franchise information

About Louis Charden café bakery:

• What do we offer?

• Successful and Reputable

• Why Louis Charden Franchising

• The Principles of chain's operation

• Franchise Cost and investment requirements

• Franchise Options

• Guide to «Louis Charden» Cafe-Bakery Opening

• Louis Charden Principals

Cafés

Products + Menu

Production Process

Take Away Packaging

Brand Book

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Contents

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What is Louis Charden? What are we looking for?

Louis Charden is a chain of French café-bakeries in Moscow and Yerevan, since 2013

From the beginning Louis Charden was built with the aim to become an international brand

Now, after 2 years of successful and profitable operations in Yerevan, Louis Charden targets

other cities internationally for its brand expansion

Basis for this expansion: well established business model, efficient and tried production and

operation manuals, elaborated menu, marketing strategy, brand book and experienced

management

We are interested in cooperation with investors that aim to build Louis Charden franchising and

start their own successful business

About Louis Charden café-bakery: What do we offer?

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Louis Charden is a chain of romantic and cozy café-bakeries made a la French Provence. The first

café-bakery launched in December 2013 and one year later in December 2014 launched the

second branch of Louis Charden café-bakery and has already gained love, attention and loyalty of

customers. Currently we have 2 locations of our cafes and approximately 130,000 visitors

annually.

The coffee bars of Louis Charden are an original concept having a solid image of a smoke and

alcohol free establishment for the whole family to enjoy and drawing attention due to our high

international standards. Louis Charden is a café-bakery and this concept gives a number of

advantages in comparison with other cafés. One of the main principles of Louis Charden's concept

is that clients can see the pastry and other products before making an order. We are focused on

turning Louis Charden brand into the “isles” of French fine cuisine, according to the wide

assortment of products, diverse menu, ambiance and exemplary customer service.

All products (such as French bakery products, pastries, croissants, soups, salads and our home

made Italian ice creams) are produced under the direct supervision of our highly trained Chefs

and Cooks. Along with European,British and other breakfast classics we offer a very special

breakfast starting at 7.30 am: visitors are offered a table full of fresh vegetables, eggs and meat

variety to choose ingredients for their own custom-made breakfast.

Louis Charden has its own take-away packaging for all products including hot drinks, soups and

salads which allows you to taste all of its delicious and healthy products anywhere: at home, on a

picnic, in the office, etc.

Currently Louis Charden operates 1 café in Moscow and 2 cafés in Yerevan.

The Company is profitable and enjoys good reputation among its clientele.

Successful and Reputable

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In 2015 Louis Charden won the first prize in one of the

most prestigious competitions in the world

The Dieline Awards

and it became the winner of

Kiev International Advertising Festival.

Awards:

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Louis Charden is a premium brand of café-bakeries with tried and refined over year's menu,

remarkable production technology generates an artisan production for the connoisseurs, serving

standards, business model and brand concept (open kitchen/production format allows

customers to enjoy the process of pastry and bakery preparation)and a pastry&bakery showcase

which is a central element of the hall showing ready to consume production with strong

merchandising.

We assist in:

Business installation and launch

Implementation of principles described in «Guide to Operational Management»

Implementation of principles of quality control, service standards in the point of sales,

regulation of product realization etc.

Management trainings, full support for service, kitchen and bar staff.

Merchandising guideline implementation, updates based on new production

Business advisory for territory, design concept assistance

Design solutions in the points of service and sales

Why Louis Charden Franchising

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Right to use «Louis Charden» trademark for 20 years: in the territory, production and

sales of branded production, usage of brand interior design and system management.

Unique recipes of pastry, desserts and cuisine.

Marketing plans developed with the head office, including all the necessary strategic

and tactical marketing solutions for brand promotion.

Promotional materials

Seasonal update of the product assortment package

Full support to set up and run a successful business

Project start and launch process overall support

Training courses for Service, Bar, Kitchen and Bakery staff

Training courses for Management Staff

Regular updates of assortment

Full Marketing Support

On-going trainings

Louis Charden standard franchise package also includes:

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Louis Charden is a Café-Bakery which has a competitive advantage among the other institutions HoReCa.The Principles of chain operation consist in synergy of cafes, branded stores and mini/island format cafes. The very first Café-Bakery is the flagship of the chain, which is aimed at serving 2 to 10 Cafes and Shops around the city.

The Principles of chains operation '

Café +

shop

Bakery

Caf +

shop

é

Café +

shop

Caf +

shop

é+

shop

Café

Mini CaféMini Café

Mini Café Mini Café

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License fees:

-10,000 USD

Café Bakery -15,000 USD

Branded Shop -5,000 USD

Monthly Fees: Royalty - 5% of the total turnover

The estimated amount of initial investment: 600,000 USD – 1,000,000 USD

(Depending on the market size, territory, etc.)

Requirements to Franchisee:

Regardless of the cooperation format Franchisee will have to:

Café: Island Format

Allocate percentage of turnover as a marketing budget that remains at the complete

disposal of Franchisee and is used exclusively for the promotion of his business on the

Territory

Observe and maintain the required quality standards of «Louis Charden»

Follow the price policy approved by the head office

Supply and ongoing procurement quality and quantity control

Regularly update the marketing and merchandising principles and directions

Strictly monitor the provided financial reports

Franchise Cost and Investment requirements

Cafés

Products

Production Process

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· The minimal size of the area must be from 350 to 500m.

According to the plan the area must be devised into several zones:

· Bakery for preparation of baked goods

· Kitchen for preparation of dishes

· Confectionary area

· Stock for product and raw materials storage

· Shop- minimal size 20 m

· Open showcase is a part of area where visitors will be able to make an order

· Tables of different sizes for easy seating of different groups of visitors

(minimum number of seating 40)

· It's desirable to have the zone for summer terrace

Franchise Options 1:café bakery + shop

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· The minimal size of the area must be from 300 to 450 m.

According to the plan the area must be devised into several zones:

· Bakery for preparation of baked/prebaked goods

· Kitchen for preparation of dishes

· Confectionary area

· Stock for product and raw materials storage

· Open showcase is a part of area where visitors will be able to make an order

· Tables of different sizes for easy seating of different groups of visitors

(minimum number of seating 40)

· It's desirable to have the zone for summer terrace

Franchise Options 2:café bakery

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· The minimal size of the area must 100 m.

According to the plan the area must be located in areas of intensive human flows and devised

into several zones:

· Stock for product and raw materials storage

· Open showcase is a part of area where visitors will be able to make an order

· Tables of different sizes for easy seating of different groups of visitors

(minimum number of seating 10)

Franchise Options 3:café: Island Format (Minimal size and easy in operating)

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• Optimal size of the shop is 40-100m.

• The main production of Cafe-Bakery must be presented in the Brand shop: croissants,

bread and pastry.

Franchise Options 4:brand shop

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· During the whole day the activities of the chain supposed to deliver fresh bread, pastry,

croissants, dishes and confectionary from the point of preparation.

Franchise Options 5:delivery service

Take Away Packaging

Shop

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Communication with the head office

Application form submission by the potential Franchisee

Initial negotiations – preliminary information disclosure

Signing «Memorandum of cooperation

Signing by the parties of the Agreement on confidentiality

Signing by the parties of the Agreement on information disclosure

Business plan review and approval

Action plan discussion

Franchise Agreement signature

License payment

Approval of the project implementation plan

Territory/ place approval

Communication and technology design adaptation

Training courses for staff

Project implementation start – the launch

Guide toLouis Charden Café-Bakery Opening

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Louis Charden Principals

Arbi GharakhaniBrand Pastry Chéf

Garik GevorgyanBrand Chéf

Karen MargaryanFounder/President

Ashot BarseghyanCEO/Mananging Director

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Disclaimer

Neither part of this presentation, nor the fact of its distribution should form the basis of, or be relied on in

connection with any contract or commitment or investment decision whatsoever.

No representation, warranty or undertaking, explicit or implicit, is given by or on behalf of Louis Charden or

any of its directors, officers, employees, shareholders, affiliates, advisers, representatives or any other

person as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the

information or the opinions contained herein or in any other material discussed at the presentation.

Neither Louis Charden nor any of its directors, officers, employees, shareholders, affiliates, advisers,

representatives or any other person shall have any liability whatsoever for any loss howsoever arising from

any use of this presentation or any other material discussed at the presentation.

This presentation includes statements that are, or may be deemed as forward looking, with respect of the

financial condition, results, operations and business of Louis Charden. By their nature forward looking

statements involve risk and uncertainty as they relate to future events and circumstances, a number of

which are beyond Louis Charden's control. As a result, actual future results may differ materially from the

plans, goals and expectations set out in this presentation. Louis Charden assumes no responsibility for any

negative consequences caused by this presentation.

This presentation does not constitute on advertisement. This presentation is not for distribution.

The information and opinions contained in this document are provided as at the date of this presentation

and are subject to change without notice. Neither Louis Charden nor any other party is under any duty to

update or inform recipients of this presentation of any changes to such information and opinions. Some

information contained in this presentation has not been verified by any independent third party and in

some cases is based on management opinion and estimates.

+ 79295035650 info@louischarden.com

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Contacts