

Signage

$100

$1,000

$20,000

$100,000

$137,200

$855,700

Franchise Fee Area Development Fee

Initial Training Costs

Several options available depending on your desired investment level and lighting background or experience.

Additional Funds - 3 Months TOTAL INVESTMENT Note: Some costs are variable depending on your local area.

FIND US 866.900.4533 • franchising@ledsource.com • www.LEDsource.com


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