V2K International, Inc.


	Home Company Overview Management Team Franchise Model Contact Us Press Room Press Releases Investors Investor Relations Overview Investor FAQ Register Brokers Register your referral Solutions V2K Window décor & more V2K Franchising V2K Kiosk

Franchise Model

In 1982 the company began developing software programs designed to standardize procedures and eliminate the majority of the repetitive work associated with the sale and manufacturing of window covering products. The first software program he developed was offered for sale at a national trade show in 1984 under the name of Drapery Data Corporation.

By 1989 the enhancements in visual graphics that had occurred in the computer industry prompted the addition of a graphic presentation to the calculation processes, and in December 1993, Pictures and Prices Corporation was formed as a vehicle to license the software.

V2K was incorporated as a Colorado, Subchapter S Corporation in July 1996 to offer licenses to use the Pictures and Prices software, and began testing the franchise model in March 1997. V2K's first franchisee commenced operations in August 1997. V2K fully committed to the franchise model in 2001.

The assets of Pictures and Prices Corporation were transferred to V2K in 1999.

In May 2001 Vic Yosha was brought in as an investor and as the President of the company. He accelerated the process of selling franchises. His $500,000 investment as well as money raised from outside sources launched the franchise model.

Franchising is the fastest growing segment of the ever expanding small businesses in the US. V2K Home Décor and More was recognized in 2006 by Entrepreneur Magazine as #50 best home based franchise in the US. It has consistently been in the top 10 franchisors marketed by many of the leading franchise brokers.

Our leading franchises sell from $500,000 to a $1,000,000 per year in a small store front or a home based business. They are capable of making a net profit of 25% to 30% on their sales. These franchisees collectively sold $12,000,000 plus in fiscal year ended September 30, 2006. All purchases of product by the franchisee is made through the company.

Because of the innovative 3D software the company provides each franchisee, they have the ability to make "first time" closes with their customers and are able to maintain 50% to as high as 75% margins on their sales.

Because of the outstanding Franchise sales management team, the company is adding 4 to 5 new franchisees each month. Many of the existing franchisees are buying additional territories surrounding their existing territory. At the current time a franchise territory sells for $59,500. For this fee the franchisee receives a high powered laptop capable of running our 3D software, the 3D software, two weeks training at the corporate headquarters, samples packages of the products, and their sales materials.

THE MARKET

The U.S. market for window fashions is approximately $8 billion and growing. Experts project that the market will expand by 8% in 2007, 7% in 2008 and 5% in 2009.

The window fashion industry is highly fragmented - in terms of both competition (see below) and established distribution channels. This fragmentation has limited the implementation of technology as a competitive component. The industry is not automated at the point of sale and industry participants have, up to now, relied on antiquated manual systems for selling and administrating window fashions. This has led to quality control errors and has adversely affected operating margins. The fragmentation of the industry, coupled with the current lack of technical innovation, provides a unique opportunity for V2K.

V2K considers every window, worldwide, to be within its potential target market. V2K will reach this market: (1) by harnessing the power of the franchise business model; (2) by entering into license agreements with companies already in the industry; (3) by taking the V2K concept global via international master franchise and master license agreements; and (4) by utilizing the Internet and e-commerce.

Since V2K has two layers of target markets - potential franchisees/licensees and potential end users - management will employ a two-tiered marketing strategy. One tier will focus on the sale of franchise units and license agreements, while the other tier will focus on franchisee retail product sales.

THE COMPETITION

There is no established, preeminent competitor in the marketplace. Instead, there are roughly 30,000 individuals and/or companies engaged in the sale of window fashions in the U.S. Many of these are part-timers and hobbyists. The few companies in the industry that are sizable have relatively small market shares, and are not exclusively in the window fashion business. V2K's copyrighted software product gives each franchisee a competitive advantage over everyone else in the industry by providing the best way in the world to buy, sell and administrate window fashions. Furthermore, through the sale of license agreements, V2K will be able to turn many of its potential competitors into customers.