Loyalty Brands accelerates the growth of its franchisor's clients by delivering expertise from industry leaders with a demonstrated track record of building brands into category leaders. Our mission statement is clear, concise, and meaningful: Having fun exceeding expectations. The Loyalty Brands affiliated businesses include: ATAX, a retail and online tax preparation service Ledgers, delivering business services solutions for small to medium-size companies First Choice Business Brokers, where buyers become sellers and sellers become buyers Shepherd's Guide, Your Christian Connection for goods and services Estrella Insurance, a Latin0 focused insurance agency

1. INVESTMENT OPPORTUNITY

2. PRESENTATION IS CONFIDENTIAL. IT MAY NOT BE SHARED, IN WHOLE OR IN PART, WITHOUT THE EXPRESS WRITTEN CONSENT OF LOYALTY,
LLC (“LOYALTY”). THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER TO SELL, OR THE SOLICITATION OF AN OFFER TO BUY, ANY
SECURITY, PRODUCT OR SERVICE, INCLUDING INTERESTS IN THE FUND. INSTEAD, IT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. THE
TERMS OF ANY OFFER (“TERMS”) WILL ONLY BE MADE IN COMPLIANCE WITH APPLICABLE LAW, SUCH AS THROUGH A CONFIDENTIAL
PRIVATE PLACEMENT MEMORANDUM (THE “PPM”), WHICH WILL CONTAIN ADDITIONAL INFORMATION. ACCORDINGLY, TERMS MAY DIFFER
MATERIALLY FROM THIS PRESENTATION. LOYALTY MAKES NO REPRESENTATION OR WARRANTY, EXPRESSED OR IMPLIED, WITH RESPECT TO
THE ACCURACY, REASONABLENESS, OR COMPLETENESS OF ANY OF THE INFORMATION CONTAINED IN THIS PRESENTATION, INCLUDING, BUT
NOT LIMITED TO, INFORMATION OBTAINED FROM THIRD PARTIES. LOYALTY HAS NO OBLIGATION TO PROVIDE UPDATES AS THE
UNDERLYING INFORMATION AND ASSUMPTIONS CHANGE. THIS PRESENTATION SHOULD NOT BE RELIED UPON FOR ACCOUNTING, LEGAL OR
TAX ADVICE OR INVESTMENT RECOMMENDATIONS.
Disclaimer

3. Contents
• Challenge
• Market
• Solution
• ATAX
• LBS
• Financials
• Use of Funds

4. Overview
Experienced Team
Proven Model
Profitable Industries
Demographics

5. At the helm is John Hewitt, who founded two of the top three tax prep
franchises and who is directly responsible for the development of over
5,000 franchises across the United States and Canada.
Proven franchise systems reduce the learning curve through effective
training and ongoing toll-free support lines to help establish and scale
the business.
Accounting, tax preparation, bookkeeping and related services are less
capital intensive and consistently top the list of most profitable private
businesses on a pre-tax basis.
The Hispanic/Latino community is the fastest growing demographic. It
represents over 17% of the total population and 24% of new
entrepreneurs.
Leadership*System*Industry*Demographic
Big Picture

6. Lets do it better! And Faster!
Joy in the Journey

7. The John Hewitt & Team
• Founded two of the top 100 largest franchises in the U.S.
• Entrepreneur of the Year-International Franchise Association
• Author, iCompete
• Jackson Hewitt grew 0 to 900 in 12 years
• Liberty Tax grew 0 to 4,000 offices in 12 years
• Both had a market cap of $500 M

8. Proven
Model 1. Brand Recognition
2. Standards
3. Operating Procedures
4. Comprehensive Training
5. Support

9. The Right
Demographic
Latino
• Currently 18% of US Population
• Fastest Growth Rate
• 3.4% growth in Latino business owners
• Avg Rev grew 14% in 2019 for Latino
Businesses

10. Company Overview
• Founded in NY in 1986 by Rafael Alvarez
• Largest single tax prep outlet in USA
• Franchising began in 2007
• Acquired by Loyalty Brands-July 2019
• Outlets grew by over 50% in next 12 months
Business Opportunity
• Focused on the Latino market, the fastest
growing demographics in North America.
• Over 25% of new businesses in USA are started
by Latinos
ATAX
Overview

11. ATAX
Projections
600
1,200
2,000
3,000
4,200
75
225
450
750
1,150
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
1 2 3 4 5
Stores
Fiscal Year
ATAX
Total Stores
AR Sold Developed

12. ATAX
Actuals
600
716
0
100
200
300
400
500
600
700
800
Projected YTD
Signed Area Rep Territories
FY20-21

13. ATAX
Actuals
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
May-20 Jun-20 Jul-20 Aug-20
Income & Expenses
May-Aug
Expenses Income

14. ATAX
Actuals
Franchise Fee
81%
Royalty
8%
Rebates
7%
Marketing
3%
Interest
1%
SOURCES OF REVENUE
MAY-AUG

15. The Right
Industry
Accounting & Tax
• Advisory
• Compliance
• Tax Services
• Bookkeeping & Payroll

16. Steven Rafsky joins the Team 2020
Steve turned Padgett into the industry leader
Improving the Padgett Model
Best tech stack in the industry
Key Differentiator=Area Representation
LBS
Overview

17. LBS
Projections
0
450
900
1,450
2,100
20
80
200
365
570
0
500
1,000
1,500
2,000
2,500
1 2 3 4 5
Stores
Fiscal Year
LBS
Total Stores
AR Sold Developed

18. Transaction
Highlights
● Units: Class A will be offered for purchase
● Total Authorized: 1.5M (A=1M, B=500K)
● Total Available: 300,000
● Percent Available: 20%
● Price Per Share: $16.67
● Minimum Investment: $10,000
● Maximum Investment: $5M
● Fees: $350,000
● Net To Company: $4,650,000

19. Use of Funds-Strategic
• Marketing to Build Brand Recognition
• Expand Lead Funnel
• Merger & Acquisition
• Conversion Strategy
• Working Capital to Franchisees
• Talent Acquisition
• Recruit Key Leadership
• Area Representatives

20. Use of Funds-Tactical
• Building Operational Excellence
• World Class Systems
• Training Systems
• Sales Performance Capacity
• CRM Integration
• Working Capital

21. Investment Considerations
Participate in the early growth of a high margin franchise business that
provides:
 Proven leadership in developing franchise organizations
 Proven core business models through franchising
 Focus on favorable demographics
 Low cost of entry to high margin Industry
 Attractive investment returns

22. For more information:
John Hewitt or
John Allen Waldrop