Accredited-Investor Offering
OUCH USA × JO Law Group
Settlement-Driven Profit Share Vehicle
A compliant pathway for accredited investors to participate economically in legal settlement outcomes through Arizona's Alternative Business Structure (ABS) framework. This vehicle combines brand-powered client acquisition, a managed attorney network, and escrowed distribution protocols to create predictable, outcome-based cash flows.
The Opportunity
A Repeatable Cash Engine
This isn't a speculative legal venture. You're backing a systematic approach to converting case settlements into predictable cash flows with structural downside protection.
Outcome-Based Returns
Revenue derives from completed settlements, not billable hours or market cycles. Each case creates contractual cash flow upon resolution.
Volume-First Scaling
Model prioritizes repeatable throughput of mid-tier cases ($50K–$100K policies) before layering in higher-value opportunities ($250K–$1M+).
Operational Repeatability
Proprietary funnel infrastructure and brand recognition drive consistent intake. Growth scales through proven acquisition channels, not one-off business development.
The Vehicle
Arizona ABS Structure
Arizona's Alternative Business Structure regulations provide the legal framework that unlocks non-lawyer economic participation under regulatory oversight — a compliant structure unavailable in most U.S. jurisdictions.
JO Law Group ABS Entity
Arizona-licensed law firm operating within the ABS framework. Handles all client intake, case qualification, legal operations, and escrow management. Maintains full regulatory compliance and attorney oversight.
OUCH USA Growth Engine
Powers brand positioning, client acquisition infrastructure, and the managed attorney network model. Provides operational systems, marketing assets, and funnel optimization.
Investor Role Capital Partner
Capital fuels case acquisition velocity and network expansion. Economic participation flows through the ABS structure via profit-share agreements tied to settlement outcomes.
How Money Moves
Settlement to Distribution
The revenue cycle follows a structured seven-step process from initial client contact through final investor distribution. Conservative timeline assumptions range from 6–8 months for volume-tier cases.
Client Intake
JO Law Group (ABS entity) receives qualified leads through OUCH-powered acquisition channels. Initial screening confirms policy limits and liability factors.
Case Qualification
Legal team evaluates policy coverage ($50K minimum accepted) and liability strength. Only cases meeting threshold criteria enter the active pipeline.
Managed Network Referral
Qualified cases assigned to vetted co-counsel within the managed attorney network. Network attorneys work on contingency basis aligned with outcome economics.
Litigation & Negotiation
Co-counsel handles case prosecution, discovery, and settlement negotiations. JO Law Group maintains oversight and quality control throughout the process.
Settlement & Escrow
Upon resolution, settlement funds flow directly to JO Law Group escrow accounts. All distributions processed through regulated escrow protocols.
Contingency Fee Pool
Standard 33% contingency fee (industry benchmark) forms the revenue pool. This fee structure aligns attorney incentives with outcome quality.
Profit-Share Distribution
Net case profits distributed per the two-phase profit-share waterfall: recoupment-phase split favors the investor; post-recoupment split flips in favor of the operator. See Section 06.
Conservative Model Snapshot
Base-Case Throughput Economics
Base case projections assume volume-tier focus (90–95% of intake) with minimal contribution from higher-value cases already present in the pipeline. Model prioritizes proven throughput over aspirational case values.
Input Assumptions
- Intake Velocity125 cases / month
- Tier Distribution90–95% low-tier focus
- Average Reimbursement$8,300 (low tier)
- Minimum Policy Accepted$50,000
- Higher-Value Cases in Funnel$250K – $1M+
Projected Net Profit
- Monthly$508K – $719K net profit
- Annual (Year 1)~$6.1M
- 24-Month Total~$12.19M cumulative
Projections exclude upside from premium cases ($250K+ policies) and assume no optimization to conversion rates or average settlement values.
Investment Terms & Structure
$8M Profit-Share with Recoupment-Phase Flip
The $8 million investment is structured as a profit-share interest in the underlying case data set — not a fixed-coupon loan. Returns are paid from net case profits as settlements close, on a two-phase waterfall that prioritizes return-of-capital to the investor and then flips long-tail economics to the operator.
Investment Vehicle
Capital is deployed against the documented case data set and resulting newly-originated cases during the investment period. Distributions are made from realized case profits as settlements close — not on a fixed amortization schedule.
Phase 1 — Recoupment
Applies to every case's net profit in the portfolio (existing data-set cases plus newly-originated cases during the investment period) until cumulative investor distributions equal the full $8,000,000 principal.
Phase 1 economics are designed to accelerate return-of-capital ahead of any operator carry — every dollar of net case profit is split 70/30 in the investor's favor until the principal is fully returned.
Phase 2 — Post-Recoupment
The instant cumulative investor distributions reach $8,000,000, the split flips: from that case forward, every case profit is distributed 70% to OUCH USA / JO Law Group and 30% to the investor — a long-tail carry on the data set the investor's capital helped activate.
The Phase 2 tail rewards the investor for activating the data set while restoring majority economics to the operating team that originates, qualifies, and resolves every future case.
Investor priority on every case
Per-case net profit waterfall applied to every settlement until the investor's cumulative distributions equal $8,000,000.
Split flips on the trigger case
From the recoupment-trigger case forward, every subsequent case profit is split 70/30 in favor of OUCH USA / JO Law Group.
Next Steps
+ Escrowed Flows
+ Brand-Powered Intake
= Scalable Profit Engine
This vehicle offers accredited investors compliant access to settlement-driven cash flows through a repeatable operational model with structural downside protection.
Confirm Allocation Interest
Indicate preliminary commitment level (primary $8M round, or smaller participating tranche).
Review Definitive Documents
Complete due diligence on ABS structure, financial model, case data set, and legal opinions.
Align on Rollout & Reporting
Establish deployment timeline, milestone tracking, and ongoing performance reporting cadence.