BASIC FRANCHISE INFORMATION - (MALAYSIA) Proudly A Malaysian Discovery

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Proudly A Malaysian Discovery

BASIC FRANCHISE
 INFORMATION
        (MALAYSIA)
General Franchise
  Information on Dave’s Deli
  Food Discoveries (M) Sdn Bhd is the owner and operator of Dave’s Deli and all its proprietary rights.
  We are a member of the Malaysian Franchise Association and fully subscribe to the provisions of the
  Malaysian Franchise Act, which regulates and seeks to protect all parties involved in franchising
  business practices. Food Discoveries (M) Sdn Bhd is the franchisor of Dave’s Deli in Malaysia.

  Deli Corporation Sdn Bhd has been given the sole rights to handle all international franchise
  arrangements.

  Essentially, here’s what you get when you join the Dave’s Deli franchisee family

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,
published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD                      1
MALAYSIA: Basic Franchising Information
  FRANCHISOR: FOOD DISCOVERIES (M) SDN BHD

  Whilst most Dave’s Deli outlets are successful, the start of any new business is a risk and success is
  not guaranteed. The success of any Dave’s Deli outlet will depend on many factors not the least of
  which will be the franchisee’s commitment, ability and financial resources.

    1. COMMITMENT
  All franchisees must personally devote their full time and best efforts to the day to day operation of
  the business. We normally favor individuals and you cannot qualify for a franchise if you are an
  absentee or part-time owner. We also do not normally grant franchises to corporations or
  partnerships unless there is a specific undertaking by the directors/partners that at least one of them
  will devote full time to the business.

    2. INITIAL FRANCHISE PERIOD

  The franchise agreement allows you to operate a specific outlet for an initial period of years (usually
  6) accordding to the operating and business standards of Dave’s Deli.

    3. SET-UP COST

  You equip the outlet at your own expense with kitchen equipment, lighting, renovation works,
  signage, furniture and fittings, cutlery, cooking utensils, seating and décor. Whilst none of the
  equipment is purchased from us, they must meet our specifications. An estimated budget of
  RM750,000.00 is required for a store measuring 1800-sq. ft. in West Malaysia. The estimated budget
  may increase or decrease depending on location, size and renovation complexity.

    4. INITIAL WORKING CAPITAL

  You should allocate a further RM15,000.00 for working capital to cover the initial order for stock and
  food items and for a cash float to start the business.

    5. FURTHER FINANCIAL COMMITMENTS

   Further financial commitments will include pre-rental payments and deposits.

    6. INITIAL FRANCHISE FEE

   An initial Franchise Fee of RM100,000.00 per store is payable (less any prepaid depositsthat can be
   credited) upon signing of the franchise agreement. This fee is subject to change without notice.

    7. EXCLUSIVE RIGHT

  As a Dave’s Deli franchisee you will have exclusive rights to use our trade name, trademarks and the
  Dave’s Deli operating system for that particular store. Our highly experienced professionals will assist
  you on the following:
  • Site evaluation                                                     • Pre-opening support
  • Equipment specifications                                             • Renovation works and construction review
  • Customized plans including layout                                   • Point of sales system training
  • Design and concept                                                  • Training
  • Brand building                                                      • On going visitation and support
  • Advertising and promotion

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,
published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD.                     2
MALAYSIA: Basic Franchising Information
    8. MONTHLY ROYALTY FEE

  A Royalty Fee is charged monthly and is calculated at a rate of 5% of the monthly gross sales of
  your outlet.

    9. INITIAL DEPOSIT

   A deposit of RM10,000.00 is payable together with a duly completed application form (Confidential
   Franchise Application & Evaluation Form) upon successful application. The deposit less any out of
   pocket and incidental expenses incurred by us will be used to offset the Franchise Fee of RM
   100,000.00. If the Franchise Agreement is not executed within 3 months from the date of application,
   the deposit less all expenses incurred by us shall be returned to you and all prior arrangements,
   whether verbal or written shall be considered null and void.

    10. RESTRICTIONS ON SOURCES OF PRODUCTS & SERVICES
   You are required to purchase certain sales material, marketing supplies and proprietary items from us.
   You are obligated to purchase items bearing the Proprietary Marks in accordance with specifications,
   which we will provide. Specifications include minimum standards for quality, construction,
   appearance and function. These specifications will be issued to the franchisee after the execution of
   the Franchise Agreement and may be amended from time to time by us.

   You are obligated to purchase or lease goods, services, supplies, fixtures, equipment, and inventory
   relating to the outlet or operation of the licensed business from the suppliers approved by us. We may
   revise the standards and specifications and the approved supplier list from time to time.

   NOTE: As of the date of this franchise information bulletin, we have no arrangements whereby Food
   Discoveries (M) Sdn Bhd, Dave’s Deli or its affiliates will derive revenue as a result of purchases or
   leases by you in accordance with the specifications or standards we prescribe. We may in the future,
   create a subsidiary corporation or division to lease equipment packages for use in a dave’s deli outlet
   to qualified franchisees. The cost to the franchisee will be competitive in the marketplace. We believe
   that such programs will serve to facilitate acquisition of restaurant equipment by lowering cash startup
   costs when compared to purchasing such equipment outright.

   Food Discoveries (M) Sdn Bhd, Dave’s Deli or its affiliates may enter into product distribution
   arrangements with suppliers for certain proprietary food products, and such arrangements may
   provide for franchising revenue to Food Discoveries (M) Sdn Bhd, Dave’s Deli or its affiliates. We may
   enter into network wide product agreements for third party labeled food and beverage products which
   franchisees will be required to offer under the terms of their franchise agreements, and we may receive
   compensation from the manufacturers or distributors of such products, as well as from approved
   suppliers and other goods and services. In addition, we may receive rebates or other remuneration
   from manufacturers and suppliers based upon franchisee purchases or for approval of suppliers
   products or services.

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,
published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD                      3
MALAYSIA: Basic Franchising Information
    11. BASIC FRANCHISE OBLIGATIONS

                              OBLIGATION OF                                   FRANCHISOR                              FRANCHISEE

                              Site Selection and
        1                                                                        Evaluation                             Approval
                              acquisition/lease

                                 Pre-opening
        2                                                                         Negotiate                          Execute and Pay
                               purchases/leases

                       Site Development and other                                                                     Pay Turn-Key
        3                                                                 Arrange and Develop
                        pre-opening requirements                                                                      and Approve

        4               Initial and ongoing training                               Opening                    Attend and Participate

        5                            Opening                               Arrange and Attend                          Participate

        6                               Fees                                       Collect                                Pay

                       Compliance with standards
        7                                                                        Administer                             Adhere To
                       of operations and guidelines

                              Trademark and
        8                                                                  Protect and Police                        Non-Disclosure
                           Proprietary Information

                          Restrictions on products
        9                                                                        Administer                             Adhere to

                          Warranty and customer                               Administer and
       10                                                                                                               Adhere to
                           service requirements                                 Develop

                               Ongoing product                                Administer and
       11                                                                                                               Adhere to
                              /service purchases                                Develop

                         Maintenance, appearance                              Administer and
       12                                                                                                               Adhere to
                             and remodeling                                     Develop

       13                           Insurance                                    Standards                               Secure

                                                                             Opening, Assist
       14                   Owner’s Participation                                                                        Secure

       15                      Inspection/audits                                  Evaluate                             Adhere to

       16                      Records/Reports                                     Monitor                     Adhere to and secure

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,
published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD                                        4
Food Discoveries (M) Sdn Bhd                                           (220589-P)
                             (A member of the Dave's Deli Group)

                     11A-15, Jalan PJU 1A/12, Taman Perindustrian
                        Jaya, 46050 PJ, Selangor D.E, Malaysia.

                                      t   + (60) 3-7845 2268
                                      f   + (60) 3-7845 3268
                                     e    franchise@davesdeli.com.my

                               www.davesdeli.com.my

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,
         published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD
MALAYSIA: Basic Franchising Information
     8. MONTHLY ROYALTY FEE

   A Royalty Fee is charged monthly and is calculated at a rate of 5% of the monthly gross sales of
   your outlet.

     9. INITIAL DEPOSIT

   A deposit of RM10,000.00 is payable together with a duly completed application form
   Franchise Application & Evaluation Form) upon successful application. The deposit less any out of
   pocket and incidental expenses incurred by us will be used to            the Franchise Fee of RM
   75,000.00. If the Franchise Agreement is not executed within 3 months from the date of application,
   the deposit less all expenses incurred by us shall be returned to you and all prior arrangements,
   whether verbal or written shall be considered null and void.

     10. RESTRICTIONS ON SOURCES OF PRODUCTS & SERVICES
   You are required to purchase certain sales material, marketing supplies and proprietary items from us.
   You are obligated to purchase items bearing the Proprietary Marks in accordance with
   which we will provide.                      include minimum standards for quality, construction,
   appearance and function. These                   will be issued to the franchisee after the execution of
   the Franchise Agreement and may be amended from time to time by us.

   You are obligated to purchase or lease goods, services, supplies,          res, equipment, and inventory
   relating to the outlet or operation of the licensed business from the suppliers approved by us. We may
   revise the standar                                     roved supplier list from time to time.

   NOTE: As of the date of this franchise information bulletin, we have no arrangements whereby Food
   Discoveries (M) Sdn Bhd, Dave’s Deli or its              will derive revenue as a result of purchases or
   leases by you in accordance with the                   or standards we prescribe. We may in the future,
   create a subsidiary corporation or division to lease equipment packages for use in a dave’s deli outlet
   to          franchisees. The cost to the franchisee will be competitive in the marketplace. We believe
   that such programs will serve to facilitate acquisition of restaurant equipment by lowering cash startup
   costs when compared to purchasing such equipment outright.

   Food Discoveries (M) Sdn Bhd, Dave’s Deli or its                    may enter into product distribution
   arrangements with suppliers for certain proprietary food products, and such arrangements may
   provide for franchising revenue to Food Discoveries (M) Sdn Bhd, Dave’s Deli or its            We may
   enter into network wide product agreements for third party labeled food and beverage products which
   franchisees will be required to offer under the terms of their franchise agreements, and we may receive
   compensation from the manufacturers or distributors of such products, as well as from approved
   suppliers and other goods and services. In addition, we may receive rebates or other remuneration
   from manufacturers and suppliers based upon franchisee purchases or for approval of suppliers
   products or services.

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,
published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD                      3
MALAYSIA: Basic Franchising Information
    11. BASIC FRANCHISE OBLIGATIONS

                              OBLIGATION OF                                   FRANCHISOR                              FRANCHISEE

                              Site Selection and
        1                                                                        Evaluation                             Approval
                              acquisition/lease

                                 Pre-opening
        2                                                                         Negotiate                          Execute and Pay
                               purchases/leases

                       Site Development and other                                                                     Pay Turn-Key
        3                                                                 Arrange and Develop
                        pre-opening requirements                                                                      and Approve

        4               Initial and ongoing training                               Opening                    Attend and Participate

        5                            Opening                               Arrange and Attend                          Participate

        6                               Fees                                       Collect                                Pay

                       Compliance with standards
        7                                                                        Administer                             Adhere To
                       of operations and guidelines

                              Trademark and
        8                                                                  Protect and Police                        Non-Disclosure
                           Proprietary Information

                          Restrictions on products
        9                                                                        Administer                             Adhere to

                          Warranty and customer                               Administer and
       10                                                                                                               Adhere to
                           service requirements                                 Develop

                               Ongoing product                                Administer and
       11                                                                                                               Adhere to
                              /service purchases                                Develop

                         Maintenance, appearance                              Administer and
       12                                                                                                               Adhere to
                             and remodeling                                     Develop

       13                           Insurance                                    Standards                               Secure

                                                                             Opening, Assist
       14                   Owner’s Participation                                                                        Secure

       15                      Inspection/audits                                  Evaluate                             Adhere to

       16                      Records/Reports                                     Monitor                     Adhere to and secure

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,
published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD                                        4
MALAYSIA: Basic Franchising Information
     13. INDEMNITY

  Kindly note that as Franchisor, FOOD DISCOVERIES (M) SDN BHD, its appointed agents,

     14. ARBITRATION

  IMPORTANT NOTES:

  giving advice and information to the Applicant , assisting the Applicant to consider and to operate a

                 FOOD DISCOVERIES (M) SDN BHD /DELI CORPORATION SDN BHD (hereinafter

  Franchisor and to seek other appropriate independent advice, and that the decision to enter into the

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,
published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD                      5
Food Discoveries (M) Sdn Bhd                                           (220589-P)
                             (A member of the Dave's Deli Group)

                     11A-15, Jalan PJU 1A/12, Taman Perindustrian
                        Jaya, 46050 PJ, Selangor D.E, Malaysia.

                                      t   + (60) 3-7845 2268
                                      f   + (60) 3-7845 3268
                                     e    franchise@davesdeli.com.my

                               www.davesdeli.com.my

The Copyright of this document is the property of FOOD DISCOVERIES (M) SDN BHD (220589-P) and is not to be copied,
         published or circulated in whole or in part without the consent of FOOD DISCOVERIES (M) SDN BHD
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