Western Capital Resources, Inc. (“WCR” or “Western Capital”)
is a holding company having a controlling interest in subsidiaries operating
in the following industries and operating segments:
Our “Franchise” segment is comprised of AlphaGraphics, Inc. (99.2%
owned), the franchisor of AlphaGraphics® customized print and marketing
solutions. Our “Cellular Retail” segment is comprised of an authorized
Cricket Wireless dealer and involves the retail sale of cellular phones and
accessories to consumers through our wholly owned subsidiary PQH Wireless, Inc.
and its subsidiaries. Our “Direct to Consumer” segment consists
of (1) a wholly owned online and direct marketing retailer and distributor of
live plants, seeds, holiday gifts and garden accessories operating in the retail
market under the Park Seed, Jackson & Perkins and Wayside Gardens trade
names, and in the wholesale market under the Park Wholesale trade name, and
(2) a wholly owned online and direct marketing distribution retailer of home
improvement and restoration products operating as Van Dyke’s Restorers.
Our “Consumer Finance” segment consists of retail financial services
conducted through our wholly owned subsidiaries Wyoming Financial Lenders, Inc.
and Express Pawn, Inc.
After the close of business on June 30, 2015, we acquired a 100% ownership
interest in the businesses comprising our Direct to Consumer segment. These
businesses were acquired through a merger transaction governed by a Merger and
Contribution Agreement entered into on June 9, 2015. As contemplated under the
Merger and Contribution Agreement, we issued an aggregate of 3,500,000 shares
of our common stock, representing approximately 37% of our total issued and
outstanding common stock immediately after the merger.
We offer business format franchise opportunities for AlphaGraphics® Business
Centers within the United States and internationally. The AlphaGraphics franchise
model permits our franchisees to market and provide customized marketing solutions
utilizing AlphaGraphics’ trademarks, operating methods and custom-developed
or licensed information technology solutions. Through our preferred vendors,
we provide site selection assistance including design and construction oversight,
assist with locating financing, and provide training to our franchisees prior
to the launch of their franchise Business Center location(s). Additionally,
throughout the term of the franchise agreement, we provide ongoing training
to franchisees, national and regional advertising, and operational procedures
to Business Center owners. Franchisees locate and operate their franchise locations
in designated territories within a predetermined geographical region. Franchisees
are also responsible to develop and maintain their customer base and operate
their Business Center(s) in accordance with the franchise agreement and such
standards as we direct from time to time.
Potential franchisees have the option to: (1) develop a new Business Center,
(2) purchase an existing Business Center, (3) acquire an existing graphics and/or
marketing related business and convert it to a Business Center, or (4) convert
their own graphics and/or marketing related business to a Business Center. Our
discovery process for new Business Center owners involves:
· Understanding potential franchisee’s background and goals
· Discussing AlphaGraphics’ vision, objectives and unique B2B value
proposition and the profile, style, character and habits of successful AlphaGraphics
franchise owners
· Completing our no-obligation, confidential online Request for Consideration
· Assisting with the funding process
· Development of a business plan
· Reviewing our Franchise Disclosure Document
· Participating in a Discovery Day at our Salt Lake City, Utah location
· Providing in-depth discussions with current franchise owners
· Executing franchise agreement and paying required fees
Our new franchise owners must meet the following financial requirements:
· Investment range: $260,800 - $394,400 (excluding real estate costs)
· Minimum required net worth: $400,000
· Liquid capital: $150,000
· Credit score 700+
We operate cellular retail stores as an authorized Cricket dealer, selling
cellular phones and accessories, providing ancillary services and accepting
service payments from customers. Authorized Cricket dealers are permitted to
sell the carrier’s line and generally locate their store operations in
areas with a strong potential customer base where the carrier does not maintain
a corporate storefront. As an authorized Cricket dealer, we are only permitted
to sell the Cricket line of no-contract cellular phones and service at our Cricket
retail stores.
Our direct to consumer segment is a direct marketer of roses, plants, seeds,
holiday gifts and home restoration products. The business is composed of: 1)
a multi-channel retailer of garden and living gift products; 2) a small wholesale
seed business; and 3) a multi-channel retailer of home hardware and restoration
products. Our garden products brands are highly recognizable in the rose and
garden space as both the Jackson & Perkins and Park Seed brands were founded
more than 140 years ago.
The majority of short-term consumer loans we provide are commonly referred
to as “payday loans” or “cash advance” loans. Such loans
are referred to as “payday loans” because they are typically made
to borrowers who have no available cash and promise to repay the loan out of
their next paycheck. We also provide short-term installment and pawn loans as
part of this operating segment.