YOUR PERSONAL AND NEIGHBORHOOD WINERY · anywhere, we’ve made a quantum leap regarding where...

F R A N C H I S E O P P O R T U N I T Y

Franchi se Systems USA , LLC, DBA “ Winer y Developers”

YOUR PERSONAL AND NEIGHBORHOOD WINERY

TABLE OF C O N T EN T S

Photos

Franchise Overview

1. What is Franchising?

2. D’Vine Wine, A Truly Unique Franchise (a) D’Vine Wine Concept

(b) Corporate Objectives

(c) Corporate Commitment to Excellence

3. Franchisee Requirements

4. Anticipating Your Questions

5. Government Regulations

6. What does D’Vine Wine Franchise Provide for you?

7. Con�dential Franchise Questionnaire

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A T R U LY U N I Q U E F � N C H I S E

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AN ANCIENT AND VENERABLE INDUSTRY NOW ENJOYING 21ST CENTURY TECHNOLOGY:

Wineries have traditionally been located within or surrounded by their vineyards. While quaint and tradi-tional, this historic format presents various limitations for those wishing to enjoy traditional wines made at convenient locations. By creating juices available in small concentrated packages deliverable anywhere, we’ve made a quantum leap regarding where wineries having certified winemaking juices may be located.

Our “wineries without vineyards” allow franchisees the latitude to operate in cities, tourist areas and other locations where developing a vineyard would be difficult if not impossible. Strategically located wineries positioned outside traditional winemaking regions also offer a “Neighborhood Winery” ™ concept embraced by local clientele as well as tourists and travelers. Our franchisees may therefore draw from a broad base of consumers. One may choose from a variety of franchise levels ranging from small, intimate wine pub type operations to larger and more commercially oriented businesses.

Regardless of the franchise level and size chosen, unlike traditional wineries where the customer must often travel great distances to enjoy virtually the same quality of wine, our franchisees are enabled to offer wines locally which are produced from the most popular and discriminating venues well known for their fine “wine grapes.”

The consumer may be assured that the wine our franchisees serve and sell is exactly the varietal and style named on its label. Our franchisees are supplied with the only small format winemaking juices and concentrates compliant with U.S. Government Tax and Trade Bureau (TTB) source documentation requirements for varietal compliance and interstate com-merce.

Meeting government varietal compliance regulations in small format winemaking is so unique that our affiliate supplier enjoys a US Patent Application for its unmatched ability to provide government compliant, highest quality winemaking products for the franchisee.

offer wines locally which are produced from the most popular and discriminating venues well known for

The consumer may be assured that the wine our franchisees serve and sell is exactly the varietal and style named on its label. Our franchisees are supplied with the only small format winemaking juices and concentrates compliant with U.S. Government Tax and Trade Bureau (TTB) source documentation requirements for

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• Recognizable brand name (s)

• Professional assistance in demographic studies and market analysis, financial planning, employee training, start-up and ongoing support

• Head office support and assistance in such areas as marketing and sales, research, accounting systems, national advertising, etc.

• Increased purchasing power for product and advertising programs increased credibility with institutions and companies requiring the services

• Increased competitiveness to the independents. Though we allow our franchisees to use fanciful

WHAT IS FRANCHISING?

Almost everyone is aware of the tremendous boom in franchising that has occurred in the world during the last twenty years. But, why has it been so successful, and how does it work? Most understand it as a means for independent entrepreneurs to go into business for themselves in order to distribute various goods or services. There is no definition that holds true in all cases. However, in general terms, franchising is a method of distribution or marketing in which a company (the “Franchiser”) grants by contract to an individual, or other company (the “Franchisee”) the right to carry on a business in a prescribed way, in a particular location or area, for a specified period. The Franchisee is licensed to sell a product or service to the public. In return, the Franchiser receives a royalty for support and expertise given under a common name.

The strong and growing popularity of franchising around the world has resulted from the built-in advan-tages that franchises enjoy over the newly started independent business. Some of these advantages are:

names for their wineries, our brand appears clearly on all signage and literature. Accordingly, the consumer is assured of product quality and consistency, offered within a choice of four winery formats and sizes making each franchise site uniquely well suited for its environment. Each winery produces a mix of wine types and styles hand made from the highest quality California juices and concentrates arrayed specifically for the discriminating tastes of the region and the community in which each franchise is located.

Indeed, statistics show that while an independently owned and operated business stands a seventy to eighty percent chance of failure in the first two years, a newly opened franchise business has over an eighty percent chance of success during the same period. You owe it to yourself to thoroughly investigate any business opportunity that comes along. We will be more than happy to spend whatever time is required to review all the facts regarding franchising in general and the D’Vine Wine Franchise opportu-nity in particular.

For more information contact: D’Vine Wine Sales Staff Tel: (877) 99-DVINE (877) 993-8463Fax: (561) 416-9098

Email: [email protected] visit our web site - www.dvinewineusa.com



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2. D’VINE WINE, A TRULY UNIQUE FRANCHISE

a) D’VINE WINE CONCEPT

b)

CORPORATE OBJECTIVES

1. To develop D’Vine Wine Franchise Systems and “Winery Developers” as a company with profitable on-going operations that insure the Franchisee enjoys long term, consistent products and support.

To develop D’Vine Wine Franchise Systems and “Winery Developers” as a company with profitable To develop D’Vine Wine Franchise Systems and “Winery Developers” as a company with profitable

2. To provide an opportunity for franchises to be successful in their own business using well established marketing and operating systems designed to evolve with consumer preferences.

To provide an opportunity for franchises to be successful in their own business using well

To provide an opportunity for franchises to be successful in their own business using well

3. To provide innovative services and quality products on an ongoing basis which can be marketed in a professional, unique and effective manner.

To provide innovative services and quality products on an ongoing basis which can be marketed in To provide innovative services and quality products on an ongoing basis which can be marketed in

a professional, unique and effective manner. a professional, unique and effective manner.

4. To provide continuous support and assistance to franchises whether in person or via our “franchisee help desk ticketing system that assures prompt attention and verification of franchisee requests and inquiries.

5. To expand the franchise network throughout Canada, U.S.A., U.K., and Asia.

D’Vine Wine is an exciting franchise opportunity in a growth industry, where customers can come into a beau-tiful winery with a tasting bar and retail shop and browse for interesting accessories, everything from corkscrews to decanters, glasses, trays, jugs, wine coolers and other wine accessories. They then pass through to the wine

Management has developed a number of short and long-term goals and objectives for the company.

These are as follows:

making area that is temperature controlled. They may choose to taste and purchase wines prepared for sale by our winery franchisee, or select a wine to bottle from available stock, then design their own label for a unique winery experience. Franchisees have the ability to offer a customer the ability to “make from scratch” their favorite wine. Most of our franchisees offer hand made wines with double filtered water at prices competitive to mass produced wines found elsewhere in the commercial market. Custom-ers will be able to attend FREE wine making classes on how to make their favorite wine, how to store wine, how to serve wine using the proper glasses, choosing wine and cheese partners, wine language in a restaurant, and entertaining with wine and cheese. Each franchisee is fully trained to share with its customers each aspect of winemaking, tasting and enjoyment.

D’Vine Wine has special packages for birthdays, weddings, anniversaries, and corporate events. They also have gift baskets, wine exchange program, gift certificates, custom labels and quantity discounts.

Our franchisees also may choose to offer wines for sale commercially, permitted in most jurisdictions, to local restaurants, hotels and other outlets. This sales format allows the franchisee to maximize profits.

2. D’VINE WINE, A TRULY UNIQUE FRANCHISE2. D’VINE WINE, A TRULY UNIQUE FRANCHISE

D’Vine Wine is an exciting franchise opportunity in a


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c) CORPORATE COMMITMENT TO EXCELLENCE

1. We will ensure our service to the franchises is #1.

2. We will guarantee the quality and consistency of our products.

3. We will conduct ourselves in a professional manner.

4. We will keep on top of leading-edge technology.

5. We will keep working to make improvements to all products and pricing

3. FRANCHISE REQUIREMENTS

Much of the success of a D’Vine Wine Franchise is due to a strong commitment to our franchises.We prefer owners who will be active in the management of their business.

• Franchise applicants must have the financial capability to start and manage a D’Vine Wine franchise store.

• Successful applicants must have demonstrated strong managerial skills.

• A franchise applicant or partner must be prepared to devote full time and effort towards the management of the success of his/her franchise.

• In the event that two or more partners apply as co-franchises, the operating partner must own a minimum of 50% of the business.

Other factors considered in evaluating prospective franchises include employment history, character and motivation. Although previous experience may be helpful, it is not a requirement. Our intensive training program is designed to provide the full range of skills to enable you to successfully manage the business. Owning a D’Vine Wine franchise involves much hard work. However, the feeling of pride and indepen-dence that comes with operating your own successful business is something most people only dream about. That dream can become a reality with a D’Vine Wine franchise.

2. We will guarantee the quality and consistency of our products.

3. We will conduct ourselves in a professional manner.

5. We will keep working to make improvements to all products and pricing


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4. ANTICIPATING YOUR QUESTIONS

The following is a series of questions most commonly asked by those inquiring about a franchise:

1. What is the Initial Franchise Fee?

The fee will vary depending upon which franchise model you choose as explained below:

Tier 1 Franchise

Smallest location with suggested size between 600 square feet and 700 square feet. This location will primarily be a tasting bar with an aging barrel on premise. All wine will be supplied from an approved franchise location consisting of proprietary

Tier 2 Franchise

Smaller location with suggested size between 1,000 square feet and 1,500 square feet with 100 square feet to serve as a fermentation area. A majority of wine will be supplied from an approved franchise location with remaining wine made on site consisting of proprietary blends or custom wine. This smaller location may be a D’Vine Wine affiliate and have the ability to use a fanciful name. The initial franchise fee for a Tier 1 franchise shall be Thirty Thousand Dollars ($30,000)

$100,000

$40,000

$30,000

$25,000

TIER 1600-700

sq. ft.

TIER 2 1,000-

1,500 sq. ft.

TIER 32,000-3,500 sq. ft.

TIER 43,800+ sq. ft.


4. ANTICIPATING YOUR QUESTIONS (CONTINUED)

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2. How much cash and how much �nancing do I require?The total cost of setting up a D’Vine Wine Franchise location can vary from $75,000 to $400,000 U.S. and more for tier 4 franchises.

There are some financial and government programs available for Franchises wanting to go into a new business. Each application stands on its own merit. D’Vine Wine USA LLC will assist in the completion of applications for such programs.

3. Is �nancing available from D’Vine Wine Corporate o�ces?D’Vine Wine Franchise does not provide any form of financing for our franchises. However, we will provide the necessary information and advice to assist applicants in making appropriate representation to financial institutions. Currently, we can offer a provider who lends against retirement stock plans such as 401k and IRA’s for very low interest without penalty.

4. Who selects the location?We assist the Franchisee in the selection, evaluation and negotiation of the letting of the property.

Tier 4 Franchise

Larger location with suggested size 3,800 square feet or larger.

The initial franchise fee for a Tier 3 franchise shall be One Hundred Thousand Dollars ($100,000)

Tier 3 Franchise

Standard location with suggested size between 2,000 square feet and 3,500 square feet.

The initial franchise fee for a Tier 2 franchise shall be Forty Thousand Dollars ($40,000)


4. ANTICIPATING YOUR QUESTIONS (CONTINUED)

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6. Do I need any previous experience?No, although an interest in people and marketing would be an asset. D’Vine Wine looks for individuals with an understanding of general business principles, along with a satisfactory financial rating and the ability to invest in and support a franchise. Our training program is designed to provide you with the knowledge and skills required to become a successful franchise.

7. What are the qualities usually required?To qualify for a franchise, applicants must demonstrate a strong desire to own and operate their own successful business. D’Vine Wine Franchise looks for high potential franchise owners who are committed to the business and to making it a success, as well as those with the experience or confidence to relate well to employees and clients. The need for hard work in the operation of a profitable franchise cannot be over-emphasized.

8. How long does the Franchise Agreement last?The Franchise Agreement is for 15 years with an option for an additional 10 years.

9. Can a custom name be used for our winery franchise?Yes. D’Vine Wine also operates under the Winery Developers brand for the purpose of allowing the use of a fanciful or custom name so long as our logo appears in all signage, electronic and print media.

10. Who sets the operational procedures and policies?

The D’Vine Wine Franchise Training Manual supplied to every franchisee clearly defines all the standard policies and procedures to be followed in operating a D’Vine Wine Franchise location.

5. What is the Royalty fee?A royalty fee of 6% is paid monthly on Gross Revenues. This fee is for the on-going rights to use theD’Vine Wine marks and logos and provides for corporate bulk purchase discounts.

11. What form of guidance does D’Vine Wine Franchise Systems Inc. provide?New franchisees receive in-store training for themselves and their key people for approximately two (2) weeks. Ongoing support is provided as needed by the Franchisor. We also employ a help desk ticket system for the purpose of helping our franchisees solve everyday problems such as questions about winemaking and other operational and administrative issues.

13. I am de�nitely interested in owning a D’Vine Wine Franchise. What do I do next?Complete the franchise questionnaire and financial statement, answering all the questions. All information will be treated as strictly confidential. Mail or fax the application for our review. We will then contact you to discuss the opportunity further.

Any other questions you may have can be covered in a personal interview following the submission of your questionnaire.

12. Is there a risk?Yes, the nature of any business is a risk. But the combination of appropriate location and market area, quality services and products, a well organized operation and good management act greatly to minimize the risk.

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5. GOVERNMENT REGULATIONS

Answers to frequently asked questions about government regulations in the Industry.

1. Is this type of business legal anywhere in USA?Generally speaking the answer is “yes”, because it is a hobby. Given the client is making wine for their own consumption. The Bureau of Alcohol, Tobacco, and Firearms (ATF) regulate the production and sale of alcohol. The ATF recognizes an exemption, from taxes and fees, for personal use up to 100 gallons per year in a single person household and up to 200 gallons per year in a two or more person household.

ATF does not issue a “brew on premises” permit and that is where state or county jurisdiction needs to be complied with. Because the rules vary from one state to another, or even one county or other local jurisdiction to another, we cannot provide full particulars for all areas in this document. A local ruling may have to be obtained, however, we prefer to help the prospective franchise candidate obtain that information as often local legislators do not understand the concept and thy may make a ruling that is not favorable to the business before really knowing all the details. We want to make sure that we ask the right questions so we can be prepared to live with the answers.

Some jurisdictions in the USA permit the making of wine as a micro winery and the wine can be sold by the bottle. D’Vine Wine will assist the franchisee on how to apply for such permits.

2. Are any taxes applied to this product and/or service?Yes, there may be applicable sales taxes that have to be applied, but they will vary from one tax authorityto another.

3. Are any licenses required?

There may be some other licensing required by local authorities. We will be able to provide specific information on the area you are considering.


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6. WHAT DOES D’VINE WINE FRANCHISE PROVIDE FOR YOU?

TrainingWe will provide a thorough training program covering all aspects of operations including: hiring of sta�, cash register procedures, operating policies, selling and marketing the services and products, manage-ment control; etc. Training will take place in one of our stores prior to start up.

TrademarksFranchisees will be entitled to utilize trademarks, designs and procedures belonging to the Franchisor.

PropertiesWe assist in the location and negotiation of the letting for each franchise property.

Starting UpA trained representative will work closely with you, in your location, to assist in all aspects of the operations, including the hiring of sta�.

On-going Operation Support

On-going Market Support

D’Vine Wine Franchise representatives will be available to consult and assist you as needed and will visit you periodically to review your progress. We are also available for help through the use of our electronic help desk ticket system.

Operating ManualsWe will provide you with comprehensive operating manuals outlining company controls for managing your business.

PurchasingWe will select and you will purchase all equipment, furnishings and products from authorized suppliers. In many instances, franchisees will bene�t from reduced prices due to our buying expertise.


We will recommend a speci�c “Start-up Advertising” plan for your location and will provide strategies to build customers on an on-going basis through point of sale materials, �yers, advertisements etc.

YOUR PERSONAL AND NEIGHBORHOOD WINERY · anywhere, we’ve made a quantum leap regarding where...

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