~ Franchise Mini Handbook ~

T H E M I S S I O N

O U R M I S S I O N A N D P H I L O S O P H Y I S S I M P L E , A T T H E C O F F E E C L U B W E W A N T T O P R O V I D E :

• G O O D F O O D , G R E A T S E R V I C E A N D E X C E L L E N T C O F F E E

• A W E L C O M I N G R E L A X E D M E E T I N G P L A C E E N R I C H I N G C O N T E M P O R A R Y L I F E S T Y L E S

• T H E A N S W E R T O “ W H E R E W I L L I M E E T Y O U ? ”

T H E V I S I O N

T O G E T H E R W I T H O U R F R A N C H I S E B U S I N E S S P A R T N E R S , L E A D I N G T H E I N D U S T R Y A N D

S E T T I N G H I G H S T A N D A R D S I S S O M E T H I N G W E D O C O N T I N U O U S L Y . I T ’ S I N T H E 5 0

M I L L I O N C U P S O F C O F F E E W E S E R V E E A C H Y E A R A N D T H E L O Y A L C U S T O M E R S W E

P R O U D L Y S E R V E E V E R Y D A Y . O U R V I S I O N I S T O D O J U S T T H A T O N A G L O B A L S C A L E –

T O B E A G L O B A L L E A D E R I N R E T A I L F O O D , C O F F E E A N D F R A N C H I S I N G .

In addition, we provide a proven business model,

a Brand identity and trademark that have value

in consumers’ eyes. You don’t have to reinvent

the wheel to be successful. You provide capital,

management, talent and energy to expand the

Brand faster than we as a Franchisor can on our own.

When you invest in The Coffee Club Franchise, we

provide all operating systems, technical expertise,

marketing systems, management methods and

all relevant information to make your business a

success. Such is the degree of systemisation that

almost every aspect of the business is covered and

nothing is left to chance.

We commit to providing you with initial and

ongoing support throughout the life of the

Franchise Agreement. Our training program

ensures that you can implement our training

systems easily.

Franchise businesses have a greater survival rate

than new independent businesses. Franchising is

about risk reduction and safety – you don’t have to

guess about the most effective way to build your

business because there is already a successful

system to use.

Our group buying power will cut your operating

costs compared to an independent business. This is

complemented by our robust marketing programs,

which provide the national support to ensure your

business grows faster and has a greater chance of

achieving forecast results sooner.

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

M E E T I N G M A R K E T D E M A N D F O R G O O D F O O D , G R E A T S E R V I C E

A N D E X C E L L E N T C O F F E E .

WHY FRANCHISE

W I T H T H E C L U B ?

< P A G E 0 5 >

Offering the best to our franchisees is something we take

great pride in at The Coffee Club. We provide operating

systems, technical expertise, marketing support,

management methods and relevant information to help

make your business a success.

Our franchisees are more than just store-owners; they are

our business partners that share the same vision and passion.

In addition to joining Australia’s largest home-grown café

group that has a strong history of franchise success, being

part of The Coffee Club is different from other franchise

systems as outlined below:

E S T A B L I S H E D B U S I N E S S M O D E L

The Coffee Club provides an established business model,

a Brand identity and trademark that have value in

consumers’ eyes. You don’t have to reinvent the wheel

to be successful. As a Franchisee, providing capital,

management, talent and energy, you can expand the

Brand faster in your local area than we, as the Franchisor,

could on our own.

M A R K E T D E M A N D

In already established territories, The Coffee Club has

learned how to meet market demand for Good Food,

Great Service, Excellent Coffee.

P R O V E N S Y S T E M S

When you invest in The Coffee Club Franchise,

we provide operating systems, technical expertise,

marketing systems, management methods and relevant

information to make your business a success.

S Y S T E M I S A T I O N

Such is the degree of our prior experience, almost every

aspect of the business is covered.

T R A I N I N G P R O V I D E D

We commit to providing you with initial and ongoing

support throughout the life of the Franchise Agreement.

Our training program ensures that you can implement our

training systems easily.

B U Y I N G P O W E R

You will be able to harness the benefits of increased

purchasing power in categories such as coffee, milk,

soft drinks, packaging, distribution services and food

service items.

R I S K R E D U C T I O N

Franchising is about systemisation, creating efficiencies,

risk reduction and safety; you don’t have to guess about

the most effective way to build your business because

there is already a successful system to use. All of this,

however, will obviously be dependent on your ability to

follow guidelines and work within a Franchise System.

I N C R E A S E D R E V E N U E P O T E N T I A L

As a Franchisee, your methods of generating income can

be expanded over that of a normal business. You will have

a head start with The Coffee Club Brand and systems.

H O W T H E

C L U B W O R K S F O R Y O U

< P A G E 0 6 >

< P A G E 0 8 >

Becoming a franchisee of your very own The Coffee Club

can be a very exciting journey. Like with any big business

decision, considering if it’s the right fit for you is an

important step in this journey.

At The Coffee Club we are proud to recruit exceptional

franchisees who share our vision and passion for the

business. Owning your own franchise is a hands-on job;

from recruiting staff to serving customers and making

coffees, to closing up at the end of the day, stock ordering

and doing wages to name a few. It’s all part of running a

successful business and a very rewarding experience if

pursued with the right passion and business acumen.

Owning your own business is a rewarding experience

but one that requires sacrifice and a great deal of hard

work and effort. Considering the impact it may have

on those around you, including family and friends, is

important. The support of your family is critical.

The Coffee Club is a hands on business and we know

that those franchisees who play an active role in daily

operations of the store are significantly more successful

than those who expect a store to operate well without them.

J O I N I N G T H E E X C L U S I V E C L U B

At The Coffee Club, we know that the recipe for

success within our Brand will depend on the quality of

our selective Recruitment Processes. Consequently,

a franchisee of The Coffee Club will need to have

demonstrated ability to work in a highly standardised

operational/production oriented environment with a

focus on Brand alignment and Brand growth.

A potential The Coffee Club Franchisee is required to

meet three main criteria with attributes that have been

proven to produce successful Business Partners.

Throughout the recruitment process, a potential franchisee will be assessed on the criteria above. Attributes will be measured in a number of ways including observations, interviews, participation levels and personality profiles.

T H E C O F F E E C L U B T A K E S T H E F R A N C H I S E E S E L E C T I O N P R O C E S S

V E R Y S E R I O U S L Y . O U R A I M I S T O E N S U R E E V E R Y F R A N C H I S E E

I N O U R N E T W O R K I S S U C C E S S F U L .

WHO YOU ARE

Qualities of The Club Franchisee

2

Knows the focus is our customers.> Demonstrates an ability to listen,

relate, process and respond proactively

> Holds fundamental Language, Numeracy and Literacy skills

> Is physically and mentally well, showing a balance of positivity and stability

> Shows ability to build sustainable relationships with external customers

F O C U S E D

3

Has the financial capacity and ability to maximise sales and profits.> Demonstrated commercial

acumen which includes the ability to create and implement business plans with short and long term objectives

> Ability to fund capital expenditure and working capital

> Belief in creating one’s own success through a Business Partnership with the Franchisor

D R I V E N

1

Is aware of and willing to fulfill their obligations in the Business Partnership role as Franchisee.> Demonstrates their understanding

of obligations as a Business Partner/Franchisee

> Shows a willingness to work with us

> Portrays positive and constructive interaction

R E C E P T I V E

We have more than 200 franchisees who own

and operate 275 stores across Australia.

An opportunity to Join The Club provides

not only a robust business opportunity but

a chance to own a piece of a strong brand

entity within a supportive network.

With a solid pipeline of new stores, The

Coffee Club is always on the lookout for

the right franchisees to work with us as we

pursue our Vision.

In addition to our new franchisees, we are

proud to have some of the longest standing

franchisees in the industry with many of our

Franchise Business Partners celebrating 10,

15 and even 18 years with our brand.

While we have many successful single store

franchisees keen to sink their teeth into

owning and managing one location, we

also have a number of franchisees around

Australia who have developed their own

cluster of successful stores. From Cairns,

Townsville and Brisbane in Queensland to

Perth and Adelaide our multi-site operators

have reaped the rewards and benefits of

The Coffee Club franchising model.

The best part about The Coffee Club

franchising model is our stores are locally

owned and operated by passionate people

who are determined to cater to the needs of

their community.

THE CLUB

Franchise Model

T H E C O F F E E C L U B I S O N E O F A U S T R A L I A ’ S L E A D I N G F R A N C H I S E

B U S I N E S S E S W I T H 2 5 Y E A R S E X P E R I E N C E I N D E L I V E R I N G H I G H I N D U S T R Y

S T A N D A R D S B O T H F O R O U R F R A N C H I S E E S A N D C U S T O M E R S .

Establishing yourself in The Coffee Club Franchise System requires an initial capital investment of approximately $450,000 – $650,000+.

There is an initial franchise and training fee that allows The Coffee Club to establish your business. This fee covers:> Location selection> Lease negotiation> Design> Fit out> Training> Opening assistance> The Coffee Club intellectual property

Following establishment there is an ongoing franchise fee and marketing fee (at present 6% and 3% respectively). These entitle franchisees to benefit from:> Marketing> Supplier selection> Volume buying arrangements> Standardised accounting and reporting> Research> Staff training> Ongoing business coaching and support

This is a Franchise System that has been proven in hundreds of successful locations throughout The Coffee Club network.

< P A G E 0 1 0 >

Financing aG R E AT I N V E S T M E N T

W I T H T H E C L U B

jointhecoffeeclub.com.au

The Coffee Club Franchising Company Pty Ltd 336-338 Montague Rd, PO Box 5786, West End, Queensland 4101

Phone +61 (0)7 3010 3000 Fax +61 (0)7 3844 2551

ACN 063 065 571