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PROPOSAL: To reduce Environmental Cost Factors

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Slip fall prevention program used.

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Legal Protection included.

Corporate extended$200 dollar credit towards workers compensation premium.

(LOSS REVERSAL OF $4,842 PER YEAR FOR EACH  RESTAURANT BY CHANGING TO pHLUORUS)

The facts contained in this proposal are supported by information obtained from surveys through: 

United States Department of Labor, National Safety Council, Bureau of Labor Statistics,

Department of Health & Human Services, State Worker's Compensation Agencies,

Corporate Risk/Loss Departments, Corporate and Franchise Distributors, previous Vendors,

Franchise Owners and direct reports from Insurance Claims Adjusters.

 

What is termed the most prevalent type of work-related accident, SLIP/FALLS represent over 65% of all work related lost man days.  A factor not always accounted for in the cost of Workers Compensation Insurance.  Eighty percent of all slip/falls can be avoided by the omission of known safety hazards as reported by OSHA.  The most uncontrollable hazard is incorrect cleaning procedures.  The most obscure hazard is inferior floor cleaning chemicals.  Choice of chemicals is the most controllable factor.  If your current cleaning practice fails to produce an on-going coefficient of friction of at least .60, you should change to pHluorus.  pHluorus, through Workers Compensation reports, fast food corporate testing, independent tests and scientific analysis, document a .70 (COF) at recommended dilution level.  Only pHluorus will neutralize the following most common errors in cleaning procedure committed by most often illiterate, constantly changing, or uncontrollable floor cleaning crews.

MOST COMMON CLEANING ERROR OBSERVED

The practice of filling a mop bucket with four gallons of water and one three ounce packet of Brand X, (as directed) is only .75 ounces of Brand X cleaner per gallon, or 168 parts water to 1 part cleaner.   Although the monthly cost of Brand X cleaner is only $13.98 (one carton containing 120-3 ounce packets, two per day times sixty days, equals $27.97 or 2.81 gallons or $9.95 per gallon) there is no cleaner at that dilute level that is effective.  Brand X costs over twice as much as pHluorus.  The practice of dowsing the mop with liquid, spreading it over the floor until used up, then bringing the mop back and rinsing it in the cleaner water, squeeging same and using the same mop to extract the before mentioned cleaner from the area saturated, is ineffective.  The cleaner water, on the second area, is now dirty and after several times of squeeging the mop, is dirtier.  At the end of the procedure, the remaining liquid, usually about three-fourths from original, is dumped down a drain.  Add this practice with the minuscule amount of product and it is easy to understand why a Brand X floor will produce an OSHA defined dangerous of .30 (COF).  Tests proved higher concentration of Brand X did not increase (COF).

PROVEN SOLUTION: To neutralize often uncontrollable cleaning practices, use pHluorus cleaner (average 18 ounces) per liquid gallon (increased (COF) significantly) and use all the liquid in the bucket on the floor.  Using less liquid is cost effective because no cleaner is dumped down the drain.  Then rinse with clean water (nominal cost) to extract residue.  Automatic proportioner in transparent drums will allow the monitoring of product and guarantees correct dilution level.   A (COF) of .70 will result (as confirmed at Sacramento corporate restaurant).  Employees never in contact with concentrate.

AS TO USE OF BRAND X RELATED TO SLIP/FALL CLAIMS

(FRANCHISED OPERATIONS)

Our surveys indicate that Brand X has not had popular acceptance with Franchise owners.  This leads us to the question; why do the Franchisees buy a minimum of Brand X ($13.98 a month) and go down to the local grocery store to get Tide or something to clean the floor?  Another question, how much of the $2,013,120.00 percentage spent annually for the 8,000 franchised restaurants is in addition to money for other cleaners?  Question, is it a mystery with a combination of products blanketing the floor, (tests prove reduction of (COF)) that a higher slip/fall rate results?

AS TO USE OF BRAND X RELATED TO SLIP/FALL CLAIMS

(CORPORATE OWNED)

Tests, where the tile in 400 corporate restaurants were etched, by a company called Western Slip/Stop, began with an 80% claims reduction, however by the end of the year using Brand X as an ongoing cleaner, only a 23% average reduction in slip/fall claims was experienced.  By the end of the second year only a 10% reduction and only a 5% reduction by the end of the third year.  No reduction thereafter. *Tests at Sacramento corporate store confirmed a (COF) of only .30 before a pHluorus treatment using Brand X.

CONCLUSION: The Brand X product did not maintain an adequate (COF), therefore resulting in an unsatisfactory level of slip/fall claims.

AS TO THE USE OF pHluorus, RELATED TO SLIP/FALL CLAIMS

Reference, letter dated October 18th, 1990, Risk/Loss Corporate;

"The thirty day trial period of our product, pHluorus, at your restaurant in Sacramento, California is complete.

The results;

1.A static wet reading before application indicated a .40 coefficient of friction reading on the customer surface tile, a .70 (COF) after application.

2.A static wet reading before application indicated a *.30 on walkway areas and a .23 on areas near the grills.  A .70 was recorded on both areas after application.

Note; #2 was employee work areas and the same reading occurred after 30 day

 #1 was customer areas and the reading increased to .75 after 30 days........

3.The tested surfaces were significantly improved as to safety and cleanliness.................

This report would seem to indicate that we did in fact maintain a high coefficient of friction during the thirty day period.  As you know, the other attempts to use an HF compound, to improve slip-resistance, failed because the on-going cleaner was not of the same chemical component.  This time, using the same chemical (HF) as an on-going cleaner, seems to continue to keep the floor safe.  This basic simple fact, I believe will eliminate 80 to 90% of your slip-fall claims as it has with our customers.

In summary it would seem that pHluorus has qualities your present floor cleaning compound does not.  Both have an acid base.  Only pHluorus has the HF acid.  The dilute acids present in unwanted pHluorus  solution, react readily with the limestone in soil, with cement, and even with calcium ions in normal hard water to give insoluble calcium fluoride, calcium phosphate and combination of the two.  Thus, in normal usage, acids are removed from the liquid and converted to chemically stable solids.  A California Department of Public Works Industrial Waste Program has approved the use of this product under normal operating concentration levels.  O. James Pardeau, is a chief author of much environmental legislation in California and endorses the pHluorus compound over all other floor cleaning alternatives.  pHluorus fluorinates floor surfaces, thus blocking micro-organism/fungi growth.  pHluorus will produce a hospital clean standard.  A standard your restaurants can maintain without the use of costly disinfectants.  The floors (grout and tile) will last longer because of the fluorination factor."

PRESENT FACTORS CONTRIBUTING TO EXCESSIVE ENVIRONMENTAL COST OF BRAND X

Fixed expenditure of Brand X; 12,000 restaurants at $13.98 per month, X 12 months =$2,013,120.00

Profit / loss from Environmental Cost Factors; at least $6,000.00 annually, per restaurant without pHluorus.

 

resulting in slower service or more employees (requiring up to 20% more);

  > Decreased productivity/cost (lower customer satisfaction because of slower service)

                                     Per restaurant annual cost, using pHluorous$4,500

  > Workers Compensation Insurance < Difference of $3,000  >

                                     Per restaurant annual cost, using Brand X$7,500

  > Decreased morale/cost?

                               Per restaurant annual cost, using pHluorous $4,200

  > Liability Insurance Cost < Difference of $3,600  >

                               Per restaurant annual cost, using Brand X$7,800

  > Higher turn-over rate cost?

  > Loss of key management cost (through permanent injuries)?

  > Lower appearance level, (floors) resulting in reduced approval (lost customers)?

  > Odors, (kitchen, rest room) resulting in reduced approval (lost customers)?

Profit / loss from Environmental Cost Factors; at least $6,000.00 annually,

per restaurant without pHluorus, times 12,000 restaurants $72,000,000.00

Total environmental and fixed cost of Brand X $74,013,120.00

Containment cost of pHluorus to reverse cost overruns from Brand X ($118.75 per restaurant, average investment per month X 12 months X 12,000) $15,900,000.00

Annual savings using pHluorus $58,113,120.00

Profit per restaurant    $4,842.92 

KEY OBSERVATION:

Coefficient of Friction (the opposite of slipperiness) is directly related to slip/fall accidents.  An adequate (COF) range (from .60 to .80) will reduce claims an average of 80% (consistent with OSHA claims).  Lower readings will increase claims proportionately.  This supposition is supported by the findings that after an etch (Western Slip-Stop), Brand X reduced a beginning 80% reduction to an average of only 23% after one year, 10% reduction the second year, 5% reduction third year and no reduction thereafter. (From corporate Risk/Loss Department).  Claims Reduction

IN CONTRAST:

pHluorus will initially etch and maintain every day as a continual traction treatment of a (COF) of .70 or better (supported by Sacramento test).  The result, an 80% reduction of slip/fall claims.  Thus, with a reversal of environmental cost factors a $58,113,120.00 profit can be estimated from available information.  A choice of (HF) acid over Brand X acid is the key determinant.

NOTE:

The corporate owned operation enjoy self-insured status, thus plus modification factors are not a controlling factor, although the trust fund has certain limitations.  Thus, claims reduction savings would be more direct.  In the franchise owners insurance situation, there is no bare if rates become exorbitant, since corporate will not allow it, therefore out is the only alternative.  Out, because of environmental cost factors, is now unnecessary because of the invention of pHluorus.  Thus, more thriving franchises and more profits to corporate.

SERVICE RELATIONSHIP

pHluorus INC. will supply tier 2040 to corporate to be redistributed under your name to all facilities.

pHluorus INC.  will advise and act as the central technical assistance consultant through our  800-SAV-SLIP number, for on-site application procedures.

pHluorus INC. will monitor, through your central distribution centers, the amount of pHluorus to each facility to determine that adequate product is delivered and applied to render effective the affidavit supplied in case of a slip-fall claim.

pHluorus INC. will render adequate labeling and application instructions on containers supplied to all facilities and make an inspection personally through a certified safety specialist at least twice a year.

pHluorus INC.  will supply all scientific data to all departments within your organization, having the need to know, for operational, insurance and legal requirements.  (May include current manufacture/distributor), so long as a non-compete proprietary acknowledgement is approved.

pHluorus INC.  will provide a resident consultant at your corporate headquarters, if required.

pHluorus INC.  will advise fast food corporation of additional uses possible for the pHluorus discovery and make same available on a competitive monetary relationship as the horizontal traction treatment.

SUMMARY

As we have created a new safety & health standard with pHluorus, we ask you to consider a new economic standard for determining your chemical costs.  "Environmental Cost Factors", the title of this proposal, will be a standard if followed that will give you a new prospective when determining your commercial chemical needs.

We believe that by improving the chemical gradient to the pHluorus standard, there will be realized an annual profit of $58,113,120.00.  We believe by using Brand X, you will continue to suffer an annual loss of $58,113,120.00.  We believe that the pHluorus traction treatment will not only deliver superior (COF), but will replace strippers, outside cement solvent cleaners, disinfectants (airborne & surface) agents.  We believe your marketing department can use the fact you possess bacteriofrenic surfaces, environmentally responsible packaging and ecologically safe chemicals to great advantage in your advertising campaigns.  We believe that you will experience an 80% reduction in slip-fall claims.  We believe you will experience a 50% reduction in floor replacement costs.  We believe you will (through the affidavit) be able to more successfully defend against customer slip-fall claims with an annual reduction of settlements of at least 50%.  We believe you will experience an increase in productivity, moral and fewer turnovers because of a sterile, slip-resistant floor.  We believe you will be acting in an ecologically friendly fashion because of the superior environmental advantage of our product.

Sincerely,

Gary Holt, pHluorus INC., President, CEO

Enclosure;

Affidavit

 

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