FRANCHISE INFORMATION

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1 FRANCHISE INFORMATION

2 CONTENTS 02 THE CROISSANT EXPRESS HERITAGE 02 CROISSANTS ARE JUST THE BEGINNING 03 EXPRESS TO SUCCESS 05 LEARN THE BIZ FROM THE BEST 06 HAVE YOU GOT THE RIGHT STUFF? 06 WE LET OUR FRANCHISEES EXPRESS THEMSELVES FOR WELL OVER A DECADE, CROISSANT EXPRESS HAS BEEN A MARKET LEADER IN SMALL BUSINESS HOSPITALITY FRANCHISING WITH A GROWING NUMBER OF FRANCHISES ACROSS AUSTRALIA. CONSOLIDATED FOOD HOLDINGS PTY LTD The first Croissant Express Store was opened August 1987 in Allendale Square in the Perth CBD. Croissant Express is an Australian owned and operated company with 25 stores in Western Australia and one in Queensland, making it one of Western Australia s leading café franchises. In September 2013, the Croissant Express Brand was acquired by Consolidated Food Holdings Pty Ltd. Consolidated Food Holdings was set up by Sean Tomlinson to hold and expand food brands in Australia and the ASEAN region. The Executive team headed by CEO Neil Soares has in excess of 100 years combined experience in the hospitality industry. Our vision is to share this great brand with the rest of Australia and the ASEAN region. 04 OUR FOOD ISN T THE ONLY THING THAT S FRESH!

3 THE CROISSANT EXPRESS HERITAGE Since its inception in 1987, Croissant Express has achieved iconic status in Western Australia for our outstanding range of quality baked goods. With a commitment to fast, fresh products and friendly service, Croissant Express is a much loved, established Australian brand. In addition to delighting the general public, we have also been catering for corporate functions and offices since 2005, delivering our healthy and delicious range directly to offices and events. Today we stand as one of Western Australia s leading café-bakery franchises, with plenty of room for growth Australia wide. CROISSANTS ARE JUST THE BEGINNING Our great range includes: Baguettes Wraps Bagels Soups Savouries Sweet Pastries Muffins Yoghurts Coffee Cold Refreshments 02 AT CROISSANT EXPRESS, CUSTOMER SATISFACTION IS PARAMOUNT; IN ORDER TO ACHIEVE THIS, ALL OUR FRANCHISEES SHARE OUR ETHOS OF HARD WORK AND DEDICATION.

4 EXPRESS TO SUCCESS There are few experiences more satisfying than starting and growing your own business. If you have a passion for serving fine coffee and believe in Fast, Fresh and Friendly as core customer service principles, our franchise model could be your perfect business opportunity. While previous food experience is not seen as a necessity, a commitment to devote your full time attention to the business is considered essential. Applicants will need to be passionate, hard working and diligent, especially with regards to customer service, food preparation, OSH and small business accounting. A preference will be shown for applicants with a background in small business hospitality management. Our franchise model is based upon a 7% turnover royalty and 3% turnover advertising contribution. The initial franchise establishment fee is $45,000 for a term. Our sites are best located in high food traffic locations and we have store models that are suited to CBD or cafe mall outlets. Establishment costs differ from site to site and range from $250,000 - $350,000. In most cases the head lease is retained by the Franchisee. The Franchisor does own corporate stores and invests in these to test and validate initiatives before introducing them to the franchise network. As members of the FCA, we provide prospective Franchisees with a fully compliant Disclosure Document and Franchise Agreement.

5 OUR FOOD ISN T THE ONLY THING THAT S FRESH! While remaining loyal to our heritage and the brand s established presence in the marketplace, we recognise the importance of keeping the brand s image fresh and relevant. In seeking to maintain a positive perception of the Croissant Express brand, we periodically update all facets of our image (including signage, packaging, in-store facilities and product lines) to keep it current and on trend. In conjunction with our recent national expansion efforts, we have already undertaken a major refresh of our brand identity, which will be gradually rolled out into current stores and implemented as part of all future shop fit-outs. We envisage that these new branding elements will be key to keeping the Croissant Express identity foremost in the minds of all coffee lovers. 04

6 LEARN THE BIZ FROM THE BEST In order that Croissant Express customers receive a consistent and quality experience, we provide training to Franchisees in all aspects of store operations. Understanding the day to day operations of your store will provide you the best possible conditions for success. Your success is our success! You will also receive extensive barista training to ensure you only serve the best coffee as expected from all Croissant Express stores. This will give you the opportunity to best express your passion for the art of fine coffee service. Our training is the combined result of decades of experience and has a proven track record in ensuring maximum efficiency and profitability for your business. Not only do we provide this initial introduction to the basic day to day running of your business, we offer continual guidance through easy access to support and all relevant reference manuals. OUR TRAINING PROGRAMS ARE THE COMBINED RESULT OF DECADES OF EXPERIENCE AND HAVE A PROVEN TRACK RECORD IN ENSURING MAXIMUM EFFICIENCY AND PROFITABILITY.

7 HAVE YOU GOT THE RIGHT STUFF? Motivation and excitement will help sell your product and inspire your team. You ll be a natural leader and a people person, with a love for fine food and coffee and a passion for efficient service delivery, for our increasingly busy consumer. These attributes are key when interacting with the public on a daily basis and working in close proximity with your handpicked team. Innovation and enterprise are also highly regarded and future plans that include expansions into additional stores are seen as a positive attribute. Testament to this is the many multi-site franchisees within our network. In addition, you will also need to meet financial commitments that cover the starting costs of your new business. WE LET OUR FRANCHISEES EXPRESS THEMSELVES KEEPING CUSTOMERS COMING BACK SATISFIED CAN BE CHALLENGING, BUT WITH DETERMINATION AND THE SUPPORT OFFERED BY CROISSANT EXPRESS, I WAS ABLE TO BUILD MY BUSINESS FROM NOTHING TO A CONTINUING SUCCESS. I came from a background in hospitality and business management which prepared me with just the right kind of skills required for the day to day running of my store. With hospitality especially, I was able to successfully interact with high numbers of customers and ensure they had the best experience possible. Investing in a tried and tested franchise system provided me safety and peace of mind. Having easy access to advice that s been developed from years of experience let me overcome any difficulties involved in starting up and running a new business. The aspects of the business that I was most attracted to was the product lines on offer and seeing the continuing expansion of the brand and knowing that I was in a great position starting on the ground floor for the years of growth ahead. I personally enjoy all the products I sell, but I especially like the Ham and Cheese Croissant, the Oz Bagel and the Tuna Baguettes. Knowing that I m serving great products like these makes the 50 plus hours a week I spend in store far more rewarding. To ensure your time investment is well spent however, you will definitely be required to be self motivated, hard working, focused, happy, polite and outgoing. Of course the best satisfaction is being your own boss and only a successful franchise system like Croissant Express can give you the best balance between autonomy and the best chances of success. KYLE HUDSPETH Croissant Express St Martin s and Croissant Express Adelaide Street 06

8 FREQUENTLY ASKED QUESTIONS Q. WHAT QUALITIES SHOULD A CROISSANT EXPRESS FRANCHISEE HAVE? A. You will need to be motivated and excited to promote your products and inspire those around you. You not only need to love fine food and coffee, but to be able to serve them efficiently to an increasingly busy consumer. Q. WHAT IS INVOLVED IN BEING A CROISSANT EXPRESS FRANCHISEE? A. 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. Don t worry though, we are right behind you to support and guide you. Q. IS PURCHASING A FRANCHISE RISK-FREE? A. Purchasing a franchised business allows new business owners to reduce risk when compared to purchasing an independent business. Franchising offers the opportunity to access the management experience, training, marketing, supplier relationships and other benefits that come with an established franchise system. However, no business is without risk and it is important that all new franchisees take steps to educate themselves before making the decision to invest. Q. BEFORE ENTERING CROISSANT EXPRESS S FRANCHISE SYSTEM, SHOULD I SEEK INDEPENDENT ADVICE BEFORE? A. Under the Franchising Code of Conduct all franchisors must advise a prospective franchisee that they should obtain independent legal, business, and accounting advice. Croissant Express insists that these advices are obtained before we will enter into a franchise agreement. Q. DO I NEED PRIOR EXPERIENCE IN THIS TYPE OF BUSINESS? A. While previous food experience is not seen as a necessity, a commitment to devote your full attention to the business is considered as essential. Applicants will need to be passionate, hard working and diligent, especially with regard to customer service, food preparation, OHS and small business accounting. A preference will be shown for applicants with a background in small business hospitality management. Q. WHAT IS THE COST TO OPEN A FRANCHISE WITH CROISSANT EXPRESS? A. Our franchise model is based on a 7% turnover royalty and 3% turnover advertising contribution. The initial franchise establishment fee is $45,000 for a term. Our sites are best located in high foot traffic locations and we have store models that are suited to CBD or cafe mall outlets. Establishment costs differ from site to site and range from $250,000 - $400,000. Q. WHAT WILL BE MY RETURN ON INVESTMENT? A. Calculating the return on investment before a business commences is difficult because of the variables involved, and we can't guarantee a level of return. Croissant Express is committed to assisting its franchisees establish and grow their business. The profitability of a business however is often reliant on the commitment and contributions of the owner. Q. DO YOU HAVE OPPORTUNITIES FOR MULTI-SITE DEVELOPMENT? A. Yes. We have several franchisees who currently own more than one store. We prefer franchisees to commence with one store and grow to multiple sites but for exceptional candidates we will discuss a development territory. Q. WILL I BE ABLE TO SELL THE BUSINESS IN THE FUTURE? A. Yes, the franchised business is yours to sell. The franchise agreement sets out the requirements for a sale, and the prospective buyer will need to go through our standard recruitment and selection process. Q. I AM DEFINITELY INTERESTED IN A FRANCHISE OPPORTUNITY. WHAT DO I DO NEXT? A. Apply via the Become a Croissant Express Success tab on our website. WANT TO KNOW MORE... LET S CATCH UP FOR A COFFEE P (08) Suite 01, Level 1, 172 St Georges Tce Perth WA 6000 Visit our website to find out more.

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