Air4zero Franchise Centers

Air4zero Franchise Center:

Air4zero has started the presale of franchise centers and developed a franchise operations system, trademarks and grants franchises for the retail sale of the A4Z conversion kits and other related automotive services to the general public. Our Centers are approximately 10,000 square feet, 20 service bays, and are generally free standing.

Franchise Investment:
Average location: $357,000
Top location: $755.000
Franchise Fee: $25,000
Royalty Fee: 5%
Term:15 years
Down payment: 15%
Financing: 40%
Projected income: $3.5 to $6.5 Million

Recreation Area
Industry statistics show that 66% of customers bringing in vehicles for service are female. A4Z centers are designed to be family friendly with upscale features like tiled lobbies with leather easy chairs and couches, Internet café, complimentary beverages, large screen TVs, children’s play areas secured by a low wall, tiled and upscale restrooms, and exceptionally clean work areas.

Complete Training
Our training programs are designed to give franchise owners the knowledge, tools and skills needed in order to become a successful Air4zero Center Operator. Our initial program for a new franchisee is comprised of three weeks. All new franchisees complete Manager School, and Operator School.

Air4zero Manager School is focused on learning the front end of running one of our centers. It comprises everything from sales to bay management. Upon completing manager's school the franchisee will know the basics of running the shop area and the front counter.

Highlights of Manager School are:

Software Training
Sales Training
Bay Management
Estimating and Pricing
Customer Service
Inventory Management

Highlights of Operator School are:

Accounting
Marketing and Advertising
Software training
Safety and Personnel
Leadership, and Management
Business Planning

Field Training is a week long course at a designated mentoring center. Field Training is completed after the completion of the Manager and Operator Schools. During this week the franchisee will follow a written guide in order to observe everything they have learned in a real world environment. This is a great opportunity to work side by side and ask questions of technicians, managers and operators before opening their own center. These weeks typically lead to lasting business relationships and friendships.

Projected Income
$1000 net profit on each conversion after parts and labor before taxes.

Location	No of Cars	Daily	Weekly	Monthly	Annual Profits
Average	10	$10,000	$70,000	$280,000	$3,360,000
Top	20	$20,000	$140,000	$560,000	$6,720,000

FRANCHISE CENTER RESERVATION FORM!

Requires a 15% down payment to reserve your desire location is it's available. One of our representative will get in touch with you for more details. Fill out the reserve from below.

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Reserve your location: 15 years term with exclusive rights!

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Down payment: 15%

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FRANCHISE CENTER AGREEMENT!

AIR4ZERO MOTORS INC.
280 MADISON AVE
NEW YORK
NEW YORK, 10016

DEALERS REPRESENTATION, WARRANTS AND COVENANTS
The parties to this Agreement are the AIR4ZERO MOTORS and the designated above. The parties agree as follows:
Dealer acknowledges that company will, and is entitled to, rely upon all of the following representations and covenants regardless of the extent and nature of the company’s due diligence examination of the contracts. Dealer acknowledges compliance with federal Truth-In-Lending Act, Fair Credit Reporting Act, Equal Credit Opportunity Act, Federal
Trade Commission Used Car Rule, and Unfair or Deceptive Acts or Practices Rule, Magnuson-Moss Warranty ---

Federal Trade Commission Improvement Act and Retail Installment Sales Act when applicable. The contract is not usurious under applicable laws and that all buyers are at least eighteen (18) years of age when executing agreements.

Dealer further warrants and represents as follows: (I) Dealer is duly organized, validly existing and in good standing under the law of the jurisdiction in which it is organized, (II) Dealer is qualified to do business in each jurisdiction where each contract is originated.

PURCHASE OF CONTRACTS
1. AGREEMENT TO PURCHASE: A4Z Dealer agrees to purchase from Dealer without recourse from Dealer except as set forth herein, and Dealer agrees to sell to A4Z Dealer Contracts that are acceptable to A4Z Dealer. Any such assignment that A4Z Dealer accepts shall be subject to the terms of the Agreement. A4Z Dealer shall be under no obligation to purchase or accept assignment of any contract that A4Z Dealer considers unacceptable for any reason.

2. CREDIT APPLICATION: Each Contract submitted to A4Z Dealer shall be accompanied by a completed credit application, signed by the Customer(s), and accompanied by such other information A4Z Dealer may request. The A4Z Dealer shall have no obligation to purchase any Contract(s) submitted by Dealer to A4Z Dealer. A4Z Dealer will review the terms of sale and investigate Customer(s)’ credit application and supporting documentation and determine, at its sole discretion whether to approve, decline or counteroffer each submission. A4Z Dealer agrees to pay full approved loan amount for the contract to the Dealer within 5 business days of its issuance of a final verified approval.

3. LOAN APPROVALS: Only A4Z Dealer’s loan officers are authorized to issue loan approvals. No other employees, agents or associates of A4Z Dealer are authorized to issue approvals either expressed or implied. Approvals require requested documentation to support credit application information and must be in writing.

4. DELIVERY OF FUNDING DOCUMENTS: All Funding Documents shall be deliver to:

AIR4ZERO MOTORS INC.
280 MADISON AVE
NEW YORK
NEW YORK, 10016

OTHER DEALER OBLIGATIONS

1. HOLDER IN DUE COURSE: In the event (1) Customer asserts any claim or defense against Dealer or A4Z Dealer relating to the performance or non-performance of Dealer’s obligations under a Contract and/or Dealer’s violation of any provision of applicable Federal and/or State law with respect to the sale of a vehicle, completion of the Contract and/or consumer credit, or in the event A4Z Dealer becomes aware of any such
performance and/or non-performance or violation by Dealer which might give rise to the assertion of any such claim or defense, or in the event that any of Dealer’s warranties set out herein are or become false or misleading in any material aspect, Dealer agrees to repurchase the Contract for the balance due on receipt of A4Z Dealer’s written demand less the unamortized portion of any discount or insurance and/or warranties as set forth under
Section 5 herein. A4Z Dealer agrees that any demand to repurchase pursuant to this Paragraph will be made in good faith and A4Z Dealer shall provide the Dealer with a written notice that specifies the breach.

Dealer shall also indemnify and hold the A4Z Dealer harmless from any losses, damages, or expenses, including reasonable attorney’s fees, which the A4Z Dealer incurs by reason of or in consequence of Customer making any claim or defense related to Dealer’s performance or non-performance of its obligations hereunder and/or its obligations arising under the Contracts purchased by A4Z Dealer. No such indemnification shall be provided to the extent the losses, damages, or expenses are a direct and proximate result of A4Z Dealer’s breach of this Agreement. A4Z Dealer shall further have a duty to mitigate said losses, damages or expense.

2. RECOURSE TO DEALER: Dealer shall unconditionally guarantee to repurchase from A4Z Dealer at the current payoff amount, less any unamortized portion of any discount plus accrued interest, late charges and expenses incurred by A4Z Dealer, as of the date of A4Z Dealer’s “Demand Notice,” whether or not the vehicle has been repossessed,
in the event Dealer, and/or any of its employees or agents, knowingly falsified or misrepresented any material information on any document sent to A4Z Dealer, including but not limited to, any of the following:

(A) The amount of the down payment;
(B) Equipment of the vehicle;
(C) The borrowers income, employment history, credit history, residence, or any other information;
(D) Physical and/or mechanical damage exists on the vehicle prior to delivery of the vehicle to the Buyer and said damage is known to Dealer, or should have been known to Dealer and the damage is not disclosed to A4Z Dealer prior to delivery of the vehicle to the Buyer or funding by A4Z Dealer;
(E) If deferred down payment or pick-up payments to Dealer from Buyer have caused default or repossession;
(F) If vehicle sold to the consumer and transferred to the A4Z Dealer is not owned outright by the Dealer and is not free and clear of all third party liens.
The parties understand and agree that in the event a “Demand Notice” is sent and A4Z Dealer is in possession of the subject vehicle, A4Z Dealer will surrender said vehicle to Dealer upon payment by Dealer to A4Z Dealer in accordance with the terms set forth above. In the event A4Z Dealer has already repossessed the underlying collateral and sold same at auction or via private sale, A4Z Dealer will deduct from the payoff amount all proceeds from the sale of said vehicle, less A4Z Dealer’s reasonable expenses and costs.
In addition, if A4Z Dealer has not received a perfected title or notice of security interest within 90 days from Dealer’s receipt of A4Z Dealer’s check, Dealer shall, upon demand from A4Z Dealer, repurchase the subject contract from A4Z Dealer.

The amount of repurchase shall not be less than the current principal balance due and owing on said contract, plus any accrued but unpaid interest due A4Z Dealer. A4Z Dealer may, in its sole discretion, which will not be unreasonably withheld, extend Dealer an extension of time to obtain a perfected title. Generally, such an extension of time will
only be considered upon a showing that Dealer has applied properly for a perfected title or notice of security interest with all appropriate agencies.

3. SERVICE: Notwithstanding any obligation Dealer may have with the manufacturer of the goods it sells, Dealer shall duly provide services on all goods covered by the Contract(s) assigned to A4Z Dealer hereunder in accordance with the standard practices and policies as established by the distributor or manufacturer of such goods, whether by warranty provision or otherwise.

4. PAYMENT FROM CUSTOMER: Any payment received by Dealer on a Contract shall be the funds of and shall belong to A4Z Dealer and shall be received IN TRUST for A4Z Dealer, kept separate from the funds of Dealers, and shall be transmitted by Dealer to A4Z Dealer immediately upon receipt. A4Z Dealer is hereby authorized and empowered to endorse any remittance payable to Dealer in connection with a Contract.

5. DEALER DISCOUNT: Dealer acknowledges that A4Z Dealer may purchase contracts at a discount which shall be negotiated on a Contract by Contract basis and deducted from the net proceeds paid to Dealer by A4Z Dealer. Dealer shall not increase the purchase price of the vehicle to compensate discount.

GENERAL PROVISIONS

1. TRANSFER OF CONTRACT(S): A4Z Dealer shall have the right to transfer any and all Contract(s) purchased from Dealer upon such terms and conditions as A4Z Dealer sees fit. To the extent of any such transfer, the transferee shall succeed to all the rights of A4Z Dealer under this Agreement relating to the transferred Contract(s), and upon notice from A4Z Dealer, Dealer shall render to the transferee, instead of the A4Z Dealer, the performance of all obligations of Dealer hereunder relating to such Contract(s).

2. COLLATERAL VERIFICATION: A4Z Dealer has the right to verify the vehicle being financed at any time as to the vehicles condition, equipment, mileage, make, model and vehicle identification number (VIN#).

3. APPLICATION PROCEEDS: A4Z Dealer may apply the proceeds of any Contract(s) to any indebtedness or obligation of Dealer owing to A4Z Dealer less allowable discounts and/or processing fees if not paid to A4Z Dealer by separate check. A4Z Dealer shall provide Dealer with a written statement reflecting any amounts so applied and identifying the Contract or obligation to which it is related.

4. ENTRY INTO EFFECT, TERMINATION: This Agreement shall enter into effect upon execution by Dealer and A4Z Dealer and shall remain effective until terminated at any time by either party upon thirty (30) day written notice to the other party. The termination of this Agreement shall not affect any rights or obligations of either party existing under this Agreement and arising out of Contracts that have been purchased or funded by A4Z Dealer before or after such termination.

5A. DEALER INSURANCE AND SERVICE CONTRACTS: Credit Life, Accident/Health, and Service Contracts may be sold by Dealer unless restricted by conditional approval. Insurance and Service Contracts must be of type that allows for refund upon cancellation or repossession. Upon repossession dealer agrees to refund any unearned premium to A4Z Dealer by request. Upon cancellation Dealer agrees to refund any unearned premium to A4Z Dealer by request. A4Z Dealer will not finance any other insurance or assurance programs not expressly stated in this Agreement.

5B. GAP PROGRAMS AND PHYSICAL DAMAGE COVERAGE: Mid-Atlantic’s Guaranteed Asset Protection “GAP” program is available for sale. A4Z Dealer will not finance other “GAP” programs. A4Z Dealer reserves the right to refuse funding on any Contract for which the collateral is not properly insured with Physical Damage and Comprehensive Insurance as required by state law or A4Z Dealer guidelines. Dealer warrants the obligor’s purchase of all Insurance and “GAP” programs are voluntary and not a condition of the extension of credit. A4Z Dealer must approve dealer Insurance providers.

6. LEGAL: The Lien Holder and Loss Payee shall be recorded as:

AIR4ZERO MOTORS INC.
280 MADISON AVE
NEW YORK
NEW YORK, 10016

7. CONDITION OF UNIT: At the time Contract is presented for funding, unit must be in Customer’s possession, in usable condition, and comply with federal and state safety standards.

8. DEFAULT: The parties shall be in default under this Agreement if they fail to pay in a timely manner or perform any of their obligations under this Agreement, or make any false or misleading representations. In the event either party shall be in default, the this Agreement may be terminated at the option of the non-defaulting party, with said termination being effective as of the date of the earliest event constituting default. The
defaulting party agrees to reimburse the non-defaulting party upon demand, for all costs, expenses and attorney’s fees incurred by the non-defaulting party in enforcing the terms of this Agreement.

9. WAIVER: Dealer hereby waives presentment, protests, and all demands or notices as to any Contract(s) purchased by A4Z Dealer and consents to pay extensions or compromises extended by A4Z Dealer hereunder. No failure or delay by A4Z Dealer or Dealer to enforce any of its rights or obligations under this Agreement or to require compliance with the terms of this Agreement shall constitute a waiver of such rights or obligations. The waiver by A4Z Dealer or Dealer of any default by the other shall not be deemed to authorize any prior or subsequent default, or obligate A4Z Dealer or Dealer to continue any such waiver.

10. GOVERNING LAW: Any dispute arising between the parties hereto shall be construed under the laws of the state of New York, and shall be binding upon the signature(s) of an authorized officer of the A4Z Dealer and Dealer expressly agrees to submit to the venue and jurisdiction of all courts located in Albany County, New York.

11. HOLD HARMLESS CLAUSE: Dealer hereby acknowledges that this Agreement is solely between A4Z Dealer and Dealer. This Agreement does not include and lending institution(s) and/or investor(s) and/or limited partner(s) which are doing business with A4Z Dealer. These parties shall be held harmless from any legal action relating to a dispute between Dealer and A4Z Dealer. In the event A4Z Dealer ceased its business operations, Dealer acknowledges that A4Z Dealer’s lending source shall have the right to pursue and enforce terms and conditions of this Agreement in the event of dispute for any Contract.

12. ENFORCEABILITY: This Agreement is enforceable in whole or part. Should any part of this Agreement be unenforceable under applicable law, the remainder of the Agreement will remain unaffected and in force.

13. FACSIMILES: It is the intension of the Parties that the facsimile (fax) copies of this Agreement shall have binding effect.

14. ATTORNEY FEES: Notwithstanding any provision contained herein to the contrary, in the event either Dealer or A4Z Dealer shall institute legal proceedings to enforce the terms of this Agreement against the other, the prevailing party shall be entitled to reimbursement from the non-prevailing party, upon demand, for all reasonable costs, expenses, and attorney’s fees incurred by the prevailing party.

15. A4Z DEALER INDEMNIFICATION. A4Z Dealer shall indemnify and hold Dealer harmless from any losses, damages, or expenses, including reasonable attorney’s fees, which the Dealer incurs by reason of or in consequence of Customer making any claim or defense related to A4Z Dealer’s performance or non-performance of its obligations hereunder and/or its obligations arising under the Contracts purchased by A4Z Dealer. No such indemnification shall be provided to the extent the losses, damages, or expenses are a direct and proximate result of Dealer’s breach of its obligations hereunder and/or its obligations arising under the Contracts purchased by A4Z Dealer. Dealer shall further have a duty to mitigate said losses, damages or expense.

IN WITNESS WHEREOF, the parties have caused their duly authorized representative(s) to execute this Agreement on the date set forth above. This Contract supersedes all previous Contracts both written and implied.

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