Jiaqi’s response and questions.
Thank you for sending me the information at the very first.
It is very wise to adopt the recording meeting model with investors on the portal. I listened the entire recording. It is knowledgeable and comprehensive. It would be more convenient to listen it if it is downloadable because sometimes I would prefer to listening certain part of the recording repeatedly.
Personally, I will choose the option of partnering with Summit Salons. But there are some questions I would like to have more explanation and detailed solution.
1. Since my salons have been operating for a year, it will be best to keep stylists and store managers. What is your plan?
– we want to keep the stylist and managers with the best talent. The alternative model is one that encourages them to perform and incentivizes them to do so.
2. I understand that the fees for partnering with Summit Salons is far less than that of Fantastic Sams. Could you give me an estimation of monthly cost of the new fees?
– did you get the proforma? It’s on the proforma. They are requiring we have an internal rep at Franvest headquarters that works directly with the manager on the project. The fees are 700 a month for Summit and 200 a month for the rep they want here.
3. If we come out of Fantastic Sams system, I assume that we could not use “Fantastic Sams” as salon names. So which name will be put on the salon? Is there any negative effect on current customer base?
– we will need to ask the franchisor for a grace period to change the name. It will not come off all at once but we are asking for a period of a year to make the transition. Again, the franchisors has to approve this.
4. I would like to know more about any possible changes of my salons if we come out of Fantastic Sams system, including but not limited to brand name, staffs, products, payroll expenses? What will the investor pay for the changes of coming out the system?
– They want to flatten the management, remove the GM and the franchisor, then create better financial opportunity for the stylists and in store managers. Payroll is shown on the sheet I added in the attachment. the proforma. Did you get that?
5. Because this change is significant, could you discuss with Klasko’s attorneys to make sure that it will not affect the immigration process? I want to have their opinions on this issue.
– we did discuss this with them and they said it would not be considered a material change in their opinion and would not affect the visa.
6. How will you define the additional capital this time? Is it a short-term loan as well? Do you have any loan repayment plan, including the previous $50,000?
– We can do it any way you would like. We are open to working with you to achieve your goals in the way you feel most comfortable with. If you want to do it as a loan we can do that.
7. Could I get to know the combined bank balance in the bank? When do you think it will be running out?
– I posted it in your portal today. The capital is currently almost out again.
8. Could you upload the April financials on the portal as soon as possible? Also, the May financials on the portal shows the March financials when I access in.
– I know. I can’t delete it. I need to ask for technical support. It was added there in error. The April financials I asked for yesterday. She should have them already. I will continue to bug her until she posts them.
Overall, thanks for your hard efforts and contribution on my case, I can see that my three salon stores have improved significantly in the past three months. In consideration of the current situation, I want to make sure that all my salon stores will maintain the growth rate even if we will change from Fantastic Sams to Summit Salons. This is the key to our success. At last, thank you again for your concern all the time. In the meantime, let me know if I can assist your efforts in any way.
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