McMaster Foreman Ventures INC is a holding company focused on developing a diverse portfolio of franchises with a goal of reaching $10 million dollars in sales within 4 years with a minimum net income of $2.5 million. Currently, our focus is on the Tint World brand / franchise. We have two existing locations - one in Greensboro, NC and one in Fayetteville, NC which opened on May 22nd. Two additional stores are in the site selection phase for the Winston Salem, NC market and the Greenville, SC market and are expected to be open within 6 months - 9 months maximum depending on how fast we can find the right site.
We have secured two private loans in the amount of $500K to develop those two stores. Each store is set-up as an individual LLC. We are in the process of restructuring the business entities to absorb the LLCs directly into the holding company to increase borrowing capacity and optimization of a larger balance sheet. Part of this restructuring plan is to enable the company to initial leverage debt and then as profitability grows and the stock valuation increases, convert debt to equity reducing leverage and adding assets to the balance sheet which will further drive up the stock price to minimize dilution for all investors.
In July we deepened our relationship with Tint World by executing a new Area Development Partnership agreement which increases our store licenses from four to eight and expands the company's footprint into desirable markets in South Carolina.
Press Release on strategic partnership with Tint World:
Tint World® announces strategic North and South Carolina area development agreement - Tint World We need to raise additional capital in the range of
$3.6 million to $4.6 million to
fund the development of six more stores. Funds will be used for a combination of new store development and financing of the corporation to grow staff to provide the necessary resources to efficiently run operations and provide appropriate governance over the stores. Through market research, analysis of Tint World data, and our experience as store operators, we have determined the average cost to open a new store to be
$600K. This includes store construction, equipment, inventory, working capital, etc.
Business Plans are available for the Winston Salem and Greenville stores. The business plans are based on an interest rate of 11% forecasted on where our bankers believe SBA rates will stabilize. We have been able to secure financing at lower rates depending on the terms of the agreement. Rates also vary depending on whether the capital is being deployed for store development or corporate operations.
The total capital amount is not required immediately. However, we are looking to start to secure commitments as our objective is to build
two new stores every six months.
We have developed a deep relationship with Tint World. Our objective is to acquire at least 12 more licenses spanning Virgina, North Carolina, South Carolina and potentially Georgia. Tint World supports this strategy based on our ability to raise capital and demonstrate that we can build, operate, and achieve sales targets successfully within the timelines of the Area Development Agreements. I am actively engaged with the executive management on a regular basis leveraging their expertise in the continued evolution of our operating model as well as sharing ideas to enhance the Tint World Franchise.
About me: You can learn about my career achievements and diverse business acumen that enable me to be a highly effectively CEO that brings innovative ideas to the Tint World Franchise model with a focus on rapidly growing sales, optimizing the product mix, and diversifying talent acquisition to provide superior product quality, minimize overhead expense, and enable efficient use of the store bays to generate as much revenue as possible. View my profile at: www.linkedin.com/in/shawn-mcmaster.
Why is this a smart investment:Tint World is one of the fastest growing Franchises in the United States today. Average profit margins are 78.2%. Our projections (using debt servicing at 11% interest) show net income after EBITA of $212,000 in year 3, $247,000 in year 4, and $287,000 in year 5. Tint World has never had a store close in its 30-year history and the franchise is a sought-after lending opportunity by banks because of the stores success rate, low risk, high margins, time to break-even, cash flow, and net income. However, traditionally financing is not set-up for this type of business expansion. We currently have soft commitments from two SBA lenders - one for a line of
$3.4 million and one for a line of
1.2 million but we prefer to leverage private investors because of the aggressive pace at which we want to expand.
If a Tint World does need to be sold for non-performance (unless it is on life support) it usually sells for $325K-$375K covering most of the cost of a $600K loan. Tint World is the industry leader in the After Market Auto Styling and Accessories space. The brand is recognized as the Ritz Carlton standard in the industry for its state-of-the-art showrooms and customer service. The brand is associated with cars like the Maserati, Porsche, Ferrari as the owners of the most luxurious cars come to Tint World over the competition because of the quality of its products, the professional training of its installers, above industry average customer reviews, and Tint Worlds exclusive access to top brands in the car electronics industry.
Tint World is transforming itself. The franchise is continuously innovating to bring new products to market, is highly focused on increasing average revenue per bay from
$150K to $200K. They are also evaluating opportunities to further strengthen their purchasing power to increase margins across a number of the products we sell.
While the Franchise is called Tint World it is made up of several different, high margin product lines including, high-end car detailing, ceramic coatings, paint protection, films, car wrapping, car electronics, paint correction, and many others. McMaster Foreman Ventures in particular determines which products to market at each of its stores based on market research of where we have the most potential to gain market share or establish a product line that is not readably available and take a leadership position. We don't try to compete where the research says, we won't win no matter what we do.
Why McMaster Foreman Ventures over another Tint World Area Development Partner
I am constantly innovating on how to make more money off of each of my bays in the stores shop. For example: Car wraps. A full color change takes 5 days. It means one of my bays cannot be used for tinting during that time -which is every franchisee biggest product segment. It is also virtually impossible to find talent that can do car wrapping at the quality level I expect for my customers in addition to another service such as Tint. There will never be enough volume to have a full-time car wrapper. It creates a situation where I have someone who does an average job (which leads to mediocre reviews and customers selecting car wrapping specialty shops), and it takes them 1.5 to 2 times the amount of time to complete the job. Ultimately, I end up with a 20% margin when you factor all those variables in. I have outsourced Wrap, Paint Protection Film and Detailing at my Greensboro store. The techs are a licensed business with liability insurance and is paid on a 1099. After a period of time, when we are confident in their work and ability to handle a car carefully, they take the cars to their shop. They are required to use Tint World products ensuring the customer is receiving the same quality as if we did it in house. This frees up my bays. I still earn a profit margin of 50% to a 60% and avoid the overhead costs of taxes and benefits.
We hire "A" rated (industry based ranking system) tinters to ensure superior product quality and installation. A rated tinters are also able to complete jobs significantly faster than lower rated technicians which creates additional capacity without having to increase headcount.
Demonstrated success at turning a deteriorating and poor performing store around. We acquired Tint World of Greensboro in July 2022. We knew it was a turn-around venture but the price point was less than half the cost of building a new store. The store had seen sales decline for four consecutive years and mounting losses under two different owners. We had to invest heavily to complete the transformation necessary to return the store to profitability through a combination of infrastructure upgrades, replacement equipment, a large purchase of inventory and an expensive rebranding to reintroduce the store to the market, and a total overhaul of the staff. Today the store is profitable, with profits increasing each month, the reputation is dramatically improved as seen in our Google reviews from the past three months, and expenses have peaked and are now declining.
Proven success at opening a new store. We opened Tint World of Fayetteville in May of 2023. You will see in our business plans a line item called "Soft Launch and Grand Opening" for $30K. We were the first franchise to invest this heavily in a strategic multi-channel marketing campaign - still underway - for the first three months of operations. We leveraged television, digital billboards, direct mail campaigns, radio, social media campaigns and have a dedicated social media organic growth consultant. The results: At the 10 weeks mark we are generating approximately 70 leads per week. For comparison, there are stores that have been open a year, that currently only generate 70-80 leads per week. We have seen meaningful growth in leads month over month. In week 9 sales reached our break-even number. While weekly sales will be up and down for the first six months, we exceed our goal of having a break-even week within 90 days. We are at week 10 and are going to have sales that hit the break-even mark again.
These are just some examples of why McMaster Foreman Ventures INC stands out from other opportunities. And the reason we are getting the incredible support from Tint World to grow our footprint so aggressively is because of what they are seeing.
I welcome the opportunity to meet with potential investors - even just if it is exploratory to share more about my vision and where we are headed. I don't believe any conversation is ever a waste of time. For the private capita deals we have executed to date, they have very different structures to meet the outcomes desired by the investor. We are open to hear proposals but also have parameters in terms of what we need out of these relationships as well.
Thank you for taking the time to learn more about McMaster Foreman Ventures INCs funding need, what we are doing today and where we are headed.
Shawn McMaster
Founder, Chairman & CEO
McMaster Foreman Ventures INC
Built to Outperform the Competiton