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BUILDING YOUR FRANCHISE

Construction, Real Estate, and Choosing Your Store Location

You’ve decided to invest in a Pretzelmaker franchise instead of the hundreds of other options out there. Just when you think you are finished making big decisions, you realize you have to figure out where you want to locate your Pretzelmaker franchise. Experienced franchise owners and those who are just starting out all face the same challenge when they invest in a new franchise: site selection. How do you decide where to locate your franchise? Let us guide you! Whether you have some experience with franchising, or you’re completely new to it this ebook can help you break down the process of choosing a site for your Pretzelmaker franchise with four major considerations:

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By considering these four factors, you will be well on your way to making an informed decision about where to situate your franchise.

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How To Select a Site for Your Pretzelmaker Franchise: Consider These Four Factors

Start with your customers

Understand where your investment

is going

4Learn what the Pretzelmaker real estate team does

for you 2Compare the site types

How To Select a Site for Your Pretzelmaker Franchise: Consider These Four Factors

Your customers are the most important part of your business. Ultimately, they are the people who pay your bills and pad your pocketbook, so it is important to learn their habits.

GET TO KNOW YOUR CUSTOMERS An integral part of your site selection research should involve your customers. There are a variety of resources available for you to research the spending habits and demographics of your target area.

A general market review can tell you volumes about where to place your Pretzelmaker franchise. Cultivate a

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full understanding of the people in your area, how they spend their money, what times of day they are out and about, what the demographic makeups are, and more. Know your customers and understand how they will spend their money at your Pretzelmaker franchise.

1Start with your customers

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How To Select a Site for Your Pretzelmaker Franchise: Consider These Four Factors

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WHEN WILL THEY VISIT? Peak traffic flow can affect business at your Pretzelmaker franchise. Locating in a high traffic area can encourage people driving by to stop in. Locating in a high traffic area in a mall can have a similar effect.

WHAT ELSE IS IN THE AREA? Other businesses and organizations in the area can either drive traffic or detract from it. The presence of schools, universities, bowling alleys, restaurants, and others can all impact your fast food franchise’s business.

WHO IS BUYING? Demographics can have a big impact on your cookie franchise. Make sure to find out the answer to these questions:

• Is the community urban or suburban?

• Do people shop in malls, city centers, strip malls?

• What do people’s discretionary spending habits look like?

• Are there a lot of families in your market? Or does the area skew more toward professional singles? College students?

Knowing the answers to these questions will influence what site type you choose and where you locate it.

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How To Select a Site for Your Pretzelmaker Franchise: Consider These Four Factors

Once you have an idea of the customers who will be patronizing your snack food franchise,

you can deliberate the different site types that Pretzelmaker has available. Different

site types fit different markets and locations, so taking this into consideration is the logical

next step.

A Pretzelmaker franchise can fit into two main categories: traditional stores and non-

traditional stores.

TRADITIONAL• Our stores vary in size but we typically

see between 200 and 850 square feet

• Often inside of a mall

• Can be part of grocery center, shopping center, strip mall, lifestyle center, or other mixed-use area (e.g. retail and dining, office and dining)

• Can be anchored by big box store (e.g. Wal-Mart, JC Penney, Target, Best Buy)

• Benefits from the presence of entertainment venues

• Customer profile: anyone who enjoys a warm, delicious pretzel

NON-TRADITIONAL• Our non-traditional stores vary

in size, but we typically see between 400 and 800 square feet

• Part of a non-traditional space (e.g. military base, airport, office building)

• Customer profile: anyone who enjoys a warm, delicious pretzel

LOOK AT THE AVAILABLE SPACES IN YOUR AREA AND USE THE ABOVE CRITERIA TO HELP YOU DECIDE WHICH SPACE WILL FIT YOUR PRETZELMAKER FRANCHISE.

2Compare the site types

TRADITIONAL OR NON-TRADITIONAL STORE: WHAT’S THE DIFFERENCE?

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How Much Does it Cost to Open a Franchise? (and Seven Other Essential Answers to Know Before You Invest)

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How To Select a Site for Your Pretzelmaker Franchise: Consider These Four Factors

Part of choosing your site is deciding how much you want to invest in it. It is important to understand that part of your investment will include repairs, improvements, and other expenses. These will be negotiated between you, the landlord, the Pretzelmaker franchise real estate team, and your attorney. WHERE DOES MY MONEY GO? As part of your initial investment, you will need to make your site suitable for a Pretzelmaker franchise. That means making changes, additions, or repairs to the site you choose. The number and cost of these changes should influence your decision on where you want to place your fast food franchise. CAPITAL IMPROVEMENTS A capital improvement is one way that you may change your store site. Such improvements add to or structurally change the building or property that you choose for your Pretzelmaker

franchise. In general, capital improvements enhance the building’s value or adapt it to a new use. Examples of capital improvements for your Pretzelmaker franchise location include:

• Adding or adjusting plumbing • Upgrading wiring or insulation • New HVAC systems • New lighting

Choosing the right location can be the difference between success and failure. The key to picking a profitable location is determining the factors that will increase customer volume for your business. At Pretzelmaker, we utilize historical data, spending trends and other key indicators to identify potentially profitable locations.

Matt Schell Vice President – Real Estate & Construction

3Understand where your investment

is going

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How To Select a Site for Your Pretzelmaker Franchise: Consider These Four Factors

REPAIR EXPENSES When you find a location in which you want to open a Pretzelmaker franchise, take into consideration the money you will need to spend on repairs. Make sure to have your site inspected by a professional so that you have an idea of what repairs need to be done and how much they will cost. Repairs, while necessary in order to operate your Pretzelmaker franchise effectively, do not add value to the property. Examples of repairs to your Pretzelmaker franchise location include: • Plumbing problems • Leaking roof • Faulty wiring

COMMON AREA MAINTENANCE (CAM) Part of your lease negotiation will include Common Area Maintenance, or CAM. CAM is a necessary part of renting a space for your Pretzelmaker franchise, as it contributes to the area as a whole. CAM expenses are an integral part of keeping the center or mall in which your franchise is located safe, clean, and attractive to customers. CAM expenses can cover things like: • Landscaping • Utilities for the center • Garbage removal • Snow plowing • Security

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How To Select a Site for Your Pretzelmaker Franchise: Consider These Four Factors

4Learn what the Pretzelmaker real estate team does

for you

If you are feeling overwhelmed by all the items you need to consider before you

select the site for your Pretzelmaker franchise, remember that we have a dedicated real estate team on your side. Every step of the way, you can call on the experts at Pretzelmaker headquarters for advice and assistance with your decision

making.

The following is a short list of just some of the ways that the Pretzelmaker franchise real estate team can help you select the perfect site for your fast food franchise.

• Discuss opportunities and ideas • Provide specific, detailed criteria for

your brand • Help identify and narrow

potential locations • Help negotiate the letter of intent with

the landlord • Explain processes • Answer any questions This is by no means a comprehensive list of the ways that the real estate team can help you. The real estate team’s job is to help you decide where you want to open your Pretzelmaker franchise, and that help can come in any capacity.

How To Select a Site for Your Pretzelmaker Franchise: Consider These Four Factors

Call On the Experts with Any QuestionsRegardless of your experience level owning

a fast food franchise, deciding where to locate your Pretzelmaker franchise can be daunting. We hope that this ebook was a helpful resource and that you will call on our experienced real estate team with any questions you may have.

Contact the real estate experts: Matt Schell

Vice President of Real Estate and

Construction770-514-4853

5555 Glenridge Connector, Suite 850, Atlanta GA 30342

770.514.4500 | 800.524.6444

franchiseinfo@gfgmanagement.com

All materials have been prepared for general information purposes only to permit you to learn more about the FDD. The information presented is not legal advice, is not to be acted on as such, may not be current and is subject to change without notice. The information presented is a summary of the disclosures required by the Federal Trade Commission. The terms of your contract will govern your franchise relationship. Don’t rely on the disclosure document alone to understand your contract. Read your entire contract carefully. Show your contract and the FDD to an advisor, like a lawyer or an accountant.

This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of or want to locate a franchise in one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your state. Franchise offerings are made by the Franchise Disclosure Document only.

For New York: This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law. For Minnesota: MN File No. F-6173

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