BASIC FRANCHISE INFORMATION (MALAYSIA)

BASIC FRANCHISE

INFORMATION

(MALAYSIA)

Food Discoveries (M) Sdn Bhd is the owner and operator of Dave’s Deli and all its proprietary rights. We are a member of the Malaysian Franchise Association and fully subscribe to the provisions of the Malaysian Franchise Act, which regulates and seeks to protect all parties involved in franchising business practices. Food Discoveries (M) Sdn Bhd is the franchisor of Dave’s Deli in Malaysia. Deli Corporation Sdn Bhd has been given the sole rights to handle all international franchise arrangements.

Essentially, here’s what you get when you join the Dave’s Deli franchisee family

General

Franchise

Information on Dave’s Deli

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,

FRANCHISOR: FOOD DISCOVERIES (M) SDN BHD

Whilst most Dave’s Deli outlets are successful, the start of any new business is a risk and success is not guaranteed. The success of any Dave’s Deli outlet will depend on many factors not the least of which will be the franchisee’s commitment, ability and financial resources.

All franchisees must personally devote their full time and best efforts to the day to day operation of the business. We normally favor individuals and you cannot qualify for a franchise if you are an absentee or part-time owner. We also do not normally grant franchises to corporations or partnerships unless there is a specific undertaking by the directors/partners that at least one of them will devote full time to the business.

The franchise agreement allows you to operate a specific outlet for an initial period of years (usually 6) accordding to the operating and business standards of Dave’s Deli.

You equip the outlet at your own expense with kitchen equipment, lighting, renovation works, signage, furniture and fittings, cutlery, cooking utensils, seating and décor. Whilst none of the equipment is purchased from us, they must meet our specifications. An estimated budget of RM750,000.00 is required for a store measuring 1800-sq. ft. in West Malaysia. The estimated budget may increase or decrease depending on location, size and renovation complexity.

You should allocate a further RM15,000.00 for working capital to cover the initial order for stock and food items and for a cash float to start the business.

Further financial commitments will include pre-rental payments and deposits.

An initial Franchise Fee of RM100,000.00 per store is payable (less any prepaid depositsthat can be credited) upon signing of the franchise agreement. This fee is subject to change without notice.

As a Dave’s Deli franchisee you will have exclusive rights to use our trade name, trademarks and the Dave’s Deli operating system for that particular store. Our highly experienced professionals will assist you on the following:

MALAYSIA:

Basic Franchising Information

2

1. COMMITMENT

2. INITIAL FRANCHISE PERIOD

3. SET-UP COST

4. INITIAL WORKING CAPITAL

5. FURTHER FINANCIAL COMMITMENTS 6. INITIAL FRANCHISE FEE

7. EXCLUSIVE RIGHT

• Site evaluation

• Equipment specifications

• Customized plans including layout • Design and concept

• Brand building

• Advertising and promotion

• Pre-opening support

• Renovation works and construction review • Point of sales system training

• Training

• On going visitation and support

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied, published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD.

A Royalty Fee is charged monthly and is calculated at a rate of 5% of the monthly gross sales of your outlet.

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,

published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD 3

MALAYSIA:

Basic Franchising Information

8. MONTHLY ROYALTY FEE

A deposit of RM10,000.00 is payable together with a duly completed application form (Confidential Franchise Application & Evaluation Form) upon successful application. The deposit less any out of pocket and incidental expenses incurred by us will be used to offset the Franchise Fee of RM 100,000.00. If the Franchise Agreement is not executed within 3 months from the date of application, the deposit less all expenses incurred by us shall be returned to you and all prior arrangements, whether verbal or written shall be considered null and void.

You are required to purchase certain sales material, marketing supplies and proprietary items from us. You are obligated to purchase items bearing the Proprietary Marks in accordance with specifications, which we will provide. Specifications include minimum standards for quality, construction, appearance and function. These specifications will be issued to the franchisee after the execution of the Franchise Agreement and may be amended from time to time by us.

You are obligated to purchase or lease goods, services, supplies, fixtures, equipment, and inventory relating to the outlet or operation of the licensed business from the suppliers approved by us. We may revise the standards and specifications and the approved supplier list from time to time.

NOTE: As of the date of this franchise information bulletin, we have no arrangements whereby Food Discoveries (M) Sdn Bhd, Dave’s Deli or its affiliates will derive revenue as a result of purchases or leases by you in accordance with the specifications or standards we prescribe. We may in the future, create a subsidiary corporation or division to lease equipment packages for use in a dave’s deli outlet to qualified franchisees. The cost to the franchisee will be competitive in the marketplace. We believe that such programs will serve to facilitate acquisition of restaurant equipment by lowering cash startup costs when compared to purchasing such equipment outright.

Food Discoveries (M) Sdn Bhd, Dave’s Deli or its affiliates may enter into product distribution arrangements with suppliers for certain proprietary food products, and such arrangements may provide for franchising revenue to Food Discoveries (M) Sdn Bhd, Dave’s Deli or its affiliates. We may enter into network wide product agreements for third party labeled food and beverage products which franchisees will be required to offer under the terms of their franchise agreements, and we may receive compensation from the manufacturers or distributors of such products, as well as from approved suppliers and other goods and services. In addition, we may receive rebates or other remuneration from manufacturers and suppliers based upon franchisee purchases or for approval of suppliers products or services.

9. INITIAL DEPOSIT

11. BASIC FRANCHISE OBLIGATIONS

Site Selection and acquisition/lease 1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 14 Evaluation Approval

Execute and Pay Pay Turn-Key

and Approve Attend and Participate

Participate Pay Adhere To Non-Disclosure Adhere to Adhere to Adhere to Adhere to Secure Secure Adhere to Adhere to and secure Negotiate

Arrange and Develop Opening Arrange and Attend

Collect Administer

Protect and Police

Administer Administer and Develop Administer and Develop Administer and Develop Standards Opening, Assist Evaluate Monitor Pre-opening purchases/leases Site Development and other

pre-opening requirements Initial and ongoing training

Opening Fees

Compliance with standards of operations and guidelines

Trademark and Proprietary Information Restrictions on products

Warranty and customer service requirements Ongoing product /service purchases Maintenance, appearance and remodeling Insurance Owner’s Participation Inspection/audits Records/Reports

OBLIGATION OF FRANCHISOR FRANCHISEE

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,

published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD 4

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied, published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD

11A-15, Jalan PJU 1A/12, Taman Perindustrian

Jaya, 46050 PJ, Selangor D.E, Malaysia.

+ (60) 3-7845 2268

+ (60) 3-7845 3268

[email protected]

Food Discoveries (M) Sdn Bhd

(A member of the Dave's Deli Group)

A Royalty Fee is charged monthly and is calculated at a rate of 5% of the monthly gross sales of your outlet.

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,

published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD 3

MALAYSIA:

Basic Franchising Information

8. MONTHLY ROYALTY FEE

A deposit of RM10,000.00 is payable together with a duly completed application form

Franchise Application & Evaluation Form) upon successful application. The deposit less any out of pocket and incidental expenses incurred by us will be used to the Franchise Fee of RM 75,000.00. If the Franchise Agreement is not executed within 3 months from the date of application, the deposit less all expenses incurred by us shall be returned to you and all prior arrangements, whether verbal or written shall be considered null and void.

You are required to purchase certain sales material, marketing supplies and proprietary items from us. You are obligated to purchase items bearing the Proprietary Marks in accordance with

which we will provide. include minimum standards for quality, construction, appearance and function. These will be issued to the franchisee after the execution of the Franchise Agreement and may be amended from time to time by us.

You are obligated to purchase or lease goods, services, supplies, res, equipment, and inventory relating to the outlet or operation of the licensed business from the suppliers approved by us. We may

revise the standar roved supplier list from time to time.

NOTE: As of the date of this franchise information bulletin, we have no arrangements whereby Food Discoveries (M) Sdn Bhd, Dave’s Deli or its will derive revenue as a result of purchases or leases by you in accordance with the or standards we prescribe. We may in the future, create a subsidiary corporation or division to lease equipment packages for use in a dave’s deli outlet to franchisees. The cost to the franchisee will be competitive in the marketplace. We believe that such programs will serve to facilitate acquisition of restaurant equipment by lowering cash startup costs when compared to purchasing such equipment outright.

Food Discoveries (M) Sdn Bhd, Dave’s Deli or its may enter into product distribution arrangements with suppliers for certain proprietary food products, and such arrangements may provide for franchising revenue to Food Discoveries (M) Sdn Bhd, Dave’s Deli or its We may enter into network wide product agreements for third party labeled food and beverage products which franchisees will be required to offer under the terms of their franchise agreements, and we may receive compensation from the manufacturers or distributors of such products, as well as from approved suppliers and other goods and services. In addition, we may receive rebates or other remuneration from manufacturers and suppliers based upon franchisee purchases or for approval of suppliers products or services.

9. INITIAL DEPOSIT

11. BASIC FRANCHISE OBLIGATIONS

Site Selection and acquisition/lease 1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 14 Evaluation Approval

Execute and Pay Pay Turn-Key

and Approve Attend and Participate

Participate Pay Adhere To Non-Disclosure Adhere to Adhere to Adhere to Adhere to Secure Secure Adhere to Adhere to and secure Negotiate

Arrange and Develop Opening Arrange and Attend

Collect Administer

Protect and Police

Administer Administer and Develop Administer and Develop Administer and Develop Standards Opening, Assist Evaluate Monitor Pre-opening purchases/leases Site Development and other

pre-opening requirements Initial and ongoing training

Opening Fees

Compliance with standards of operations and guidelines

Trademark and Proprietary Information Restrictions on products

Warranty and customer service requirements Ongoing product /service purchases Maintenance, appearance and remodeling Insurance Owner’s Participation Inspection/audits Records/Reports

OBLIGATION OF FRANCHISOR FRANCHISEE

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,

published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD 4

Kindly note that as Franchisor, FOOD DISCOVERIES (M) SDN BHD, its appointed agents,

IMPORTANT NOTES:

giving advice and information to the Applicant , assisting the Applicant to consider and to operate a

FOOD DISCOVERIES (M) SDN BHD /DELI CORPORATION SDN BHD (hereinafter

Franchisor and to seek other appropriate independent advice, and that the decision to enter into the

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,

published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD 5

MALAYSIA:

Basic Franchising Information

13. INDEMNITY

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied, published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD

11A-15, Jalan PJU 1A/12, Taman Perindustrian

Jaya, 46050 PJ, Selangor D.E, Malaysia.

+ (60) 3-7845 2268

+ (60) 3-7845 3268

[email protected]

Food Discoveries (M) Sdn Bhd

(A member of the Dave's Deli Group)