Rita s Franchise Company Outlet Economics
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1 Rita s Franchise Company Outlet Economics Robert Tarr (717) Doug Portrey (202) Area Developers State of Alabama
2 Greetings
3 Agenda Dear Prospective Franchisee, we re excited to provide you with the following information to aid in your due diligence to join our franchise family: Rita s Production Prototype Outlets Investment Information Average Sales Of Proprietary Products At Franchised Shops (Outlined in Item 19 of Rita s US 2014 FDD) Proprietary Product Percentage of All Proprietary Products Reported for Sale (Outlined in Item 19 of Rita s US 2014 FDD) Key Facts About Rita s Exciting Franchise Opportunity Rita s Comparison Competitive Matrix Rita s Executive Leadership Team
4 Rita s Production Prototype Outlets
5 Rita s Production Prototype Outlets Walk Up Window Service Outlet: Self contained, includes full menu and production area. Ideally square foot outlet. Walk Up Exterior Queuing. Walk Up Interior Queuing. Outdoor Seating. Walk In with Inside Seating Service Outlet: Self contained, includes full menu and production area. Ideally square foot outlet. Air conditioned/heated retreat in extreme climates. Includes indoor and outdoor seating.
6 Rita s Production Prototype Outlets (Cont.) Express Service Outlet: Self contained unique location and production area. May have full or limited product menu. Unique and specialty venues* Mobile Satellite Service Outlet: Supported by production store. Truck, Trailer, Cart. Limited product menu. Endless opportunities for variety of community events. Fixed Satellite Service Outlet: Unique, small retail location. Ideally 600 square feet or less. Unique and specialty venues* *Amusement parks, ball fields, convention centers, stadiums, college universities, casinos, boardwalks, malls, outlet malls, transportation hubs and airports.
7 Investment Information
8 Investment Information WALK-IN WITH INSIDE SEATING & WALK-UP WINDOW OUTLETS: Franchise Fee $0...$30,000 Lease Deposit $1,000...$15,000 Leasehold Improvements $60,000...$160,000 Equipment $35,000...$105,600 Permits & Licenses $100...$1,800 Signs & Awnings $5,000...$20,000 Prepaid Insurance Premium $1,500 Initial Order $8,000...$13,000 Grand Opening Advertising $0...$20,000 Training $500...$5,000 Architect & Attorney Fees $8,500...$12,000 Working Capital (3 months) $20,000...$30,000 Total Investment Range* $138,100...$413,900 *Total investment range above is for US markets only and may differ for international markets.
9 Investment Information EXPRESS OUTLET: o o o Self contained unique location & production area Full or limited product menu Unique and specialty venues** *Total investment range above is for US markets only and may differ for international markets. Franchise Fee $0...$15,000 Lease Deposit $1,000...$10,000 Leasehold Improvements $35,000...$125,000 Equipment $28,000...$95,600 Permits & Licenses $100...$1,800 Signs & Awnings $2,000...$15,000 Prepaid Insurance Premium $0 $1,500 Initial Order $8,000...$8,500 Grand Opening Advertising $0...$10,000 Training $500...$5,000 Architect & Attorney Fees $8,500...$12,000 Working Capital (3 months) $15,000...$20,000 Total Investment Range* $98,100...$319,400 **Amusement parks, ball fields, convention centers, stadiums, college universities, casinos, boardwalks, malls, outlet malls, transportation hubs and airports.
10 Investment Information FIXED LOCATION SATELLITE OUTLET: o o Unique small retail location Specialty venues** Franchise Fee $0...$15,000 Lease Deposit $0...$15,000 Leasehold Improvements $50,000...$125,000 Equipment $28,000...$70,000 Permits & Licenses $100...$1,800 Signs & Awnings $0...$15,000 Prepaid Insurance Premium $0 $1,500 Initial Order $0...$3,700 Grand Opening Advertising $0...$10,000 Training N/A Architect & Attorney Fees $8,500...$12,000 Working Capital (3 months) $15,000...$20,000 Total Investment Range* $101,600...$289,000 *Total investment range above is for US markets only and may differ for international markets. **Amusement parks, ball fields, convention centers, stadiums, college universities, casinos, boardwalks, malls, outlet malls, transportation hubs and airports.
11 Investment Information MOBILE SATELLITE OUTLET: o o o o Supported by production outlet Cart, Trailer or Truck Limited product menu Endless opportunities for variety of community events Franchise Fee (up to 3) $0...$10,000 Lease Deposit N/A Leasehold Improvements N/A Equipment $15,000...$125,600 Permits & Licenses $100...$1,500 Signs & Awnings N/A Prepaid Insurance Premium $1,500 $4,500 Initial Order $0...$3,700 Grand Opening Advertising $0...$10,000 Training N/A Architect & Attorney Fees N/A Working Capital (3 months) N/A Total Investment Range* $16,600...$155,300 *Total investment range above is for US markets only and may differ for international markets.
12 Average Sales Of Proprietary Products At Franchised Shops
13 Average Sales Of Proprietary Products At Franchised Shops (Outlined in Item 19 of Rita s US 2014 FDD) The following chart represents our estimates of the Average Sales of franchised Shops for Italian ice, Gelati, Frozen Custard, Misto Shakes, and Blendini in 2013: * TOP THIRD MIDDLE THIRD BOTTOM THIRD Number of shops Range of sales: High $672,556 $271,181 $196,313 Low $273,191 $196,939 $65,403 Average $340,341 $232,933 $152,546 *If a Franchisee also has a Mobile Unit the sales of the Mobile Unit are included with the sales of the Standard Shop.
14 Proprietary Product Percentage of All Proprietary Products Reported for Sale
15 Proprietary Product Percentage of All Proprietary Products Reported for Sale (Outlined in Item 19 of Rita s US 2014 FDD) The Product Percentages for the 2013 season, as determined from Franchisees franchised Shop register tapes (described in previous slide) are described below. The Product Percentages vary based upon a Franchisee s location: Proprietary Product Percentage of All Proprietary Products Reported for Sale ITALIAN ICE 32.7% GELATI 27.2% CUSTARD 22.3% MISTO SHAKE 4.8% BLENDINI 5.5% MISCELLANEOUS 7.5% TOTAL %
16 Key Facts About Rita s Exciting Franchise Opportunity Scalable Units: From carts to kiosks to in line to stand alone units. Extensive Online Support: Web based and classroom training through Cool University. Detailed Start Up Support: Construction, operations and marketing manuals. Cool Support Center Staff: Focusing on Franchising, Real Estate, Construction, Operations, Training, Procurement, IT, Research & Development, Marketing, and Finance.
17 Special Brand Features Rita s Cold Stone Haagen -Dazs Baskin Robbins Dairy Queen Ben & Jerry s Exceptional, unexpected, maximum taste and quality Yes No No No No No Healthy, low fat product line: Rita s Ice Yes No No No No No Affordable product for all consumers Yes No No Yes Yes No Relatively low initial unit investment, fast breakeven Yes No No Yes No yes Scalable units from carts to full service stores Yes No Yes No No??? Relatively simple business model and operation Yes No Yes No No No Strong Facebook online marketing focus Yes Yes No Yes No Yes Iconic US brand with a cult following Yes No No Yes Yes Yes Wide range of products and flavors Yes Yes Yes Yes No No Able to localize flavors Yes Some No Some No Some Primary product made fresh daily in store Yes Yes No No No No Amusement parks, sports stadium movable units Yes No Yes Yes No No Mostly liquid, non-refrigerated product supply chain Yes No No No No No High margin ice dessert product Yes No No No No No Licensees in Canada, China, India and Philippines Yes No Yes Yes No No Extensive online training, sales and cost management tools Yes No Yes Yes Yes Yes Rita s wins: Great taste, low unit investment, low labor costs and low food costs.
18 Senior Executive Leadership Team
19 Executive Leadership Team Comprised of visionaries and retail experts with over 150+ years of collective experience managing leading food and beverage brands including Pizza Hut, Subway, Sbarro, KFC, Metromedia Restaurant Group, Burger King, PepsiCo, and Campbell s Soup. Mike Lorelli Executive Chairman Jeff Moody President & CEO Eric Taylor SVP & CDO
20 Executive Leadership Team Comprised of visionaries and retail experts with over 150+ years of collective experience managing leading food and beverage brands including Pizza Hut, Subway, Sbarro, KFC, Metromedia Restaurant Group, Burger King, PepsiCo, and Campbell s Soup. John Dombroski SVP & CFO Lauriena Borstein SVP of Operations
21 Thank you. Prepared by : Robert Tarr (717) Lighthouse612@gmail.com Doug Portrey (202) dportrey@comcast.net Area Developers State of Alabama
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