FRANCHISING AT TeaGschwendner Successful self-employment
What began as Albert Gschwendner s passion for tea has become a way to experience the entire world of tea. BUSINESS PHILOSOPHY TOGETHER WE ACHIEVE SUCCESS WITH A STRONG BRAND TeaGschwendner started Franchising as one of the first businesses in Germany in 1981. Since then, the company has expanded constantly and has become the German market leader in specialized retail tea trade. The Headquarters are based in Meckenheim, Germany and supports more than 140 partners worldwide. In the shops with an average size of 55 square metres, around 300 varieties of loose leaf teas are sold, 60 % of which are organic. The assortment in combination with an excellently organized franchise system is the basis for our success. The development of our own distribution channel gives us all the entrepreneurial freedom that, in its full utilisation, ensures our unique appearance. We sell with our own quality- and quality assurance guidelines, which are uncompromising in any way. Our prices are fair and our customers recognize the added value of the quality. Albert Gschwendner about the core competencies of his company. The success of a franchisee is substantial for the success of the whole company and vice versa. Assigned tasks generate synergy and win-win strategies. 2
SUCCESSFUL PARTNER ENTREPRENEURS WITH A PASSION FOR TEA Do you love tea and identify with the concept of TeaGschwendner and our dedication to premium quality? Are you commercially trained or experienced? Do you have an entrepreneurial mind and consider yourself as a sales person with great communicational skills? If so, then you fulfill all the requirements to successfully lead a TeaGschwendner shop. Self-employment in a retail atmosphere requires a business person who is passionate about the product and has the commercial expertise to operate skilfully. A recent internal survey has identified the positive characteristics of our most successful partners. Although they come from different backgrounds and experiences, successful partners make optimal use of the TeaGschwendner system to achieve success for their shop. They follow the guiding principles and sales philosophy of TeaGschwendner and use the provided marketing tools to their fullest. Furthermore, they are constantly developing their team and are actively engaged in the development of their whole business. Lastly, successful partners handle accounting with diligence and are committed towards the steady development of the brand and the system of TeaGschwendner. YOUR PROFILE You have commercial skills You have a passion for tea You are success-oriented and motivated You can identify with our brand You know that retail is a challenging business You have an entrepreneurial attitude You want to be the market leader in your city You have the needed starting capital We are looking forward to your application to be part of our award-winning franchise system. 3
EXCELLENT TEA! 5 REASONS FOR THE BEST ASSORTMENT EXPERTISE: For 30 years, our internationally renowned tea tasters have been leading experts in the German tea trading business. They have cultivated direct relationships with farmers in countries of origin and have utilized their expertise through constant innovation to assure an excellent premium assortment of tea. HIGHEST QUALITY ASSURANCE: Purchasing tea is a matter of trust. We thoroughly test each and every tea for contaminants and pesticide residues before and after purchasing. Our scientists perform all testing at our in-house laboratory and abide by verified scientific methods that are stricter than the law requires. WIDE ASSORTMENT: There is something for everyone to be found in our collection: From traditional black, green, oolong and herbal offerings to our diverse aroma collections and delicious fruit, rooibush and honeybush tisanes, TeaGschwendner offers only the highest quality in each respective category. All flavours are derived from natural ingredients and over 60 % of our collection is organically certified. IN-HOUSE PRODUCTION: All teas are blended, processed and packaged in our own production facility to guarantee the quality and freshness of our products. SOCIAL RESPONSIBILITY: We are committed to the social component of our products. We take responsibility for our actions by initiating projects like the integrated Nepal project. I ve been buying tea for the last 10 years from TeaGschwendner I have tried many teas and the most I like is from TeaGschwendner. My conclusion: life is too short to drink bad tea, that s why I will spend more money on the good tea for a good quality. ekomi Customer rating. 4
AWARD-WINNING FRANCHISING! 5 REASONS FOR THE BEST SYSTEM EXPERTS: Experienced franchise managers work professionally in all relevant areas within the franchise partnership. Their experience is based on hundreds of successfully realized projects. START-UP & SUPPORT: We support finding the right location as well as planning the investment, profitability and the opening event. In addition to permanent consultation, information is sent on a regular basis from headquarters. TRAINING: In-store training is provided before your official opening. The training consists of tea education, sales, and it is free of charge. EXCHANGE: Collaboration and exchange are the key factors to make our system even more successful. Suggestions for improvement are always appreciated and meetings for collaboration are made on a regular basis. CENTRAL WAREHOUSE: Our main warehouse with tea and accessories is located in Meckenheim. The centralized procurement helps keep the cost low. 5
SUCCESSFUL COMMUNICATION OVERALL MARKETING CONCEPTS FOR A COHERENT BRAND APPEARANCE Living, presenting and communicating the guiding principles of TeaGschwendner is our main task. Strong, brand-oriented concepts are the main elements for the success of our brand and the brand am- bassadors our franchise partners. Therefore, TeaGschwendner is constantly improving its brand in regards to packaging and advertising material in line with our Corporate Identity, the professional presentation of our products and overall Point-of- Sale-Promotions. Advertising material like the book of tea or flyer with tea recipes are the main advertising materials used for the communication with the customer. Additionally, the Marketing department supports the partner with individual designed flyers or ads. The success of the overall Marketing campaign is based on the engagement of the local partners. After a successful start with our Store-opening-Marketing program, we focus on customer acquisition, loyalty and development. Brand communication is done digitally via website, social media or direct mail. The best tea, an optimal brand appearance, a traditional but innovative concept that makes me easily become a successful entrepreneur. Alexander Dirrichs, TeaGschwendner Aachen/ München 6
ONE STEP AHEAD AN INNOVATIVE EXPERIENTIAL-STORE CONCEPT Our store concept is your stage for success. The high-quality furniture invites the customer to actually experience the world of tea. Professional consulting and tasting possibilities keep the customer intrigued and i ncreases the satisfaction of the overall in-store experience. Since 2014, our unique store concept has enriched the retail market and has been an important cornerstone to tap into attractive locations and address new target groups. The flagship store in Hamburg represents how the combination of urban straightforwardness, inspirational discovery and tea consulting combines the needs of various tea customers. On 240 m² spread over 2 floors the modern combination of a stylish ambience, light colours and a straight design directs the customer towards the point: the premium assortment with the best tea varieties in the world! The store concept does not only offer possibilities to present the teas, rather it invites the customer to experience, smell, sniff and taste tea. Further, the tea consultants inspire the customer with competent consulting and their passion for our wonderful product. Our principle guidelines are reflected by the shop design: energy efficient and high-quality material that underlines our demand towards our assortment. 7
SATISFIED FRANCHISEES BEING SUCCESSFUL WITH DELIGHT! AGNES, USA: Since I was a little girl I have been drinking tea on daily basis. Tea for breakfast, tea with cake, tea in the afternoon and evening before going to bed. It has been and it is my main liquid consumption on daily basis. In very short form: I love tea. I don t drink coffee, pop or smoothies. However, until I have discovered TeaGschwendner my tea consumption was only from tea bags at the local grocery store. Now with the access for over 250 teas, I am in heaven. I love the product because I know that TeaGschwendner offers only the best. Premium loose leaf tea which offers natural, pure, pesticides free and no sugar added products. In 2014 I was able to travel with TeaGschwendner team to Japan to learn more about Japanese culture and teas of course and this year I will attend herbal trip to Austria-how exciting! Every year I can t wait to visit Meckenheim headquarters to learn more. Franchise international is updating me on regular basis with any changes in assortment, new teas and accessory offers. Anytime we have sources or any tea questions the tea department is always there to help. Their replies are quick and adequate. I am glad I own TeaGschwendner store and I am proud of it. MARKETA PUZRLOVA, Prague: Franchising with TeaGschwendner saves you a lot of time, because you receive a perfect store concept which is stylish and modern and an extraordinary, excellent product you like to work with and can rely on. At the same time you are able to concentrate on actually selling the product and do your business well. Owning a foreign franchise business takes a lot of effort in sales and communication with the customer to explain the uniqueness of the product and the services. It is a great adventure, exhausting but also wonderful. Thanks to the franchise you can rely on maximal support from the colleagues of headquarters. NAWAF AL-GHARABALLY, Kuwait: My sister visited the TeaGschwendner shop in Frankfurt in 2005. When she returned to Kuwait she told me about an amazing tea shop she saw and asked me why we won t open this shop (TeaGschwendner) in Kuwait. For me it was a bold and strange idea, because we didn t have any tea shops in Kuwait or the GCC so far, so I told her that I will do a study on the franchise. But the problem was no company can do a study on the shop when there is no history of a tea shop in the area, so we forgot the idea. In 2006, she reminded me about it, and I decided to open a testing branch (low cost shop), and it worked very well, why we expanded the shops. What we like most about TeaGschwendner is its unique design, the tea varieties and taste as well as the excellent and supportive franchise system. After 9 years of opening the first shop we are very confident from the brand against any competitors. ABDULAZIZ, Saudi-Arabia: TeaGschwendner happens to be a highly beloved brand in Saudi Arabia, and we ve been very fortunate to carry the legacy for more than a decade now. Since 2005, the Saudi society have grown to love the variety of teas provided by the mother company, to indulge with the aromatic experience, and to demand high quality standards from the entire industry. We look forward to many more fruitful years with TeaGschwendner, given that our franchising experience has been professional, support oriented, and culturally enriching. 8
THE SELECTION PROCESS 8 STEPS TO REACH YOUR DREAM Step 1: Step 2: Step 3: Step 4: Step 5: Step 6: Step 7: Step 8: Mailing of your curriculum vitae and filled-out franchise application form. Get to know each other via video conference. Visit of headquarters in Germany for 3 days. Signing of a pre-contract. Presentation of a concrete profitability calculation for a certain location. Approval of financing from your bank. Pre-contractual disclosure and signature of franchise contract. Store opening After the sophisticated application process TeaGschwendner was sure that I was the one, but I also knew that I have made the right choice. Romy Reschke TeaGschwendner Wildau, Germany. 9
FRANCHISE CONDITIONS Contract duration 5 years + 5 years extension option Investment From 100,000 Needed equity 20% of investment* Entrance fee 20,000 Ongoing franchise fee Marketing fee Location protection None 4% of pure tea purchase One shop per zip code *depends on bank regulation of home country. 10
SERVICES AT ONE GLANCE START-UP PROGRAM Location selection Calculation of financial profitability Calculation of investment Shop fitting Support of Soft-/ Grand opening Workshops and trainings SUPPORT Information by Newsletter and Intranet Regular visits Franchise handbook and intercompany comparison Partner management Commercial consulting IT-Support COMMUNICATION Annual meeting of all franchisees Intranet with exchange possibilities Customer Relation Management MARKETING Overall marketing appearance Regional PR- and advertisement concepts Digital offers and social media Over 100 registered brands Local adaptation of projects TEA Quality-oriented procurement by renowned tea taster Supplier development in the countries of origin Permanent development of the assortment Development of new teas according to trends Quality assurance at the highest standard (sensory and analytical control in our own laboratory) TRAINING Tea trainings Sales training Commercial training Marketing training Tea Sommelier 11
EXCELLENT FRANCHISING CONFIRMED BY DR. AHLERT (F&C) CONTACT Successful franchise systems are characterized by a strong brand, a service range with differentiated benefits and a great relationship between headquarters, franchise partners, employees and customers. F&C satisfaction award as «Best franchise system» F&C Gold award Member of German Franchise Association Thereby customer satisfaction and loyalty is assured the basis for sustainable business success. TeaGschwendner offers a well-known brand, a promising product and service range. In the year of 2016, 98% of all franchise partners stated that they would recommend the system to friends and family, while 95% would choose the system again, if they had the choice. Therefore TeaGeschwendner is one of the premium franchise systems in Germany. In the years of 2009, 2013 and 2016 TeaGschwendner was awarded with the F&C AWARD GOLD (since 2008). In 2005, 2009 and 2013 they were also awarded the best system of all F&C partner satisfaction surveys. Are you interested in a franchise partnership? Our inter national franchise team is looking forward to your contact! Apply now via E-Mail to international@teegschwendner.de Anonymous survey of all franchise partners. A system check is required every 3 years by the German Franchise Association (DFV). Dr. Martin Ahlert General Manager International Center for Franchising & Cooperation Heidestraße 26 53340 Meckenheim Germany Telefon +49 2225 92140 Fax +49 2225-921420 international@teegschwendner.de www.teagschwendner.com