INTERNATIONAL FRANCHISING OPPORTUNITIES WITH PRETZELMAKER

INTERNATIONAL FRANCHISING OPPORTUNITIES WITH PRETZELMAKER

Disclaimer This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. We are providing the United States FDD at your request, and as a condition to receiving this FDD, you acknowledge that we are not representing that the contents of the FDD will apply in any manner to our international franchise relationship, including but not limited to any financial performance representations set forth in the FDD. Your country of interest may have individual franchise disclosure requirements. If we elect to engage in further sales discussions, we will fully comply with the franchise disclosure requirements as required by law in your country/territory of interest

International Master Franchise / Area Developer Opportunities About Pretzelmaker and it s management company Global Franchise Group Brand Menu and Brand Attributes 3 Pretzelmaker International Program Elements & Support Address key elements to become a Pretzelmaker International Master Franchisee International Master Franchisee / Market profile & Next Steps

Since 1991, Pretzelmaker and Pretzel Time have specialized in fresh baked, hand-rolled soft pretzel products, dipping sauces, and beverages. In 2010, the two brands officially united under the Pretzelmaker brand name, becoming the 2 nd largest soft pretzel concept in the United States.

ADVANTAGES OF FRANCHISING WITH PRETZELMAKER Global Franchise Group is a strategic brand management company with a focus on franchising. Global Franchise Group (GFG) owns a portfolio of franchise brands that includes quick service restaurant (QSR) franchise concepts: Great American Cookies, MaggieMoo's, Marble Slab Creamery, Pretzelmaker, and Hot Dog on a Stick. Our Mission: We champion brands the people who build them

ADVANTAGES OF FRANCHISING WITH PRETZELMAKER Because Global Franchise Group, LLC is one of the world s leading brand management companies, we understand the importance of supporting all our franchisees in every way possible. Pretzelmaker currently franchises over 300 locations in the U.S., Canada, Guam, Saudi Arabia, and Mexico. We currently also are under contract in the U.A.E, Qatar, Egypt, and Bahrain

THE OPPORTUNITY AND THE MENU Everything we make here is fresh! We make fresh pretzel dough and bake products fresh all day. In addition to our freshly baked traditional pretzel, we also hand roll pretzel bites, pretzel dogs, and mini pretzel dogs, and craft signature beverages such as lemonade We serve our products hot, portable, and they are satisfying!

CORE MENU LINEUP Traditional Pretzels- Salted, Unsalted, Parmesan, Ranch, Garlic, Jalapeno, Cinnamon Sugar, Cinnamon Raisin, Caramel Crunch, Iced Cinnamon Swirl Pretzel Bites- bite sized pretzels Salted, Unsalted, Parmesan Ranch, Garlic, Cinnamon Sugar, Stuffed Mozzarella Traditional Pretzels Pretzel Bites Salted Pretzel Bites

CORE MENU LINEUP Pretzel Dogs- mini pretzel dogs, pretzel dogs, jalapeno pretzel dogs, cheese and chili dogs, cheese and chili mini pretzel dogs Sauces- Cheese, nacho cheese, caramel, icing, mustard, honey mustard, cream cheese, pizza sauce Mini pretzel dogs Pretzel Dog Beverages- blended beverage, lemonade, flavored lemonades, soft drinks, juices

MENU BOARD STRATEGY Combinations Beverage and Dipping Sauce Upgrade Flavor Customization

PRETZELMAKER FACTS *http://www.entrepreneur.com/franchises/pretzelmaker/282719-0.html

Primarily under 35 year of age No particular skew to either gender Household Income Middle Class Single and Family Diners

Pretzelmaker speaks to our target audience of under 35 years of age in their voice We re trendy, hip, and now! We continuously offer our customers/ fans a new reason to visit our stores and engage with us through revolutionary marketing and other brand activities

INTERNATIONAL MASTER PROGRAM ELEMENTS Our International Master Franchisee program at Pretzelmaker works to connect each Master to the brand resources in disciplines including: - Real Estate, Site Selection Criteria, and Design and Site Layout - Marketing and Public Relations - International Logistics, Local Sourcing, and Supply Chain Planning - Start Up and ongoing Operations Expertise and Support

FRANCHISE SUPPORT Marketing support calendar of events and ongoing brand building initiatives Operations training which includes: P&L Management, Cost of Goods, Labor Controls, and In-store operations training Tips for team training on customer satisfaction and customer loyalty International expertise in Supply Chain Planning, Local Sourcing, and Market Launch Site selection and Design and Construction Expertise Ongoing consulting and access to our materials in areas of: Business Development, Site Selection, Construction, Purchasing, Training, Store Operations, Quality Control, and Research and Development

ANNUAL MARKETING CALENDAR A national marketing calendar is developed each year and is comprised of: Quarterly Promotions - New Product Introductions - Limited Time Offerings - Bundled Offerings International Masters have access to the current calendar as well as the library of past promotions they can explore for use in their local market This allows for customization of promotions on a local level

INTERNATIONAL MARKETING PROGRAMS AND SUPPORT Each Master Franchisee is provided with brand start up and ongoing marketing consulting. Pretzelmaker employs tactical strategies designed to drive guest trial, average spend, and overall brand awareness. Tactics include a yearly marketing calendar, competitive strategy, and new product designed to keep the brand new and fresh. Each Master Franchisee is able to customize all programs and pieces to fit their local marketing initiatives. All artwork and creative files are available on our international FTP Site or via a dropbox link

REACHING OUR GUESTS VIA SOCIAL MEDIA

INTERNATIONAL FRANCHISE PROGRAM ELEMENTS Courses offered in Atlanta, Georgia, U.S.A.

Testing of Local Product for Approvals

The Pretzelmaker brand has a dedicated Research and Development support team focused on:

EXPERT INTERNATIONAL SUPPORT Pretzelmaker is part of a portfolio of brands that has a proven track record of supporting over 1,100 franchised units in over 20 countries. We offer a dedicated international Director who functions as the direct line into each brand and is your point of contact to access resources. Internationally specific Market Launch services that you will receive from Pretzelmaker include: - Professional New Master Onboarding - New market launch Project Management - Supply Chain and Logistics Planning - Operations Support - Product Approval and Local Sourcing Expertise

HOW DOES PRETZELMAKER ASSIST ME IN OPENING THE FIRST UNIT IN MY MARKET? Market Launch Planning- The A to Z plan of how we will transfer all the brand know-how to you and the countdown activities to the open the first unit. Supply Chain Planning- Working with each Master franchise group on establishing a targeted local sourcing plan in order to reduce import costs where applicable from the first unit. Start Up- Onsite start up and training of the first unit.

WHAT KIND OF SUPPORT CAN I EXPECT AFTER I OPEN THE FIRST UNIT? Ongoing Operational Support- Ongoing consultation from first unit until the 100 th unit in regards to front line operations and cost improvement initiatives Franchise Sales and Development- How to set your market up for success when are ready to start soliciting sub franchises to open in your own market Branding - Continued marketing and brand building consultation to assist you in growth the brand through the introduction stage until maturity

WHAT KIND OF REAL ESTATE IS RIGHT FOR PRETZELMAKER?

Seeking development in primary and secondary markets Minimum population is 60,000 persons within a 10-mile radius Minimum median household income is $40,000 USD (Middle Class) Preferred Co-Tenants: Large Anchors Movie Theatres Kids Concepts/ Entertainment Complexes Locations near a food court, but ideally not in the food court

LOCATED IN HIGH TRAFFIC LOCATIONS

ATTRACTIVE STORE DESIGN

APPEALING STORE DESIGN

APPEALING STORE DESIGN

ON MALL SIZE LAYOUT AND SIZE REQUIREMENTS On Mall Requirements: 800 1200 SF (75-120 SM) Plumbing and electrical supplied

KIOSK LAYOUT AND SITE REQUIREMENTS Baking Kiosk Requirements: 200 SF (19 SM) Plumbing and electrical lines proximate Non-Baking Kiosk Requirements: 150 SF (14 SM) Plumbing and electrical lines proximate Must be supported by baking site in same location

INTERNATIONAL MASTER FRANCHISEE PROFILE We are looking for business people who successfully operate similar businesses in their country of interest with the ability to grow quickly via self development and sub-franchising Successful Master Franchisees often operate other food or retail businesses and have experience with other franchising concepts Financial Stability with a net worth of at least $300K U.S.D. in liquid assets required Has a dedicated staff on the ground in the country/territory where they wish to operate Master Franchisee who will be heavily involved in the business and act as the Brand Champion within their organization

CHARACTERISTICS OF IDEAL MARKETS FOR INTERNATIONAL FRANCHISING Product offering is attractive to local clientele Core brand offering can be sold at local price points Availability of appropriate real estate to support growth in the market No import restrictions on key brand commodities, i.e. flour, sugar Other international chains operating successfully in the market Political and banking stability in the market to access U.S. Dollars

NEXT STEPS Complete the International Request for Consideration Receive the domestic Franchise Disclosure Document (FDD) for further review Continue discovery discussion with the International Director on the inputs to complete your business plan Receive and negotiate market terms from Pretzelmaker