Background

In December of 1995, Larry and John Kugler along with John Tacker opened their first cash advance center in Dayton, Tennessee. In just over seven years, First American Holding grew into 325 remote centers throughout Tennessee, Arkansas, Ohio, North Carolina, South Carolina, Alabama, Florida, Colorado, Georgia, Indiana, Kentucky, and West Virginia. In July of 2002, having already sold a substantial interest in First American in 1999, the 3 entrepreneurs left the company amid negotiations to sell their remaining interest in First American. This transaction was completed in April 2003.

In August of 2002, the 3 partners along with Jack Fromm, a 20+ year veteran executive of Fortune 500 companies, developed Crusader Management, LLC. The Crusader Management team set out to develop two separate but complimentary businesses. With both Larry and John Kugler having spent a combined 30 years in the Rent-To-Own business as executives of a company that operated in multiple states, it was a natural opportunity to pursue after the tremendous success enjoyed in the Cash Advance business.

This group began the development in November 2002 of a new Cash Advance company. Over a 3 year period they developed a chain of remote centers numbering 125 in 6 states. In January 2005 the Crusader Management team made a decision to sell this operation. Although very profitable and with much room for organic growth the group sensed the political tide turning against the industry and felt it was time to exit the business. Their decision proved to be a wise one as with the FDIC increasing pressure on its banks to end relationships with the various independent businesses a form of the product was eliminated in late 2005 with the standard model continuing to be unfairly targeted by consumer groups.

In November of 2002 Crusader Management also began operations in the Rent-To-Own industry opening its first center in Cookeville, Tennessee. Over the last 5 years the management group has developed a small chain of RTO centers in 4 states totaling 21. With a firm foundation established Crusader RTO is poised to experience the kind of explosive growth that made them a regional competitor in the Cash Advance industry. We have a growth strategy, with expectations calling for 8-10 centers being opened per year over the next 3 years and significant growth beyond. The RTO business has and continues to experience a consolidation of sorts, with bigger companies buying up smaller ones to feed public expectations and/or gain market share. With this kind of consolidation there will be lots of opportunities for growth in the foreseeable future. The RTO industry is a billion dollar industry that includes over 10,000 centers nationwide.

It is Crusader’s philosophy that our employees are professionally trained and our centers are designed for efficiency, comfort and convenience. We are extremely proud of the reputation that we have earned in both industries.