Michel's Franchise Kit

Franchise Opportunity Brochure

M i c h e l ’ s P at i s s e r i e

4. Our philosophy.

5. A bite sized summary.

6. About RFG.

7. Why franchising?

9. Who is Michel’s Patisserie?

11. Our menu.

12. Is Michel’s Patisserie the right business for me?

13. Which store option suits me best?

15. Support 100% of the way.

19. Online training – It’s a R.I.O.T.

20. Investment required.

21. Return on investment.

22. Frequently asked questions.

24. Do you want to join the Michel’s Patisserie team?

- New store and new site purchase process.

26. Established store purchase process.

29. What our Franchisee’s have to say.

30. A message from the Managing Director.

33. Contacts.

Menu

Our Philosophy

Michel’s Patisserie is a premium café andpatisserie brand, offering high quality coffeeprepared by our in-store baristas. We offersweet treats and scrumptious savouries forpeople on the go and provide the perfect

place to relax and recharge.

At Michel’s Patisserie, we offer an arrayof tantalising bakery items and provide a

catering service to suit every occasionand budget. Our wide selection of

delectable cakes can be made to ordereither in store or online in a variety ofsizes and can incorporate personalisedmessages, photos and themes for that

special someone.

M i c h e l ’ s P at i s s e r i e s ay s :

A bite sized summaryMichel’s Patisserie specialises in the sale of delicious specialty cakes, pastries, treats, savouries and exclusive award winning coffee. Michel’s Patisserie has grown to become a multi-award winning franchise with over 320 locations throughout Australia. The franchise system operates with a simple design; the franchisee places an order from our national product list, products are delivered to store daily*, then displayed and are sold to the customer.

Training provided: 4 weeks and 3 days.

Marketing support: Promotions, Advertising and PR.

Agreement term: 5 year term plus an additional 5 years.

Investment level: $325,000 - $345,000, including initial franchise fee. The investment level varies depending upon size of the site, equipment required and the landlord conditions or contributions.

What is included in investment: Fully fitted out store and equipment, training, manuals, initial franchise fee and ongoing franchise support.

Store f loor area: Depending upon the concept chosen, store footprints start from 15m².

Ongoing franchise fee: 7%.

Ongoing marketing contribution: 3%

Number of stores: Over 325

Opening hours: Typically 7 days per week,with hours to suit individual locations.

Business established: 1982.

Financial Support: RFG have approved franchise systems with major financial institutions throughout Australia and New Zealand.

*Regional stores may differ.

Page 4

About RFG

Retail Food Group Limited is a leading Australian retail food brand manager and franchisor. It is the intellectual property owner and manager of the successful brands such as Donut King, Michel’s Patisserie, Brumby’s Bakery, bb’s café, Esquires Coffee Houses, Pizza Capers and Crust Gourmet Pizza franchise systems. Since its inception in 1989, Retail Food Group has successfully grown from a small franchisor with less than 50 stores to become the largest multi-food franchisor within Australasia with seven (7) franchise systems, boasting in excess of 1350 stores.

We at Retail Food Group believe that our systems are the most respected and successful systems in Australasia, remaining unsurpassed in terms of being fully–integrated franchise systems, all offering quality products and market leadership in each of the brand’s target markets. We credit this to the ongoing dedication and loyalty of our franchisees, whose businesses are supported by a franchisor who provides business education, marketing and operational systems as well as ongoing support systems.

Retail Food Group is a company whose business model and franchise systems have not only been proven strong and durable, but which have been toughened by experience to provide a potent foundation for future growth.

Why Franchising?

Franchising is a method of marketing goods and services that has almost no limits in terms of the types of business categories to which it can be applied. Franchising is a very popular and successful business format and the franchising sector in Australia and New Zealand has over three times the number of systems per capita than the United States.

Typically franchising involves the payment of an initial franchise fee and ongoing royalties, and, in exchange, the franchisee receives a licence from the franchisor to conduct business under a brand name or system (or both) for a specified period of time.

Franchising offers business buyers the opportunity to be in business for themselves, but not by themselves. Franchisees own and operate their own business with the backing of an established, proven retail approach and management system.

The benefits of being part of a franchise system are significant. The combined strength of a multi-brand franchise system provides franchisees with:

• A competitive edge by their use of a well-known brand;• Access to established and proven business systems;• Best price negotiated for them through the strength of

the franchising system;• Greater advertising frequency and marketing

opportunity;• Greater brand awareness through the visibility of the

brand; and• Access to a broad range of products, services and

training programs.

Page 6

Who is Michel’s Patisserie?Since Michel’s Patisserie was founded more than20 years ago, the brand has grown to become a multi-award winning franchise with more than 330 locations throughout Australia.

The Michel’s Patisserie system was acquired by Retail Food Group Limited in December 2007, and has matured into one of Australia’smost recognised and successful patisserie and franchise groups.

At Michel’s, the food preparation (baking) is separated from the retailing. In fact, the baking is done for you.* In most cases you simply place your order to the central bakery each afternoon and your products will be delivered fresh the next day.* Ordering and delivery times for regional outlets may vary, and in some cases product finishing is required. Our bakeries operate 24 hours a day, 7 days a week, 52 weeks a year (excluding Good Friday, Christmas Day and ANZAC Day). The retail outlet then displays the product and sells to the customer.

The range at Michel’s Patisserie boasts over 200 tantalising bakery items. Whatever the occasion, whether it be a birthday or an office party, Michel’s have the perfect treat for our customers, bringing them back for more.

We cater for all budgets and have a large range of flavours and cake sizes available. We also specialise in delicious savouries, using only the freshest and finest ingredients to ensure our products are just delightful.

The exclusive Michel’s Espresso coffee blend is also a vital ingredient in the success of the business. Accessing the world’s finest coffee beans locally and from Nicaragua, Kenya, Brazil, India and Ethiopia, Michel’s Espresso sells around 37 million cups a year and supplies its customers with some of the best coffee in the country. In 2011 Michel’s Patisserie proved a sip above its rivals by being awarded “Coffee Shop of the Year” by the independant research company Roy Morgan Research.Not only is the Michel’s coffee an award winner, the Michel’s franchise system has been recognised many times over as an award winning system:

•CoffeeShopoftheYear2011;•Besttastingcoffeeinachain2010;•FranchisoroftheYear2003;•BakeryIndustryAssociation–WinnerGoldMedal;•FranchiseeOperatoroftheYear–Woden2002/03;•RetailFranchiseeoftheYear2001–Roselands;•FranchiseSystemoftheYear2000;•FranchiseSystemoftheYear1998;•FranchiseSystemoftheYear1997;•FranchiseSystemoftheYear1996;•FranchiseSystemoftheYear1995;and•NumerousSmallBusinessAwards&ShoppingCentreAwards.

*Regional stores may differ.

Page 8

Our Menu

At Michel’s Patisserie you can make any celebration that extra bit special with our

delicious range of cAkeS and SAvOuRIeS.

Our savoury range of products includes a tempting selection of home-style PIeS, SAuSAGe ROLLS and

quIcheS that are perfect for lunch, a snack or to take home for the family meal.

Michel’s also offers fantastic treats, such as a slice of our cake of the day with our irresistible cOFFee, or something special for the kids like a Shortbread Man

or a fun kid’s cupcake.

Our delicious range of cakes to share, celebration cakes, custom designed cakes and special event

products are available through our internet ONLINe ORdeRING SySTeM and are delivered

ready for collection at your store.

M i c h e l ’ s P at i s s e r i e s ay s :

Menu

Page 10

Is Michel’s Patisserie the right business for me?At Michel’s Patisserie we take the process of selecting our franchising partners very seriously. Our franchisees come from all walks of life and have various backgrounds and life experiences. We do not require that you have experience in running a café, rather that you have the right personality, outlook and aspirations.

If you are wondering whether you are the right type of person to become a Michel’s Patisserie franchisee, start by asking yourself the following questions:

1. do I have good people skills?2. do I really want to take control of my destiny?3. do I have a strong desire to succeed in my own business?4. Am I prepared to have personal day-to-day involvement in my business?5. do I have a positive attitude?6. do I have strong communication skills?7. do I have a genuine interest in people?8. do I have the ability to deliver outstanding customer service?9. Am I prepared to learn and to adopt new ideas?

If you can honestly answer ‘yeS’ to all of these questions, then youhave met the initial criteria of a successful Michel’s Patisserie franchisee.

Which store option suits me best?Is Michel’s Patisserie the right business for me?

There are a range of store options available to Michel’s Patisserie franchisees:

NeW STOReS

The flexibility of the Michel’s Patisserie store design mean that all store formats can be adapted to a broad range of locations. Whether you are interested in a kiosk, small store or large store, we have an option that will suit your operational needs. New Michel’s Patisserie stores are listed for sale on the Retail Food Group website, as well as through various franchising business websites&newspapersboth localandnational.ContactRetailFood Group for more information.

Size Kiosk 24 m² - 30 m² Small Store 50 m² - 70 m² Large Store 70 m² - 100 m²

eSTABLIShed STOReS

Established Michel’s Patisserie stores become available when an existing franchisee offers their business for sale. One of the advantages of buying an existing business is that the business is already in operation, saving you from location searches, market establishment and hiring staff. On the flipside, it’s great to know that if you decide to sell your business, interested purchasers are often on the lookout for an established business. Established Michel’s Patisserie stores are advertised for sale on the Retail Food Group website, as well as through independent business brokers and various franchising websites.

STORe cONveRSION

Owners of existing cafés and food outlets are offered the opportunity of converting their existing business to a Michel’s Patisserie franchise. In doing so, the business owner then has full access to the significant benefits of being part of a franchise system. Couple this with the combined strength of a multi-brand franchisor and your existing business has a whole new opportunity for success. Contact Retail Food Group to discuss whether your existing business would be suitable for conversion to a Michel’s Patisserie.

INTeRNATIONAL

Michel’s Patisserie have plans to expand the brand and franchising system internationally in the near future. If you are interested in becoming an International Master Licensee, please contact Retail Food Group for further details of the opportunities available.

Inline store

High street position

Kiosk store

Page 12

Support 100% of the wayTR AINING

People from all walks of life can become successful Michel’s Patisserie franchisees. No prior baking or coffee knowledge is required. A comprehensive preliminary training programme is provided for all new owners including theory, practical, coffee making and customer service training.

At our purpose built training academy initial training is provided in food and beverage preparation and retail operations, in addition to modules covering food handling, coffee and other beverages. Theory topics include such things as employee recruitment, sales techniques, stock control, financial management, cost control, purchasing and local store marketing. Most importantly, our training includes the finer points of maintaining good customer relations that are essential in securing repeat business.

Once the training in the academy is completed, an in-store practical component follows, as does on-site assistance at opening or takeover stage. Our franchisees have access to a comprehensive on-line training program to help train their team. Onsite training is delivered on a needs basis by our dedicated Business Development Managers and Barista Trainers at no additional cost to the franchisee. All of this means that our franchisees are supported 100% of the way.

A few words from one of our franchisees:

I have been a Michel ’s Patisserie Franchisee since 2005 and have recently been awarded an ‘A’ for Excellent from the NSW Food Authority. The caption on the award states ‘The business can be proud of this accomplishment. It achieved the highest level of food safety standards’. Retail Food Group is extremely strong on providing operational services - the programs in place are excellent and help ensure your business meets regulatory requirements. Some of the programs and services provided are:• Occupational Health and Safety;• Food Quality and Safety;• Technical and Operational Manuals.I highly recommend all participants implement these programs.

Anthony J Bonett, Michel’s Patisserie Marayong, NSW.

PROcuReMeNT

The experienced Michel’s Patisserie procurement team have a proven track record of managing key supply chains within the food industry. Their focus is on managing suppliers to deliver quality, supply chain integrity, innovation and value. They utilise the strength across all of our brands to negotiate the best price for our franchisees. All of this means greater savings, efficiencies and service for our franchisees.

PeeR SuPPORT

In business nothing can be more valuable and relevant than the support of business owners who operate a similar business to yours. One of the great things about being a Michel’s Patisserie franchisee is that we encourage and facilitate networking between our franchisees through ongoing franchisee mentoring, business advisory meetings, state gatherings, newsletters and our Franchisee Services Support Council.

FINANce

Michel’s Patisserie’s reputation for success and its high standing in the business sector has enabled us to develop relationships with Australia and New Zealand’s leading financial institutions. If finance is required our potentialfranchisees can take advantage of these relationships to obtain financial assistance not normally available to small business investors. Retail Food Group will supply contact details on request. Of course, you may choose to use any lender if appropriate.

Page 14

MARkeTING

Michel’s Patisserie’s Marketing Department are a team of qualified professionals with years of experience creating and implementing innovative and successful marketing programs. The marketing team are responsible for all major National campaigns as well as local area marketing, promotions and point of sale materials – all activities having the primary focus of driving customers into your store, increasing store sales and enhancing the Michel’s Patisserie experience for every customer.

The team at Michel’s Patisserie recognises the importance of internet marketing. The Michel’s Patisserie website provides enjoyment to over 50,000 visitors each month, who are able to access store locations, special offers and menu information.

Excitingly, Michel’s Patisserie have launched their online ordering system where customers are able to order from the tantalizing range of cakes to share, celebration cakes and even create a custom made cake, conveniently delivered to the store of their choice. Put simply, this has created an additional income stream for our franchisees, who benefit from the additional sales with little or no instore effort required.

The Michel’s Patisserie marketing team are constantly developing new strategies to build in-store sales, promote the product range and increase our strong brand image. Our promotions are driven by major celebratory annual events such as Valentine’s Day, Easter, Mother’s Day, Father’s Day and Christmas.

The use of these comprehensive marketing strategies means that our franchisees can focus on their passion – ensuring the customer enjoys their visit to Michel’s Patisserie, while the Michel’s Patisserie marketing team concentrate on the greatest opportunities to increase sales.

We love every piece of you Mum

Create your personalised Mother’s Day cake at michels.com.au*

* Terms and conditions apply. Serving suggestion and Product Example Only. Product may vary from image shown.

MP774_ A4.indd 2 4/03/11 2:01 PM

See the full report at www.choice.com.au. Sourced with permission from CHOICE™.Serving suggestion only.

Best tasting coffee by a coffee chain

CHOICE ™

MP381_a4.indd 2 21/04/11 1:05 PM

Spinach Roll & Coffee Combo

Limited time only special

$5.90

Serving suggestion only. Product may vary slightly from image shown. Coffee is a small dine in or takeaway standard coffee only.

MP777_A4.indd 1 4/03/11 8:03 AM

Spoil everyone this Christmas(including Santa).

Serving suggestion only. Product may vary from image.

MP993_A4.indd 1 8/09/11 9:15 AM

Serving suggestion only. *Cake selection is at discretion of outlet, may vary from store to store and subject to availability. Small dine in cup, latte glass or small takeaway cup of coffee only. Whilst stocks last.

Coffee and cake of the day combo $5.90*

MP97689 - Coffee & Cake A1.indd 1 15/6/09 3:21:04 PM

Best tasting coffee by a coffee chain

CHOICE ™ See the full report at www.choice.com.au. Sourced with permission from CHOICE™.Serving suggestion only.

MP381_a4.indd 3 21/04/11 1:05 PM

Examples of Michel’s point of salePage 16

Online training – It’s a R.I.O.T

INTROducING R.I.O.T. (RFG INFO & ONLINe TR AINING)

Retail Food Group (RFG) understands the high staff turnover and highly casualised environment that business owners within the food and hospitality industry face when training staff. We understand the costs and difficulties that owners face when training in technically complex areas such as coffee.

We understand the business realities of sometimes needing staff to have both technical and service skills in your outlet. The RFG training program has been specifically developed to meet these needs. A clear correlation exists between the quality and nature of training within a business and the finished product experienced by the customer.

RFG management has worked with experienced learning and development practitioners and leading online learning providers to create a unique coffee training program that achieves results.

The cornerstone of this training is the RFG online training platform called R.I.O.T (*RFG Info and Online Training) which offers a cluster of brand specific features, graduated training courses andtechnical materials.

BeNeFITS OF The RIOT SySTeM ARe:• A proven track record of successful and quickly completed online

training compared to manual paperwork methods;• Employees can access at any time allowing them to undertake

training in their own time, reducing instore training time and owner costs;

• Providing ameans of communicationbetweenbusiness owner/sand employees through notices, rosters and a forum;

• Owners are able to monitor employees progress with online training;

• Employees can progress at their own speed and revise material to refresh their skills.

key LeARNINGS OF FR ANchISeeS uSING The PLATFORM:• Use manuals and forms to access current IR

information;

• Have staff complete the induction training

section early to increase productivity;

• Load rosters weekly and reduce absenteeism;

• Track training progress of your team to target

performance;

• Use to send staff reminders, meeting notes and general store

communication;

• Send images to the RFG Training Department to help with staff

recognition of their achievements.

Page 18

Investment Required

NeW STOReS

Generally within the range of $325,000 to $345,000, including initial franchise fee. Investment level is dependent upon the store concept chosen, size of the site equipment required and the landlord conditions or contributions.

eSTABLIShed STOReS

The selling price of existing stores is set by the current franchisee, and will vary as does the price of any existing business for sale.

cONveRSIONS

Many factors will determine the cost of converting an existing business to the Michel’s Patisserie franchise system and as such no price range can be offered in this booklet. Please contact Retail Food Group for more information on converting your existing café to the Michel’s Patisserie franchise system.

INTeRNATIONAL

The price of an International Master Franchise Licence will depend on the size and market potential of the country or region being purchased. Please contact Retail Food Group for more information on International Master Licences.

Contact details are provided at the back of this brochure.

Return on Investment

Like any business, the potential levels of sales and profitability will vary from store to store and location to location. The following information is provided to you as an indication and are averages based on information provided by existing Michel’s Patisserie franchisees.

$190 $195 $200 $205 $210 $215 $220

FY08

FY09

FY10

Network Sales

A$ (Million)

$11,000 $11,200 $11,400 $11,600 $11,800 $12,000 $12,200

FY08

FY09

FY10

AWS

$5.70 $5.80 $5.90 $6.00 $6.10 $6.20 $6.30 $6.40

FY08

FY09

FY10

ATV

Network sales

FY08 $199 mFY09 $215 mFY10 $213 m

Average weekly salesFY08 $11,394FY09$11,868FY10 $12,140

Average transaction valueFY08 $5.93FY09$6.08FY10$6.35

Page 20

Frequently Asked Questionsq: dO I RequIRe ANy SPecIAL exPeRIeNce?A: No, although having business experience is always an advantage. We provide comprehensive training for all areas of your new store, which covers theory and practical training at the RFG academy and in one of our operating stores, plus extensive Coffee (Barista) training.

q: WhAT IS The TeRM OF A FRANchISe AGReeMeNT?A: New franchisees are ordinarily granted a five (5) year initial franchise term together with an option to renew for a further five (5) years. This may vary depending upon the term of the lease applicable to the site.

q: WhAT IS The TOTAL cOST OF AcquIRING ANd OPeNING A MIcheL’S FRANchISe?A: A new store can range in price from $325,000+ GST to $345,000 + GST.

q: WhAT dOeS The TOTAL cOST INcLude?A: It includes a fully fitted-out store and equipment, training, manuals and initial franchise fee but excludes GST.

q: dO I hAve TO PAy A dePOSIT? IF SO WheN ANd uNdeR WhAT cIRcuMSTANceS WOuLd I LOSe My dePOSIT OR ANy PART OF IT?A: A $3,300 deposit is payable upon application. These monies, less the franchisor’s reasonable expenses (to a maximum of $300), are refundable if the application is not approved.

q: WhAT ARe The ONGOING FeeS OF The FRANchISe?A: A franchise service fee of 7% (plus GST) of your total gross sales is payable in connection with the Michel’s Patisserie franchise system. A marketing contribution equal to 3% (plus GST) of your total gross sales is also payable into an independently audited marketing fund. This fund is used to collectively promote increased customer awareness and provide each store with promotional material and ongoing marketing services to facilitate constant attraction of new customers, increased average dollar sales and the frequency of purchase.

q: hOW Much PROFIT WILL I MAke? A: This depends largely on several factors such as the value of wages paid, cost of goods and other operating costs and generally how you operate your business. We have identified certain key performance indicators which are monitored in order to maximise your profitability.

q: WhO SeLecTS The SITe?A: Michel’s Patisserie will select the site and secure the lease. Ultimately however, you must satisfy yourself as to the suitability of the premises.

q: WhAT INITIAL FRANchISe FeeS ARe PAyABLe?A: • $50,000 (plus GST) - initial franchise fee• $13,000 (plus GST) - training fee• $3,000 (plus GST) - initial marketing fee

The Franchisor’s disclosure document provides full details of all fees and costs in connection with the establishment of a Michel’s Patisserie franchise.

q: dO I Need ANy OTheR MONey TO START?A: It is recommended that you have money available to be used as working capital and as a minimum we would expect you to have $30,000. For example, this will cover costs such as accounting and legal fees, business and public liability insurance and your first day’s trading stock and packaging. You will also need to budget for accommodation and living away from home expenses while at our training academy in Queensland. For a more precise list of costs associated with the acquisition of the franchise, refer to the Franchisors Disclosure Document.

q: WhAT SeRvIceS ARe INcLuded IN ReTuRN FOR The FRANchISe ANd MARkeTING FeeS?A: The services you will receive cover a wide range of management assistance and operational services, including:• On-going operational training, tools and support;• Marketing support including national advertising, public relations

campaigns, media selection and national media placement;• Stringent quality control standards;• A Business Development Manager (BDM) to assist franchisees with

all aspects of daily operations to ensure appropriate performance levels and quality standards.

q: cAN I GeT ANy SPecIAL FINANce?A: We are an approved franchise system with several major financial institutions. Retail Food Group will provide contacts on request. q: WhO ARe The MAIN cOMPeTITORS TO MIcheL’S PATISSeRIe?A: Other competitors in our market include local patisseries, Gloria Jeans, Zaraffas, Coffee Club and Jamaica Blue. Michel’s Patisserie’s strength lies in our exclusive award winning coffee, delicious sweet treats and scrumptious savouries, plus the security of being part of Australia’s largest multi-brand franchising group – Retail Food Group.

q: hAve yOu GOT ANy SITeS ReAdy TO GO?A: Yes. Refer to the Franchises Available section of our website (www.rfg.com.au) for the complete state based listing of new and resale sites available.

q: ARe FRANchISeeS exPecTed TO AcTIveLy WORk IN STORe?A: Yes. Franchisees are expected to work in store. This is an important factor in the success of our stores.

q: Why ShOuLd I PuRchASe A MIcheL’S PATISSeRIe?A: Michel’s Patisserie offers delicious cakes and savouries as well as award winning espresso coffee;• Comprehensive training at our purpose built Training Academy on

the Gold Coast with dedicated, experienced and qualified trainers;• Proven franchise operating system;• Field training and ongoing support;• National integrated advertising and promotional campaigns;• A cash business offering minimal risk of bad debt; and• The opportunity to become a successful business owner.

q: WhAT ShOuLd I dO NexT?A: Contact RFG to discuss suitable sites in your area on 1800 067 619 or email [email protected] with your contact details and one of our state based Franchise Recruitment Executives will make contact with you. 1. Attend an information meeting with the Franchise Recruitment Executive. 2. Review all information obtained during the meeting and make adecisiononyourpreferredstore/site. 3. Request an application form and disclosure document. 4. Complete the application and post to RFG once completed. 5. Confirm your purchasing ability with your bank and with your accountant. 6.Speaktoexistingfranchisees. 7. Seek legal and financial advice.

Please see over for more details regarding the approval process for both the purchase of new stores and existing stores.

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Do you want to join the Michel’s Patisserie team?Once you’ve decided on selecting a Michel’s Patisserie franchise, we are there to support you every step of the way through the application process.

NeW STORe & NeW SITe PuRchASe PROceSS

STeP 1 You make your initial enquiry and are introduced to the state based Franchise Recruitment Executive. RFG provide you with an information package.

STeP 2 A first meeting and interview is completed with the state based Franchise Recruitment Executive. New store location information is provided to you and if appropriate at this time, a site specific budget estimate is offered. Having received this information, you are now able to consider finance options.

STeP 3 RFG will send you or provide you access to disclosure documentation and a franchise application form. Please complete these in full and return to RFG in QLD for processing. A refundable deposit of $3000 plus GST is to be included with the application. RFG will then assess your application, keeping in touch with you along the way to ensure all necessary information is provided to both yourself and to RFG.

STeP 4 You should now obtain independent legal and financial advice.

STeP 5 We encourage you to visit existing stores and meet with existing franchisees. You are invited to take part in a formal

operational interview with an RFG representative. This report is added to your application for approval.

STeP 6 Your communication continues with the Franchise Recruitment Executive and RFG. The RFG Legal Department will inform you whether your application

has been approved or declined, and if approved, a conditional franchise approval letter will be sent to you. After you have obtained legal advice, the conditional franchise approval should be signed and returned to RFG Head Office in Queensland. Once this is received, RFG will confirm your training intake dates.

STeP 7 You must now have confirmed that you have obtained finance approval, ensuring that the finance allows for the making of progress payments. RFG now provides you with the formal franchise grant documentation. We request that you seek mandatory independent legal advice (it is also recommended that you seek financial and business advice at this time).

STeP 8 You execute and return the franchise grant documentation with all of the requested deposits or progress payments. Dependent upon the country a cooling off period may prevail.

STeP 9 Your training at the RFG Academy in Southport Queensland begins. Staged progress payments commence.

STeP 10 The shop fitter’s contract is completed and progress payments continue.

STeP 11 You graduate from the RFG Training Academy.

STeP 12 You now make payment of any balances remaining.

STeP 13 Your Michel’s Patisserie outlet opens!

STeP 14 RFG provides you with ongoing support in all aspects of your business including administration, financial management, local marketing, coffee, retail operations and customer service. You will receive regular visits from your local Business Development Manager, as well as being provided with newsletters and other communication pieces. You are now part of the network of Michel’s Patisserie franchisees and have access to regular franchise group meetings where you can share ideas, discuss problems and participate in the ongoing development of the Michel’s Patisserie franchise system.

(The foregoing is a guide only. The application process is

dependant on individual circumstances).

Page 25

Established Michel’s Patisserie outlets are advertised for sale on the Retail Food Group website, as well as through independent business brokers&variousfranchisingwebsites.

STeP 1 You make your initial enquiry to either the current store owner or a business broker.

STeP 2 The business broker or the franchisee will furnish you with information to allow you to make initial decisions on whether the store is suitable for your business needs and requirements.

STeP 3 If you wish to move forward with the purchase of the business then you or your broker contact RFG to inform us that you wish to purchase an existing store. RFG will send you or provide you access to disclosure documentation and an application form. Please complete these in full and return to RFG in QLD for processing. RFG will then assess your application, keeping in touch with you along the way to ensure all necessary information is provided to both yourself and to RFG.

STeP 4 You should now obtain independent legal and financial advice.

STeP 5 We encourage you to visit existing stores and meet with existing franchisees. You are then invited to take part in a formal operational interview with an RFG representative. This report is added to your application for approval.

STeP 6 Your communication continues with the broker or franchisee and RFG regarding the process of your approval. The RFG Legal Department will inform you whether your application has been approved or declined, and if approved, a conditional franchise approval letter will be sent to you. After you have obtained legal advice, the conditional franchise approval should be signed and returned to RFG Head Office in Queensland. Once this is received, RFG will confirm your training intake dates.

STeP 7 You confirm that you have obtained finance approval. RFG now provides you with the formal franchise grant documentation. We request that you seek mandatory independent legal advice (it is also recommended that you seek financial and business advice at this time).

STeP 8 You execute and return the franchise grant documentation. Dependent on the country a cooling off period may prevail between (Step 3) and returning the executed franchise grant documentation.

STeP 9 Your training at the RFG Academy in Southport, Queensland commences.

STeP 10 You graduate from the RFG Training Academy.

STeP 11 Your solicitor and RFG legal counsel arrange settlement. You and the outgoing franchisee conduct a stock take the night before settlement – the BDM is available to be present at stock take if required.

STeP 12 You start trading in your Michel’s Patisserie outlet!

STeP 13 RFG provides you with ongoing support in all aspects of your business including administration, financial management, local marketing, coffee, retail operations and customer service. You will receive regular visits from your local Business Development Manager, as well as being provided with newsletters and other communication pieces. You are now part of the network of Michel’s Patisserie franchisees and have access to regular franchise group meetings and conferences, where you can share ideas, discuss problems and participate in the ongoing development of the Michel’s Patisserie franchise system.

STORe cONveRSION PuRchASe PROceSS

Becoming a franchisee with a multi-brand franchisor offers many significant benefits to existing business owners. Please contact Retail Food Group to discuss whether your existing café would be suitable for conversion to the Michel’s Patisserie franchise system.

Established Store Process

What our franchisees have to say...

Iworkedforatelecommunicationscompany.Iwaswiththemfor16yearsand

became team leader of 30 staff. There were a lot of changes with management

and the company was going through a restructure so my job was giving me

more pressure with no extra money. That’s when I started thinking of buying

a franchise.

I chose Michel’s because they have a full range of products and everyone has

to eat! The demand is constant throughout the day, ensuring a busy business.

You’ve got morning tea, lunch and afternoon tea – there is such variety so

you’re not limited to only one part of the day. Most of my customers are

regulars – they come in every day. I have established an ongoing rapport

with local businesses, workers, schools and families. I think it’s important to

develop these relationships as these are the customers who visit me for all their

birthdays and celebrations and I enjoy the public interaction.

SAL LeONARdI,MIcheL’S PATISSeRIe eARLWOOd, NSW

My husband and I own two Michel’s Patisserie stores. We bought our first

franchise at Casula in December 2005 and acquired our second at Wattle

Grove in 2007. We chose Michel’s Patisserie because it was an established

brand with a great reputation and a huge range of products which caters for any

occasion, instead of other franchises which are quite select. They have amazing

support with a Business Development Manager and a great management team.

We also loved the marketing arm of the franchise, which is very strong and

has powerful strategies. Prior to becoming a Michel’s Patisserie franchisee

we owned a newsagency for five years, however, there wasn’t much support

or growth in the industry so we decided we’d like a change. The key to our

success is certainly our customer service as well as solid marketing strategies,

our customer loyalty, consistency of product and our coffee quality is excellent.

I think the biggest appeal to our customers is that they love the coffee and small

cakes promos, which we run regularly. Our big cake sales are mainly on the

weekends for parties and special occasions.

The best thing about owning a Michel’s Patisserie franchise is having a central

bakery. This means we don’t have to be bakers and we can spend all our time

perfecting our customer service and working on the business.

JOSIe ANd dARRyLe LAWSON,MIcheL’S PATISSeRIe WATTLe GROve, NSW & cASuLA, NSW

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A message from the Managing Director

deAR PROSPecTIve FRANchISee,

Retail Food Group is the ultimate owner of the Donut King, Brumby’s Bakery, Michel’s Patisserie,bb’s cafe, Esquires Coffee Houses, Pizza Capers and Crust Gourmet Pizzas franchise systems throughout Australia and New Zealand. On behalf of Retail Food Group, and the Michel’s Patisserie franchisor, we welcome the opportunity to introduce ourselves and our proven franchise systems and thank you for your inquiry.

Since its inception in 1989, Retail Food Group has successfully grown from a small franchisor with less than 50 stores to become one of the largest Australian franchisors with seven (7) franchise systems, boasting in excess of 1350 stores. Each of our franchise systems offers an opportunity to embark upon a unique food retailing experience.

We are of the opinion and belief that our systems are some of the most respected systems in Australasia, remaining unsurpassed in terms of being fully integrated franchise systems, all offering quality products and market leadership in each of the brand’s seven target markets.

We attribute this to the ongoing dedication and loyalty of our franchisees whose businesses are nurtured by a franchisor who provides business education, marketing and operational systems as well as ongoing, continually improving support systems which have been developed, enhanced and maintained over many years.

This development increasingly takes advantage of group economies and synergies which a large franchise network can command. The commissioning of a retail business is the culmination of an individual or family ‘dream’ of becoming an ‘entrepreneur’ and controlling your own financial destiny. Assuming control of one’s financial destiny however, also involves a degree of risk which varies according to both the type of business participation as well as the risk aversion profile of the individual.

The resolve to become a small business owner involves the consideration of many issues other than purely financial aspects. To profitably and productively conduct a retail business, there are two other important investments, apart from the financial, which require determination:

• Lifestyle investment – the time, commitment and dedication needed to successfully conduct the business; and

• Emotional investment – the investment in such a business will, almost without exception, have an impact upon or effect on more than one person.

We are of the opinion that Retail Food Group has assembled seven quality franchise systems, where a buyer can thoroughly investigate the right system and business for themselves, to ensure they;

a) satisfy their financial, lifestyle and emotional investment criteria, whileb) acknowledging the risk which is present in any business pursuit.

From our perspective, we are desirous of recruiting franchisees who display a genuine capacity and capability of contributing to the ongoing enhancement and growth of the relative system they join. Ideally, a franchisee will possess the following personal attributes:

• Communication Skills;• Honesty;• Integrity;• Positive Personality;• Self-Motivation;• Financial Competence;• Goal-Oriented;• Leadership Qualities; and• Team Player.

If we have just described your personality, outlook and aspirations we seriously encourage you to consider the benefits and advantages of investing in one of our proven, quality franchise systems.

Those personal attributes, when combined with our strong group identification, excellent product ranges, comprehensive initial training programmes, access to the extensive resource bases as well as the ongoing support that each of our franchise systems offer, provides a substantial platform from which franchisees can strive for and achieve business, financial, lifestyle and emotional wellbeing or ‘success’.

Success is a term too often used and, in our belief, neither well-defined nor understood. Success as a franchisee is measured and determined by reference to the degree by which your actual performance matches all those benchmarks previously established for your business.

Success therefore, from our perspective, is the degree by which the franchised operation can, and does, assist you in the achievement of your personal goals and aspirations.

The majority of people work and become business owners to assist in the achievement of non-business objectives – those objectives are usually focused around lifestyle and family. Put another way, the achievement of lifestyle and family goals will almost always be related to the success of your franchised operation. Every person involved in a Retail Food Group franchise system has made a significant investment, whether it be monetary, emotional or other means. We are confident that the systems which Retail Food Group has developed and assembled over the past 20 plus years can assist you not only in protecting your various investments, but assisting you to prosper in what is a very competitive industry.

Finally, we consider that the acquisition of a Retail Food Group franchise is not just a means to achieving lifestyle, financial and emotional objectives – it will become part of you.

Yours sincerely

A. J. (Tony) AlfordManagingDirector/ChiefExecutiveOfficerRETAIL FOOD GROUP (AUSTRALIA)

Page 30

DISCLAIMER: Existing and potential franchisees should note the Average Weekly Sales

(AWS) and Average Transaction Value (ATV) for FY2010, FY2009 and FY2008 indicated

is a historical amount provided as a guide only. All AWS and ATV figures are calculated

on the basis of source data reported to the Franchisor by franchisees. The Franchisor and

its Associates:

i) have not audited or verified the source data upon which AWS and ATV are calculated

and therefore give no warranty or guarantee as to the accuracy or reliability of the AWS

and ATV figures noted herein;

ii) do not represent or warrant that the AWS and ATV figures noted herein are indicative

of any particular existing or proposed Michel’s Patisserie;

iii) advise that the AWS and ATV figures noted herein do not constitute, and should not

be construed as constituting, an estimate or guarantee in connection with the historical

or potential sales or turnover of any existing or proposed Michel’s Patisserie outlet or

Michel’s Patisserie outlets generally.

Ultimately, existing and potential franchisees must satisfy themselves as to the historical

and potential turnover of any existing or proposed Michel’s Patisserie outlet on the basis

of their own investigations and independent advice. The Franchisor recommends that all

existing and potential franchisees obtain independent financial and business advice in

connection with this issue.

Thank you for taking the time to read this document. If this information pack has raised more questions than it answers we are delighted - there is so much more we can tell you about the Michel’s Patisserie franchise opportunity. Please contact us so that we can continue our dialogue.

Do you like to research online? Visit our websites:

www.rfg.com.au www.michels.com.au

Would you like to speak to someone who can answer your questions? Call our Franchise Recruitment number for further information.

Franchise Information:

Free Call: 1800 067 619Email: [email protected]: www.rfg.com.au

In addition, the following people are your contacts in the Sales and Leasing Department:

Gavin NixonHeadofStrategy-EmergingMarkets(Domestic&International)

Faith ManningSales&LeasingCo-ordinationManager

Contacts

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Michel's Franchise Kit

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Transcript of Michel's Franchise Kit