The Axess1 Global Franchise Network

Featuring Access to ONE:

*      World Class Field Management System

*      Product Development and Distribution Network

*      Marketing and Support Services Network

*      Communications Platform and Network

*      Solution for Churches, Community, Energy, Commerce and Communications

1.0    Executive Summary

Axess1 LLC is a company organized to generate revenue streams for local, regional and global strategic partners in cooperation with the Axess1 global franchise network. Ultimately, the successful execution of this plan will bolster the quality of living standards in developing nations by providing viable energy alternatives, cost effective green energy communication services and consumer products for sustainable living. To accomplish its mission, Axess1 has developed an innovative business approach to bring well-organized channels of distribution into otherwise highly segmented, highly chaotic business environments. This distribution network is designed in the form of a franchise with a well-defined set of business practices, operating principles, brand identity and a solid support structure.

In essence, this effort will empower local entrepreneurship; bring employment opportunities and a chance for wealth creation in some of the poorest countries of the world. Axess1 will provide the following:

·         the equipment (I.e. Mobile Kiosk POS Unit or Stationary POS Unit)

·         financing resources (micro-financing banks and lenders)

·         a franchising business plan and support infrastructure

·         proprietary systems technology

·         an information technology backbone for communicating with the members of the franchise

·         high quality products at reasonable prices

Initially, the franchise point-of-sale (“POS”) will be based on a service that is much needed in the developing world: cell-phone charging. Most developing countries have bypassed the wire and have gone straight to wireless telephone access. They, however, are missing the electrical power to charge their cell-phones. In many countries people charge their phones either from automobile batteries or diesel generators. Axess1 will build the franchise network on a simple solar phone charging station POS platform that has low capital investment and allows local visionaries to become entrepreneurs. The value of the franchise will increase through the introduction of solar and cell-phone related products and with the future introduction of 3G /4G communications services and wireless Internet Café connectivity at the POS access point.

The network will generate revenue from several sources:

·         Service charge generated by phone charging and sale of:

o       Renewable energy products (solar lights, solar systems, personal chargers, water pumps etc.)

o       Cellular accessories

o       Phone sales

·         Service Charge generated by wireless services:

o       Wireless access

o       Internet communications

o       International long distance

o       Local hone services

o       Prepaid Transactions

o       Prepaid cellular plans 

o       Video and Security Surveillance Systems

·         Commissions from:

o       Point of Sale Advertising

o       Reseller Marketing and Sales for Strategic Partners

The developing world is a huge market that is mostly untapped and the opportunity for growth and business success is tremendous. At the same time, this effort is worthy and socially beneficial in helping people develop business models for sustainable living. Axess1 is promoting a socially responsible, renewable energy solution based approach and in so doing the proposition offers investors and its strategic partners a huge opportunity to participate in the next growth market.

Considering the opportunity and taking a very conservative approach, our five (5) year revenue projections show a significant profit potential on a low-capitalization requirement business model. The start-up funding required to launch this business is an initial investment necessary to build-out the product concept to create a few prototypes and to develop complete marketing presentation in order to sign-up Master Franchisors. This investment does not involve additional technology development. It is, however, a unique combination of an existing solar-based design together with a proprietary electronics module comprised of: universal connectors, charge controllers, deep charge batteries, usage meters and other proprietary usage monitoring components integrated into a fixed Point of Sale (POS) or mobile based Kiosk as a total POS system. When possible, all of the POS products will be subcontracted to local manufacturers who have existing facilities and all products that will be sold through the network will be sourced through strategic partners who may already operate in the developed world and have existing infrastructure.

The financial projection presented above is the tip of the ice-burg. The growth rates are indicative of only one regional market—they do not include revenues from the third phase of introduction which will incorporate cellular and wireless 3G communications. Also the revenues generated by advertisement to be placed on the POS displays are not included. All in all, a significant part of the business is missing from the projections. Yet, even with these numbers one can not avoid the feasibility of this proposition nor the potential return on investment.

The focus here is primarily on the marketing Point of Service (POS) charging stations plus services and products to developing world where, according to World Bank estimates, 67% of rural country homes are not connected to the electricity grid. The distribution on a regional basis is shown in the following table. 

REgion

homes connected to the grid

opportunity

East asia & pacific

45%

55%

latin america & caribbean

40%

60%

North africa & middle east

35%

65%

south asia

25%

75%

sub-saharan africa

8%

92%

People in these regions do use energy and they pay for it; but it is not electrical energy. According to the various studies, each family in the poorest regions of the world spends at least $8-$10 a month for limited energy needs including kerosene, batteries/charging, diesel, coal, wood, trash and other fossil fuels. These energy sources are increasingly scarce, expensive and dangerous; generating indoor pollution and causing fires that claim an estimated two million lives each year.

The lack of access to basic electrical energy has serious and compounding social, medical, economic and environmental consequences. Without electricity the basic quality of life issues are missing: children cannot study after nightfall; people are without clean water; very little information is available to them; crops cannot be irrigated; there is little refrigeration and people’s health is at risk. Lack of adequate electrical energy also reduces availability of local industry development and opportunities for wealth creation are limited.

1.1    Where is the Grid?

Everyone in the international community recognizes the developing world electrification problem and they are attempting to form a solution. However, the biggest part of the challenge in solving it is that the Grid does not exist in these regions and the cost for expanding it is huge! The developing world ultimately has a distribution problem!

A similar problem existed in these same parts of the world with telephone communications. Part of the solution became available with cellular communications. The developing world simply bypassed the telephone wire and went straight to cellular. But this created yet another problem, network communications were within reach; but, without power, for many there was no reliable way to access it. We believe our solution will help solve both the electrical and the remaining communication energy distribution problems.

1.2    Beyond the Grid – Distribution Problem

Clearly an energy generation process that is local, modular and independent of wires (Grid) makes sense for the developing world. Comparing the cost for expanding the grid in these regions versus that for installing a solar system even while considering 2001 prices for photovoltaic systems (“PV”), makes absolute sense. Recent advances in manufacturing cost reduction make the installation of such systems even more desirable and provide a true opportunity for accessible, clean, green, electric energy beyond the grid!

Sounds great doesn’t it? Yet if we look at the data for installed PV systems around the world what we find is clearly illustrated in the following chart.

Region

Installed Capacity

Middle East & North Africa

8.4 MW

Central & South Africa

19.7 MW

Latin America

19.7 MW

South East Asia

34.6 MW

Oceania

36.6 MW

West Asia

98.5 MW

North America

323.5 MW

Asia

651.8 MW

Europe

1620.5 MW

 

 

 

 

 

Even though the developing world desperately needs PV power the majority of the systems are installed in the developed world where distribution and financing is readily available.

Ultimate problem remains: The developing world has a distribution problem!

 

1.3    Axess1 Business Proposition - Product Distribution

The distribution problem in the developing world is a matter that goes beyond the telephone wire, beyond the electric wire (grid), and expands to how products reach the market in an organized, well-financed manner. This is the problem that Axess1 is seeking to address first with the establishment of a franchise network that offers a reward for entrepreneurial initiative as well as employment in the local markets.

The solar phone charging station sits at the heart of the business proposition as the POS and serves three (3) basic purposes:

1.      A clear demonstration of Solar Energy Generation,

2.      A much needed service – charge cellular phones, laptops and PDAs,

3.      As an organized Point of Service for:

a.       Solar products (solar lamps, solar accessories etc.)

b.      Solar installations (small home systems, water systems etc.)

c.       Cellular products (phones, personal chargers, phone cards etc.)

2.0  Company Structure

Axess1 was formed to implement the ideas developed and presented herein. It is structured as a supply management organization with research and development offices that do product development and design proof. Headquarters are in Atlanta, Georgia, satellite offices in Burlington, New Jersey and subsidiary offices to be established in centrally located hubs around the Globe.

Supply Side - On the Supply side the company is structured to prove the basic operation of the POS solar phone-charging station and future product improvements. Once the product has been well defined a strategic manufacturing partner manufactures the stations in regional or local markets as to achieve best market pricing. All other products offered by the company including solar lights, water pumps, solar home systems, phones, phone accessories, phone cards etc. will be supplied by third parties through a strategic partnership agreement.

Demand Side - On the demand side, the company plans to establish a distribution network that will promote the business opportunity in the form of franchisees. A subsidiary of the company will be created in each region where there exists a target market. Partnership of the subsidiary will consist 51% of Axess1 equity and 49% of a combination including subsidiary executives, Master Franchisees and local investment partners.

 

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