FRANCHISE O P P O R T U N I T I E S

FRANCHISE O P P O R T U N I T I E S

A BETTER OPPORTUNITY AWAITS A BETTER OPPORTUNITY AWAITS N2 Publishing is the industry leader and one of the fastest-growing companies in the United States, securing a spot on the Inc. 5000 list for seven consecutive years. We ve come this far thanks to our unique sales culture one based on camaraderie, humility, and respect. We create custom publications that connect neighbors to neighbors and business owners to hard-to-reach customers. Though we are passionate about turning neighborhoods into communities, N2 is really in the business of creating cool opportunities for our team members to work with people they actually like, where they are inspired to grow financially, relationally, and spiritually. 1 N2 PUBLISHING

I m often asked the question, What is the key to N2 s growth? In short, my answer is, Our People. It s the way our people respond to opportunity and challenge, the way they take care of business and each other - their behavior, which can be summed up as the culture of N2. COO - Marty Fukuda 2 N2 PUBLISHING

EARNINGS & COSTS EARNINGS & COSTS As franchise business owners, Area Directors create revenue from advertising agreements they sign with local businesses. Profit comes from what they sell, minus 15% (used by N2 as working capital for the company) and production costs (covering necessities like design, paper, ink, and postage to mail publications to residents). It s a simple profit model that, in essence, allows our people to take home as much as they re willing to work for. Area Directors partner with advertisers for 12, 24, or 36 months at a time, creating a steady, residual stream of revenue month after month. Once Area Directors make it to print, they re able to focus on building up that income. Of the Area Directors in the top half that ran a single publication, the average commission in 2017 landed just over $90,000, though one person earned over $260,000*. For people with two to four publications, the earnings ranged to over $300,000 a year**. *In 2017, 244 Area Directors had one publication. Of this group, 122 (50%) earned commissions in the top half of commission payments. 46 of the 122 (37.7%) earned more than the average commission of $90,785. The lowest commission earned by an Area Director in this group of 122 was $4,667. **160 Area Directors had more than one publication (between 2 and 4 publications). Of this group, 79 (49.4%) earned commissions in the top half of commission payments. 78 (99%) earned less than $300,000. The lowest commission earned by an Area Director in this group of 79 was $96,324. Your financial results may differ from those stated above. Important assumptions and qualifiers relating to this informtion can be found in item 19 of our March 28, 2018 franchise disclosure document. 3 N2 PUBLISHING

RAMP-UP & THE REALITY RAMP-UP For any new business, it takes time to become profitable. Area Directors must put in the initial work to sign agreements with enough advertisers in order to secure revenue that will cover production expenses. This period is known as ramp-up. Until they are through ramp-up and officially go to print, they are not compensated much like a new retail shop owner who must set up the store prior to being open for business. For Area Directors of neighborhood publications, the average length of ramp-up is three to six months. ITY THE REAL While the N2 franchise opportunity can be extremely lucrative, it s not for the faint of heart. It requires a ton of dedication and a willingness to take advice from people who have excelled in this specific role, regardless of a candidate s previous work success. Ramp-up is challenging something that our Area Directors often admit was one of the most difficult things they ve accomplished. But the more someone puts into this role, the more they get out of it. Therefore, we seek people who are excited to face a challenge head on. 4 N2 PUBLISHING

I don t know where else I could find an opportunity to own my business, have a ton of flexibility, have leaders who really care about their team, and also have the chance to earn the income that N2 allows. Area Director - Bryan Simpkins 5 N2 PUBLISHING

FRANCHISEE RESPONSIBILITIES F R A N C H I S E E RESPONSIBILITIES GENERATE ADVERTISING SALES Through our internationally-recognized training and support programs, Area Directors are armed with the know-how to generate ad sales. This involves cold calling and following up with referrals to schedule appointments with businesses local to their neighborhoods. BE THE LIAISON BETWEEN N2 PUBLISHING AND THE LOCAL COMMUNITY Area Directors build a strong, positive presence within their communities and with their neighborhood residents in particular. By planning social events, collecting positive stories to publish, and practicing honesty and integrity in all things, franchisees help build a respected reputation for N2 across the nation. 6 N2 PUBLISHING

I m owning my own business, but I m doing it with a support structure. Area Director - Nicole Geraghty 7 N2 PUBLISHING

PERKS Our franchise model allows Area Directors to set their own schedules, work from home, and reach their own income goals. This structure is a unique experience, so we spend a great deal of time training our people and offering continuous support throughout the life of their franchise(s). Those who are perfect fits for this opportunity love being their own boss without the typical burdens faced by small business owners. PERKS EARNINGS Uncapped income Personal, local business Trade-out or barter Cross-sell opportunities PROFESSIONAL GROWTH Flexible schedule Community involvement National recognition INDUSTRY FOCUS Unique market niche Industry-leader in the U.S. Economically-resilient industry TRAINING & SUPPORT Weekly educational calls National conferences One-on-one coaching PROFESSIONAL SUPPORT Production Design Accounting Printing Editing Mailing Advertising creative Proprietary client management 8 N2 PUBLISHING