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Executive Summary
Crons is an inspirational brand with a Come Ready or Never Start message that motivates people
of all demographic, social and economic backgrounds to set and achieve their goals in order to
get better. The Crons Brand occupies an exclusive niche as a brand being defined by a value
system and dedication to assisting people in reaching their goals across all walks of life.
The Crons Brand and the Come Ready or Never Start mentality will exploit a number of
channels with a broad range of motivational apparel, merchandise and accessories directed at
selected target markets with significant revenue potential. These selling channels include:
athletic team sports, retail sports, public and private schools, internet and direct sales.
The revenue potential in these channels are significant given their size and scope. There are over
17,000 public school districts and 20,000 private and parochial schools. The sporting goods
apparel market alone is $29.5B. Thus, gaining even modest market share during the first few
years of this unique Crons brand’s introduction into these markets, will result in revenues in
excess of $150MM.
The Crons Brand focus is selling hope...inspiration...and motivation through the sales of a
product mix that motivates and engages people to achieve their goals, reach their potential and
become better. It is a brand and model that especially resonates during challenging economic
times as a sign of hope, inspiring people who are looking for positive reinforcement and
assurance, that they still can achieve their goals if they adopt The Crons Brand Come Ready or
Never Start mentality.
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The Crons Brand™
I. The Crons Brand Overview
The Crons Brand is an acronym that means to Come Ready or Never Start™. Five simple words...
with nothing special about any of them.
Come. Ready. Or. Never. Start.
But put them together and it defines the attitude of a winner and starts to tell the story...your story.
Are you challenging yourself each and every day to get better? Crons was developed by overachievers
who recognize:
It’s about being your best.
It’s about making your best...better.
It’s about challenging yourself to set new goals, better goals.
The Come Ready or Never Start mentality is aimed at one and only one target – Getting Better. It supplies
the confidence needed for people to reach their potential and be successful.
Crons winners never quit, never. They stay focused. They work harder. They find a way.
Come Ready or Never Start.
II. The Crons Brand Mission Statement
The Crons Brand provides high quality motivational apparel, merchandise and accessories to inspire
people to get better and constantly strive for their goals.
CNBC Features The Crons Brand™
CNBC began its own coverage of 2009’s NCAA Basketball Tournament with a feature blog on The Crons
Brand™ by its Sports Biz reporter, Darren Rovell.
Wrote Mr. Rovell,
“It’s the ultimate underdog story. An upstart clothing company sees the only basketball team in Division
I that wears its products, make it to the NCAA Tournament.”
He went on to explain the brand’s motivational qualities, the unique upside down tag on uniforms and Crons
recent success.
Read the blog at:
http://www.cnbc.com/id/29778233?__source=RSS*blog*&par=RSS <http://www.cnbc.com/id/29778233?__
source=RSS*blog*&par=RSS>
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Crons Code of Conduct
The Crons Brand Team Members will adhere to a “Crons Will to Succeed” declaration:
1) Commitment to always look for the positive in opportunities
2) Challenge yourself to get better every day
3) Help others get better each day and help them reach their goals
4) Be strong in mind and body
5) Always do two more than what is expected
6) Represent the company and yourself in a first-class manner at all times
The Crons Brand Product Requirements
1) All products featured must contain at least one environmentally friendly component
2) All products must be functional or technical in nature to engage people in physical
or mental activities
3) All products must support or motivate people to get better
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V. The Crons Brand History
The Crons Brand creator, Pat Cavanaugh, grew up hearing all the garbage...
“Too small.” “Too slow”. “Can’t compete.” “You want to play in the NBA?” “You’re crazy!”
“Forget about it.” “It’ll never happen.”
He heard all the noise...and used it to motivate him.
When other kids were playing video games, he was shoveling snow from the courts to shoot baskets with his
gloves. He cut the finger tips off so his hands wouldn’t freeze.
He outworked the competition growing up and walked-on to the University of Pittsburgh basketball team
despite scholarship offers from smaller Division 1 schools, because his goal was to play at a major Division
1 school. Pat earned a scholarship and led Pitt to its first Big East win at Madison Square Garden as a
freshman, prompting one courtside observer—the legendary Red Auerbach—to observe, “Who was that
skinny white kid!” Pat went on to become the first walk-on to be named team captain not one but two years
in a row for Top 10-ranked Panther teams. After graduation he heard it again.
“You still won’t play in the NBA, give it up.”
He refused and worked even harder.
He worked himself into invitations by the Philadelphia 76ers and the Orlando Magic.
Pat Cavanaugh’s life experience in setting and achieving his athletic and non-athletic goals provided the
backdrop for his founding of The Crons Brand in 1996. The Crons Brand sat idle between 1998 – 2004 while
Pat placed his priorities on building The Cavanaugh Marketing Network during this period of tremendous
growth for the company.
Under Pat’s guidance, Cavanaugh earned Inc. 500 status (representative of the fastest growing private
companies in America) for three years in a row. The Crons Brand began its current two years of significant
growth with the hiring of a full-time Director of Crons Brand Development and Sales in 2007. In 2008, sales
increased 250 percent.
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VI. The Cavanaugh Marketing Network
The Cavanaugh Marketing Network is a full service marketing and promotional products agency ranked in the
Top 1% of the $19B promotional products with a documented history of success:
• A client list of over 3,000 customers in 48 states and 71 countries
• The only firm in its industry to have achieved Inc. 500 status three times over the last decade
• Honored within its own industry for its explosive growth with two ASI Spirit Awards
• Awarded a “Best Practices” award in marketing by the U.S. Department of Agriculture
• Lauded by Ernst & Young as “...revolutionizing the promotional products industry.”
Cavanaugh’s customer base includes a number of Fortune 500 companies including Westinghouse, Heinz,
Pfizer, Johnson & Johnson, Cigna, FedEx Ground, Federated Investors, PNC Financial, Glaxo SmithKline,
Bayer, Schwan’s Food Company and American Eagle Outfitters.
VII. Top Level Summary: The Crons Brand Channels and Sales Opportunities
A. Athletic Team Sports Channel
1. Game Uniforms
2. Practice Uniforms
3. Team Workout Packages
4. Awards
5. Coaches Sideline Apparel
6. Travel Gear
7. NCAA Compliant Nutritional and Supplement Products
8. Accessories
B. Athletic Lifestyle Channel
1. Come Ready or Start Line
2. Ignore the Noise Line
3. DNA Line
4. Gladiator Line
5. B Line
6. Franchise Line
C. School Channel
1. Come Ready or Never Start Achiever’s Program
2. Youth Development Products (Goal Kits)
3. Motivational Products
4. Awards
5. Books & DVDs
6. NCAA-compliant nutritional and supplement products
7. Accessories
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VIII. The Crons Brand Organizational Structure
The Crons Brand has been operating as a division within The Cavanaugh Marketing Network, sharing
management, personnel and operational resources. Beginning 1st Quarter 2009, The Crons Brand will
be established as a separate corporation.
A. Current Crons Brand Management Team
1. Pat Cavanaugh—Founder, President and CEO, The Cavanaugh Marketing Network,
Nationally Known Sales Expert
• B.S. University of Pittsburgh
• MBA University of Pittsburgh
• Named Ernst & Young Entrepreneur of the Year
• Inducted into Ernst & Young National Entrepreneur Hall of Fame
• Profiled with feature story in Inc. Magazine
• Honored as Best Salesperson in America by Sales & Marketing Management Magazine
• Profiled by Wal-Mart corporation in consumer publication to Sam’s Club members on
business excellence
• Profiled in Pittsburgh Business Times
• Honored as top selling company principal in Promotional Products Industry
2. Sotiris Aggelou - Director of Brand Development
• B.S., St. Francis University
• Crons athletic sales have increased 250% in 2008 under his direction
• Seven years as professional basketball player in Greece
• Former Division 1 basketball player—University of Pittsburgh & St. Francis University
3. Anthony Crisafio - Chief Financial Officer
• B.S., Duquesne University - Business Administration
• Principal—Anthony Crisafio, P.C.
• Former Partner, Ernst & Young
• COO, 18th largest theater chain in United States
• Audit and Compensation Board Member of Two Public Companies
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IX. Athletic Team Sports Channel
Target Market
The target market for The Crons Brand Team Sports Channel includes coaches, athletes and parents
participating in athletic teams sponsored by:
• Public elementary and secondary school
• Private, parochial and charter elementary and secondary schools
• Both boys and girls teams
• Local sports organizations and associations that promote and administer youth sports
It also includes administrators, coaches and athletes participating in junior college and college
athletic programs in all divisions.
Market Analysis & Revenue Potential
The team sports market is a $4 Billion industry. Russell Athletics claims market share of the school
portion of this market at 37%. Other primary competitors are Nike, Addidas, Reebok, Champion
and UnderArmour.
There are over 500 junior college athletic programs and 1,200 college athletic programs.
In the secondary school market there are:
• 17,800 public school districts
• 15,000 private schools
• 7,400 parochial schools
• 5,700 charter schools
There are 1,500 AAU youth sports programs nationwide. Over 26M youngsters between the ages of
6 – 17 participate in at least one organized sports activity.
Following is a chart estimating team sport spends potential solely in the public school market:
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Public School Revenue Potential:
1% Market Share: $22MM
3% Market Share $66M
5% Market Share: $110M
The Crons Brand recent successes:
• Sales to 300 secondary schools, teams and youth sport organizations in 22 states across
the country
• Produced 7,000 jerseys to the Orlando Junior Magic basketball program with anticipation of
expanding that opportunity to junior programs run by other NBA teams
• Nine(9) collegiate athletic programs wear Crons apparel
• Official uniform provider for Robert Morris University which qualified for its first NCAA Basketball
Tournament since 1992. Crons was the only other apparel company represented in the Tournament
besides major apparel companies like Nike, Under Armour, Russell and Adidas.
• Provided apparel for over 1,200 athletes this fall in Baltimore/Washington, D.C. area
• The Crons Brand™ was profiled by CNBC this past March in a feature blog by its sports business
reporter, Darren Rovell.
• To coincide with the launching of the new Crons Website, The Crons Brand was introduced to
thousands of sports fans attending the 2009 Big East Tournament at Madison Square Garden via
aggressive street team marketing outside the Garden.
Value Proposition
The Crons Brand features a positive and motivational message and concept behind the brand that is
valued by parents, coaches and school administrators. The team workout packages product option
have proven very popular in the early rollout stage of the brand. In addition, The Crons Brand is
developing a full line of NCAA Compliant nutritional supplements as part of the team package of
products that is not matched by competitors.
The product quality is superior and available to end-users at a value price lower than the premium
brands on the market. The Crons Brand has excellent customization options that often exceed the
competition. A manufacturing supply chain is in place that ensures a quick turn-around time as
compared to others in the market. This is important because of the seasonality and time sensitivity of
orders for these customers.
The same kind of customer service excellence that has been the chief attribute in The Cavanaugh
Marketing Network’s explosives growth, has been the model for The Crons Brand. This customer
service is key in the market for promoting brand loyalty. The Crons Brand also has a network of
former athletes and celebrities that have been exposed to the brand and have expressed their
endorsement support.
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What They’re Saying About The Crons Brand
“The Crons apparel is first class and the designs they came up for our teams were fantastic. I like the idea
of athletic gear that constantly reinforces the values we’re trying to teach the girls.”
Dean Caliguire
Head Coach
Lady Roadrunners Softball Teams
“Crons really saves me time and effort. Friendly and courteous people are always a pleasure doing
business with. Our organization has really benefited by developing a relationship with Crons. Super
products, great prices, and competent sales force has made business easy.”
Brian Bieman
Head Coach and Youth Basketball Director
Columbia Ravens
“Every coach in high school sports should take advantage of the opportunity to begin a relationship with
Crons. It is a relationship that will booster your players, your program, and yourself; in ways that you
might never have imagined.”
Christian Miley
Head Basketball Coach
Lakeside High School (CA)
“The IUP football program has been extremely satisfied with Crons. Dealing with football players and staff
requires a high quality of products and Crons has fit the bill. The staff was very helpful and efficient. They
were always available to us when needed and provided samples and designs necessary to help in our
decision making.”
Gene Bicego
Assistant Football Coach
Indiana University of Pennsylvania
“I found Crons large enough to have the capabilities to provide and service all our uniform, travel and
practice apparel needs, but small enough to provide a level of service that far exceeds the other sports
apparel companies out there.”
Mike Rice
Head Basketball Coach
Robert Morris University
“The uniforms are good looking, high quality and reasonably priced which are the 3 factors most important
to us. The Crons Brand also worked hard to provide us very good service and were very responsive.
Overall, we had a great experience and look forward to doing more business with them.”
Jeff Conn
President
Upper St. Clair Athletic Association
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Crons...Come Ready or Never Start
Goals Module Curriculum Outline
I. Successful Kids Have One Common Motivation
Wanting to get better.
II. Successful Kids Want to Improve Every Day
a. School
b. Sports
c. Family
d. Friendships
III. Come Ready or Never Start emphasizes the importance of setting goals as first step towards
improvement; Striving for goals as the roadmap for self-improvement; getting better
IV. Definition of goals
a. Examples of Negative goals
b. Examples of Positive goals
c. Importance of making proper goal choices
V. Setting and striving for goals takes both mental (thinking) and physical (doing)
VI. Making a list of your goals
a. What do you want to accomplish
b. Importance of thinking through goals
c. Getting help setting goals
VII. Kinds of goals to set
a. Easy goals
b. Harder goals
c. Dreams
d. Daily, Weekly, Monthly, Yearly Goals
e. Remember: bigger goals are usually made up of a lot of smaller goals—patience needed
VIII. Goal visualization
a. Imaging being successful in accomplishing goal
b. Using inspirational images
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IX. Importance of writing goals down & thinking about them every day
a. Goal reminder every day/every week—pick a time of day/week
b. What’s my goal
c. What do I need to do to reach my goal
d. Use of goal journal; goal board
X. Thinking and Writing still not enough—have to go out and do whatever it takes—that’s the
challenging part
a. Discipline
b. Get it Done mentality
c. Review your progress
XI. Getting better and being more successful through the Crons philosophy by taking the time to:
a. Figuring out your goals
b. Writing them down
c. Doing your absolute best to reach them
d. Reviewing your progress
XII. If needed, find the detours
XII. Feeling great reaching your goals:
a. Pride
b. Feeling good about yourself
c. Family and Friend respect
d. Positive reinforcement
XIII. Stories
a. Famous people
b. Personal Testimonial
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Presented by:
University of Pittsburgh Men’s Basketball
In Conjunction with:
CRONS™
Dick’s Sporting Goods
United Way of Allegheny County
I. Program Objective
A. The Come Ready or Never Start™ Achievers Program is a guide for young people that promotes the mentality
needed to successfully set expectations and strive for their educational, athletic and life goals. It is a mindset
that affirms young people’s ability to overcome adversity and achieve their dreams through attitudes shaped by
preparation, performance and perseverance.
II. Program Target Audience
A. City of Pittsburgh Elementary and Secondary Students
B. Initial targeting of schools serving Pittsburgh’s Hill District neighborhoods
III. Program Participants
A. Members of the University of Pittsburgh basketball team
B. Members of the Oakland Zoo student cheering section and other motivated volunteers from the University’s
student community
IV. Program Execution
A. University of Pittsburgh basketball program works with Pittsburgh Public Schools to schedule Come Ready or
Never Start™ Achievers Program presentations to selected students at Pittsburgh City elementary and
secondary schools.
B. Classroom presentations are made by members of the Pitt basketball team, members of the Oakland Zoo and other
student volunteers based on the Come Ready or Never Start™ program curriculum.
C. Options include a longer, single presentation or a series of weekly, bi-weekly or monthly presentations, one class
room period in length
D. Presentations accompanied by accessories and aids designed to assist students in embracing and using the Come
Ready or Never Start™ philosophy to promote their achievement.
E. Possible formation of Come Ready or Never Start™ Achievement Clubs if interest warrants.
F. University of Pittsburgh basketball team to conduct selected basketball clinics for skill development and
promoting the Come Ready or Never Start™ mentality in achieving athletic goals.
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V. Come Ready or Never Start™ Achiever’s Program : A Summary of Key Topics Addressed
A. Setting Expectations
B. The Importance of Attitude
C. Setting Goals and Striving For Them
D. The Importance of Preparation and Perseverance
E. Taking Care of the Little Things
F. Ignoring the Noise
G. Dealing With Friends and Family
H. Dealing With Success and Failures
I. The Importance of Dreams
J. Athletics and Academics
K. Developing a Lifetime of Winning
VI. Sponsoring Organizations
A. University of Pittsburgh Men’s Basketball
Pitt Basketball is one of the most successful and elite programs in the Big East and NCAA. Head Coach Jamie
Dixon has led the Panthers to a 132-40 record, two Big East titles, two NCAA Sweet Sixteen appearances and five
straight 20-win seasons. Coach Dixon is extremely active in the Pittsburgh community. His many charitable events
and affiliations include the Caring Place, HOPE Network Hoops Classic, St. Anthony’s Holy Name Father-Child
Breakfast, Juvenile Diabetes Research Foundation and Boy Scouts of America.
B. The Crons Brand
Former University of Pittsburgh Basketball team captain, Pat Cavanaugh, founded The Crons Brand, an athletic
brand of apparel and accessories that motivates athletes of all ages to achieve their athletic goals and dreams.
The only former walk-on ever be named a basketball team captain, Mr. Cavanaugh developed the Come Ready or
Never Start™ Achiever’s Program based on his personal experiences in overcoming the odds to enjoy successful
careers in both athletics and business. Mr. Cavanaugh is one of the most honored and successful young
entrepreneurs in Pittsburgh, having founded and guided an Inc. 500 promotional products agency to the top of its
industry, while being named an Ernst & Young Entrepreneur of the Year and being inducted into its National
Entrepreneur Hall of Fame. He has been featured in national business publications and honored for business
excellence by the Wal-Mart Corporation.
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C. Dick’s Sporting Goods
Dick’s Sporting Goods, one of the largest sporting goods companies in the country headquartered in Pittsburgh, has
a long and continuing legacy of assisting youth and youth sports in its communities. The company has always
believed that athletics can play a vital role in teaching youngsters the value of hard work, dedication, teamwork
and other life lessons that will benefit them as teenagers and into adulthood.
D. United Way of Allegheny County
The United Way of Allegheny County is dedicated to impacting what matters in the community in order to create
lasting change in people’s lives. The agency convenes diverse partners and champions programs that focus on
bringing significant and enduring change to groups and populations in Allegheny County that face challenges in
securing their futures.
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Joining The Crons Brand Team
There are five levels of membership on The Crons Brand Team, four of which involve income earning
opportunities ranging from entry level part-time sales to full-time executive sales management.
Team members can earn promotions and move up the depth chart through their performance at their introductory
or current levels. Moving up the depth chart increases their residual income potential.
The following are summaries of these membership opportunities and their benefits:
I. Crons Fan
A. Embraces the Crons Come Ready or Never Start philosophy in their everyday life
B. Recognizes how the Crons mentality can help people in their circle of influence
C. Willing to spread the word about Crons and its Come Ready or Never Start attitude
D. Desires to promote the brand by wearing Crons merchandise and apparel
Benefits:
E. Receives 20% discount on the retail price of Crons merchandise, apparel and accessories for
personal purchases
F. Receive Official Crons Fan Performance Shirt and Hat. A $40.00 value!
G. Granted All-Access Pass to the Crons Locker Room—an insider’s view of what’s happening with the
brand, its players, coaches and future releases through electronic newsletters
Investment:
H. $20 Crons Brand Fan Club Membership
II. Crons Assistant Coach
A. Embraces the Crons Come Ready or Never Start philosophy in their everyday life
B. Earn commissions on the sale of all Crons apparel, merchandise and accessories
C. Provided Crons Brand marketing collateral as sales tools; catalogs, business cards, order forms and
promotional materials
Benefits:
D. Provides opportunity for residual income with people in their circle of influence
E. Generous commissions and sales revenue available without significant financial investment
Investment:
F. $25 Application Fee
Incentives:
G. “Ready Bonus” of $100 bonus if $7,000 in Career Personal Sales is achieved in 30 days
H. Receive $500 bonus after achieving $50,000 in Career Personal Sales
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III. Crons Head Coach
A. Embraces the Crons Come Ready or Never Start philosophy in their everyday life
B. Earn commissions on the sale of all Crons apparel, merchandise and accessories
C. Opportunity to sign other Coaches with the potential to get paid on their sales
D. Sales presentations are simplified with Crons Starter Kit
E. Provided Crons Brand marketing materials as sales tools; catalogs, business cards, order forms and
promotional materials
Benefits:
F. Supplied Crons Starter Kit with $1,000 worth of sample uniforms, apparel, merchandise and accessories
for presentations (Great Sales Tool!)
G. Provides opportunity for residual income with people in their circle of influence
H. Generous commissions and sales revenue available without significant financial investment
Investment:
I. $25 Application Fee + $150 Crons Starter Kit = $175 Total
Incentives:
J. “Ready Bonus” - $200 bonus if $7,000 in Career Personal Sales is achieved in 30 days
K. Eligible for General Manager position to recruit other Coaches after achieving $7,000 in Personal Career
Sales, $35,000 in Career Team Sales and signing 3rd Head Coach with both sales criteria achieved
L. Receive $1,000 bonus after signing 8th Head Coach and Career Team Sales of $100,000 are achieved
M. Receive $500 bonus after achieving $50,000 in Career Personal Sales
**Personal Sales count toward Team Sales**
IV. Crons General Manager – Earned Position
A. Potential to earn significant more “paying time” with this position
B. Increased income opportunity on The Crons Brand Team through direct personal sales
C. Significant residual income opportunities through the recruitment, signing and training of Head Coaches
D. Earn a percentage of all sales made by signing Head Coaches
E. Recruiting Crons Head Coaches is a significant part of this position
F. No specific assigned territory
Benefits:
G. Two potential residual income streams through personal sales and the sales of Head Coaches each
General Manager signs
H. Opportunity of advancement to a Regional Director
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Requirements:
I. Previously held a Crons Head Coach position as listed above
J. Achieved the requirements listed above to be eligible for a General Manager position
K. Sign 5 New Head Coaches and achieve $25,000 in New Team Sales within the first full 4 months from date
of promotion to General Manager
L. Maintain on-going minimum of 8 Head Coaches after first full 4 months from date of promotion to
General Manager
M. Maintain either $10,000 in Annual Personal Sales OR $50,000 in Annual Team Sales. Measured
consecutive 12 months from date of promotion
Incentives:
N. “Ready Bonus” of $500 if Requirement K is achieved in 2 months
O. Receive $1,500 bonus after achieving $150,000 in Career Team Sales
P. Receive $2,500 bonus after achieving $250,000 in Career Team Sales
Q. Receive $5,000 bonus after achieving $500,000 in Annual Team Sales
R. Eligible for Regional Director Position after achieving $1.5 million in Annual Team Sales and minimum of
12 active Head Coaches. Measured consecutive 12 months from date of promotion
V. Crons Regional Directors – Earned Position
A. One of the highest positions within the organization
B. Potential of large residual income by earning a percentage of sales on each General Manager and the
Coaches in their region
C. Manage up to 8 General Managers
D. Recruiting and training of General Managers is main responsibility of position
E. Continued residual income on personal sales
Benefits:
F. Multiple revenue streams across all brand opportunities
G. Opportunity to manage a sales region to maximize sales potential
Requirements:
H. Previously held a Crons General Manager position as listed above
I. Achieved the requirements listed above to be eligible for a Regional Director position
J. Sign 10 New Head Coaches and achieve $50,000 in New Team Sales within the first full 4 months from
date of promotion to Regional Director
K. Achieve $25,000 in Career Personal Sales and $10,000 in Annual Personal Sales. Measured consecutive
12 months from date of promotion
L. Maintain minimum of $1.25 million in Annual Team Sales
M. Maintain minimum of $1.25 million in Annual Team Sales per General Manager OR $10 million in Annual
Region Sales
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Incentives:
N. “Ready Bonus” of $1,000 if Requirement J is achieved in 2 months
O. Receive $35,000 bonus after achieving $12 million in Annual Region Sales
P. Receive $50,000 bonus after achieving $15 million in Annual Region Sales
Q. Receive $100,000 bonus after achieving $20 million in Annual Region Sales
R. Eligible for Franchise Designation after achieving $20 million in Annual Region Sales
II. Franchise – Designated Position
A. This Regional Franchise position is for a ultra-performing individual that will enhance the revenue and
awareness of the brand in many ways
B. Highest level position of residual income in entire region encompassing as many as 8 General Managers
C. Recruiting and Speaking about the brand is the main responsibility of this designated position
Benefits:
D. Accelerated Compensation percentages on multiple revenue streams across all brand opportunities
E. Opportunity to receive residual income on established revenue streams
Requirements:
F. Achieved the requirements necessary to receive Franchise Designation
G. Maintain minimum of $20 million in Annual Region Sales
Incentives:
H. $5,000 bonus after achieving $500,000 in Annual Team Sales
I. Eligible for $200,000 bonus plus 1% of Annual Region Sales in excess of $20 million as follows:
i. $35,000 bonus after achieving $12,000,000 in Annual Region Sales
ii. $50,000 bonus after achieving $15,000,000 in Annual Region Sales
iii. $115,000 bonus after achieving $20,000,000 in Annual Region Sales
iv. Bonus equal to 1% of Annual Region Sales in excess of $20,000,000
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The Crons Brand
TEAM MEMBER CONTRACT
This TEAM MEMBER CONTRACT (this “Contract”) is made and entered into effective as of the date executed by and between
The Cavanaugh Marketing Network, Inc. d/b/a The Crons Brand (“Crons”), and the Team Member. Crons and Team Member, for good
and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, intending to be legally bound, hereby agree
as follows:
1. Duties. Team Member shall perform sales services as a “Coach” for Crons as requested by Crons from time to time (the
“Services”) in accordance with then current policies of Crons as may be amended from time to time (the “Policies”). Subject to Crons’
final determination, Team Member shall be eligible to be elevated to General Manager, Regional Director or Franchise Player. General
eligibility rules for promotion are set forth in the Crons Playbook which has been provided to Team Member, which Playbook is subject to
change from time to time. In the event of such promotion, Team Member shall perform such services for Crons as requested by Crons
from time to time that fall within the scope of such new position as identified by Crons in accordance with the Policies.
2. Compensation. In exchange for providing the Services, Team Member shall be eligible to receive only that compensation set forth in
Exhibit A. Team Member shall not receive any salary, wages, or other fixed and/or periodic payments; instead, Team Member’s
compensation shall consist entirely of the commissions and other compensation Team Member earns subject to and under the rules set
forth in Exhibit A.
3. Termination. This Contract is terminable at will at any time by either party by written notice, provided that Sections 4, 5, 6 and 7
shall survive any termination of this Contract and continue in full force and effect thereafter in accordance with their terms.
4. Confidentiality. Without the express written permission of Crons, Team Member will not use for Team Member’s own benefit or the
benefit of others, or disclose to any person or entity, any “Proprietary Information.” Upon demand by Crons, Team Member shall return
to Crons, or destroy, as requested by Crons, all materials containing Proprietary Information. In the event that Team Member or anyone
to whom Team Member transmits the Proprietary Information pursuant to this Contract becomes legally compelled to disclose any of
the Proprietary Information, Team Member will provide Crons with prompt notice so that it may seek a protective order or other
appropriate remedy and/or waive compliance with the provisions of this Contract. In the event that such protective order or other
remedy is not obtained, or that Crons waives compliance with the provisions of this Contract, the Team Member may disclose such
Proprietary Information to the extent compelled to do so without liability hereunder. Team Member agrees that Team Member will use
reasonable efforts to obtain assurances that confidential treatment will be accorded to such information. “Proprietary Information” shall
mean (i) any information or material of Crons designated as “Proprietary” or “Confidential” or any other information that is not generally
known by persons not affiliated with Crons or is otherwise confidential or proprietary in nature, including but not limited to all written or
unwritten trade secrets, marketing and customer information, development plans, and suppliers, and (ii) any information or material of a
third party disclosed to Team Member in connection with Team Member’s work for Crons and which would constitute Proprietary
Information under clause (i) of this paragraph if such information belonged to Crons. “Proprietary Information” shall not include
information which: (a) at the time of disclosure was known to Team Member (as evidenced by documentation in Team Member’s
possession) free of any obligations that would restrict disclosure of the relevant information by Team Member to Crons; (b) is
independently developed by Team Member other than in connection with Team Member’s engagement by Crons (as evidenced by
documentation in Team Member’s possession), (c) is lawfully received by Team Member other than in connection with Team Member’s
engagement by Crons, free of any non-disclosure obligations, from a third party having the right to so furnish such Proprietary
Information; or (d) is or becomes generally available to the public without any breach of this Contract. Team Member agrees that Team
Member will not use or disclose any confidential or proprietary information or trade secrets of Team Member’s former or concurrent
employers or clients in connection with Team Member’s work for Crons. Team Member represents and warrants that Team Member is
not bound by any contract or agreement, including without limitation any non-compete or other contract or agreement between Team
Member and a prior employer of Team Member, limiting or preventing Team Member from performing any of the services reasonably
contemplated hereunder.
(continued on next page)
25
27. ������������
5. Assignment of Rights. Team Member agrees that all proprietary information, confidential information and trade secrets, including
customer and supplier information which are learned, obtained, developed, conceived or made by Team Member during Team Member’s
engagement, either solely or jointly with others, and which relate in whole or part in any way to the products or business of Crons, as
contemplated or carried on by Crons from time to time, shall belong to Crons. Team Member hereby covenants and agrees that: (a) so
long as Team Member is engaged hereunder, Team Member shall keep Crons informed of any and all ideas, works, discoveries,
improvements, trade secrets, secret processes and other know-how made or developed by Team Member, in whole or in part, or
conceived of by Team Member, alone or with others, which result from any work Team Member may do for or at the request of Crons, or
which relate to the business, operations or activities of Crons or which involve the use of any property of Crons, including but not limited
to trade secret information, whether or not conceived, developed or created during regular working hours (“Crons Proprietary Items”),
and (b) during the term of this Contract and thereafter, Team Member shall disclose in writing promptly to such persons as Crons may
from time to time designate, all Crons Proprietary Items. Team Member understands that all Crons Proprietary Items shall become and
remain the sole property of Crons. The Team Member shall assign to Crons, without further consideration, Team Member’s entire right,
title and interest in and to all Crons Proprietary Items including, but not limited to, copyrights. Team Member also acknowledges that all
original works of authorship which are made by Team Member (solely or jointly with others) within the scope of Team Member’s
engagement hereunder and which are protectable by copyright are “works made for hire” as such term is defined in the United States
Copyright Act. To the extent that any such works, by operation of law, cannot be “works made for hire,” Team Member hereby assigns to
Crons all right, title and interest in and to such works and to any associated copyrights. Team Member has been notified and
understands that the provisions of this paragraph do not apply to any intellectual property that was developed entirely on Team Member’s
own time without using Crons’ equipment, supplies, facilities, or trade secrets and that is neither related to Crons’ actual or anticipated
business, research or development, nor results from work performed by Team Member for Crons.
6. Acknowledgment and Remedy. Team Member acknowledges that the restrictions contained in Sections 3, 4 and 5 hereof are, in
view of the nature of the business of Crons reasonable and necessary to protect the legitimate interests of Crons, and that any violation
of any provision of Sections 3, 4 or 5 will result in irreparable injury to Crons. Team Member also acknowledges that in the event of any
such violation, Crons shall be entitled to preliminary and permanent injunctive relief, without necessity of proving actual damages, and to
an equitable accounting of all earnings, profits and other benefits arising from any such violation, which rights shall be cumulative and in
addition to any other rights or remedies to which Crons may be entitled. Team Member agrees that in the event of any such violation, an
action may be commenced for any such preliminary and permanent injunctive relief and other equitable relief in any federal or state court
of competent jurisdiction sitting in Allegheny County, Pennsylvania. Team Member hereby waives, to the fullest extent permitted by law,
any objection that Team Member may now or hereafter have to such jurisdiction or to the laying of the venue of any such suit, action or
proceeding brought in such a court and any claim that such suit, action or proceeding has been brought in an inconvenient forum.
7. Miscellaneous. Team Member shall provide services hereunder as an independent contractor, and nothing herein shall be deemed
or construed to create an employment relationship, or a partnership or joint venture, between Team Member and Crons. The
unenforceability, in whole or in part, of any provision of this Contract shall not affect the enforceability of the remaining portions. This
Contract shall be interpreted, construed and governed according to the laws of the Commonwealth of Pennsylvania. Any and all actions,
claims or lawsuits arising from this Contract shall be brought in a court located in Allegheny County, Pennsylvania and Team Member
hereby submits to the exclusive jurisdiction of the Federal and State courts sitting in Allegheny County, Pennsylvania. This Contract
constitutes the entire agreement between Team Member and Crons with respect to the subject matter hereof and supersedes all prior
communications, representations, agreements, negotiations, or understandings, whether verbal or written, between them. This Contract
shall bind and inure to the benefit of Team Member and Crons, their respective successors, and legal representatives. This Contract may
be changed or modified only by an agreement in writing signed by Team Member and Crons. This Contract may not be transferred or
assigned, by operation of law or otherwise, by Team Member in whole or in part.
IN WITNESS WHEREOF, the undersigned parties have executed this Team Member Contract as of the date set forth below.
Cavanaugh Marketing Network, Inc. Team Member:
d/b/a/ The Crons Brand
By:_____________________________________________________ By:_______________________________________________
Name and Title:___________________________________________ Name:_____________________________________________
Date:___________________________________________________ Date:______________________________________________
26
28. ������������
FCRA Disclosure Statement
In connection with an evaluation of your qualifications to serve as a Team Member with The Cavanaugh Marketing Network, Inc. d/b/a
The Crons Brand (“Crons” or the “Company”), the Company may obtain a consumer report pertaining to you furnished by a consumer
reporting agency. A “consumer report” is any written, oral, or other communication of information by a consumer reporting agency
bearing on a person’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode
of living.
The Company will be utilizing Corporate Investigations, Inc. (“CII”) (2275 Swallow Hill Road, Suite 500, Pittsburgh, Pa 15220,
1-800-600-0244) a consumer reporting agency, to conduct an investigation into your background and to prepare a consumer report
pertaining to you. In conducting its investigation, CII may obtain information concerning, among other things, your criminal history
record information, as may be helpful in evaluating whether to retain your services as a Crons Team Member.
You may have the right to obtain additional disclosures concerning the nature and scope of the investigation that the Company has
requested. You may also have the right to request a written summary of your rights pursuant to the Fair Credit Reporting Act. If you
would like to obtain additional disclosures concerning the nature or scope of the investigation that the Company has requested, or if you
would like to obtain a written summary of your rights, please submit a written request to the Company.
I hereby acknowledge that I have received and read this Disclosure Statement. New York residents hereby acknowledge receipt of a copy
of article 23-A of New York Correction law.
_____________________________________
Sign Name
_____________________________________
Print Name
_____________________________________
Date
Minnesota, Oklahoma, Massachusetts and California Resident only: Please check this box if you would like to receive a copy of
an investigative consumer report or consumer credit report at no charge whenever you have a right to receive such a copy, if one is
obtained by the Company.
Notice to New York Applicants: You have the right to inspect and receive a copy of any investigative consumer report requested by the
Company by contacting the consumer reporting agency identified above directly.
Notice to California Applicants: Additionally, under Section 1786.22 of the California Civil Code, you may view the file maintained on
you by Corporate Investigations, Inc. during normal business hours. You may also obtain a copy of this file upon submitting proper
identification and paying the costs of duplication Services, by appearing at Corporate Investigations, Inc. in person or by mail. You may
also receive a summary of the file by telephone. CII is required to have personnel available to explain your file. If you appear in person,
a person of your choice may accompany you, provided that this person furnishes proper identification.
27
29. ������������
FCRA Authorization and Release
I hereby acknowledge that The Cavanaugh Marketing Network, Inc. d/b/a The Crons Brand (“Crons” or the “Company”) has informed
me that it may obtain a “consumer report” pertaining to me, in connection with evaluating my qualifications to serve as a Team Member
with Company. The Company has also informed me of the following: (1) that a “consumer report” consists of any written, oral, or other
communication of information by a consumer reporting agency bearing on a person’s credit worthiness, credit standing, credit capacity,
character, general reputation, personal characteristics, or mode of living; (2) that the Company will be utilizing Corporate Investigations,
Inc. (“CII”), a consumer reporting agency, to assist in conducting a consumer report pertaining to me; (3) that the Company and CII may
obtain information concerning, among other things, my criminal history record information, as may be helpful in evaluating whether to
retain my services as a Crons Team Member.
I hereby authorize the Company to procure, and CII to prepare, a consumer report pertaining to me to evaluate my prospective
relationship as a Team Member with the Crons. In accordance with the Federal Fair Credit Reporting Act (“FCRA”), I hereby authorize, by
my signature below, CII to make such investigations and inquiries related to, among other things, any criminal history record
information, for purposes of the preparation of such reports. I further authorize CII to provide the Company with the information that it
obtains pursuant to its investigation.
In authorizing this investigation, I will voluntarily provide the supplemental data requested on the attached Supplemental Data Form, to
ensure that any records which are located which may refer to a person with a name that is identical or similar to mine are properly
determined as referring to, or not referring to, me. I understand that I do not have to provide the supplemental data, and that if I do it
will be used only in connection with this investigation. I hereby release the Company, CII, and any persons providing information to
the Company or CII from any and all liability that may arise in connection with the above-described background investigation. If I am
retained as a contractor, this authorization will remain on file and shall serve as an ongoing authorization for the Company to obtain
consumer reports at any time during my contractual relationship with the Company. I further agree that copies of this Authorization and
Release that show my signature are as valid as the original Authorization and Release that I have signed.
Before signing this Authorization and Release, I have had the opportunity to review this document with anyone of my choosing, including
an attorney.
____________________________________________ _____________________________ ___________________________
Print Name Social Security Number Date of Birth
____________________________________________ _____________________________
Sign Name Date
28
31. ���������
EXHIBIT A - COMPENSATION
1. Commissions: For Services rendered under this Contract, the Team Member (based on the position held by Team
Member as set forth below) shall be paid the following commissions indicated as percentages:
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30
32. ���������
2. Commission Terms:
A. Revenues. The term “Revenues” shall mean the gross sales revenues of Crons from the sale price of The Crons
Brand Products. All other charges, including without limitation, shipping, handling and taxes, received by Crons shall be
excluded from the term “Revenues” hereunder. Notwithstanding anything to the contrary contained herein, no
commissions shall be paid to Team Member for sales of The Crons Brand products or services with respect to which
full payment (i.e., the invoice amount) has not been received by Crons by the 60th day following the invoice due date,
and all revenues received from such sales shall be excluded from the term “Revenues” hereunder.
B. Signed Coaches. All “signings” of coaches by Team Member must be made in accordance with the Policies. Team
Member shall have no authority to legally bind Crons to any obligation whatsoever.
C. Pricing. The Crons Brand products shall be sold at such prices as set forth by Crons in its pricing guidelines issued
by Crons from time to time. All discounts on The Crons Brand products must be pre-approved in writing by Crons.
D. Payment Dates. Commissions are paid on the 15th and 30th day of each month subject to the Policies (each
referred to herein as a “Payment Date”). Commissions earned by Team Member shall be paid by Crons on the Payment
Date that follows the 30-day anniversary of receipt of the Revenues by Crons (example: if Revenues are received April
22, the commission on such Revenues shall be due and payable May 30).
E. Violation of Policies. No compensation shall be paid to Team Member with respect to sales of The Crons Brand
products made, or acts taken, in violation of this Contract or the Policies.
F. Termination. In the event of termination of this Contract for any reason, commissions shall only be paid on those
Revenues received by Crons prior to the date of termination of this Contract.
3. Incentive Compensation:
I. Crons Assistant Coach
a. “Ready Bonus” of $100 if $7,000 in Career Personal Sales is achieved in 30 days from date of this Contract
b. $500 bonus after achieving $50,000 in Career Personal Sales
II. Crons Head Coach
a. “Ready Bonus” of $200 if $7,000 in Career Personal Sales is achieved in 30 days from date of Team
Member Contract
b. $500 bonus after achieving $50,000 in Career Personal Sales
c. $1,000 bonus after signing 8th (Head) Coach and Career Team Sales of $100,000 are achieved
III. Crons General Manager
a. “Ready Bonus” of $500 if Team Member signs 5 new (Head) Coaches and achieves $25,000 in new Team Sales
within the first full 2 months from date of promotion to General Manager
b. $1,500 bonus after achieving $150,000 in Career Team Sales
c. $2,500 bonus after achieving $250,000 in Career Team Sales
d. $5,000 bonus after achieving $500,000 in Annual Team Sales
31
33. ���������
IV. Crons Regional Director
a. “Ready Bonus” of $1,000 if Team Member signs 10 new (Head) Coaches and achieves $50,000 in new Team
Sales within the first full 2 months from date of promotion to Regional Director
b. $5,000 bonus after achieving $500,000 in Annual Team Sales
c. $35,000 bonus after achieving $12,000,000 in Annual Region Sales
d. $50,000 bonus after achieving $15,000,000 in Annual Region Sales
e. $100,000 bonus after achieving $20,000,000 in Annual Region Sales
V. Franchise - Designated Position
a. $5,000 bonus after achieving $500,000 in Annual Team Sales
b. Eligible for $200,000 bonus plus 1% of Annual Region Sales in excess of $20,000,000 as follows:
i. $35,000 bonus after achieving $12,000,000 in Annual Region Sales
ii. $50,000 bonus after achieving $15,000,000 in Annual Region Sales
iii. $115,000 bonus after achieving $20,000,000 in Annual Region Sales
iv. Bonus equal to 1% of Annual Region Sales in excess of $20,000,000
4. Incentive Compensation Terms:
A. Bonuses. With respect to incentive compensation for specific career sales milestones (Personal or Team), such
incentive compensation shall only be paid once during the term of the Contract (i.e., promotion of Team Member does
not trigger additional payment on same career milestone). With respect to annual sales milestones (Team or Region),
such incentive compensation shall only be paid once during the Contract year (i.e., promotion of Team Member does not
trigger additional payment on same annual milestone).
B. Measure of Dollar Amount of Sales. For purposes of measuring the dollar amount of Sales, only sales made in
accordance with the Policies and with respect to which full payment has been made to Crons within 60 days of the
invoice due date shall be included in such amount.
C. Measure of Applicable Time Period. For each Contract year, Annual Team Sales and Annual Regional Sales are
measured by the period commencing on the Contract date and ending on the 12th month thereafter (e.g., July 1 -
June 30).
D. Description of Team and Region Sales. The term “Team Sales” includes only sales directly made by Team Member
or those Coaches signed to Crons by Team Member in accordance with the Policies. The term “Region Sales” includes
only those sales directly made (i) by Team Member and/or (ii) in the Team Member’s region as identified by Crons.
E. Payment. Incentive compensation earned by Team Member shall be paid by Crons on the Payment Date that
follows the 30-day anniversary of achievement of the applicable milestone. The 1% incentive compensation paid to the
Franchise – Designated Position shall be paid in accordance with the Policies for payment of commissions.
F. Termination. In the event of termination of this Contract for any reason, incentive compensation shall only be paid
on those milestones achieved by Team Member prior to the date of termination of this Contract.
32
