The Second Cup Coffee Company Inc.

The Second Cup Coffee Company Inc. International Franchise Opportunities www.mysecondcup.com 1

We Love What We Do www.mysecondcup.com 2

Let Us Inspire You www.mysecondcup.com 3

Brand History From a humble beginning in 1975 as a Canadian shopping mall kiosk selling only whole-bean coffee, Second Cup has become Canada s largest specialty coffee café franchisor and second-largest retailer of specialty coffee. Since its inception, the Second Cup brand has grown to over 360 cafés in Canada under Second Cup Ltd. and over 125 cafés internationally in 25 countries under The Second Cup Coffee Co. Inc. In addition to our locations, our product line has also grown from simple whole-bean Arabica coffee to more than 16 premium coffees and other lattes, specialty beverages, Real All Natural Frozen Yogurt, complementary foods, and merchandise items. In 2002, Second Cup became a member of the Cara Operations family of restaurants (Cara), and in 2006 it became a wholly owned subsidiary of Dinecorp Hospitality Inc. (DHI), a company controlled by Gabe Tsampalieros, the former CEO of Cara. In December 2007, DHI changed its name to the Second Cup Coffee Company Inc., and it continues to be owned by the Tsampalieros family. The Second Cup brand has a high degree of retail visibility with locations in high-traffic areas in most Canadian cities, and several cities around the world. Our international locations are located in Abu Dhabi, Azerbaijan, Cyprus, Dubai, Egypt, Iraq, Jordan, Kuwait, Kurdistan, Lebanon, Libya, Morocco, Oman, Qatar, Pakistan, Romania, Saudi Arabia, Sharjah, Syria, Taiwan and U.S.A. Regional franchise partners will be opening soon in Russia, France, Mongolia, Libya, Tunisia, Ghana, United Kingdom and new regions of the U.S.A. Second Cup is a franchisee driven business, focussed on delivering the Ultimate Coffee Experience to its customers, which includes products that are best in class and focusing on developing innovative, market leading products. www.mysecondcup.com 4

Our Vision and Mission Vision To be a leading global premium Café Brand Mission To continuously grow through innovation and dedication to excellence www.mysecondcup.com 5

Our Promise Second Cup is committed to always deliver a premium café experience We will deliver our Brand Promise through the following 5 Pillars www.mysecondcup.com 6

Our Experience Sophisticated Premium Café is how we define our ambiance. For our guests, the utmost in comfort and service underscore the Second Cup experience. Warm, comfortable yet modern and contemporary, rich and textured, familiar yet global create the relaxed atmosphere. However, this is not an ordinary café. Second Cup is anchored by the barista station where our experienced baristas create the premium coffee and specialty beverages which proudly define our reason for being. Second Cup café is a place that consistently delivers comfort and luxury, and never disappoints. It is where our customers go when they want to indulge in a special treat or take some time to reconnect. A warm glow draws them in, and once inside, the rich aroma of freshly brewed coffee takes over the senses. In an atmosphere of affordable luxury we create a sense of belongingness and connection. Our guests feels relaxed, rewarded and appreciated by people who are committed to caring. www.mysecondcup.com 7

Our Point of Difference A Premium Coffee Café Experience in a Sophisticated Premium Café environment Always Value driven Always having fun Second Cup is built on relationships and quality through our strong network of Franchise Partners throughout the world. Maintaining an entrepreneurial spirit that embraces local ideas and innovation. www.mysecondcup.com 8

Our Service We recognize that convenience and comfort are key drivers in hospitality retailing today. We offer the convenience and speed of counter service. Second Cup is committed to extend the product delivery beyond the in store experience, to service and support, grab and go, and drive thru. We are a guest-focussed company! www.mysecondcup.com 9

Our Best In Class Products Complementing the ideal café environment, the Second Cup product delivers premium quality and freshness on a consistent basis. For the true coffee connoisseur, our specialty coffee is freshly brewed using the top 1 to 2% of the finest beans sources from around the world. We offer a large selection of coffees. Lattes, hot chocolates, premium Artisan whole leaf teas, chillers and smoothies custom made on the spot by friendly, trained baristas who are passionate about delivering quality. Let s not forget that Second Cup also offers All Natural Real Frozen Yogurt Parfaits and Smoothies> We are the first and only international coffee chain to provide Barista Crafted Perfect Cups of brewed coffee. Every single cup of brewed coffee is fresh using the Trifecta revolutionary single cup brewer Our delicious fresh food items are delivered daily and prepared locally using the highest quality ingredients available. The selection includes healthy options and kid friendly items, and will satisfy whether you wish to sit down and indulge in a special treat, or need to grab something tasty on the go. For those wanting more, Second Cup also offers unique and stylish branded gift solutions, designed with the consumer in mind and at great prices. Along with the upscale ambiance and friendly, dedicated staff, our carefully selected products complete the Second Cup experience and truly entice consumers to make Second Cup their second home. www.mysecondcup.com 10

Product & Offering Ease of execution & program simplification Visually impactful easy to read boards Simplified product categories Relaxing guest experience Healthful product offerings: Low Fat, Made with Real Fruit www.mysecondcup.com 11

Menu www.mysecondcup.com 12

Menu www.mysecondcup.com 13

Regular Marketing and Innovation June 2013 www.mysecondcup.com 14

June 2013 www.mysecondcup.com 15

Café Specialty Merchandise Shelf Talkers

Our Café Design Flexible café location options Mall (inline or kiosk) Office towers Mixed format developments Offices, Condos, Colleges, Healthcare Street front The Second Cup Global Premium Café was designed with comfort, luxury and efficiency in mind. All elements of the exterior and interior design were carefully selected to create an environment where customers feel welcome to socialize, conduct business and relax. The décor sparkles with uniquely global features paired with delicate Canadian and local accents. The combination of which references the proud heritage of the Second Cup brand while differentiating our café experience from the competition. Every detail of the Second Cup Global Premium Café design was selected to enable staff to honour their commitment to caring for guests who can feel relaxed, rewarded and appreciated as if its MYSECONDCUP! www.mysecondcup.com 17

Design Flexibility Flexible café location options Mall (inline or kiosk) Office towers Mixed format developments Offices, Condos, Colleges, Healthcare Street front Drive Thru options www.mysecondcup.com 18

Expansion Solutions www.mysecondcup.com 19

Ambiance www.mysecondcup.com 20

Nargiz Centre, Azerbaijan

Sun Plaza, Romania

Agia Paraskevi, Cyprus

Great Value for Guests Warm & Comforting Inviting & Welcoming Big Mugs or Cups IDEAL COFFEE Fresh & Aromatic Reminisc ent of Faraway Places Warm, Cozy & Homey Quality Product & Preparation Provides Tasty Food Options IDEAL COFFEE SHOP Relaxing - Not Rushed or Crowded A Place to Bond, Share with Others A Sanctuary for Oneself www.mysecondcup.com 26

Local Neighbourhood Positioning www.mysecondcup.com 27

Social Responsibility www.mysecondcup.com 28

Our Social Commitment 100 % of our Coffees are now RAINFOREST ALLIANCE CERTIFIED 100% of our Artisan Tea Program is part of the Ethical Tea Partnership 100% of our Loose Leaf Teas are Organic Certified At Second Cup, we know that in order to provide the best coffee for our Guests, we must continue to work in harmony with both the environment and people who provide us with the best quality coffee beans. To both our Guests and coffee producers, we pledge that our coffee growing environment is treated with the utmost respect and dignity. We pledge that no coffee purchased from Second Cup is harvested from child or forced labour. All of our coffee producers provide a safe and healthy work environment and employees are compensated in a fair and equitable manner. As well, Second Cup continues to quality causes that will directly impact and improve the lives of coffee farmers around the world We support Trees for the Future and Coffee Kids This is our promise. www.mysecondcup.com 29

Exceptional Controlled Growth Second Cup is a well-known and respected international brand that continues to experience continued and programmed growth globally. Our Second Cup team offers a proven franchise system with established, passionate, and proven support systems with Operations, Marketing and Development managers. Our team ensures that their priority is to have ongoing operational involvement and franchisee support. Members of this team are based at our home office and in regional areas to be available for timely response to master franchisee business demands. You will find that Second Cup Coffee Company Inc. has taken care of every aspect of its café experience for you, including interior design, layout, menu, recipes, suppliers, product specifications and marketing. The consistency and quality of these standards not only create and reinforce the brand, but also ensure that Second Cup café guests have the same experience at every Second Cup café, each and every time. We continually refine and improve every aspect of our operating systems; developing new products and services; improving facilities; providing sustained training, effective marketing, and more efficient purchasing. Our philosophy is to continually improve our business by revising our products, systems and procedures. Most importantly, Second Cup has a unique understanding of how to bring coffee to people across different cultures, locations and environments. Our team brings forward a passion for coffee, and we expect it to be yours too. June 2013 www.mysecondcup.com 30

Regional Franchise Opportunity Based on our success, Second Cup invites interested participants to join our global franchise system. Regional franchising opportunities now exist. Ideally, you are the owner of a well-established medium to large business with a distinguished network of contacts, infrastructure and suitable resources, including the ability to meet set financial criteria. Your background includes demonstrated business acumen leadership and experience. This includes experience in the following: Real estate, leasing and construction People management Working knowledge of finance, financial concepts and money management Marketing Sales General management Track record of personal and corporate achievement Proven high ethical and business standards In addition, as we pride ourselves on achieving excellence in serving our guests, it is important that you share with us your enthusiasm in this area. You will be expected and encouraged to fulfill our Brand Promise. If you fulfill the above criteria, please complete the Franchise Information Request Form. www.mysecondcup.com 31

Regional Franchise Opportunity Please also outline your responses to the following: Reason for interest in country or region Summary of business experience and background of the individual and corporate applicant Personal résumé and details of your present employment Corporate profile with details of company s business interests, number of employees, cities and countries in which you operate Experience in retailing, hospitality, real estate, marketing, franchising etc., that you will bring to the Second Cup system. www.mysecondcup.com 32

Why invest in a Second Cup Regional Franchise Second Cup is a highly respected brand. Second Cup is an international leader in speciality coffee Second Cup has a proven design Specialty coffee drinking is a fast-growing consumer category throughout the world We have dedicated international resources to support franchise development and growth of the Second Cup brand. Second Cup Coffee Company Inc. provides the following support to each of its franchise partners: Highly qualified and experienced people to provide direction and support you in the growth of your business Operations manuals, marketing and public relations support materials International product supply and access to Second Cup Coffee Company Inc. resources Comprehensive training at Second Cup Coffee College and online. www.mysecondcup.com 33