The Future of COAM Industry: Insights and Recommendations

Delve into the complexities of the COAM industry, exploring its past, present, and future predictions. Learn about proposed legislative frameworks, independent C-store operators' recommendations, and the call for contract incentives. Discover how the industry is evolving and the key factors shaping its trajectory.

• COAM Industry
• Future Predictions
• Legislative Framework
• Independent Operators
• Contract Incentives

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1. COAM Industry Past, Present & Future Prediction is very difficult, especially if it's about the future. United C-Stores David Jaffer (770) 939-8720 djaffer@jafferlaw.com A voice of the Independent C-Stores United C-Stores

2. Future of the COAM Industry 1. The future is in your hands 2. Future of Education Funding 3. Future of Responsible Gaming 4. Future of Sensible COAM Legislation A voice of the Independent C-Stores United C-Stores

3. Future of the COAM Industry Proposed Legislative Framework Three Prong Test 1. Is the proposed legislation good for Georgia? 2. Can the Georgia Lottery Corporation administer the proposed legislation? 3. Is the proposed legislation equitable to the participants? A voice of the Independent C-Stores United C-Stores

4. Future of the COAM Industry Independent C-Store Operators Recommendations: Allow for contract incentives and remove roadblocks, like the 9-Months Rule Minimum C-Store share to be no less then 45% Georgia Lottery Gift Card Program Revision of 50/50 Gross Retail Receipt rule to include gift card purchases A voice of the Independent C-Stores United C-Stores

5. Future of the COAM Industry Allow for contract incentives and remove roadblocks, like the 9-Months Rule Better Solution Build on legitimacy, transparency and with clarity: Allow market to provide for incentives like other vendors provide to control the real estate inside the convenience store The incentive can be a form of a signup bonus or performance bonus, allow the free market to dictate COAMs contracts will be fair, inducements will be flushed out of our system, Georgia Lottery s job will become easier and Masters will be able to better protect their legitimate COAM contracts United C-Stores

6. Future of the COAM Industry Allow for contract incentives and remove roadblocks, like the 9-Months Rule Application of the 9-month rule (2016 SB388): 1/1/2018 Location enters a three-year contract with a Master United C-Stores

7. Future of the COAM Industry Allow for contract incentives and remove roadblocks, like the 9-Months Rule Application of the 9-month rule (2016 SB388): 1/1/2018 Location enters a three-year contract with a Master 12/31/2019 Location sells business United C-Stores

8. Future of the COAM Industry Allow for contract incentives and remove roadblocks, like the 9-Months Rule Application of the 9-month rule (2016 SB388): 1/1/2018 Location enters a three-year contract with a Master 12/31/2019 Location sells business The new owner cannot bring another Master to this location United C-Stores

9. Future of the COAM Industry Allow for contract incentives and remove roadblocks, like the 9-Months Rule Application of the 9-month rule (2016 SB388): 1/1/2018 Location enters a three-year contract with a Master 12/31/2019 Location sells business The new owner cannot bring another Master to this location Either assume the existing contract or stay out of the market for 9- months no COAM for 9-months United C-Stores

10. Future of the COAM Industry Allow for contract incentives and remove roadblocks, like the 9-Months Rule Application of the 9-month rule (2016 SB388): 1/1/2018 Location enters a three-year contract with a Master 12/31/2019 Location sells business The new owner cannot bring another Master to this location Either assume the existing contract or stay out of the market for 9- months no COAM for 9-months Punishment to New Owner and Property Owner United C-Stores

11. Future of the COAM Industry Allow for contract incentives and remove roadblocks, like the 9-Months Rule Application of the 9-month rule (2016 SB388): 1/1/2018 Location enters a three-year contract with a Master 12/31/2019 Location sells business The new owner cannot bring another Master to this location Either assume the existing contract or stay out of the market for 9- months no COAM for 9-months Punishment to New Owner and Property Owner Because Master paid the inducement on 1/1/2018, they want to protect that inducement, it was not a legal transaction, they cannot sue based on a breach of contract, so they created this 9-month rule Why does the new owner want to bring another Master? Same Reason Inducement. Masters are now looking to expand the 9-month to 42 Month United C-Stores

12. Future of the COAM Industry Minimum C-Store share to be no less then 45% Maintain minimum C-Store share to be no less then 45% 1. The 2013 legislation made COAM more lucrative for Masters 2. Locations were made to do more work for less payout 3. Future demands equity and fairness 4. Allow market driven incentives to reflect the workload between Location, Lottery and Master or change allocation amongst them United C-Stores

13. Future of the COAM Industry Minimum C-Store share to be no less then 45% Maintain minimum C-Store share to be no less then 45% 1. The 2013 legislation made COAM more lucrative for Masters 2. Locations were made to do more work for less payout 3. Future demands equity and fairness 4. Allow market driven incentives to reflect the workload between Location, Lottery and Master or change allocation amongst them Location Lottery 60 20 70 10 45+Incentives 20 Master 20 20 35-Incentives United C-Stores

14. Future of the COAM Industry Georgia Lottery Gift Card Program Encourage Georgia Lottery to move forward with rolling out its Gift Card Program United C-Stores

15. Future of the COAM Industry Georgia Lottery Gift Card Program Encourage Georgia Lottery to move forward with rolling out its Gift Card Program Encourage Masters Licensees to reinvest in propriety card system United C-Stores

16. Future of the COAM Industry Revision of 50/50 Gross Retail Receipt rule to include gift card purchases 1. 50/50 GRR 2. Reset GRR quarterly to allow for minor month to month fluctuation United C-Stores

17. Future of the COAM Industry Independent C-Store Operators Recommendations: Allow for contract incentives and remove roadblocks, like the 9-Months Rule Minimum C-Store share to be no less then 45% United C-Store Georgia Lottery Gift Card Program Revision of 50/50 Gross Retail Receipt rule to include gift card purchases A voice of the Independent C-Stores United C-Stores