Splash Touchless LLC. Offering Memorandum

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1 Splash Touchless LLC Offering Memorandum 2 Car Wash Locations: 7250 Saltsburg Rd Penn Hills, PA Saltsburg Rd Penn Hills, PA Offered By Scott Glover

2 EXECUTIVE SUMMARY Splash Touchless LLC consists of 2 self serve car washes located in Penn Hills (bordering Plum Borough) approximately 1 mile from each other. Each wash is situated on approximately one acre. The 7250 Saltsburg Rd wash opened in August of 2004 and is configured with two roll over in-bay automatic car washes and 3 self serve bays. The equipment at the 7250 Saltsburg location was manufactured by the Jim Coleman Co. who is a leader in the self serve car wash industry and is considered among the best equipment as far as reliability and customer experience. This location is also configured with three additional vacuum islands containing 6 vacuums, 2 fragrance machines, 2 shampooers, and a vending machine. This location has a huge, loyal customer base. The 6520 Saltsburg Rd wash was purchased and reopened in November It is configured with five self serve bays, four vacuum islands containing 6 vacuums, 2 Hamilton changer machines with upgraded MEI bill acceptors, and 6 Laurel stainless vending machines. A sixth renovated self servebay contains two state-of-the-art dog washes. The self serve bays utilize Mark VII pump stands and the dog wash is equipped with National Pride dog wash equipment. The dog wash opened April 2009.

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4 PROPERTY HIGHLIGHTS 7250 Saltsburg Rd., Penn Hills, PA Loyal customer base Densly populated demographic Located directly across from a McDonalds. Shopping District also includes: Dollar General, Pizza Hut, Subway, PNC Bank, Kindercare, Shop N Save, Kinder Care, Mohan s Family Restaurant Reader s Choice Award in the Pittsburgh Tribune Review s awards 2009 and 2010(best car wash in the east suburbs of Pittsburgh) Business has generated great revenues with little to no marketing. Well maintained industry leader equipment.

5 PROPERTY HIGHLIGHTS 6520 Saltsburg Rd., Penn Hills, PA Newly Reopened In Newly Renovated Dog Wash Bays Next to Sunoco gas station (arrangements could be made for auto bay installation and gas pump marketing/cross marketing) 14,000+ traffic Densly populated area Bay could be converted for auto detail business. Very nice office space and storage on second floor (could be rented).

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7 2011 Stabilized Pro Forma (Both Locations) Income Gross 2011 Combined (Tax Return) Income $312,821 Expenses Expenses (less mortgage, interest, depreciation) $149,443 Less add back expenses (expenses new owner would not necessarily incur, estimated but nearly accurate) Auto Insurance $1500 Entertainment $2500 (Steeler Tickets, Golf Club, and some other perks) Car Payments $5,665 Cell Phone Bills $3,384 Internet Bills (Home) - $2,700 Vehicle Gasoline $2,400 Vehicle Repairs $3,000 Owner s Draw $12,000 Many Misc Expenses Billed to Wash - Tools etc. $5,000 Legal and Accounting Fees - $2455 Total Expenses New Owner Would Incurr $108,839 Net Operating Income $203,982

8 Priced Well Below Market Value Price:$1,390,000 (both locations) Valuations Cap Rate Valuation Value at 8% Cap Rate $203,982/.08 = $2,549,775 Value at 9% Cap Rate $203,982/.09 = $2,266,466 Value at 10% Cap Rate $203,982/.10 = $2,039,820 Value at 11% Cap Rate $203,982/.11 = $1,854,381 Value at 12% Cap Rate $203,982/.11 = $1,699,850 Gross Sales Valuation (standard in industry is 5x gross) $312,821 x 5 = $1,564,105 Loan assumptions: 5% Interest 20 Year Amortization 20% Loan to Value Down Payment (20%) $278,000 Net Operating Income (both washes) $203,982 Monthly Payment $7,339 x 12 $88,068 Cash Flow After Debt Service $115,914

9 Plenty of Ways to Improve and Grow! Neither wash has a full time attendant. According to many owners, attendants can increase sales 15%-30% ($30-$40k increase) 6520 Saltsburg Rd has dated coin boxes without any credit card acceptance and 7250 has a new credit card system that still does not cover vacuums or have a loyalty system. Improvements in this area could raise sales by as much as 20% Could install faster in-bay automatic wash for the big wash days. Add detailing center as additional profit center We have only had one price increases since we opened in Price was last increased in No substatial effort has been made to increase fleet sales (i.e. police department, other nearby companies with fleets) No substantial efforts have been made to for fund raising sales

10 Competition

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14 Notes