FRANCHISEE INFORMATION

Long before the age of social media, people began to meet with friends and neighbors in corner cafes to share life and share stories as a means of building community and breaking bread. While today’s busy lifestyle and digital age has eroded the popularity of these cafes in many areas they continue to be very popular in affluent urban markets and in areas with a large population of international citizens and tourists.

Since 1996 Latte News & Espresso’s affiliate locations have been an integral part of these café and newsstand oriented meeting places with four affiliate locations in South Florida. With locations in malls and international markets, our cafes enhance the shopping experience by offering a meal or beverage from our cozy café and allowing guests to relax and enjoy a cappuccino, beer or glass of wine while reading a local, national or international magazine or newspaper. For those who are hungry for more there is a full selection of savory home-style breakfast, lunch and dinner items.

LATTE NEWS & ESPRESSO

THE DAILY CAFÉ BUSINESSBreakfast at Latte News & Espresso is buzzing with patrons enjoying a variety of delicious international coffees, healthy homemade juices, bagels and pastries as well a variety of egg dishes and omelets, all enjoyed while catching up on the news with our local, national and international newspapers and magazines. For those who are on the go, we offer a counter service option to get customers in and out quickly with a hot beverage or breakfast on the run.

As the day progresses so does Latte News & Espresso with a full and varied menu of salads, appetizers, hot and cold sandwiches, specialty burgers, entrees, pasta and pizzas for lunch and dinner. Our extensive menu with something for everyone, makes Latte News & Espresso the perfect spot for customers looking for a quick bite or those looking to relax, enjoy their meal and people watch.

• Bal Harbor Shops

• Aventura Mall

• Collins Avenue in Sunny Isles, FL

• Merrick Park area in Coral Gables, FLThese four locals represent some of the most affluent addresses in South Florida, Miami and each area is also home to one of our affiliate café locations operating in an affluent regional mall or international market. These types of locations provide a steady flow of wealthy local and international customers seeking an international coffee and newsstand experience as well as a variety of dining options, for breakfast, lunch and dinner. Latte News & Espresso will work with our franchisees to locate and procure similar mall locations in affluent areas whose clientele is similar to our current affiliate locations.

LOCATION DRIVEN SUCCESS

THE FRANCHISELatte News & Espresso franchisees are part of a thriving restaurant industry in the United States where customers are projected to spend $683 billion on dining out in 2014 (with most of the market share going to franchised restaurants). The Latte News & Espresso franchise is a unique alternative to other restaurants, by catering to an international clientele who are drawn to our news, espresso and café business model. Franchisees benefit from our experience and success with our affiliate locations thus allowing them to enjoy the benefits of our decades of experience.

And now is a great time to open a restaurant. Consumer confidence is rising and dining out is a regular part of American’s lives. In fact, the average person spent over $5,000 eating out last year. Our affiliated restaurants have become a regular part of our clientele’s dining out routine and our franchise provides you with the same opportunity in your city.

Latte News & Espresso’s franchise program can get your business up and running smoothly and teach you the essentials of running a successful restaurant. Our franchisees enjoy a number of benefits including:

Internationally Focused Clientele: Our news, espresso and cafe focus is reminiscent of the experience that many international travelers and American immigrants enjoy when overseas. Latte News & Espresso is thus able to create an emotional connection with our clientele that transcends our food to fulfill a deeper inner longing they have.

Site Selection and Construction: Our affiliate locations have become legendary institutions in South Florida, creating a number of opportunities for our franchisees to step into lease locations that would otherwise not be available. We assist you in all aspects of selecting your location, designing the floor plan, selecting your contractor and ensuring that you open on time and on budget.

Turnkey Restaurant: For franchisees who prefer to have Latte News & Espresso coordinate all aspects of site selection, construction and project management we offer a Turnkey Restaurant option that provides our franchisees with a fully built-out Latte News & Espresso location that is ready to open, just turn the key. This option is particularly valuable for foreign investors who are moving to America or for franchisees who are moving to a new city.

Operational Systems: We are a full service restaurant, where providing great food and great service go hand in hand in creating a sensational guest experience. Our training program provides the franchisee and their operational management with six weeks of pre-opening training at our corporate locations in Miami, Florida to immerse you into our service culture and systems. In addition, we provide a support team during your first two weeks of opening on-site to ensure that your staff fully understands all aspects of running your Latte News & Espresso franchise.

CONCEPT STORE DESIGN

ESTImATED STARTUP COSTItem Estimated Cost

Initial Franchise Fee $45,000

Location Assistance Fee (Only when Applicable) $0 to $500

Delayed Opening Fee (only when applicable) $0 to $6,000

Turn-Key Fee (Optional) $25,000

Leasehold Improvements $168,000 to $200,000

Lease Payments (3 months) $30,000 to $50,000

Security Deposits $11,500 to $18,667

Equipment, Furniture and Fixtures $20.400 (initial down payment on financed equipment) to $112,000

Signage $4,500 to $6,500

Initial Inventory $12,000 to $17,000

Blueprints and Plans $10,000 to $13,000

Point of Sale System $6,000 to $8,000

Travel and Lodging for Initial Training $2,500 to $5,500

Licenses and Permits $1,400 to $2,000

Insurance $1,200 to $1,800

Grand Opening Marketing $0 to $5,000

Professional Fee $1,000 to $2,000

Additional Funds (3 months) $25,000 to $40,000

Total Estimated Initial Investment $363.500 to $557,967

Phone 305-866-2450Fax 305-861-0939

Company Address:9700 Collins Avenue, Suite 243 Bal Harbour, Florida 33154

This is not deemed a franchise offering. An offering can only be made upon presentation of the Franchise Disclosure Document. Certain states require a Prospectus to be filed although such filing does not constitute approval by the State.

If you are looking for a dynamic and unique franchise opportunity with an international flair, Latte News & Espresso may be just what you are looking for. Our high-volume business model offers a much needed alternative to the traditional restaurant world through our inter-national café model that appeals to foreign diners as well as Americans. We look forward to sharing more with you about our exciting opportunity.

Our franchise opportunity provides: • An internationally styled cafe

• A relaxing news and espresso focused atmosphere

• A sensational breakfast menu featuring a broad range of dishes

• Healthy meal and beverage alternatives

• A variety of espresso and coffee options

• High average unit volumes

• Extensive operational training and support

• Turnkey business option

Requirements: • Knowledge of the proposed market

• Working capital of $350,000 with good credit

• Solid business experience