Mathnasium Franchisee Advisory Committee

As announced at the last convention, we will be establishing an advisory committee as an additional channel of communication between the franchisor and the franchisee community. The purpose of this committee is to provide an opportunity for constructive, open, and two-way communication through which we can take into consideration input regarding challenges and improvement opportunities in education, marketing, support, and the general operation of the learning center. As with almost all advisory committees, this committee will act only in an advisory capacity and shall not have the power to bind, establish or modify plans or policies, or have decision making power otherwise.

The election process for the new Mathnasium Franchise Advisory Committee (MFAC) begins today. The first part of the election process consists of requesting and confirming nominees.

The MFAC will consist of eight (8) franchise owners: three (3) representing multi-center owners and five (5) representing single-center owners. To qualify, all owners must have an operating Mathnasium center for at least twenty-four (24) complete months. Single-center representatives must have achieved a revenue level of at least $194,000 for 2014. Multi-center representatives must have achieved a consolidated revenue of $500,000 for 2014 (the franchisee must have at least 60% ownership of a center for that center to count in the portfolio).

MFAC representatives will serve two-year, staggered terms. Four (4) single-center owners and two (2) multi-center owners will be elected by franchisees, one (1) single-center owner and one (1) multi-unit owner will be appointed by us after the elections. To achieve staggered terms, two (2) elected representatives and both appointed representatives will serve a one (1) year term and replaced with elected/appointed franchisees next year who will serve two (2) year terms.

Please give strong consideration to running for one of the MFAC seats. Review the MFAC member criteria and nomination process below, along with the committee’s bylaws ^[1], then submit your Nominee Profile Questionnaire ^[2] no later than Friday, September 11 to nominations@mathnasium.com ^[3]. Please send any questions you may have to support@mathnasium.com ^[4].

MFAC Member Criteria and Nomination Process

Committee Structure
Franchisee Representatives will consist of (i) five (5) single-unit franchise owners, (each, a “Single-Unit Franchisee Representative”) and (ii) three (3) multi-unit franchise owners representing at least sixty percent (60%) ownership in each of their units (each, a “Multi-Unit Franchisee Representative”). Mathnasium will appoint one (1) Single-Unit Franchisee Representative and one (1) Multi-Unit Franchisee Representative. The remaining four (4) Single-Unit Franchisee Representatives and two (2) Multi-Unit Franchisee Representatives will be elected.

Single-unit franchisees will be divided into 4 quadrants in North America by state and province, as grouped below. The single-unit franchisees of each quadrant will vote to elect a Single-Unit Franchisee Representative for their respective quadrants. Single-Unit Franchisee Representative candidates must have their learning center within the quadrant they intend to represent.

West Quadrant (AZ, BC, CA, CO, HI, ID, NM, NV, OR, UT, WA)
Midwest Quadrant (IA, IL, IN, KS, MN, OK, SD, TX, WI)
Northeast Quadrant (CT, DE, MA, MD, MI, NH, NJ, NY, OH, ON, PA, RI)
Southeast Quadrant (AL, AR, FL, GA, KY, LA, MO, NC, SC, TN, VA)

Nominee Qualification Requirements
Franchisee Representatives must be current franchise owners (having at least 60% ownership) in the United States or Canada in good financial and legal standing with Mathnasium, which includes strict compliance with the franchise agreement and Mathnasium’s operations manuals, as determined by Mathnasium. The Franchisee Representative must have at least one Mathnasium learning center open and operating for at least twenty four (24) complete months prior to being nominated for the Advisory Committee. The Franchisee Representative’s learning center revenues for the most recently completed calendar year must be within the top fifty percent (50%) of learning centers open for at least twenty four (24) months as of the end of that calendar year. Multi-Unit Franchisee Representative candidates must have combined portfolio revenues within the top twenty five percent (25%) of all combined portfolio revenues of multi-center owners in the preceding calendar year.

Nomination Process
Nominees must complete and submit the Nominee Profile Questionnaire ^[2] by Friday, September 11, 2015. Each submission will be reviewed and eligibility confirmed. The Nominee Profile Questionnaire will become available to franchisees for their consideration in determining who to vote for on September 28, 2015. Please submit the form to nominations@mathnasium.com ^[3].

Election Process
Franchisees shall elect members by ballot. The Franchisee Representative candidates receiving the most number of votes will be elected. Each franchisee may cast one vote for each operational learning center he or she owns (at least 60% ownership interest). Single-unit franchisees can only vote for single-unit member representation within their assigned representation quadrant. Multi-unit franchisees can only vote for multi-unit member representation. We expect the voting process to be completed by October 18, 2015. Logistical details on the voting process will follow.

Timeline
Sept. 11: Nomination submissions due
Sept. 28: Confirmed nominees announced, Nominee Profile Questionnaires made public
Oct. 18: All votes submitted
Oct. 21: MFAC members announced
First meeting anticipated in November or December 2015