Tapp Palmer, Founder and CEO of Clubstore Outlet, LLC, (CSO) has spent years. The CSO model is simple and efficiently. about

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2 about Tapp Palmer, Founder and CEO of Clubstore Outlet, LLC, (CSO) has spent years building, managing, and perfecting the CSO business model and operating structure. After opening Costless Outlet, his very first Wholesale Club Overstocks Outlet in Charleston, SC in 2008, he quickly realized the huge consumer demand for the merchandise he carried. Even during the height of the recession, his store had astronomical sales in year one, with no advertising, in a low-rent 4,000 sq. ft. building hidden off the beaten path. He quickly developed a loyal customer base that was spread by word of mouth. To date, Mr. Palmer and his team have opened over 20 Independent Overstock Outlets for entrepreneurs throughout the country, with plans to open 10 franchise units this year after launching his unique and exciting business concept as a franchise to grow into a national brand. The CSO model is simple and efficiently structured to provide profitability and ease of operating management. It is a total turnkey set up for new franchisees with low start-up costs, complete training, and ongoing support. CSO offers a unique mix of inventory they can purchase at huge discounts from Wholesale Club retailers clearing out overstocked items, shelf-pulls, open box and damage box items and customer returns. The strong business relationship between Mr. Palmer s company and major Wholesale Clubs allows CSO to receive high quality overstock products then resell them at deep discounts in their storefronts to the general public with no membership fees. On average, CSO resells the goods at a 30%-40% below wholesale clubs and up to 50% below other retail stores. The merchandise is made up of everything from non-perishable grocery items, cleaning and paper products, clothing, furniture, small appliances, electronics, TV s, home décor, toys, patio furniture, housewares and much more. Shipments arrive weekly on average to replenish merchandise flying off the shelves. There is always something new and different which creates consumer shopping excitement and anticipation of what s coming in next at incredible jaw-dropping prices. Its truly a win-win for everyone.the CSO franchisee has a fun, easy, very profitable store, Wholesale Clubs are making room for their new incoming inventory, and the customer is thrilled with the value and variety CSO provides.

3 support When you join the Clubstore Outlet team as a new franchisee, you will receive a full spectrum of support starting week one.we are there for you every step of the way, beginning with the real estate search and lease negotiation for your CSO location, all the way to the complete set up of your store including but not limited to shelving and display layout, renovation guidance, inventory ordering, as well as complete training for you and your employees. It doesn t stop there, we are always here for you, ready to assist you in any and every way! Just remember, we are only as successful as everyone on our CSO team. It s our job to make sure you succeed! Operational Marketing Purchasing Ongoing Research and Development training Training Includes: Approximately 1 week of training between our Clubstore Outlet Corporate Office in beautiful, historic Charleston, SC, and the franchisee s store location prior to your opening. On-site training: Approximately 3-5 days of handson intensive training when our team comes to set up your store, preparing you for your grand opening! You and your employees will see and participate in the entire exciting process of getting your store up and running and how to take it from there. (With our ongoing support, of course!) 2 sessions per year of refresher/update training or meetings in each session. (In person or via video chat) Ongoing support and guidance for the operation and success of your business.

4 territories When you open your Clubstore Outlet store, you are given an estimated 3-5 mile protected territory based upon the population density of 50, ,000 people. Clubstore Outlet is always looking for expansion opportunities in new markets. Our company is rapidly growing which benefits everyone on the team with building brand strength and recognition and reputation.

5 costs The franchise fee for opening one Clubstore Outlet is $40,000. Our franchisees are thrilled at the incredibly low start-up costs required to open a CSO which can immediately begin making them money! Total estimated costs to open, including all of your fixtures, equipment, possible improvements, signage, lease deposits, initial large opening inventory order- just to name a few, can, in some cases, be as low as *$197,200, depending on many factors including city, location, store size, etc. Please see chart below as a gauge to get an estimated idea of what it will cost you to open your own CSO! Description LOW HIGH Franchise Fee $40,000 $40,000 Setup Fee Territory Fee Real Estate (including security deposit) Initial Inventory Leasehold Improvements FF&E (shelving, pallet jack, shopping carts, etc.) Point-of-sale computer and applications, peripherals Insurance Signs Advertising and Grand Opening Utilities Deposit $20,000 $20,000 $10,000 $10,000 $6,000 $13,000 $75,000 $100,000 $20,000 $35,000 $6,000 $10,000 $1,000 $1,500 $700 $1,000 $5,000 $7,000 $1,500 $2,500 $750 $2,000 Permits Legal and accounting costs Alarm and Camera Systems Travel, Lodging and meals for initial training $250 $500 $500 $3,000 $1,000 $1,500 $500 $3,000 Miscellaneous $1,500 $3,500 Additional Funds (first 3 months) $7,500 $20,000 TOTAL $197,200 $273,500 * These are only rough estimates, each line item can vary much higher or lower depending on the case. ** Clubstore Outlet Corporate recommends securing a lease at or below $20/sq ft, between 3,500-5,000 sq ft to maximize profitability.

6 qualifications Qualifications we look for in potential franchise owners: Strong customer service and sales skills Friendly, positive, outgoing, flexible, and adaptable personality Excellent managerial qualities Strong sense of integrity and character in corporate and customer relationships Commitment to achieving excellence, and the ability to meet and exceed Clubstore Outlet high standards High personal standards Previous business ownership and or managerial experience Franchise operations experience a plus Hospitality or service industry experience Ability to meet investment and ongoing running capital requirements

7 interested? Contact us today! Investor Relations ph: toll free:

8 next steps What are the Next Steps? Step 1: Complete the Clubstore Outlet Evaluation Form Step 2: Sign the NDA Step 3: Send the Evaluation Form and NDA to Step 4: Upon our evaluation/qualification review and acceptance, proceed to next step Step 5: Arrange initial video chat/and or phone consultation to Meet the CSO Team to discuss any and all questions in depth, covering more detailed information Step 6: Review the CSO Franchise Agreement thoroughly with your partner(s), consultant, attorneys, etc. Step 7: Sign agreement, make initial financial commitment, and join our CSO team! We will begin working for you!