The Franchise System Thank you for your interest in working franchise with HiD Public Company. This document is intended to familiarize you with the general principles of our cooperation system. 1. HiD Public Company - about us The company has been working on European markets for more than 6 years. HiD Public Company owns the brand Crazy Bubble - chain stores, serving original, Taiwanese Bubble Tea. Plans for the development confirms the rapid expansion of the Polish market. The company currently owns 9 units, of which 5 are the property of the HiD Public Company, and 4 of their franchise (first established in December 2012). Corporate headquarters is located in Zabrze, Poland. Detailed information about the company can be found on the website www.crazybubble.pl 2.The description of units that we develop through franchise cooperation: Crazy Bubble is a brand creating and offering a way of having fun with friends and family. We serve a variety of traditional and exotic drinks on the basis of green and black tea. Original Bubble Tea from Crazy Bubble is a drink prepared according to traditional Taiwanese recipe with fruit or dessert additives. Additionally, Crazy Bubble offers: shakes, milk beverages, sherbets and cups of coffee with different additives, for instance beads including manioc tapioca plant. We use high-quality semi-finished products of Taiwanese origin, which guarantee an excellent final product. Crazy Bubble does not have a defined group target, the recipient is anyone who likes tea and new experiences. 3. The basic requirements for the chain store Crazy Bubble units Selected city of over 15 thousand residents. Best commercial location in the city, a high-intensity meeting place, or other with many people around. • • • • Place with a minimum area of 12m2 (absolute requirement) Water connection (cold water connection and drainage minimally fi40) Electrical connection min 6kW (3 phases) The average cost of initial investment: 80 thousand pln (in the case of place with an area of 12 m2) A contact person: Kłosowski Łukasz tel: +48 507328509 e-mail: lukasz.klosowski@crazybubble.pl www.crazybubble.pl The Franchise System When concluding the agreement on cooperation, you will then be a partner of HiD Public Company and commit yourselves to: • • • • lead retail sales by the rules and standards set by the Public Company HiD, comply with all the regulations relating to the conduct of commercial facility, take care of the good name of HiD Public Company, its impeccable image in the media and in the immediate vicinity, learn and observe the principles of promotion and advertising in HiD Public Company, What is the franchise system? The franchising system involves maintaining the business in accordance with applicable law in Poland, using duplicate standards adopted by the independent traders, operating under a common name and the common graphic symbols. In other words, is a system of goods, services or technology, which is based on the close and continuing collaboration between legally and financially separate and independent entrepreneurs, in this case between the HiD General Partnership (Franchisor) and entrepreneur called Franchisee. The essence of this system lies in the fact, that the company gives its Franchisees the right and imposes on them the obligation to conduct operations in accordance with the co-elaborated concept, included in the framework of the franchise system. The franchise package HiD Public Company under the Agreement on Cooperation provides the Franchisee for the duration of the Agreement, the franchise package , containing a complete business concept offered by the company. The standard franchise package includes: • Complete unit installation with the necessary range to conduct business • The trademark, • Know-how • Operational manual • Drawn up HACCP • Full technical development together with the necessary projects • Support from the company within the franchise system Support from the HiD Public Company under the franchise system HiD Public Company provides Franchisees with widely understood support, such as: • mentoring over the manager’s unit, • help in choosing a location, • support in the staff recruitment, • staff training, comprehensive team care of the professional advisers, • cooperation in the creation of local marketing campaigns, Principles of cooperation and settlement of HiD Public Company The main principles of cooperation include: • system of products delivery - need to engage their own resources into a commodity (about 5 thousand pln monthly - indicative amount, depends on sales) • fee settlement system - Franchiser earns a commission on sales, issuing the invoice to the company at the end of the month. The commission is dependent on the sales results achieved monthly (7/5/10%) • HiD Public Company guarantees optimal quantitative and qualitative units stocking up • free delivery of goods once a week (the supply of up to 100 km from our headquarters). In the case of premises far away from the main headquarters, goods delivery is set individually • Franchise unit is a fully fledged unit in our chain store - prices and promotions are the same as in the rest of the units How to become a Franchisee in HiD Public Company - stages: I. Presentation of the location - submission via e-mail offers of cooperation containing description of the proposed location to the appropriate contact (initial verification). It does not matter whether the premises will be leased or owned by potential Franchisees. II. The letter of intent to franchise agreement - meeting aimed at signing a letter of intent, which provides for all of the major principles of cooperation franchise. III. Verification of location - by HiD General Partnership. Visual inspection of place on the site by the responsible person of HiD General Partnership. Location of the property must be thoroughly checked, its layout, standard, neighborhood, etc. IV. Franchisee Verification - as a potential business partner (possible debts in Inland Revenue, social security, etc.) V. The signing of the Franchise Agreement To write and sign a franchise agreement, one must send required documents to HiD Public Company: • location plan • ID photocopy of the person (s), company representatives • copy of KRS or a certificate of registration in the register, where the Franchisee operates as a partnership or leads sole proprietorship • personal questionnaire • statement about their economic activities • spouse's consent to the conclusion of the contract VI. Store project Store project is done by HiD General Partnership. The work on the project usually takes two weeks. VII. Construction of the store Installation work is usually performed by the Franchisee through their own construction crews or companies cooperating with HiD Public Company. Depending on the area (island / local) preparatory work lasts about a month, and the installation is possible to perform within 12h. The price depends on the surface condition and the standard of the premises. VIII. Store reception Is held by any person designated by the HiD Public Company in order to verify compliance with the project and implementation of the standards of the chain stores sales , which determines sale authorization. IX. Store opening When installed position type is an island, the tenant must be present within the night, at least 4 hours before the scheduled opening, in order to transfer the premises