Financial convenience delivered through an automated network in select locations.

The ACFN™ program invites qualified individuals to invest in and be part of a specific niche providing customers with the convenience of performing financial transactions without leaving the Host business. As an ACFN™ franchisee you will enter the electronic financial services market with a unique and very profitable approach. You will be taught how to construct, own and operate a network of "On-Site ATMs" to be placed in travel and entertainment based businesses creating a reoccurring monthly residual income.

The ACFN™ program operates its network of ATMs within the premises of qualified businesses but retains full ownership and control of the equipment. The Host facility is not charged any fees to incorporate our program representing a significant departure from the practices of most other companies in the industry. Most of the ACFN™ competitors earn their revenue by selling or leasing the equipment to Host facilities - we do not sell or lease the equipment to the Host business! ACFN™ removes that obstacle for Host facilities by providing services and equipment at no cost. The ACFN™ business model guarantees the Host a share of revenues generated as compensation for space utilized while delivering the primary benefit of additional spending and increased profitability at no cost. This unique approach enables businesses to offer its clientele the convenience of "On-Site ATM" services without the usual financial risk. From the point of view of the Host business owner or manager this is a low risk highly advantageous situation. As a franchisee, you will be shown how to construct and operate your own network of ATMs within Host businesses developing a significant reoccurring monthly revenue stream.

As a part of the ACFN™ financial network, franchisees benefit from extensive site research, professional experienced advice on proper placement within the establishment to maximize transactions, central processing, industry specific training, monitoring services, an ongoing revenue stream from each franchisee location and much more.

Convenient "on-Site ATM" service for a fee

The ACFN™ business model appeals to the mobile segment of society and to the individual's sense of convenience. We work with businesses that cater to clientele who are most unlikely to have the time or inclination to seach for a bank when in need of cash. This type of clientele is usually glad to pay a fee for the convenience of On-Site services.

The ACFN™ program is designed to address the growing need for cash on-the-go. Our "on-Site ATM" services are very popular with hotels and other travel and entertainment based businesses. More that 25% of the qualified hotels in the state of California that offer ATM services on property have chosen the ACFN program. The ACFN™ network also includes theatres, convention centers, museums, transportation venues, sports bars, billiards clubs, nightclubs, breweries, and more. To view a detailed list of ACFN customers, please visit our corporate website at www.acfn.info.

Part-time franchise for a full-time retirement

ACFN Franchisees can begin with different levels of time and financial investment. The ACFN business is one that can in most case be scaled and adjusted to fit a franchisee's specific situation. As your knowledge, experience and confidence grow you can increase both your time and financial investment for greater rewards.

As a start up business, ACFN originally operated only 1 full day and one afternoon each week. Additional time and resources were invested in direct proportion to the growth of our network and revenue stream. Within 3 years still investing only part time, ACFN became larger and more profitable than a business owned and operated previously by founder Jeffrey D. Kerr for 10 years. All resources were diverted to ACFN to increase the pace of development. Today ACFN is the largest provider of "On-Site ATM" services to qualified hotels in the state of California with a market share exceeding 25%. Our network also includes many other travel and entertainment based businesses within qualified parameters.

Benefits of the ACFN "On-Site ATM" program

As an ACFN franchisee, the benefits you offer to Host sites are significant. When meeting with the owner of a prospective Host business to introduce the ACFN program you will be able to present the following benefits:

1. Your franchise will place the equipment on site at no cost to the Host.
2. Your franchise will perform all services and maintenance required.
3. The ATM will be monitored 24/7 to preempt service problems and minimize down time.
4. The ATM will be authorized with all major networks and able to process the vast majority of both debit and credit card transactions.
5. Host businesses will get paid for every surcharge transaction performed at the ATM.
6. Satisfaction is guaranteed to the Host business and the decision is easy. The ACFN "On-Site ATM" program is introduced with a 6-month trial period to simplify the decision and allow a fair and friendly entry to our program.
7. As part of the ACFN group you will have experience, accomplishments and a referral list including many prominent businesses to help you inspire the confidence needed to successfully market your services.

As an ACFN™ franchisee you will maintain ownership, control and service of the ATM making the program available to Host businesses in a very attractive formula with no risk and no financial investment while offering significant benefits and rewards.

To answer the question if you would be able to successfully market these services simply turn the tables:

As the manager of an upscale business you have considered installing an ATM for your guest's convenience, but the prospect of purchasing and then maintaining one has prevented you from taking action. You are contacted by an ACFN™ franchisee offering a "Turn key & Hassle free" program including a share of the fees and agree to an appointment. The presentation shows that incorporating the ACFN program will promote on property spending, increase profits and pay you a fee for every transaction performed without requiring any financial investment on your part. The program sounds good so you do your "due diligence" and find the company to be experienced, professional, highly recommended and customer friendly offering a no obligation 6-month trial period. Would your conclusion be that with the ACFN "On-Site ATM" program you have everything to gain and nothing to lose?
The answer invariably is "Yes!". Furthermore, your conclusion is that you have nothing to lose by adding the ACFN "On Site ATM" program except for the loss of goodwill and revenue from clients forced to go elsewhere for their financial transactions. You do however stand to gain considerably by increasing on property spending, profits and customer satisfaction.

We raise this point to illustrate that, as an ACFN™ franchisee, you offer a service and an opportunity to Host businesses that involves no cost and has no "down side" for them. As an ACFN franchisee you will also benefit from market research and marketing support helping you identify these qualified Host businesses within your geographic area of operation.

Selective ATM placements

Even a professionally designed and supported ATM program such as the ACFN™ model requires a qualified level of traffic and a specific type of clientele for optimum return on investment. Our network was built on the premise that, if placed in the proper setting, we would be able to charge higher fees and thus the ATM would become a legitimate profit center independent of the business it was placed in.

The ACFN model retains ownership, assures clients that their financial center will be maintained and supported locally by operating as a "Turn key & Hassle free" out-sourced solution to their ATM need. When compared with competitor's programs that sell or lease the machines to businesses and then rely on Host participation and long-distance third party maintenance contracts ACFN is the clear choice for upscale businesses. As an ACFN™ franchisee you are there at the time of installation and from then on serving as their financial partner with a vested interest in their success.

The types of Host businesses* we target include:

1. Hotels
2. City properties
3. Sports bars
4. Nightclubs
5. Billiard Clubs
6. Restaurants and breweries
7. Gas stations
8. Theatres
9. Supermarkets
10. Office buildings

*We have developed specific qualifications for each type of business mentioned above to significantly increase the chances of success. These qualifications will be explained in detail in your franchisee operations manual.

Support services for franchisees

We believe that our program, which offers a profit center to a Host site with no financial commitment on its part, is an enticing offer, and provides a strong starting point for you as a franchisee. However, every business needs to market itself effectively to succeed and the ACFN program is no exception. To help you market your services we offer a research and marketing program to support franchisees as they establish territories in new regions.

Our marketing strategies provide the competitive edge that every beginning business needs. We support our franchisee's efforts with:

1. A national database of businesses researched by our telemarketers to identify businesses that meet our initial placement criteria. We help develop and provide franchisees with an appropriate list of these businesses within the agreed radius of operation as available.
2. After you as a franchisee preview these businesses to gather additional information we consult with you to decide which of these businesses should be approached.
3. Marketing materials to help interest prospective businesses in our "On-Site ATM" program and maximize the chances of securing a meeting with a decision maker.
4. Proprietary lead tracking software to effectively follow up on leads and meetings.
5. Support and consultation in organizing and completing installations after an agreement is signed.
6. Support during installation to insure correct programming of all parameters, successful initialization of your ATM with all appropriate networks, legal compliance with network security procedures and setting up monitoring services.
7. Complete monitoring and service support after installation along with the ongoing performance of processing and accounting functions.

Areas of operation will be designed to accommodate a franchisee operating between 10 and 20 ATMs but can adjust to your financial capabilities and demonstrated ability. Franchisees will purchase their ATMs from us and link directly to our centralized processing network enabling franchises to start small and expand.
We will provide the support needed to assist franchisees in optimizing their return on investment from each ATM. Franchisees will begin with a strong network of support from the central office, and our commitment to do all we can to assist as the franchisee develops the territory.

Services provided before you open your ACFN™ Franchise:

1. License to use our trade name, proprietary software and processing services.
2. Training for you and if desired an additional staff member.
3. Marketing research and support to identify qualified Host businesses in your selected area of operation.
4. Sources for acquiring equipment and supplies needed to start operation.

Services provided after you complete training and commence operation of your ACFN™ Franchise:

1. ATM processing and network support.
2. 24/7computerized monitoring of the ATMs in your network including franchisee notification of service problems.
3. Dispute resolution and handling debit adjustments requests from customers.
4. Administrative support services including call routing and first line customer service for Host businesses.
5. Payments to Host businesses.
6. Payment of monthly residual income along with a detailed monthly report showing the activity at each of your ATMs.
7. Updated marketing materials to increase your success in marketing your services to new Host Businesses.
8. Telephone consultation support on all aspects related to operating your franchise.

Collecting Fees

These tables illustrate how an ACFN Franchisee operating a network of ATM machines would collect fees. To fully appreciate the potential for residual income please take the time to study this information in detail. The table bellow includes examples from a low daily average of 5 surcharge transactions to a high daily average of 12 surcharge transactions. We have chosen this range since we would generally recommend a location producing less than 5 surcharge transactions per day be moved to a new location for better results. For your review we have included this information for 1 ATM, a small network of 5 ATMs and a larger network of 12 ATMs.

Notice: costs relating to day-to-day operation are not included in this table and will vary from one franchisee to the other based on location and size of franchise. This table illustrates the collection of fees and is not in any way a promise or projection of actual profits.

# ATMs the number of ATMs a franchisee owns.

Trans. Per day transactions per day - the average number of surcharge transactions performed at your ATM each day.

Total per day total transactions per day the number of surcharge transactions performed at each ATM each day multiplied by the number of ATMs in your network. The result represents the total number of transactions for your network that day.

Trans. Per mo. transactions per month - the average number of surcharge transactions performed each month based on a 30-day month.

Fees collected fees collected by you as an ACFN franchisee and the owner of the ATM based on our average fee of $2.50 per surcharge transaction.

Comm. Fees communication fees of $0.05 per surcharge transaction for the use of our toll free numbers when processing transactions.

Profit sharing paid to the location owner for participating in our On Site ATM� program. Payment is based on $0.35 for the first 300 surcharge transactions and $0.50 per surcharge transaction above 300 each calendar month.

Admin. Fee administration fee - $12 per ATM per month for processing, reporting and accounting.

Paid to franchisee the surcharge collected less the communication fees, profit sharing and administration fee.

Annual total the amount paid to franchisee annually for an ATM performing at this level and under these terms.

* All numbers in tables rounded to the nearest dollar.

This advertisement is not an offering. An offering can only be made by a prospectus filed first with the New York Department of Law. Such filing does not constitute approval.

Sample Network - 5 ATMs

Includes: Your first ATM and training in our corporate offices in California

Approximate cost including: 4 Triton model RL2000 ATMs with standard sign ($4,995 each), shipping to US 48 continuous states and sales tax (approximately $350) - $5,345 each for a total of 21,380

Funds you will need to operate 5 ATMs based on an average of $7,000 loaded in each ATM for a total of $35,000

Start up costs including start up marketing ($200), business insurance ($1,000), professional fees ($1,500), licenses and/or bonds, out of pocket expenses during training ($200) for a total of $2,900

Total - $88,280.

*All costs are estimated and will vary based on franchisee location and other factors.

This advertisement is not an offering. An offering can only be made by a prospectus filed first with the New York Department of Law. Such filing does not constitute approval.

COMMONLY ASKED QUESTIONS

Do I need business experience to run an ACFN™ franchise?
Our training program and on going support will teach you what you need to know and a franchise specialist will be assigned to help you succeed in implementation. Prior business experience and people skills are helpful but not necessary.

Where should I locate my business?
You should strive to have as much population and commercial development within your radius of operation as possible. This will affect the number of qualified Host businesses available and maximize your options. We will assist with research to identify qualified ATM locations and support your efforts to contact and contract these locations for "On-Site ATM" services.

How does the franchiser make money from the franchise relationship?
As the entity awarding franchises our primary income is derived from the collection of third party fees commonly referred to as "back end fees" or "Interchange fees". Back end fees are only paid to certified members of the networks with the appropriate banking sponsorship and are not derived from the surcharge collected by you. Membership fees demanded by the networks to qualify for these fees exceed $10,000 and need to be renewed annually.

How is an ACFN™ business different from other business opportunities?
The ACFN Franchise is a "part time to full time franchise" with a recurring revenue based business model and the potential to develop a significant monthly residual income with the development of your network. ACFN is the only franchise of its kind today and represents a great opportunity for individuals with the right qualifications.

What do I do next?
Please take a few minutes to fill out the contact request form available in the "contact us" section of this web site. You can submit it electronically or print it and then either fax it to us at (888) 708-8600 or mail the form to ACFN Franchised Inc. ATN: Franchise department 96 North 3rd street suite 680 San Jose, CA 95112.

If you have questions or need assistance with this document call (888) 794-ACFN (2236) and ask for a franchise specialist. After we receive your information we will contact you to discuss the next step and answer any specific questions you may have.