MASTER LICENSE.

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1 MASTER LICENSE

2 FRANCHISING- A BUSINESS CONCEPT THAT WORKS! The Husse business concept is built on a system of franchising with Master Licensee, Franchisees, Distributors and Affiliates all over Europe; each one managing his own business and making his own profits.this is a system that has proven to be efficient and successful from the north of Sweden to the south of Portugal. As a Master Licensee for Husse, you will be offered every opportunity for expansion and steady profits. The magnitude of this success depends entirely on you! This brochure will give you a short insight into our company and our business approach. If you feel that you are the right person to join us, please contact us and we will be happy to organize a meeting with you. Tom Eliasson CEO HUSSE BUSINESS CONCEPT Husse stands for QUALITY, SERVICE and KNOWLEDGE. Husse was founded in Sweden in Husse sells and markets a wide range of premium quality dog and cat food, cat litter and various accessories throughout the whole world. We deliver the products with Husse vans directly to our customers' doors with no extra charge. At the moment we operate in Austria, Caribbean, Belgium, Denmark, France, Germany, Hungary, Ireland, Italy, Luxemburg, Lichtenstein, Latvia, Lithuania, Poland, Portugal, Spain, Slovakia, Sweden, Switzerland, UK 1

3 BUSINESS CONCEPT - HUSSE Our business concept is simple: we want to make everything simple for our customers! Customers should not have to carry heavy bags or travel far to specialized shops to buy high quality food for their pets. The customer simply places his/her order online, by phone or fax and we deliver to a previously fixed schedule. The delivery cost is built into the price. Beside that, we can offer them nutrition advice since a Husse franchisee/master/distributor is not just a delivery person but a knowledgeable professional. Our experience ensures good advice for the customer and we know how to help. The Master Licensee orders directly from the factory and buys the food at the production price. By skipping unnecessary retailers, Husse is able to offer its customers superior quality products - delivered directly to their doorstep - at very competitive prices. The success and prosperity of this concept has proven profitable and successful every year since the beginning. From the moment our franchising system was introduced, Husse has been growing approximately by 25% every year, adding new markets and consistently winning new market share of the fast growing global pet food market. The Husse franchise system is very simple and effective, built on the idea of minimal administration, minimal costs and individual responsibility. It is a system that has proven its efficiency for over 20 years in all markets regardless of the cultural differences and consumption patterns. PETFOOD - A RELIABLE AND RAPIDLY EXPANDING GLOBAL MARKET The pet food market is growing fast and steady year after year all over the world since the number of pets is constantly increasing. We can expect this positive development to continue over a long period of time. A security for you as entrepreneur and businessman is that the pet food market is not dependent on the fluctuations of the global economy. Sales keep increasing in high and low markets alike! THE HUSSE FRANCHISEE SYSTEM There are different roles in the Husse franchisee system: Master Licensee, Franchisee, Distributor and Affiliate. 2

4 MASTER LICENSEE As a master licensee you obtain complete and exclusive rights to use the Husse trademark and product range in a market that we agree on. An average size for a Master Franchisee area is a country or a part of a country. As Master Licensee you order your products directly from the factory, buying them at the production price. Products are delivered by truck to a central stock under your management. You need a small office that should be also used as show room, a warehouse and a red Husse van. FRANCHISEE, DISTRIBUTOR, AFFILIATE As Master Licensee you create a network of Franchisees, Distributors and Affiliates and sell them the Husse rights. The Franchisees are usually responsible for an area of dogs and cats a town /village or a part of it. Franchisees pick up their orders from your warehouse for further distribution and are responsible for their own stock. The Franchisees, Distributors and Affiliates operate under different conditions and with different margins. HUSSE HEAD OFFICE IN STOCKHOLM In the head office in Stockholm we take care of the Husse brand and image, we develop new products and take care of support for our Masters. Once a year we organize a meeting with all Masters in order to exchange experience and present new ideas. 3

5 In the Husse network everyone takes care of their own tasks but together we work towards the same goals: quality, good service, knowledge, satisfied customers. We believe that only this way can we be successful. GOALS Husse Master Franchisee MARGINS In Husse, we recommend to calculate the margins, as the following graph shows Client Price 100 Euros 40% Franchisee Price Euros 70% 50% Franchisee Fee Fee Euros Euros/month Master Price = Production Mr Price 30 Euros30 Euros 4

6 BUSINESS AND MARKETING SUPPORT As Master Licensee you have the exclusive right to the Husse trademark. In addition to brand image and product range, this gives you access to a comprehensive, easy to use, CRM business program and marketing support. We offer you training, web page, and day-to-day support from our head office in Stockholm. TRAINING It is your responsibility as a Master Licensee to establish a small sales and administration office. This office should be also used as a show room and needs to have Husse colors and Husse products. We provide you with training and give you the essential tools so you can prepare training for your Franchisees. We also assist you in the training of the Franchisees if you wish so. The training covers the following topics: sales techniques and marketing, knowledge about the products, how to administrate the web page and the intranet system as well as nutrition training. HUSSE PROFILE As a master you also have access to the complete range of Husse brand exposure and sales promotion material, as well as the PR and marketing efforts made by Husse head office in Stockholm. In all aspects of marketing and brand imaging Husse guarantees high international, professional standards. 5

7 HUSSE STANDS FOR QUALITY Quality is the central Husse brand value. Our pricing profile is very competitive on the super premium quality market segment, but our unique selling points are excellent quality of products and service offered to our customers. PRODUCTS Husse dog and cat food are made of super premium and premium quality ingredients, produced in the best factories with highly professional people and equipment. A guarantee of the quality of the products and the production process is the number of loyal and satisfied customers Husse has all over the world. Beside that, we have product sheets that give insight on the food ingredients, additives, energy value and digestibility. The Husse production process is closely monitored, tested and controlled. The MISSION of our company is quality food with care for nature and the specific needs of all animals. Our veterinary and nutrition expertise team is constantly testing the composition of our food in order to improve the quality. In our Pet Research Center study is limited to animal friendly and non-harmful food research. The only purpose is to improve the cat and dog food. Non-harmful means that our animals never suffer because of medical or surgical procedures. The research is limited to the registration of food consumption, judgments from excrements etc. The animal experiments are strictly regulated by recent laws. In considering these laws, research as it is performed in our research center is not considered as animal experimentation. 6

8 WE CARE FOR THE ENVIRONMENT AND ANIMALS Care for the environment and animals are our BUSINESS PHILOSOPHY. We try to reduce the negative effects on the environment whenever we can: shorter transportation distances and use of the railway for transportation of goods whenever possible; purchasing tuna-safe fish only. We supply 100% natural cat litter that does not harm the environment etc. Some of our masters are very active in organizing charity events. They collect money for different purposes and show that we care for people and animals in need. SERVICE Husse stands for 100% reliable delivery of products directly to our customers doors on a fixed schedule. We also guarantee that products can be delivered at any time of the day; seven days a week and that customers have complete access to advice in pet maintenance issues and nutrition. As simplicity is another central Husse brand value, we are constantly working to further improve and simplify our logistics system. Orders can be placed around the clock by customers using our web page, phone or fax. TradeMark Service LE AB Torstenssonsgatan 9 S Stockholm. Tel Fax husse@husse.com 7

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