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<strong>Franchise</strong> Information Pack<br />

<strong>Franchise</strong><br />

Information Pack<br />

(August 2011)<br />

Contact Information<br />

Company: <strong>Schnitz</strong> Franchising Pty Ltd<br />

ABN:<br />

ACN:<br />

34 138 490 070<br />

138 490 070<br />

Address: Level 2, 3 River Street<br />

South Yarra, VIC 3141<br />

Phone: 1300 729 900<br />

Fax: 1300 729 800<br />

Contact Person: Andrew Dyduk<br />

Mobile: 0410 649 808<br />

Email: andrew@schnitz.com.au<br />

© <strong>Schnitz</strong> Franchising Pty Ltd – Commercial in Confidence Page 1 of 28


<strong>Franchise</strong> Information Pack<br />

Table of Contents<br />

1. About <strong>Schnitz</strong> .............................................................................................................................. 3<br />

1.1 Business Overview ................................................................................................. 3<br />

1.2 Vision, Mission & Values ........................................................................................ 3<br />

1.3 Who owns <strong>Schnitz</strong>? ................................................................................................. 4<br />

1.4 Management Team & Experience........................................................................... 5<br />

2. The <strong>Franchise</strong> Opportunity.................................................................................................... 8<br />

2.1 Expansion Strategy................................................................................................. 8<br />

2.2 Current <strong>Franchise</strong> Opportunities............................................................................ 8<br />

2.3 Site Selection ........................................................................................................ 10<br />

3. Product Menu & Pricing ....................................................................................................... 11<br />

3.1 Product Categories............................................................................................... 11<br />

3.2 Product Development........................................................................................... 11<br />

3.3 Menu Boards......................................................................................................... 12<br />

4. Proposed Store Design & Fit-out ...................................................................................... 13<br />

4.1 Proposed <strong>Schnitz</strong> Store Design............................................................................. 13<br />

4.2 Proposed <strong>Schnitz</strong> Store Fitout ............................................................................... 16<br />

5. Training & Support................................................................................................................. 17<br />

6. Key Benefits & Opportunities............................................................................................. 18<br />

7. <strong>Franchise</strong> FAQs.......................................................................................................................... 19<br />

8. <strong>Franchise</strong>e Selection Process ............................................................................................ 23<br />

9. Next Steps.................................................................................................................................. 26<br />

10. Expression of Interest Form ............................................................................................ 27<br />

© <strong>Schnitz</strong> Franchising Pty Ltd – Commercial in Confidence Page 2 of 28


<strong>Franchise</strong> Information Pack<br />

1. About <strong>Schnitz</strong><br />

1.1 Business Overview<br />

<strong>Schnitz</strong>® is a fast casual food franchise unlike any other. It is the first specialist schnitzel franchise in<br />

Australia (and probably the world!), offering five types of pan-cooked schnitzels (chicken, beef, pork, fish<br />

& vegetarian) which are crumbed and cooked to order then served in toasted Laurent® Rolls or tortilla<br />

Wraps in a delicious range of 18 unique flavours.<br />

<strong>Schnitz</strong> also serves a range of gourmet Salads that are served with or without our <strong>Schnitz</strong>el Strips and for<br />

customers that don’t feel like crumbs they can enjoy our mouth-watering Crumb-free Chicken Fillets<br />

marinated in either Moroccan spices or in Lemon Pepper.<br />

<strong>Schnitz</strong> is also rapidly developing a reputation for having the best chips in town. Our customers can’t get<br />

enough of our famous, award-winning crunchy <strong>Schnitz</strong> Chips – diamond-cut and beer-battered Tasmanian<br />

Russet potatoes cooked in 100% cholesterol-free canola oil then lightly sprinkled with Tom’s secret<br />

seasoning recipe (a recipe which he spent 3 months perfecting!). Totally addictive!<br />

All items on the <strong>Schnitz</strong> Menu are made using only the finest ingredients from quality Australian suppliers.<br />

Our food is prepared daily, using market fresh produce that meets the expectations of even our fussiest<br />

clientele. We invite anyone that loves schnitzels to visit one of our stores and experience what a real<br />

schnitzel should taste like - once you’ve had a schnitzel at <strong>Schnitz</strong> you’ll never go anywhere else!<br />

1.2 Vision, Mission & Values<br />

<strong>Schnitz</strong> have been lauded by many of our contemporaries for the uniqueness of our offering. Our vision is to<br />

pioneer and dominate the new niche we have created in what is already a competitive and saturated fastcasual<br />

food market and to create business opportunities for our franchisees that generate passive income.<br />

Our mission is to deliver the finest quality products using quality market fresh produce. Our products are<br />

made to order following a consistent process and exacting recipes to ensure our customers have a dining<br />

experience that has them telling their friends about it. Our stores must deliver on our promise of serving<br />

the best pan-cooked schnitzels in a trendy environment that gives our customers value-for-money in every<br />

aspect of their experience.<br />

We value our customers and their input on growing our businesses and brand. Their satisfaction is only<br />

possible if we recruit, train and retain the best team members and as such we make sure that our work<br />

environments are not only fun but that all our staff share our collective vision and service our customers in<br />

an efficient and friendly manner that respects the values of other team members and our customers.<br />

© <strong>Schnitz</strong> Franchising Pty Ltd – Commercial in Confidence Page 3 of 28


<strong>Franchise</strong> Information Pack<br />

1.3 Who owns <strong>Schnitz</strong>?<br />

<strong>Schnitz</strong> Franchising Pty Ltd is a private Australian company owned and operated by Roman Dyduk and his<br />

two sons, Andrew and Tom.<br />

Roman Dyduk<br />

Director & Construction Manager<br />

Roman is a Director of <strong>Schnitz</strong> Australia Holdings Pty Ltd and all subsidiaries. He is<br />

responsible for overseeing Site Selection, Store Design and Store Fitout for all our<br />

<strong>Schnitz</strong> stores. He has over 36 years experience in setting up and operating cafes and<br />

restaurants and is involved in all aspects of a setting up new <strong>Schnitz</strong> franchisee<br />

stores. Roman and his team of Leasing Executives, Architects and Shopfitters are<br />

responsible for finding the best, high traffic locations, negotiating favourable rent<br />

terms and then designing/constructing the most functional and practical stores to<br />

ensure our franchisees have the best chance of success when they operate their<br />

stores.<br />

Contact Details<br />

Mobile: 0417 339 227<br />

Email: roman@schnitz.com.au<br />

Andrew Dyduk<br />

Director & CEO<br />

Andrew is a Director of <strong>Schnitz</strong> Australia Holdings Pty Ltd and all subsidiaries. As CEO<br />

he is involved in developing and implementing <strong>Schnitz</strong>’s corporate strategy. Andrew<br />

and his team of <strong>Franchise</strong>e Recruiters, Marketers and Web Developers oversees all<br />

new <strong>Franchise</strong> Sales, <strong>Franchise</strong>/Store Marketing, IT Systems and Administration.<br />

Andrew has grown up with hospitality and has over 11 years experience in marketing<br />

for small businesses. He will work with new <strong>Franchise</strong>es to help them attract and<br />

retain great customers, improve average dollar sales and generate higher revenues<br />

and profits.<br />

Contact Details<br />

Mobile: 0410 649 808<br />

Email: andrew@schnitz.com.au<br />

Tom Dyduk<br />

Operations Manager<br />

Tom is in charge of Operations Management, Training and HR for <strong>Schnitz</strong>. Tom has<br />

over 13 years experience in setting up and operating restaurants and cafes and will<br />

be involved in training new <strong>Franchise</strong>es on how to run their <strong>Schnitz</strong> <strong>Franchise</strong><br />

efficiently and profitably. Tom will provide training on all aspects of running their<br />

new business including how to recruit, train and retain great staff to make their<br />

business a success. Tom will also assist with all matters relating to the operations of<br />

our franchisees stores as he is a very efficient and frugal business operator.<br />

Contact Details<br />

Mobile: 0416 286 997<br />

Email: tom@schnitz.com.au<br />

© <strong>Schnitz</strong> Franchising Pty Ltd – Commercial in Confidence Page 4 of 28


<strong>Franchise</strong> Information Pack<br />

1.4 Management Team & Experience<br />

Roman Dyduk<br />

Director, Founder, Construction Manager, Restaurateur & Registered <strong>Schnitz</strong>-a-holic<br />

For the last 36 years, Roman Dyduk has been designing, building and improving his Melbourne cafes and<br />

restaurants. Roman’s life passion is cooking and experimenting with healthy ways of cooking. He opened his<br />

first restaurant in 1975, SOS Pancake & <strong>Schnitz</strong>el Hut on the corner of Flinders Lane and Spencer St<br />

(Melbourne). He has established and operated the following successful cafes/restaurants:<br />

1. SOS Pancake & <strong>Schnitz</strong>el Hut (Corner Flinders Lane & Spencer St, Melbourne)<br />

2. Szarotka Cafeteria (Flinders Fair Shopping Centre, Melbourne CBD)<br />

3. Romano’s (Glenferrie Rd, Malvern)<br />

4. Café Romano (Burke Rd, Camberwell, near Camberwell Junction)<br />

5. Café Romano (Glen Waverley)<br />

6. Roman’s Café (Glen Waverley)<br />

7. Romanis (St Kilda Rd, Melbourne)<br />

8. Buffets Brasserie (Flinders T, Melbourne)<br />

9. Good Taste Café (King St, Melbourne)<br />

10. JJ Connoisseur’s (Lonsdale St, Melbourne)<br />

11. JC’s Cafe (Spencer St, Melbourne)<br />

12. Full Plate Café (Flinders Lane, Melbourne)<br />

13. Café Kinetic (Flinders Lane, Melbourne)<br />

Over the years Roman has designed, developed and operated many different types of café and restaurant<br />

concepts including a number of very successful smorgasbord restaurants (Romanis, Buffets, JJ<br />

Connoissuer’s, Full Plate Café and Café Kinetic). The best selling and most praised items on his menu were<br />

his traditional, pan-cooked schnitzels.<br />

Roman developed the <strong>Schnitz</strong> concept in answer to the overwhelming amount of requests he received from<br />

his loyal customers. He learnt how to make the perfect schnitzel at a restaurant in Acland St, St Kilda back<br />

in 1974 and to this day has faithfully continued to make schnitzels to the exacting recipe that was taught<br />

to him so many years ago. He has turned schnitzel making into an art-form and his passion and dedication<br />

to satisfying his customers ultimately led to the creation of <strong>Schnitz</strong>.<br />

Apart from cooking amazing schnitzels, Roman’s expertise also abounds in the selection of prominent, hightraffic<br />

sites and the design and construction of his cafes/restaurants. He is an expert at kitchen layout<br />

design and store fit-out and built all his previous businesses from the ground up. Today Roman works with a<br />

team of Leasing professionals, Architects, Designers and Shopfitters to select the best sites, design<br />

functional stores and build high-quality stores that look and feel great.<br />

Roman can be contacted on 0417 339 227 or via email: roman@schnitz.com.au<br />

© <strong>Schnitz</strong> Franchising Pty Ltd – Commercial in Confidence Page 5 of 28


<strong>Franchise</strong> Information Pack<br />

Andrew Dyduk BSc (Math & Phys)<br />

Director, CEO & Registered <strong>Schnitz</strong>-a-holic<br />

Andrew Dyduk is a Director of <strong>Schnitz</strong> Franchising Pty Ltd and joins <strong>Schnitz</strong> in the capacity of CEO. His role<br />

encompasses:<br />

• Corporate Strategy, Planning & Development;<br />

• <strong>Franchise</strong>e Selection;<br />

• Sales of New & Existing <strong>Franchise</strong> Businesses;<br />

• Marketing & Advertising;<br />

• Administration.<br />

Andrew has been involved in hospitality since a very young age. He worked on shop fitouts during his late<br />

teens and even worked at his father’s various businesses during his school and University holidays.<br />

After completing his Bachelor of Science (majoring in Mathematics and Physics) from Monash University,<br />

Andrew decided a career in IT was his calling. In 1999 he setup a web development and online marketing<br />

company called Kinetic Design Group Pty Ltd (KDG) which recently rebranded to “Kinetic Digital”.<br />

Kinetic Digital specialises in the design and development of websites, e-commerce systems, custom web<br />

and mobile applications and online marketing. Andrew held various roles at Kinetic Digital including<br />

Managing Director, Senior Business Analyst, Sales Manager and Business Development Manager. Over the<br />

years he has been involved in the development of hundreds of websites, dozens of complex, custom web<br />

and mobile applications and has been in charge of a team of Designers, Developers and Consultants.<br />

These days Andrew equally owns Kinetic Digital together with his business partner and CEO John Gabriel.<br />

Although Andrew is still a Director of Kinetic Digital Group Pty Ltd, he is not involved in the day-to-day<br />

operations of the business, instead committing all his time to growing <strong>Schnitz</strong>.<br />

Over 11 years experience consulting and working with organisations such as NAB, Sensis, Cengage Learning,<br />

Tony Bianco, Politix, Bristol-Myers Squibb, UCB Pharmaceuticals, Novartis Pharmaceuticals, Hayball<br />

Architects and hundreds of SME businesses from all industries has given Andrew a breadth of knowledge and<br />

an insight into the inner workings of small, medium and large companies. He has helped hundreds of<br />

businesses achieve great results from their marketing strategies. This ‘real-world’ practical business<br />

experience gives Andrew a solid grounding for heading the Marketing, <strong>Franchise</strong> and Administration areas of<br />

<strong>Schnitz</strong>.<br />

Andrew and his team diligently select the best <strong>Franchise</strong>es and will work with them to help them grow<br />

their businesses through cost effective and targeted marketing strategies aimed at growing and retaining a<br />

loyal customer following.<br />

Andrew can be contacted on 0410 649 808 or via email: andrew@schnitz.com.au<br />

© <strong>Schnitz</strong> Franchising Pty Ltd – Commercial in Confidence Page 6 of 28


<strong>Franchise</strong> Information Pack<br />

Tom Dyduk<br />

Operations Manager & Registered <strong>Schnitz</strong>-a-holic<br />

Tom holds the position of Operations Manager at <strong>Schnitz</strong>. His role encompasses overseeing:<br />

• Customer Relationship Management;<br />

• Staff Recruitment & Training;<br />

• Staff Rostering;<br />

• <strong>Franchise</strong>e Training & Management<br />

• General Store-level Operations Management<br />

Since the age of 13, Tom has been helping his father Roman with serving food at functions and helping his<br />

father with the fit-out of his various cafes/restaurants. He has grown up with hospitality and serving<br />

customers which is what makes him an excellent Operations Manager for <strong>Schnitz</strong>.<br />

Tom has excellent communication and people skills and relates to people from ‘all walks of life’ and ethnic<br />

backgrounds. He is committed to customer satisfaction and demands high levels of customer service from<br />

all his staff and franchisees.<br />

Tom studied Business Management and Marketing at Swinburne University and joined his father in 1997 at<br />

JJ Connoisseur’s as Operations Manager. Since then he has been involved in the fit-out and operation of 7<br />

of Roman’s food businesses and has honed his skills as a Restaurant Manager, Operations Manager and HR<br />

Manager.<br />

Tom also has Sales, Logistics and Warehousing experience working at various other companies including<br />

Dyna Leather Goods, Gray Nicolls Sports and Thomas Warburton. His other qualifications include:<br />

• Diploma of Health & Food Safety;<br />

• Responsible Serving of Alcohol Certificate;<br />

• Industrial Technology (Highest Achievement Award);<br />

• Senior First Aid Qualification (St John);<br />

• Certificate III in Transport & Warehousing.<br />

Tom provides all hands-on training for our <strong>Franchise</strong>es and teaches them the ins-and-outs of operating a<br />

successful <strong>Schnitz</strong> franchise. His training includes store opening and closing, food preparation, food safety,<br />

stock ordering, cash handling, Point of Sale (POS) terminal operation and most importantly, customer<br />

service skills. Tom also teaches our <strong>Franchise</strong>es how to recruit, train and roster the best staff to work at<br />

their business to ensure each store is a success.<br />

Tom can be contact on 0416 286 997 or via email on tom@schnitz.com.au<br />

© <strong>Schnitz</strong> Franchising Pty Ltd – Commercial in Confidence Page 7 of 28


<strong>Franchise</strong> Information Pack<br />

2. The <strong>Franchise</strong> Opportunity<br />

If you’ve seen <strong>Schnitz</strong> in operation you’ll know<br />

that what <strong>Schnitz</strong> has to offer is a very unique<br />

business opportunity. We have worked long and<br />

hard to build a business system that offers our<br />

franchisees a great return on their investment<br />

and a great source of cash flow to help them<br />

achieve their financial and lifestyle goals.<br />

If you are serious about taking the next step to<br />

owning your own <strong>Schnitz</strong> franchise then please<br />

read the information below and review our<br />

website (www.schnitz.com.au). It should help<br />

you get all the information you need to start<br />

asking the right questions so we can work<br />

towards a mutually rewarding future together.<br />

2.1 Expansion Strategy<br />

<strong>Schnitz</strong> is set to become an Australian success story as we’re looking to build <strong>Schnitz</strong> stores all around<br />

Australia over the next 10 years. <strong>Schnitz</strong> currently has 5 stores operating in Melbourne and is now looking<br />

to expand by opening more stores in high-traffic, well-researched locations throughout:<br />

• Victoria - specifically Melbourne CBD, high-traffic precincts and<br />

shopping centres; (STAGE 1 – start 2011)<br />

• Queensland - specifically Brisbane CBD, Gold Coast, Sunshine<br />

Coast; (STAGE 2 – start 2013)<br />

• New South Wales - specifically Sydney CBD, high traffic<br />

precincts and shopping centres; (STAGE 3 – start 2014)<br />

• Western Australia & South Australia - specifically Perth CBD,<br />

Adelaide CBD, high-traffic precincts and shopping centres;<br />

(STAGE 4 – start 2015)<br />

2.2 Current <strong>Franchise</strong> Opportunities<br />

<strong>Schnitz</strong> management together with data acquired from Spectrum Analysis (our Site Selection Advisors) and<br />

extensive research of our key competitor’s financial performance at various sites around Melbourne have<br />

identified the following locations as being suitable for the opening of a <strong>Schnitz</strong> restaurant. We have<br />

grouped them into Premium and Standard classes with Premium offering the best opportunities for first<br />

round franchisees.<br />

Note: Although we have standing relationships with Leasing Agents for the main street and shopping<br />

centre sites, each franchise opportunity is subject to the availability of a suitable site. Once you are<br />

approved as a <strong>Franchise</strong>e we will notify you of available locations so we can secure the site and move<br />

forward with planning, design and fit out. The sooner we sign you as a franchisee, the sooner we can<br />

secure lucrative sites.<br />

© <strong>Schnitz</strong> Franchising Pty Ltd – Commercial in Confidence Page 8 of 28


<strong>Franchise</strong> Information Pack<br />

* Note: Sites shown in red below indicate premium locations that <strong>Schnitz</strong> forecast to have the best<br />

earning potential and will be recommending to stage one franchisees.<br />

MELBOURNE - CBD & Central Suburbs<br />

• Melbourne CBD, MELBOURNE, Victoria 3000 *<br />

• Flinders Lane, MELBOURNE, Victoria 3000 *<br />

• Collins St, MELBOURNE, Victoria 3000 *<br />

• Melbourne QV, MELBOURNE, Victoria 3000 *<br />

• Degraves St, MELBOURNE, Victoria 3000 *<br />

• Lygon St, CARLTON, Victoria 3053 *<br />

• Chapel St, WINDSOR/PRAHRAN, Victoria 3181 *<br />

• Glenferrie Road, MALVERN, Victoria 3144 *<br />

• Queensbridge St, MELBOURNE, Victoria 3000<br />

• Chapel St, SOUTH YARRA, Victoria 3141<br />

• Southbank, MELBOURNE, Victoria 3004<br />

• St Kilda Road, MELBOURNE, Victoria 3004<br />

• Etihad Statium, DOCKLANDS, Victoria 3000<br />

• King St, MELBOURNE, Victoria 3000<br />

• Brunswick St, FITZROY, Victoria 3065<br />

• Clarendon St, SOUTH MELBOURNE, Victoria 3205<br />

• Bay St, PORT MELBOURNE, Victoria 3207<br />

MELBOURNE - Eastern Suburbs<br />

• Knox Ozone, WANTIRNA, Victoria 3152 *<br />

• Doncaster Westfield Shopping Centre, DONCASTER, Victoria 3108 *<br />

• Burke Road, CAMBERWELL, Victoria 3124 *<br />

• Forest Hill Shopping Centre, FOREST HILL, Victoria 3131<br />

• Eastland Shopping Centre, RINGWOOD, Victoria 3134<br />

• The Glen Shopping Centre, GLEN WAVERLEY, Victoria 3150<br />

MELBOURNE - South Eastern Suburbs<br />

• Chadstone Shopping Centre, CHADSTONE, Victoria 3148 *<br />

• Glenhuntly Road, ELSTERNWICK, Victoria 3185 *<br />

• Southland Shopping Centre, CHELTENHAM, Victoria 3192 *<br />

• Fountain Gate Shopping Centre, FOUNTAIN GATE, Victoria 3805 *<br />

• Bayside Shopping Centre, FRANKSTON, Victoria 3199 *<br />

• Parkmore Shopping Centre, KEYSBOROUGH, Victoria 3173<br />

• Bay St, BRIGHTON, Victoria 3186<br />

• Princes Hwy, DANDENONG, Victoria 3175<br />

• Main St, MORNINGTON, Victoria 3931<br />

• Rosebud Plaza Shopping Centre, ROSEBUD, Victoria 3939<br />

MELBOURNE - Western Suburbs<br />

• Highpoint Shopping Centre, MARIBYRNONG, Victoria 3032 *<br />

• Altona Gate Shopping Centre, NORTH ALTONA, Victoria 3025<br />

• Brimbank Central Shopping Centre, DEER PARK, Victoria 3205<br />

• Broadmeadows Shopping Centre, BROADMEADOWS, Victoria 3047<br />

© <strong>Schnitz</strong> Franchising Pty Ltd – Commercial in Confidence Page 9 of 28


<strong>Franchise</strong> Information Pack<br />

MELBOURNE - Northern Suburbs<br />

• Watergardens Shopping Centre, SYDENHAM, Victoria 3037 *<br />

• Northland Shopping Centre, PRESTON Victoria 3072 *<br />

• Westfield Plenty Valley, MILL PARK, Victoria 3082<br />

VICTORIA - Regional<br />

• Westfield Geelong, GEELONG, Victoria 3220<br />

• Ballarat (locations to be reviewed)<br />

• Bendigo (locations to be reviewed)<br />

• Shepparton (locations to be reviewed)<br />

• Echuca/Moama (locations to be reviewed)<br />

• Albury/Wodonga (locations to be reviewed)<br />

2.3 Site Selection<br />

<strong>Schnitz</strong> takes site selection very seriously and all our store locations are carefully researched before<br />

entering into any commercial lease agreements. Although our products and prices appeal to a very broad<br />

range of customer groups we have developed (and continue to refine) a number of demographic profiles<br />

over the years to help target suitable <strong>Schnitz</strong> locations that are located in the areas our target customers<br />

live, work in or frequent.<br />

We typically locate our stores in the following areas:<br />

• High-traffic Commercial Precincts (eg. Glenferrie Rd, Hawthorn),<br />

• Premium, High-Traffic Food-Courts (eg. Melbourne Central Dining Hall); and<br />

• Entertainment & Leisure Precincts (ie. usually within shopping centres and/or near cinemas);<br />

As part of our assessment, we have a Site Checklist that has been prepared by our Demographic Profiling<br />

partner ‘Spectrum Analysis’. We also look for sites that are close to our 2 nearest competitors – Grill’d and<br />

Nando’s – as they have already primed customers in the area into accepting fast-casual dining in the area<br />

and familiarising themselves with the price points for these types of restaurants.<br />

For each type of store location we have a set of pre-requisites to ensure sustainability of the business in<br />

the long-term. For example, in a High-Traffic Commercial Precinct we will look for corner locations or<br />

locations with high-exposure street frontage to assist with brand building and to help attract transient<br />

customers that are already familiar with our brand. We also locate our stores close to public transport hubs<br />

(for easy access) and ensure ample parking is available.<br />

We spend a number of days (across different days and times, both peak and off-peak) studying traffic<br />

flows, customer movements and general trading conditions. We speak to various traders in the local area<br />

and even speak with cleaners to determine the historical activity of the area and explore potential issues<br />

that may affect the trading environment in the medium to long term. We even assess which side of the<br />

road will result in the best customer attraction. This high level of analysis gives us a clear picture of the<br />

area and it’s potential for offering our new franchise restaurants the best chance of success.<br />

Once we’ve found a site that <strong>Schnitz</strong> Management and our franchisee has approved, we engage the services<br />

of LeaseWise to negotiate a commercially viable Lease Agreement that benefits our franchisees for the<br />

term of their lease, taking into account annual rental increases and other factors.<br />

© <strong>Schnitz</strong> Franchising Pty Ltd – Commercial in Confidence Page 10 of 28


<strong>Franchise</strong> Information Pack<br />

3. Product Menu & Pricing<br />

<strong>Schnitz</strong> Management has spent many hours developing the latest version of the <strong>Schnitz</strong> Menu. After 3<br />

previous revisions, extensive competitor research and customer feedback we have developed a new menu<br />

that is designed to achieve better profitability for our franchisees.<br />

The old menu was generating average COGS (Cost of Goods Sold) of 34%, yielding a Gross Profit of 66%. The<br />

new menu has been designed to incorporate stricter portion control and has taken into account healthier<br />

cost multipliers ranging from 4 to 6 times the product cost. As such, the new menu achieves COGS ranging<br />

from 25% to 27%, resulting in Gross Profits from 73% to 75%.<br />

3.1 Product Categories<br />

The <strong>Schnitz</strong> menu can be broken into a number of key product categories. The emphasis has always been<br />

on maximising the use of raw ingredients and incorporating our famous schnitzels where possible. Extensive<br />

product development with our National suppliers has also led to the manufacture and supply of consistent<br />

products for use in all our menu items. Here are the main product categories:<br />

1. <strong>Schnitz</strong>el Rolls & Wraps<br />

Our <strong>Schnitz</strong>el Rolls & Wraps make up the bulk of our revenue. We have 18 unique flavours, many of<br />

which have been inspired by flavours of the world. Customers first choose their flavour in either a<br />

Laurent ® Roll (Rustic or Brioche) or in a Tortilla Wrap. They then choose their schnitzel (chicken,<br />

beef, pork, fish or vegetarian) or marinated, crumb-free Chicken Fillets (Moroccan spice or Lemon<br />

Pepper). They can then add a ‘Chips and Drink Combo’ to make it a meal.<br />

2. Snack Rolls<br />

For our customers that want a snack or would like to try our product first than our Snack Rolls are<br />

the thing. We limit the number of Snack Rolls to encourage purchase of our regular <strong>Schnitz</strong>el Rolls<br />

& Wraps however these are priced to make it more affordable for customers to try our product.<br />

3. Kids Packs<br />

We have created two Kids Packs to help attract parents/mothers to our stores. They are priced as<br />

loss-leaders and are perfect for kids under 8 years of age.<br />

4. Gourmet Salads<br />

Our new Gourmet Salads have been created to deliver full-flavoured salads which can be enjoyed<br />

on their own or with our <strong>Schnitz</strong>el Strips. Customers may also choose to have the salads with their<br />

choice of crumb-free Chicken Fillets.<br />

5. <strong>Schnitz</strong>el Meals<br />

Our <strong>Schnitz</strong>el Meals have been created to be served both in-store and in take-away packs. They<br />

consist of <strong>Schnitz</strong>el & Chips, <strong>Schnitz</strong>el & Salad or <strong>Schnitz</strong>el, Chips & Salad. We only offer two types<br />

of salad, coleslaw and garden salad, to simplify the menu.<br />

6. Chips, Sticks & Dips<br />

This is our snack category which is made up of various sizes of our famous <strong>Schnitz</strong> Chips (small to<br />

family size) and our best-selling Chicken <strong>Schnitz</strong>el Sticks. Both items are complimented by our<br />

delicious range of Dips.<br />

3.2 Product Development<br />

<strong>Schnitz</strong> have intentionally kept the menu simple for the benefit of simplifying operations for our<br />

franchisees and to keep the menu succinct. Future products may include a number of dessert options, some<br />

limited release Roll & Wrap flavours, special release schnitzels/crumbs and possibly some roast vegetables.<br />

A range of sauces are also being developed to complement our <strong>Schnitz</strong>el Meals.<br />

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3.3 Menu Boards<br />

The following is the graphical representation of our new menu boards. A printed version (A3 folded twice<br />

to A5 size) is also produced for all stores to encourage phone orders and caterings.<br />

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<strong>Franchise</strong> Information Pack<br />

4. Proposed Store Design & Fit-out<br />

The proposed store design and fitout will be in-line with the new-look <strong>Schnitz</strong> stores. As part of the<br />

rebranding <strong>Schnitz</strong> will be converting existing stores to reflect the new design/style guidelines our<br />

architects and designers have produced. Our early stores show an evolution of the brand and emphasis<br />

being placed on product development and the optimisation of our production/operating processes.<br />

With our new <strong>Schnitz</strong> stores we’re going to be focusing on the ‘customer experience’ and as such we’ve<br />

been working with one of Melbourne’s leading commercial architects, Conrad Manolidis from Black Milk<br />

Architects and hospitality graphic designer Matt John from The Anatomy to re-define our brand, image and<br />

store designs - creating a customer experience that will have customers begging for more.<br />

4.1 Proposed <strong>Schnitz</strong> Store Design<br />

The interior design of our new stores draw on inspiration from other fast-casual food establishments that<br />

we align ourselves with such as Grill’d and Nando’s however we’ve put a European spin on the concept.<br />

Natural rough-sawn and recycled timbers, blue-stone and masonry finishes, custom wall graphics, hanging<br />

‘tools of the trade’ installations, custom-made timber furniture and unique lighting and other sophisticated<br />

finishes will be used in the fit-out of the proposed site with emphasis being placed on the longevity and<br />

functionality of the design.<br />

We’ve had Black Milk prepare some concept artwork of one of our proposed sites. Detailed drawings are<br />

prepared as part of the planning/design stages of all fit-out projects and usually include a set of at least 25<br />

different construction drawings, plans and 3D renders so our builders/shop-fitters can execute the<br />

construction of new <strong>Schnitz</strong> restaurants with minimal fuss. Here are a few shots of the new <strong>Schnitz</strong> mood<br />

board, floor plans, finishes (materials) schedule and a sample 3D render:<br />

Mood Board<br />

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<strong>Franchise</strong> Information Pack<br />

Floor Plan<br />

3D Render<br />

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<strong>Franchise</strong> Information Pack<br />

Finishes Schedule<br />

Graphic Device & Wallpaper Detail<br />

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<strong>Franchise</strong> Information Pack<br />

4.2 Proposed <strong>Schnitz</strong> Store Fitout<br />

<strong>Schnitz</strong> have selected the finest construction materials and state-of-the-art equipment to be used when<br />

building new <strong>Schnitz</strong> stores. We’ve invested heavily in perfecting our production processes and have<br />

selected specialist equipment to ensure a smooth delivery of products from kitchen to salad bar and finally<br />

to our eager customers. A typical <strong>Schnitz</strong> store includes the following equipment:<br />

• High-end commercial, stainless-steel cooking appliances, custom-made by Australian manufacturers<br />

and sourced from Australian distributors including:<br />

o 6 burner, 2 level gas stoves with built-in convection oven;<br />

o 3 x FryMaster Fryers;<br />

o Custom-built Stainless-steel Chip Dump<br />

o Custom-built under-counter storage freezer;<br />

o Custom-built under-counter refrigeration units;<br />

o Custom-built schnitzel preparation bar with built-in refrigeration;<br />

o Custom-built Sandwich bar with built-in refrigeration;<br />

o Custom-built Glass Drinks Fridges;<br />

o Stainless-steel Commercial Dishwasher;<br />

o Robot Coupe Food Processor;<br />

o Starline SnackMaster Conveyor Grill;<br />

o Bread & Tomato Slicer;<br />

o Starline SuperToast Toaster;<br />

• Commercial ventilation duct work, clad in approved material;<br />

• Hygienic stainless-steel preparation benches with built-in sinks;<br />

• Timber display cabinets and graphic wall coverings (as required/allowed);<br />

• Premium stone counter tops;<br />

• Menu Display System;<br />

• Custom-designed and manufactured Signage;<br />

• 3 x RedCat POS Terminals;<br />

• Sound-system for ambient music (if allowed);<br />

• Security System with back-to-base monitoring/recording;<br />

• Custom-built Coolroom;<br />

• Upright 2 door Freezer;<br />

• Small Office Fit-out;<br />

• Other miscellaneous fit-outs as required.<br />

Note: A complete break-down of the estimated fitout cost range is provided in Appendix A – Estimated<br />

Fitout Costs<br />

All installations will comply with Australian Standards, Building Code of Practice and all Health Department<br />

regulations. Roman Dyduk has an impeccable record with the Health Department and was a recipient of<br />

their Food Hygiene Award.<br />

As discussed previously, a qualified architect will<br />

prepare construction plans and drawings for the fitout<br />

and these are presented to <strong>Schnitz</strong> Management,<br />

franchisees and Landlords (where required) for<br />

approval.<br />

A qualified and registered builder/shop-fitter is then<br />

appointed to undertake all aspects of the store fitout<br />

including construction. We have a broad range of<br />

resources and contacts to ensure that development<br />

will be completed with the least amount of<br />

inconvenience and in the fastest time possible;<br />

working within the agreed construction schedule.<br />

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5. Training & Support<br />

<strong>Schnitz</strong> will provide you with a minimum of 4 weeks of comprehensive,<br />

on-the-job training in your business. Also, while your business is being<br />

built we'll invite you to come and work at one of our company owned<br />

stores for a week or 2 to get used to the systems, processes and to<br />

familiarise yourself with how everything works. This will make the<br />

transition into your business all the more smoother.<br />

<strong>Schnitz</strong> has a comprehensive training program that will teach you all the<br />

necessary Business Management skills you'll need to run your business.<br />

We'll make sure you're well trained in:<br />

• Use of all the Equipment;<br />

• Point of Sale (POS) Terminals;<br />

• Food Preparation and Presentation;<br />

• Inventory Management and Stock Control;<br />

• Food Hygiene and Safety;<br />

• Labour Management;<br />

• Local Store Marketing; and<br />

• Business Strategy Planning & Goal Setting<br />

Furthermore, we will provide you with On-going Support while you're running your business so if you ever<br />

get stuck, you'll be able to speak with our Training Manager and have him assist you with your issue. We'll<br />

always be there to help you while you 'learn-the-ropes'.<br />

<strong>Schnitz</strong> Franchising will also provide <strong>Franchise</strong>es with complete Marketing Support including in-store and<br />

local advertising with State-based advertising planned once budget is achieved. All our advertising<br />

strategies have been proven to be very effective and our most successful campaign is the sample tastetests<br />

we offer in and around our stores – once they try our schnitzels they’re hooked.<br />

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6. Key Benefits & Opportunities<br />

Owning and operating a <strong>Schnitz</strong> <strong>Franchise</strong> has many advantages. Here are a few that we believe are<br />

important:<br />

1. Make your mark on the world and get noticed - with <strong>Schnitz</strong>, you'll be part of a<br />

unique business that is going to grow very quickly and will be getting a lot of media attention. It is<br />

a brand that will become very respected in the fast-casual food industry as it has core values that<br />

both <strong>Franchise</strong>es and customers believe in. You will also be the envy of your friends - who else do<br />

you know that gets to eat schnitzels everyday?<br />

2. Create a lifestyle that suits you - with <strong>Schnitz</strong>, we have models that will work for both<br />

Owner/Operator and Investor/Manager models. Our CBD stores only run 5 days, breakfast and lunch<br />

and our suburban high street stores operate 7 days, Lunch and Dinner. This gives you the flexibility<br />

to create the type of work lifestyle that works for you.<br />

3. <strong>Schnitz</strong>els are not a ‘trendy’ food – schnitzels have been on the menu boards of many<br />

Australian restaurants, pub and cafes for a very long time; you could almost say they’re part of our<br />

heritage. Everybody loves schnitzels so they're going to be around for a lot longer than some of<br />

these 'trendier' fast-casual food concepts that are riding the back of a fad. Beware of ‘trendy’ food<br />

franchises as these are only good for a while then lose popularity as the fad dies off.<br />

4. Word-of-mouth marketing - our food is so good that words spreads very quickly in a local<br />

area. Once people try the product they tell ALL their friends so word-of-mouth marketing is very<br />

strong with our brand and food.<br />

5. WARNING! <strong>Schnitz</strong> is addictive! - <strong>Schnitz</strong> has created food flavours that can only be<br />

summed up as ‘absolutely addictive’ creating a very stable, growing base of customers with<br />

insatiable appetites for our products. This in itself is the corner-stone of a successful food<br />

franchise.<br />

6. Low cost of entry (compared to similar fast-casual food concepts) - this makes it<br />

more affordable to setup and means you'll pay off your investment a lot sooner.<br />

7. Single, Multi and Master <strong>Franchise</strong> opportunities available - but we're really<br />

interested first in seeing how you go with one store before we grant you Multi or Master <strong>Franchise</strong><br />

rights (the possibility is there if you can prove your worth).<br />

8. Fun brand with loads of advertising potential - We already have coined a number of<br />

slogans that are being thrown around like "I’m a <strong>Schnitz</strong>-a-holic" and we want our customers to live<br />

our brand, wear our t-shirts, apply temporary logo tattoos and put our stickers on their cars.<br />

9. Great work environment - everyone has a fun time working at <strong>Schnitz</strong>. We only pick great<br />

people to work with you and create a positive, energized environment where everyone helps each<br />

other. Forget the office politics; <strong>Schnitz</strong> is about having fun!<br />

10. Low Royalty and Marketing Fees - we only charge 5% Royalty of gross sales and 2%<br />

Marketing Levy unlike many of our competitors who charge 9% and above.<br />

11. We're a family and we look after each other like a family - as a family-owned<br />

<strong>Franchise</strong> we're not money-hungry like our corporate counter-parts. We believe the fruits of our<br />

labour will come in time but for now all we're interested in is getting lots of great people to join<br />

our family to help us spread the <strong>Schnitz</strong> love. We're here to look after you, nurture you and your<br />

business and help you achieve your goals - whatever they may be.<br />

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<strong>Franchise</strong> Information Pack<br />

7. <strong>Franchise</strong> FAQs<br />

We understand that making a big decision like owning your own franchised <strong>Schnitz</strong> business caries with it a<br />

lot of questions. Here is a list of common questions we get asked by our prospective <strong>Franchise</strong>es – we hope<br />

these Frequently Asked Questions (FAQs) will help you make the right decision.<br />

1. What makes <strong>Schnitz</strong> so unique and better than other franchises?<br />

If you haven’t already realized, <strong>Schnitz</strong> is the only <strong>Schnitz</strong>el franchise in Australia and as a result it holds a<br />

unique position in the food retail marketplace. We combine great tasting schnitzels with healthy fillings in<br />

toasted rolls and wraps, serve Gourmet Salads with <strong>Schnitz</strong>el Strips and have our customers begging for<br />

more of our award-winning crunchy <strong>Schnitz</strong> Chips.<br />

The <strong>Schnitz</strong> business model is commercially viable and has very strong customer appeal. Our research<br />

shows that consumers are mindful of what they eat and are shifting towards healthier and more convenient<br />

food alternatives. <strong>Schnitz</strong> offers all this at a reasonable price which forms the foundation of a stable,<br />

growth-driven business.<br />

The team behind <strong>Schnitz</strong> has been involved in food since 1974 and knows what makes for a great customer<br />

experience. They are professional, reliable, honest, hard-working and know that their success is driven by<br />

your success. They back their knowledge with on-going marketing activities and value the power a strong<br />

brand and excellent work ethic and culture can bring to a business.<br />

As a young company eager to grow, <strong>Schnitz</strong> offers you the confidence to partner with a team of people that<br />

want to grow a National brand that is synonymous with quality and value for money. Our vision is to<br />

become the premier schnitzel brand in Australia – when people want a great schnitzel we want them to<br />

think of “<strong>Schnitz</strong>”.<br />

We believe it is our passion, drive and commitment to our <strong>Franchise</strong>es success that sets us apart from our<br />

competitors. We would love to share our dream with other like-minded people.<br />

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2. What do I need to become a <strong>Schnitz</strong> franchisee?<br />

To join <strong>Schnitz</strong> as a <strong>Franchise</strong>e you will need to have the right attitude, a penchant for hard work and a<br />

willingness to learn. You will need to possess passion for the hospitality industry (especially schnitzels) and<br />

have the energy and enthusiasm to commit the time required to build your business together with our<br />

guidance.<br />

We are looking for people that believe in excellent customer service and have strong leadership and<br />

communication skills. If you have experience in the hospitality or retail industries and have previous<br />

business management experience this will be looked at favourably when we review your application but is<br />

not essential as these skills can be taught (if you are willing to learn). Also, you will need access to the<br />

required funds to setup your <strong>Schnitz</strong> shop (minimum $350,000 ex GST)<br />

3. Will I be required to work in my business?<br />

The short answer is “Yes”. <strong>Schnitz</strong> is committed to achieving a great return on investment for our<br />

<strong>Franchise</strong>es and as such we believe that the most successful franchises are those that are operated by the<br />

owner of the business. This ensures that the <strong>Franchise</strong>e is involved in every aspect of the businesses<br />

operation. If, after you have built up your business, you feel the revenue is sufficient to support a<br />

Manager’s wages then we will look at helping you appoint a suitably qualified Manager to transform your<br />

<strong>Schnitz</strong> business into a passive investment.<br />

4. What will I get when I become a <strong>Franchise</strong>e?<br />

When you join the <strong>Schnitz</strong> family as a franchisee you will have the opportunity to be your own boss and run<br />

your own business. You will be part of a team that loves having fun and shares your obsession with<br />

schnitzels. You will have the support of a team of professionals that have a minimum of 35 years of<br />

hospitality experience in Australia and understand various food retail operations. You will have the<br />

potential to earn solid returns on your initial investment with the goal of paying off your investment within<br />

4 years. Furthermore, you’ll be able to build on the strength of the <strong>Schnitz</strong> brand, our ongoing training,<br />

operational systems, marketing support and purchasing power.<br />

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5. What is included for my initial investment?<br />

To setup a <strong>Schnitz</strong> store you’ll need anywhere from $350,000 to $450,000 (+ GST) to fit-out/build the<br />

store (depending on the size of the store, location and condition of the building prior to fit-out). The term<br />

of the <strong>Franchise</strong> Agreement is 5 years followed by a further term of 5 years.<br />

<strong>Schnitz</strong> has not as yet been validated for bank approved finance (we need 10 stores before this can be<br />

achieved) so we’re looking for <strong>Franchise</strong>es that have access to the full funds required to fit-out their new<br />

<strong>Schnitz</strong> business (a quote for the fit-out will be provided once a site has been secured).<br />

Food court / Kiosk fit-outs are usually on the lower-end of the scale and large, 150+ sqm Restaurant fitouts<br />

are on the higher end.<br />

<strong>Schnitz</strong> Franchising are offering a turn-key business opportunity so that you can start trading from day one.<br />

The initial investment will include the following aspects and also covers your deposit and a once-only<br />

franchise fee of $25,000* (+ GST):<br />

• Site Selection Advice – we work closely with you to research and select the best location for your<br />

new <strong>Schnitz</strong> store and secure a favourable lease;<br />

• Custom Store Design & Fit-out – we design and build your <strong>Schnitz</strong> store to fit within our brand and<br />

style guidelines including quality equipment, installation, building works etc;<br />

• Working Capital – we usually recommend having at least $10,000 working capital to cover the<br />

initial stock purchase and have wages for the first 2 weeks covered however costs will depend on<br />

factors such as store size, location and other extraneous factors.<br />

•<br />

Comprehensive Training – we work closely with you to educate you on all aspects of HR,<br />

operations and administration and will coach you<br />

through the initial stages of your business until<br />

you’re ready to take your training wheels off;<br />

• Ongoing Support – with over 35 years hospitality, sales and marketing experience we understand<br />

how to setup and run successful food retail operations and will support you as your business grows.<br />

• Proven Marketing Strategies – we will help you execute these in and around your store;<br />

• Recruitment Advice – we will help you recruit the right team of people to create a productive and<br />

fun work environment;<br />

6. What about ongoing fees?<br />

<strong>Schnitz</strong> charge a 5% royalty of sales and 2% Marketing<br />

Levy – calculated as percentages of gross sales (ex GST).<br />

These fees are payable by all franchisees and ensure that<br />

we are able to provide ongoing training, support and can<br />

keep building the <strong>Schnitz</strong><br />

brand into a nationally<br />

recognised brand.<br />

The marketing and royalty fees (payable weekly) ensure<br />

<strong>Schnitz</strong> is able to deliver ongoing operational support and<br />

access to <strong>Schnitz</strong> systems and intellectual property as well<br />

as building the<br />

brand through targeted advertising<br />

strategies.<br />

* Note: <strong>Franchise</strong> Fee will be increasing to $35,000 +GST by the end of 2011<br />

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<strong>Franchise</strong> Information Pack<br />

7. Are all <strong>Schnitz</strong> foods prepared on site?<br />

Most of the food sold at <strong>Schnitz</strong> is prepared on site. Meat and vegetables are delivered fresh daily by our<br />

suppliers and trademark seasonings/sauces are made offsite under license (exclusive to <strong>Schnitz</strong>). Our Rustic<br />

Rolls and Brioche Rolls are made exclusively for <strong>Schnitz</strong> by Laurent ® Bakery. Both the Rolls and Tortilla<br />

Wraps are made off-site and supplied daily. This supply chain keeps labour costs down and ensures<br />

consistent quality.<br />

8. Can I buy a <strong>Schnitz</strong> franchise with a partner?<br />

Yes, <strong>Schnitz</strong> encourages you to invest in your business with your partner, spouse or other partnership.<br />

Sibling partnerships are also encouraged however any solid partnership will be considered based on the<br />

strength of the relationship.<br />

9. What if I want to own more than one <strong>Schnitz</strong> business?<br />

If you can prove to us that you have what it takes to run one store effectively and if you can demonstrate<br />

that you will have the resources to run more than one <strong>Schnitz</strong> business then we would love to help you<br />

achieve your business goals. Multi-site operator applications will be considered in due course.<br />

10. What criteria do you use to assess your locations?<br />

Roman has had 36 years selecting<br />

café and restaurant locations so he<br />

is very experienced and knows<br />

exactly what to look for. We also<br />

carry out independent research on<br />

proposed locations and will analyse<br />

foot traffic, demographics, stability<br />

of customer-base and competitors in<br />

the proposed area. We also work<br />

with property consultants to<br />

determine whether a location is a<br />

sound investment before signing any<br />

leases (<strong>Schnitz</strong> holds the Lease). We<br />

will recommend locations however<br />

you are not obliged to accept the<br />

proposed site. We also recommend<br />

you conduct your own research and<br />

evaluate the location to make sure<br />

you are confident with your decision<br />

before you sign the <strong>Franchise</strong> Agreement.<br />

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<strong>Franchise</strong> Information Pack<br />

8. <strong>Franchise</strong>e Selection Process<br />

To help you plan your journey towards having your own <strong>Schnitz</strong> <strong>Franchise</strong> we’ve included the key steps<br />

we’ll be undertaking before awarding you with a <strong>Schnitz</strong> <strong>Franchise</strong>. The <strong>Schnitz</strong> Application Process usually<br />

takes around 6-8 weeks however this will be subject to site availability and can take 3 or more months to<br />

secure a suitable, high-traffic site to help your business have the best chance of success.<br />

13 steps to owning your <strong>Schnitz</strong> <strong>Franchise</strong><br />

1. Register Your Interest<br />

If you think you have what it takes to join the <strong>Schnitz</strong> family then we’d love to hear from you. To register<br />

your interest in a <strong>Schnitz</strong> <strong>Franchise</strong>, simply complete and submit the Expression of Interest Form. This can<br />

be done by:<br />

a. Completing and submitting the Online Expression of Interest Form (see www.schnitz.com.au)<br />

b. Printing and completing the Expression of Interest Form at the end of this information pack.<br />

You can submit a completed printed form by:<br />

i. Fax: 1300 729 800<br />

ii. Email: franchising@schnitz.com.au<br />

iii. Post: <strong>Schnitz</strong> Franchising Pty Ltd<br />

Level 2, 3 River St<br />

SOUTH YARRA, VIC 3141<br />

2. Application Review & Initial Discussion<br />

We will review your submitted application and if we feel you have<br />

the pre-requisites to own and/or operate a <strong>Schnitz</strong> franchise we<br />

will contact you to discuss your application further. This will be an<br />

initial, general discussion about you, your business goals and why<br />

you want to setup a <strong>Schnitz</strong> <strong>Franchise</strong>.<br />

If we are both comfortable to proceed to the next stage we will<br />

arrange a convenient time for you to come out to our office for a<br />

face-to-face meeting. A Confidentiality Agreement will be supplied<br />

to you prior to this meeting.<br />

3. Our First Face-to-Face Meeting<br />

This is an opportunity to discuss the proposed <strong>Schnitz</strong> franchise in detail and for both parties to get to know<br />

each a little better. You will need to bring the signed Confidentiality Agreement to this first meeting (a<br />

copy will be provided to you). At this meeting you’ll be able to ask any questions you have about owning a<br />

<strong>Schnitz</strong> <strong>Franchise</strong>; we will answer your concerns in as much detail as we can provide.<br />

4. Detailed Application & Deposit Payment<br />

If we’re both happy with where the relationship is going we will provide you with a <strong>Franchise</strong> Application<br />

Form which we’ll need you to complete and return to our Head Office (details shown in stage 1 above)<br />

along with a fully refundable deposit payment of $3,000 for the application fee.<br />

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<strong>Franchise</strong> Information Pack<br />

5. Second Meeting & Legal Documents Issued<br />

During this meeting we’ll review the completed <strong>Franchise</strong> Application Form and discuss any questions and<br />

concerns you may have at this stage. This is a large commitment for both parties so we want to make sure<br />

we’re both clear about each others obligations. We will then provide you with a number of legal documents<br />

for you to review. Legally, you are required to have these documents for a minimum of 2 weeks before any<br />

<strong>Franchise</strong> Agreements are signed.<br />

6. Spending a day in a <strong>Schnitz</strong> store<br />

With such a large investment in time and money, you’ll want to make sure that this opportunity is right for<br />

you. The best way to test the system is to spend a day in one of our stores together with our Training<br />

Manager. You’ll experience opening the store in the morning (including preparation), seeing how the<br />

business operates during trade and then cleaning and closing the store. You’ll see what is involved in the<br />

day-to-day running of your future <strong>Schnitz</strong> store and you’ll get to ask questions throughout the day to make<br />

sure you’re ready for the commitment.<br />

7. Review & Due Diligence<br />

You will need to review the legal documentation we provide you. We suggest you<br />

receive independent legal advice and talk to some of the other people within the<br />

<strong>Schnitz</strong> family such as other <strong>Franchise</strong>es. This process usually takes about 2 weeks.<br />

8. Third Meeting & <strong>Franchise</strong> Documentation Review<br />

It is at this meeting that you’ll get to go over the <strong>Franchise</strong> Documentation we provided you. We’ll answer<br />

any questions regarding this documentation and overcome any issues you may have to ensure both parties<br />

are ready to proceed to the final stage of the process.<br />

9. Final Meeting!<br />

We’ve had a chance to get to know each other and discuss the finer details; now it’s<br />

time to meet the team behind <strong>Schnitz</strong> and address any last outstanding concerns. We<br />

then sign the <strong>Franchise</strong> documentation and you will be asked to pay either the full<br />

amount of the <strong>Franchise</strong> Fee or a portion of it, subject to the availability of an<br />

appropriate site.<br />

10. Site Selection & Fitout<br />

With all the documentation signed it’s time to get your new <strong>Schnitz</strong> store ready. We begin by either finding<br />

you a new site or allocating an existing site we have reserved. We then draw up plans with regards to store<br />

fit-out and order all the necessary equipment from our suppliers. <strong>Schnitz</strong> will oversee the entire fitout of<br />

your new store and will ensure it is built to our exacting standards – no ‘slap-up jobs’ here!<br />

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<strong>Franchise</strong> Information Pack<br />

11. Recruitment & Training<br />

With your new <strong>Schnitz</strong> store nearing completion it is time to recruit great staff and undergo extensive<br />

training to make sure you hit the ground running. Although we will facilitate the recruitment and training<br />

process we will ask that you be involved during the team selection process as we want to make sure there<br />

is a cultural fit between you and your new team.<br />

12. The Grand Opening<br />

This is it, the moment you’ve been waiting for… the grand opening of your new <strong>Schnitz</strong> store. We will be<br />

here by your side the whole time and will make sure that you ease into your new role as <strong>Franchise</strong>e. We<br />

care about your investment and our investment in you and your team which is why we will provide you with<br />

an additional 4 weeks of training after opening.<br />

13. The Sky’s the Limit!<br />

Even after training has been completed and you tell us you are comfortable with the way your new <strong>Schnitz</strong><br />

business is running we will still provide you with ongoing support to help you streamline your stores<br />

performance. We will do this by monitoring your operations and will also assist you in marketing your<br />

business to your local target market.<br />

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<strong>Franchise</strong> Information Pack<br />

9. Next Steps...<br />

Thank you for taking the time to review our<br />

<strong>Franchise</strong> Information Pack.<br />

If you would like to register your interest in<br />

owning a <strong>Schnitz</strong> <strong>Franchise</strong> then please<br />

complete and submit the Expression of<br />

Interest Form below and we will contact you<br />

to discuss the next steps.<br />

Should you require additional information,<br />

please do not hesitate to contact Andrew<br />

Dyduk on 0410 649 808 or email<br />

franchising@schnitz.com.au with your enquiry.<br />

“ We look<br />

forward to<br />

working with<br />

you soon! ”<br />

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<strong>Franchise</strong> Information Pack<br />

10. Expression of Interest Form<br />

If you’ve read our franchise information and are interested in joining our unique, fast-growing franchise<br />

then please complete the Expression of Interest Form below and send it back via:<br />

Fax: 1300 729 800 or Email: franchising@schnitz.com.au or<br />

Post: Level 2, 3 River St, South Yarra VIC 3141<br />

Personal Details<br />

First Name: Last Name:<br />

Age Group: 18 to 24 25 to 30 31 to 40 41 to 50 51+<br />

Street Address:<br />

Suburb: State: Postcode:<br />

Country: Australia Other:<br />

Contact Details<br />

Mobile: Phone:<br />

Email:<br />

Preferred Contact Method: Mobile Phone Email<br />

Best time to contact you: Before 9am 9am to 12pm 12pm to 5pm After 5pm<br />

Why <strong>Schnitz</strong>?<br />

What is your reason for wanting to setup your own <strong>Schnitz</strong> <strong>Franchise</strong>?<br />

Tell us why you would make a great <strong>Schnitz</strong> <strong>Franchise</strong>e:<br />

© <strong>Schnitz</strong> Franchising Pty Ltd – Commercial in Confidence Page 27 of 28


<strong>Franchise</strong> Information Pack<br />

Proposed <strong>Franchise</strong> Opportunity<br />

What Australian State or Territory are you interested in operating your <strong>Schnitz</strong> <strong>Franchise</strong>?<br />

VIC NSW QLD WA SA TAS ACT NT<br />

Tell us what type of <strong>Schnitz</strong> franchise you have in mind?<br />

Single Store (in CBD) International Single Store<br />

Single Store (in Suburban Precinct) International Multiple Stores<br />

Single Store (in Shopping Centre) International Master <strong>Franchise</strong> License<br />

Multiple Stores State/Territory Master <strong>Franchise</strong> License<br />

How do you plan to own and operate your <strong>Schnitz</strong> store(s):<br />

Owner-Operator Investor, store run under management<br />

What is your preferred geographical area/region/boundary/suburb: (eg. Chapel St business district)<br />

In what time frame would you like your <strong>Schnitz</strong> store(s) setup?<br />

Now Within 3 months 3 to 6 months 6 to 12 months More than 12 months<br />

Investment Details<br />

How much money are you willing to invest?<br />

More than $500,000 $400,000 to $500,000 $300,000 to $400,000 Less than $300,000<br />

What is the value of your liquid assets?<br />

More than $300,000 $200,000 to $300,000 $100,000 to $200,000 Less than $100,000<br />

What type of liquid assets do you have: (tick all that apply)<br />

Cash on hand Cash in Banks/Savings Institution Securities (shares, bonds, super etc.)<br />

Money due to you � Provide Details:<br />

Real Estate � Market Value:<br />

Other (please specify):<br />

How much time are you willing to invest in training?<br />

As little as possible 2 weeks 2 months As long as it takes<br />

Feedback<br />

How did you find out about the <strong>Schnitz</strong> <strong>Franchise</strong> opportunity?<br />

<strong>Schnitz</strong> Website Internet Search (specify keyword(s)):<br />

Friend <strong>Franchise</strong>Business.com.au Website <strong>Franchise</strong>Business Email SEEK Commercial<br />

Magazine In-Store Promotion <strong>Franchise</strong> Expo <strong>Franchise</strong> Directory Newspaper<br />

Other (please specify):<br />

© <strong>Schnitz</strong> Franchising Pty Ltd – Commercial in Confidence<br />

Page 28 of 28

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