Michel's FAQs

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Frequently Asked Questions Q : A :

Do I require any special experience?

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What is the term of a franchise agreement ?

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What is the total cost of acquiring and opening a Michel’s franchise?

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What does the total cost include?

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Do I have to pa y a deposit? If so when and under what circumstances would I lose my deposit or any part of it ?

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No, although having business experience is always an advantage. We provide comprehensive training for all areas of your new store, which covers theory and practical training at the RFG academy and in one of our operating stores, plus extensive Coffee (Barista) training.

New franchisees are ordinarily granted a five (5) year initial franchise term together with an option to renew for a further five (5) years. This may vary depending upon the term of the lease applicable to the site.

A new store can range in price from $325,000+ GST to $345,000+ GST.

It includes a fully fitted-out store and equipment, training, manuals and initial franchise fee but excludes GST.

A $3,300 deposit is payable upon application. These monies, less the franchisor’s reasonable expenses (to a maximum of $300), are refundable if the application is not approved.

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What ar e the ongoing fees of the franchise?

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How much profit will I make?

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Who selects the site?

A franchise service fee of 7% (plus GST) of your total gross sales is payable in connection with the Michel’s Patisserie franchise system. A marketing contribution equal to 3% (plus GST) of your total gross sales is also payable into an independently audited marketing fund. This fund is used to collectively promote increased customer awareness and provide each store with promotional material and ongoing marketing services to facilitate constant attraction of new customers, increased average dollar sales and the frequency of purchase.

This depends largely on several factors such as the value of wages paid, cost of goods and other operating costs and generally how you operate your business. We have identified certain key performance indicators which are monitored in order to maximise your profitability.

Michel’s Patisserie will select the site and secure the lease. Ultimately however, you must satisfy yourself as to the suitability of the premises.

Page 1 of 3 Information provided by Michel's Patisserie and correct as of 22/2/13 - while all care is taken, information should always be confirmed with franchisor. To contact Michel's Patisserie, call Faith Manning, National Sales and Leasing Coordination Manager, at 1800-067-619 or send an email to faith@rfg.com.au

www.franchisebuyer.com.au


Frequently Asked Questions Q : A :

What initial franchise fees are payable?

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Do I need any other money to start ?

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What services are included in return for the franchise and marketing fees?

• $50,000 (plus GST) - initial franchise fee • $13,000 (plus GST) - training fee • $3,000 (plus GST) - initial marketing fee The Franchisor’s disclosure document provides full details of all fees and costs in connection with the establishment of a Michel’s Patisserie franchise.

It is recommended that you have money available to be used as working capital and as a minimum we would expect you to have $30,000. For example, this will cover costs such as accounting and legal fees, business and public liability insurance and your first day’s trading stock and packaging. You will also need to budget for accommodation and living away from home expenses while at our training academy in Queensland. For a more precise list of costs associated with the acquisition of the franchise, refer to the Franchisors Disclosure Document.

The services you will receive cover a wide range of management assistance and operational services, including: • On-going operational training, tools and support; • Marketing support including national advertising, public relations campaigns, media selection and national media placement; • Stringent quality control standards; • A Business Development Manager (BDM) to assist franchisees with all aspects of daily operations to ensure appropriate performance levels and quality standards.

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Can I get any special finance?

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Who are the main competitors to Michel’s Patisserie?

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Have you got any sites ready to go ?

We are an approved franchise system with several major financial institutions. Retail Food Group will provide contacts on request.

Other competitors in our market include local patisseries, Gloria Jeans, Zaraffas, Coffee Club and Jamaica Blue. Michel’s Patisserie’s strength lies in our exclusive award winning coffee, delicious sweet treats and scrumptious savouries, plus the security of being part of Australia’s largest multi-brand franchising group – Retail Food Group.

Yes. Refer to the Franchises Available section of our website (www. rfg.com.au) for the complete state based listing of new and resale sites available.

Page 2 of 3 Information provided by Michel's Patisserie and correct as of 22/2/13 - while all care is taken, information should always be confirmed with franchisor. To contact Michel's Patisserie, call Faith Manning, National Sales and Leasing Coordination Manager, at 1800-067-619 or send an email to faith@rfg.com.au

www.franchisebuyer.com.au


Frequently Asked Questions Q : A :

Are Franchisees expected to actively work in store?

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Why should I purchase a Michel’s Patisserie?

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What should I do next?

Yes. Franchisees are expected to work in store. This is an important factor in the success of our stores.

Michel’s Patisserie offers delicious cakes and savouries as well as award winning espresso coffee; • Comprehensive training at our purpose built Training Academy on the Gold Coast with dedicated, experienced and qualified trainers; • Proven franchise operating system; • Field training and ongoing support; • National integrated advertising and promotional campaigns; • A cash business offering minimal risk of bad debt; and • The opportunity to become a successful business owner.

Contact RFG to discuss suitable sites in your area on 1800 067 619 or email rfga@rfg.com.au with your contact details and one of our state based Franchise Recruitment Executives will make contact with you. 1. Attend an information meeting with the Franchise Recruitment Executive. 2. Review all information obtained during the meeting and make a decision on your preferred store/site. 3. Request an application form and disclosure document. 4. Complete the application and post to RFG once completed. 5. Confirm your purchasing ability with your bank and with your accountant. 6. Speak to existing franchisees. 7. Seek legal and financial advice. Please see over for more details regarding the approval process for both the purchase of new stores and existing stores.

Page 3 of 3 Information provided by Michel's Patisserie and correct as of 22/2/13 - while all care is taken, information should always be confirmed with franchisor. To contact Michel's Patisserie, call Faith Manning, National Sales and Leasing Coordination Manager, at 1800-067-619 or send an email to faith@rfg.com.au

www.franchisebuyer.com.au


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