Nix Franchise Program E-Brochure

FRANCHISE PROGRAM OVERVIEW This is your invitation to join forces with a world class team and national leader in the metal services industry.

What does it mean to be powered by Nix? PICTURED: THE FOUNDING NIX’S 1ST & 2ND GENERATION

“You have to plant those seeds, you have to do the right thing, so that when an opportunity comes along, you’re ready to capitalize on it.”

Matthew Nix 5th Generation

Nix, with origins tracing back to a humble family blacksmith shop established in 1902, has since progressed into a 5th generation family-owned business and a national leader within the metal services industry. We believe our competitive advantage is the caliber of our people, our corporate culture, and our mission to “Be Big, Act Small ℠”. This means we are big enough to serve you, and small enough to know you. We stand on the foundation of our century old values, while Forging Ahead℠ to find better solutions that keep America’s Industries safe, efficient, and reliable. ​ While the foundation of hard work and craftsmanship remain evident across all of our locations, the progressive and competitive culture has allowed Nix to become an industry leader in metal fabrication, precision machining, and industrial coatings. With roots dating back over 120 years, our growth journey over the last two decades has placed Nix on the INC 5000 Fastest Growing Private Companies in America for five consecutive years.

Today, we extend an invitation to like minded craftsmen to be a part of our next growth journey: Nix Franchising. We are committed to expanding our business in a manner that offers others the same opportunities we were fortunate to have: the chance to create and expand something of their own. With adaptable investment and operational models tailored to suit market demands and the needs of aspiring business owners, we eagerly anticipate welcoming more craftsmen into the Nix family. It's an approach aligned with the desires of the generations preceding us, and we are wise enough to heed their wisdom.

1

Be Big, Act Small ℠ is more than just a catchy phrase.

It really is the foundation for our entire business philosophy.

To Our Customers...

To Our Team Members...

Be Big

Be Big

To our customers, ‘Be Big’ means to continue to expand and improve our product & service offerings as well as our quality & safety record through innovation and continuous improvement.

To our team members, ‘Be Big’ means through continued, profitable growth, we will provide advancement opportunities, improved compensation, quality of place, and other benefits not feasible at our current state.

GROWTH

CONTINUOUS IMPROVEMENT

INNOVATION

PROFITABLE GROWTH FOR ALL

Act Small

Act Small

To our customers, ‘Act Small’ means as we grow, we will not lose touch with our humble beginnings. We will value each customer, responding promptly to their needs and striving to do business honestly in order to build long term relationships.

To our team members, ‘Act Small’ means as we grow, we will not lose touch with our humble beginnings, always remembering that our people are our most valuable resource, and continuing to treat each other like family. If we live by our Core Values, the rest will take care of itself.

NIMBLE

RESPONSIVE

HONEST

LIVE OUR CORE VALUES

As a franchise owner, you will have the opportunity to align yourself with this mission and join this legacy brand. Through the support of industry trained leaders and proven management systems, you will be equipped with the experience, knowledge and tools to take your business and future in the metal services industry to new heights.

“We take a people and values-based approach to business. We truly believe people are our biggest asset and that business can and should be a force for good. The level to which we strive to integrate our values and culture within very traditional blue-collar businesses is a differentiator. We strive to add value to all who we come in contact with, and we believe our values and strategies will deliver consistent, long-term results.

Our culture is more than just a set of principles—it’s the heartbeat of our organization.”

Are You Ready to Join an Established Brand Like Nix? Let’s Get Started.

2

Three Franchise Models The Nix Brand is known for its commitment to people, long-term growth and network of thriving businesses in the metal services industry. Today, we are excited to expand this brand even further with the scalable and flexible Nix Franchise opportunity. An opportunity for craftsmen to build a business of their own with a brand backing that promotes strength, legacy, dedication and reliability.

As a Nix Franchise Owner, you will have access to proven management systems and tools, benefit from a well established brand, and have the ability to rely on industry trained professionals.

Nix Franchise Models:

METAL SERVICES (FABRICATION & MACHINING) CONVERSION MODEL

POWDER COATING SERVICES BOLT-ON MODEL

INSTALLER & FIELD SERVICE TRUCK MODEL

Each model comes with industry trained support, comprehensive training, and the value of what it means to join the Nix Family of Companies.

Let us help get you Forging Ahead℠ and keep America’s industries safe, efficient, and reliable.

PICTURED: NIX INDUSTRIAL LEGACY SERVICE - METAL FABRICATION

3

Metal Services Conversion Model Join forces and become a company powered by Nix! We are actively seeking both experienced craftsmen within the metal services industry, as well as current owner operators looking to transfer ownership and continue their legacy with these individuals. Nix has created a simple, yet comprehensive plan to help make the transition into franchise ownership smoothe. The outline of the plan is as follows:

1

Nix will work with current owner-operators to prepare their current business for franchise conversion, while simultaneously vetting potential candidates to purchase the business. These candidates might be a current team member of the existing business that needs or wants the backing of the Nix Brand or someone from outside the organization. Nix will work on behalf of the parties to assist in the purchase negotiations of the business.

2

Your new franchise will be co-branded with both Nix (Powered by Nix) and the existing business’ brand to maintain continuity with the existing customer base. This co-branded franchise will also utilize the success of the Nix Brand to help facilitate the integration of new products and services.

3

Nix will purchase the property of the metal services, which will in-turn be leased back to the business. This will generate an additional $1-3 Million in Revenue for the seller, but also alleviate the burden from the buyer.

The number of metal services business startups are on the decline due to the barriers to entry and high costs involved in setting up a business. With a Nix Franchise, we help do the heavy lifting with you. This is an incredible opportunity for potential owner-operators to step into a business with an existing client base that is amplified by the Nix Brand reputation known for quality, reliability, and longevity.

The State of the Metal Services Industry The United States federal fabricated metals market is projected to surpass $473 billion over the next decade with an annual growth rate of nearly 5 percent.

The United States reshoring announcements are up 150% relative to 2019.

The metal services industry has a market cap of $2.4 trillion globally.

This is a great time to leverage industry demand and a reshoring trend by aligning yourself and your company with a brand people trust.

IMPORTANT INVESTMENT INFORMATION Here is what to expect when you join the Nix Franchise Program through the Metal Services Conversion Model.

Estimated Initial Investment: You can get started with an estimated initial investment of $67,000 to $263,500, which includes an initial franchise fee of $50,000 for a standard territory; this gives you exclusive access to our business model, brand, training, documentation, and more.

4

Powder Coating Bolt-On Model Control the timeline, reduce lead times and retain the profit by expanding your service offering with a Powder Coating Bolt-On Franchise, Powered by Nix! Powder coating is a high-demand service in various industries due to its durability and cost effective technique. This addition creates an additional revenue stream for your business, potentially boosting your overall income. Offering in-house powder coating services allows you to provide a complete solution to your customers. Nix has created a simple, yet comprehensive plan to add this valuable service to your business.

1

Equipment: With so many manufacturers in the marketplace, each with their unique features, it can be difficult for businesses to choose what is best suited for them. With over a decade of experience in Powder Coating, Nix can help navigate this process to ensure success.

2

Layout: Batch and Conveyor Systems both have their advantages and disadvantages, but it ultimately depends on the products and services produced. Do you need to accommodate thousands of small parts? Do you fabricate large weldments? Do you need to accommodate a little from each? The overall layout plays a crucial role in your profitability and overall throughput of a powder coating operation.

3

Estimation and Systems: Jobs are won and lost by fractions of a penny when estimating in large quantities. Not taking into account material thickness or overall weight can dramatically affect your profitability. Having the proper estimation and management systems in place to effectively and efficiently run takes years of trial and error. These tools are all available and Powered by Nix.

The State of the Powder Coating Industry The United States Powder Coating Industry is approximately $17 billion annually and is projected to double over the next decade. This is equivalent to more than 7% annual growth.

The demand for Powder Coating is attributed to an increased demand for consumer electronics, vehicles, and medical devices.

If you have ever considered adding additional revenue streams to your business, searched for a new customer base, or are in need of a boost to the bottom line, Powder Coating Services, Powered by Nix, is an excellent option.

IMPORTANT INVESTMENT INFORMATION Here is what to expect when you join the Nix Franchise Program through the Powder Coatings Bolt-On Model.

Estimated Initial Investment: You can get started with an estimated initial investment of $277,500 to $500,000, which includes an initial franchise fee of $50,000 for a standard territory; this gives you exclusive access to our business model, brand, training, documentation, and more.

5

Installer & Field Service Truck Model If you have ever dreamed of being your own boss within the vast, growing, and diversified metal service industry, a Nix Installer & Field Services Truck Franchise may be exactly what you are looking for.

1

Independence and Autonomy: Owning your own welding truck and business means being your own boss. You have the freedom to make decisions, set your schedule, and choose the type of projects and clients you want to work with.

2

Increased Earning Potential: Instead of being an employee, you become a business owner. With strategic planning and efficient operations, the potential for higher income and profits significantly increases. You control your earning potential.

3

Expansion Opportunities: As your own boss, you have the liberty to grow and expand your business according to your vision. You can scale your operations, hire additional help, and take on larger or multiple projects, potentially increasing your revenue.

4

Backed By Industry Trained Staff: Being your own boss has its benefits, but it can also be overwhelming. Trying to navigate all of the various requirements or understanding what to do next might be challenging. Being Powered by Nix creates a road map for success and provides you with the support and guidance along the way.

The State of the Metal Services Industry The United States federal fabricated metals market is projected to surpass $473 billion over the next decade with an annual growth rate of nearly 5 percent.

The United States reshoring announcements are up 150% relative to 2019.

The metal services industry has a market cap of $2.4 trillion globally.

IMPORTANT INVESTMENT INFORMATION Here is what to expect when you join the Nix Franchise Program through the Installer & Field Service Truck Model.

Estimated Initial Investment: You can get started with an estimated initial investment of $132,000 to $270,500, which includes an initial franchise fee of $50,000 for a standard territory; this gives you exclusive access to our business model, brand, training, documentation, and more.

6

Fact & Figures: Key Franchise Program Information* Here is more on what to expect when you become a part of the Nix Franchise network: Royalties: You’ll share 6% of gross revenues paid monthly so we can reinvest in you and other Nix owners, whether for industry research, software advancements, or other business model improvements.

Local Marketing Requirements: You’ll be required to spend 0.5% of revenue on local marketing on a rolling quarterly basis. Each franchise owner will also spend between $1,500 and $5,000 on initial marketing efforts.

Brand Marketing Fund Contribution: You’ll start by contributing 0.5% of gross revenues on an ongoing basis to our centralized brand fund, so we can help people everywhere see the benefits of Nix products and services.

* PLEASE SEE OUR FDD FOR DETAILS AND A FULL LIST OF FEES.

PICTURED: NIX INDUSTRIAL COATINGS FACILITY VIDEO FILM

7

Reasons to Join the Nix Franchise Network Proven Business Model: Building businesses is what we do best. Our system has already been established, refined, and proven successful. You will benefit from the knowledge and expertise of the Nix, reducing the risks associated with starting a business from scratch.

Leverage a Legacy Brand: There aren’t many companies still making headlines and driving growth after being in business for more than a century. The long history of Nix is an asset to any organization, but the people and culture you will meet and work with will be the reason you’ll stick around.

Economies of Scale and Purchasing Power: Franchises benefit from economies of scale due to the collective purchasing power of the entire franchise network. This often translates into lower costs for equipment, inventory, and supplies, resulting in better deals and savings.

Network and Community: Joining a franchise network provides access to a community of like-minded individuals—other franchise owners and corporate support teams. This network can be an invaluable resource for sharing experiences, best practices, and advice. It can foster a sense of camaraderie and support, offering opportunities for collaboration, learning, and growth within the franchise community.

Take Advantage of Established Systems: Building businesses is what we do best. That’s why you can feel confident knowing the franchise model you adopt was developed by the best in the business, with people like you in mind, and with systems designed for optimized efficiency and growth.

Receive Expert Support When You Need It: Our franchise leadership team is ready to support you in your business building efforts. We are committed to helping you scale your business, with thorough training programs and expert guidance along each step of the way as you forge your future.

Plus, you’ll benefit from multiple revenue streams, depending on which model you choose, a protected territory in which to operate your franchise business, and the commitment of our organization to continually develop and improve the business model.

What are you waiting for? Join a Nix Franchise today.

8

CASE STUDIES: SEE HOW NIX HELPS ORGANIZATIONS AND INDIVIDUALS BUILD GREAT BUSINESSES STRUCTURAL FABRICATION OWNER LOOKING TO SLOW DOWN: STAGNANT OPERATION WAS LACKING PROCESSES AND SUPPORT TO GROW

In January 2018, Nix acquired a 40,000 square foot Structural & Miscellaneous Metal Fabrication Shop that began in 1998. The operation had many lean aspects to it due to the owners hard-working mentality and CNC Equipment. However, the operation’s growth remained stagnant following the economic recession in 2008.

Turnover was high as minimal hiring and evaluation practices were observed. The owner agreed to stay on as a site manager to lead the division. Once Nix took over, trained, and implemented the various management essentials now offered through Progressive Fabricator Alliance, the business began to flourish. There was a small decrease in revenue from 2020 to 2021 due to the impacts of the pandemic, but because of various management systems, the decrease was minimized, and no employees were laid off due to the state of the economy.

HEAVY MACHINE SHOP STRUGGLING TO STAY ALIVE: LACK OF VISION, PURPOSE, AND VALUES LED TO DETERIORATING CULTURE

In July 2019, Nix acquired a 50,000 square foot Heavy Machine & Fabrication Shop that began in 1981. The operation had a geographical competitive advantage due to equipment capabilities and the nearest competition being almost 150 miles away. Even though they had a steady stream of projects to keep the shop near capacity, they struggled to remain profitable. The culture was poor, there was minimal estimation and quality controls, and customer satisfaction continued to fall. After the acquisition, there was a 24-month period of culture rebuilding and employees to share in the vision and purpose of the company. Numerous processes and procedures were implemented to help the previous owner, who is still leading the shop floor, take back his life. The team within this operation leads the way in morale, and team members thoroughly enjoy coming to work.

EQUIPMENT DEALERSHIP LOSING TRACTION: AGING OWNER AND DECLINING CULTURE RESULTED IN MINIMAL PROFITS

In 2015, Nix acquired an Equipment Dealership. Prior to the acquisition, the operation struggled due to cultural reasons and a lack of clear direction and focus. In 2018 through Strategic Planning and competitive analysis, Nix decided to divest from many of the main product lines & divert all energy to an in-demand service/core focus. The transition took several years, but due to a clear and transparent plan of action, the operation has significantly increased its bottom-line profitability while decreasing unprofitable top line revenue. The business has become a very reliable contributor.

9

A Rich History Worth Celebrating FIRST GENERATION 1902: Charles Henry Nix purchases one of four existing blacksmith shops in Poseyville, Indiana. The building was a small one-story wooden structure.

1906: Charles constructs a larger structure to house and sell modern farm implements (International Harvester).The original building is converted to house and repair carriages.

SECOND GENERATION 1924: Carl A. Nix takes over the shop as his two older brothers step down.

1942: Carl purchases the company’s first welding machine to prepare for the future.

THIRD GENERATION 1957: Carl Jr., “Sonny,” joins his father and together builds the shop at its current location. Carl A. Nix Welding Service, Inc. was formed.

1971: Carl Sr. turns the shop over to his son Carl Jr.

FOURTH GENERATION 1975: Bill Nix joins the family business after studying Machine Technology at Vincennes University and working at the Babcock & Wilcox plant in Mount Vernon, Indiana.

1977: Carl A. Nix Welding Service, Inc. moves from the lost art of blacksmithing to working primarily with acetylene and arc welding.

1994: Bill takes over the shop.

FIFTH GENERATION 2006: Matthew joins his father Bill in ownership of Carl A. Nix Welding Service, Inc. 2008: Carl A. Nix Welding Service, Inc. expands from a 4,800 square foot facility to one of over 24,000 square feet.

2011: Adam Nix joins the family business after graduation from the University of Southern Indiana.

2013: Nix Powder Coating and Painting, LLC is formed as a startup 2015 to 2021: The Nix parent company acquires numerous equipment, fabrication, and machinery companies, to help expand the business’ service offerings.

2022: Custom Fabrication expansion is completed to 35,000 square feet with 25 ton crane capacity 2024: The Nix Franchise Program is launched!

Now it’s time for you to join us.

We invite you to learn more about Nix franchising opportunities.

10

Executive Team

Matthew Nix

Adam Nix

Lindsey Nix

President & CEO

Vice President of Operations

Director of Training & Public Relations

Adam Schmitt

Brian Merkley

Brandon Wright

Vice President of Business Development & Administration

Vice President of Operations

Jared Baehl

Chief Financial Officer

Vice President of Operations

Executive Board of Advisors

Tracy Ripple

Kyle Fields

Financial Consultant Nix Managing Partner & Board of Director CFO Bridge Alternatives

Jim Gribbins

President & CEO Gribbins Insulation

Greg Eling

Vice President Cintas

Matt Weinzapfel

President & COO Jasper Enginers

In addition to our Executive Leadership Team and Board of Advisors, we offer a fully developed and industry trained Support Services Team. This team is separate from the Executive Leadership and includes various roles such as Human Resources, Sales, Pre-Production, Finance & Accounting, Marketing, Operations Excellence (Safety, Quality, & Continuous Improvement), Facility Maintenance, and Transportation & Logistics.

11

Awards & Recognitions INC 5000 Recipient: 2016, 2017, 2018, 2019, 2020, 2021 Indiana Best Places to Work in Manufacturing: 2022, 2023 Indiana Best Places to Work: 2019, 2020 Posey County Business of the Year Indiana Companies to Watch State of Indiana Century Award Evansville Regional Economic Partnership Community Champion ISO 9001: 2015 Certification for Quality Management System AISC Certified Fabricator NACE Coatings Inspectors AWS Certified Welders and Certified Welding Inspector 100x Growth in 20 Years (2003 to 2023) 1 Million Man Hours without a Lost Time Injury

Nix in the News At Nix, we are proud of the headlines we make in publications big and small.

Check out the happenings of our companies and our people here.

PICTURED: MILLION MAN HOURS NEWS ARTICLE

12

Strength in Numbers: Comprehensive Franchise Support You already know that we are a family business built on more than a century of development and industry expertise. There is no team better prepared to guide you through your transition to Nix franchise ownership, and beyond.

Here are just some of the ways we can support you:

Initial Training and Start-up Guidance: We will welcome you to attend a comprehensive franchise training program for two full weeks at our headquarters in Poseyville, Indiana. You’ll use this time to learn every aspect of the Nix approach and philosophy, and how to implement best-in-class practices to build a thriving metalworks business.

Comprehensive Documentation and Customized Technology Tools: Our confidential operations manual details the important aspects of running your business, such as key operational procedures, inventory management, and more. You’ll know how to effectively manage your team, reporting functions, inventory, and more. Plus, you’ll have access to top-of-the-line technologies, specialized equipment and customized software programs that have been carefully vetted by our teams for optimized operations.

Ongoing Training and Coaching: Our franchise team, complete with experts in safety, quality control and lean management, will make themselves available to guide you through your business, including a full two weeks onsite when you begin operations. We will always be a simple phone call or email away when you need us and will help keep you updated with any industry trends and best practices that impact your business.

Marketing Guidance: We will show you the best way to showcase your Nix business to those who matter most. You’ll have access to our established brand standards, sample materials, and campaign guidance to help you build awareness in your protected territory, and the weight of the Nix Companies brand behind you.

13

Are You the Next Industry Pro to Join Nix? At Nix, our people are our biggest competitive advantage. We are looking for financially qualified, motivated individuals from various sectors of the metal works industry to join us in our franchise program, with ownership options that are aligned with your experience, skills, and investment potential.

If you are someone who shares our core values, takes pride in family heritage, and values the hard work of others, it might be a good time for you to explore what Nix has to offer.

We are proud that our company remains a family business that has been around for more than a century. We invite you to learn more about how our experience can help move your career forward.

PICTURED: THE 3RD, 4TH, 5TH (AND FUTURE 6TH) GENERATION

14

Where Will You Open Your Nix Business?

Our initial expansion will be in key markets across Ohio, Kentucky, Illinois, Missouri, and Michigan.

Where do you envision your Nix franchise?

Selected franchise owners will have a protected territory in which to operate their business.

We are

15

. Will You Join Us?

What’s Next?

Let’s continue to talk about the Nix franchise program, and see if you qualify to take the next steps:

1. Receive and Review the Franchise Disclosure Document 2. Meet Our Franchise Team in Person 3. Sign the Franchise Agreement 4. Attend Training with our Dedicated Experts 5. Set Up Your Space and Your Equipment 6. Hire and Train Your Team 7. Start Introducing Yourself as a Local Industry Expert 8. Open Your New Nix Business and Get to Work!

16

Reach out to us to further discuss forging your future with Nix. (812) 214-1687 franchise@nixfranchising.com (TBD)

www.nixfranchising.com (TBD)

Nix Franchising, LLC 129 W. Fletchall Avenue Poseyville, IN 47633 This advertisement is not an offer to sell a franchise. An offer can only be made by a disclosure document filed first with the appropriate agencies of the respective filing states. Such a filing does not constitute approval by any such agencies.