Restaurant Franchise Development

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Restaurant Franchise Development
EclipseRestaurants
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Welcome!

• Thanks for your interest in EclipseHotels
  Restaurants.
• We believe we offer the most distinctive, sound,
  and flexible franchise opportunities available in
  the industry.
• Were enormously proud of the EclipseHotels
  family of franchise products. Even though we are
  a new entry into the worldwide Franchise systems,
  when you join EclipseHotels, you join a family of
  dedicated professionals with long years of
  experience in international Hotel and Restaurant
  services. We care about our franchisees and the
  communities in which they operate, and do
  everything we can to support both.
• I invite you to discover for yourself the
  EclipseHotels restaurant franchise family.
• Best Wishes,
• Thomas G. Milani
• EclipseHotels Chief Operating Officer
• Head Restaurant Franchise Operations

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EclipseRestaurants

• Who we are
• Brands and products
• Store concepts
• Support services
• Franchising program

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Who are we?
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Who we are?

• EclipseRestaurants is a wholly owned subsidiary
  of EclipseHotels, a Hong Kong Hospitality
  Management company with unique concepts for the
  Hotel and Restaurant Industry.
• EclipseRestaurants has developed a total of 12
  restaurant concepts, with 4 of them available for
  franchise as free-standing and mall concepts.
• Backed by over 25 years of operation of their
  first Franchise restaurant in Buffalo, New York,
  EclipseRestaurants concepts are unique and
  focused on the success of the Franchisee and his
  operation.
• EclipseRestaurants and The Hospitality Industry
  Solutions Company in Jeddah have teamed up in
  2006 to bring these unique concepts into the
  Middle Eastern marketplace.

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Brands Products
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Brands Portfolio

• Sub Delicious
• Home of the Steak Hoagie
• Flames
• A cut above the Rest
• Kaffeelicious
• The other side of Coffee
• Noodelicious
• Noodles YOUR way

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Sub Delicious History
25 years ago Thomas Milani and his family founded
the first Sub Delicious restaurant in their
native Lockport, New York. Over the years, Sub
Delicious developed into the preferred Buffalo
style restaurant in New York State, outselling
its competitors like Subway and Quiznos three to
one. Over 30 stores existed in the state of New
York and all were operated by the founding Milani
family. With the involvement of Mr. Thomas Milani
in the extended offerings of EclipseHotels, time
was precious and all Sub Delicious operations
were consolidated into two 2 model stores in
Lockport, New York, USA and Angeles City,
Philippines.
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Product Lines

• Submarine Sandwiches
• Hot Hoagies
• Original Buffalo Wings
• The largest NY Pizza anywhere
• Bakery, Pies and Cakes

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Submarine Sandwiches
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Hot Hoagies
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Original Buffalo Wings
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The largest NY Pizza
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Flames Concept

• Flames was developed carefully over the last 2
  years by our Development team under the
  leadership of Thomas Milani.
• A cut above the Rest is not just a slogan, we
  offer all our grilled meats and seafood off our
  Flames Fresh Islands.
• Grilled to perfection on the Flames exclusive
  Double Charcoal and Gas BBQ Grill is the
  specialty.
• These offerings are complemented with our
  Signature Appetizers, American Bistro dishes and
  the Fire Desserts
• The futuristic design and the constant presence
  of fire, ice and water makes every visit a
  dining experience for the eyes and senses alike.

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Product Lines

• Flames Fresh Island
• Signature Appetizers
• American Bistro dishes
• Fire Desserts

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Flames Fresh Island
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Signature Appetizers
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American Bistro Dishes
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Flaming Desserts
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Noodelicious Concept

• Based on the small Noodle Shops of China and
  Japan we designed Noodelicious to be futuristic
  in its design as well as in its food offerings.
• Eat what youd like to order and not what our
  chefs think you should order, was one main
  ingredient in the conceptualization phase.
• The future of Fast Food is here, with instant
  noodle offerings which are prepared as you wait
  and will not take longer than 30 seconds to
  prepare.

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Noodles YOUR Way

• Its all about choices at Noodelicious.
• The unique Menu Design gives every guest exactly
  the noodles he likes at this moment.
• Choose from 45 different ingredients in
  categories like broths, noodles, meats
  seafoods, vegetables, herbs spices and
  specialty spices to create Noodles YOUR WAY.
• The combination possibilities are endless.

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Kaffeelicious Concept

• The other side of Coffee we take this
  literally.
• The Other Side of Coffee are our bottom up side
  down designs and drinks.
• From decorations on the wall to equipment behind
  the counter, even our cups are designed upside
  down.
• Unique Drink and Food offerings on top of the
  usual Coffee fare let every Kaffeelicious
  create that unique feeling for guests to stay
  this one moment longer

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The Kaffee Slammer

• The Kaffee Slammer is our very own unique
  concoction in the popular category of smoothies
  and shakes.
• Made from soft ice cream and various flavorings,
  and topped with finely grinded coffee the Kaffee
  Slammer series of drinks are the Signature drinks
  of Kaffeelicious.
• This unique drink is served upside down in line
  with our motto.

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Store concepts
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2 store concepts

• EclipseRestaurants SPEED CENTER has been
  uniquely developed for each brand for fast and
  efficient high traffic operations.
• Speed Center locations, are located in
  high-traffic pedestrian areas (shopping malls).
  Limited seating (grab go) is provided and
  additional focus is placed on delivery
  operations. Minimum 80 square meters.
• EclipseRestaurants TASTE CENTER has been
  uniquely developed for each brand for the
  operation as free-standing restaurant and
  designed into mixed-use buildings within special
  food and beverage areas or high-concentration
  areas.
• The focus is more on the Social Occasion effect
  and the possibility to enjoy the atmosphere and
  excellent taste of our Restaurant Offerings.
• Taste Centers require a minimum of 200 square
  meters.

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Sub Delicious Speed Center
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Kaffeelicious Speed Center
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Noodelicious Speed Center
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Speed Center Unit Investment

• Depending on size and location, the total
  investment for a typical Sub Delicious Speed
  Center is expected to be from US80,000 to
  US120,000. (including all equipment, décor,
  leasehold improvements)
• Depending on size and location, the total
  investment for a typical Kaffeelicious Speed
  Center is expected to be from US 50,000 to US
  100,000. (including all equipment, décor,
  leasehold improvements)
• Depending on size and location, the total
  investment for a typical Noodelicious Speed
  Center is expected to be from US 35,000 to US
  60,000. (including all equipment, décor,
  leasehold improvements)
• The above investment rates are excluding
  Franchise Fees.
• Because of the unique technical requirements of
  the Flames concept, no Speed Centers are to be
  developed for the Flames Restaurant

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Sub Delicious Taste Center
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Flames Taste Center
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Kaffeelicious Taste Center
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Noodelicious Taste Center
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Taste Center Unit Investment

• Depending on size and location, the total
  investment for a typical Flames Taste Center is
  expected to be from US300,000 to US800,000.
  (including all equipment, décor, leasehold
  improvements)
• Depending on size and location, the total
  investment for a typical Sub Delicious Taste
  Center is expected to be from US200,000 to
  US600,000. (including all equipment, décor,
  leasehold improvements)
• Depending on size and location, the total
  investment for a typical Kaffeelicious Taste
  Center is expected to be from US 80,000 to US
  250,000. (including all equipment, décor,
  leasehold improvements)
• Depending on size and location, the total
  investment for a typical Noodelicious Taste
  Center is expected to be from US 80,000 to US
  250,000. (including all equipment, décor,
  leasehold improvements)
• The above investment rates are excluding
  Franchise Fees.

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Triplelicious Multi-brand
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Triplelicious Multi-brand Investment

• Depending on size and location, the total
  investment for a typical Triplelicious
  Multi-brand Center is expected to be from
  US500,000 to US1,400,000. (including all
  equipment, décor, leasehold improvements)
• The Triplelicious Multi-brand Center is designed
  to share the kitchen area and reduce the initial
  investment compared to 3 single brand Taste
  Centers in different locations.
• The above investment rates are excluding
  Franchise Fees, which are outlined in more detail
  later in this presentation.
• The Triplelicious Multi-brand Center combines the
  Sub Delicious, Kaffeelicious and Noodelicious
  Taste Center concepts into a multifunction
  building and compliment each other with their
  different food and drink offerings.

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Support Services
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Support Services

• We provide support for all aspects of the
  business, and the franchisee executes and runs
  the business
• Marketing
• Operations Training
• Sourcing
• Equipment and design
• Research and Development (RD)

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Marketing

• Marketing Plan
• We provide assistance in development of marketing
  and brand building programs customized to your
  market, based on our experience internationally
  and in the USA.
• Point of sale marketing templates are available
  in electronic format and ready for local
  language.
• Local Store Marketing.
• Marketing Cooperatives
• We aim to set up regional marketing cooperatives
  between our Franchisees in order to create
  regional synergies and cross-selling between the
  different stores.
• All Marketing fees will exclusively be used by
  either the Marketing Cooperatives or
  EclipseRestaurants for promoting the brands,

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Advertising Examples
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Promotions with branded partners
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Operations

• Site selection assistance (EclipseRestaurants
  will need to approve each and every new site)
• Ongoing support provided from personnel based in
  the region and the Philippines
• Commitment to regionalize operations support via
  setting up of regional support infrastructure
• Middle East Infrastructure in place through The
  Hospitality Industry Solutions Company in Jeddah,
  Kingdom of Saudi Arabia.

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Training

• Two-week Management Training Class in the
  Philippines for owners and franchisees upper
  management
• Practical training in existing regional stores
  coordinated by EclipseRestaurants with other
  franchisees
• In-country market opening assistance (NSO Team)
• Local language training for store managers

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Product Sourcing

• 3 levels of suppliers International, Regional,
  National. Goal is to achieve 100 national
  sourcing.
• For each new market, we evaluate with the
  franchisee the costs and benefit of already
  existing sourcing and define a sourcing plan.
• EclipseRestaurants Research Development is in
  charge of identifying and evaluating suppliers.
• The franchisee would need to set up a system to
  distribute products from a central warehouse to
  the various stores (if more than one store is
  set-up).

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Store design

• Stores can be designed by an independent,
  EclipseRestaurants-approved designer, based on
  the sample design supplied by EclipseRestaurants.
  
• Store décor can be produced locally in its
  entirety the franchisee will need to hire its
  own contractor.
• If the franchisee requires, all store development
  and production can be executed through
  EclipseRestaurants development division and our
  original suppliers and designers at cost.

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Equipment

• Branded, specific equipment such as Gel-Matic ice
  cream machines and Vita-Mix Blenders and mixers,
  are available usually from local distributors.
• Generic equipment can be purchased from local
  suppliers. Typically in our international
  markets, the vast majority of all equipment can
  be sourced locally.
• If the locally sourced items are considered too
  expensive, EclipseRestaurants can provide all
  equipment FOB Hong Kong at cost.
• Some unique equipment specifically designed for
  the Flames Restaurants will need to be purchased
  through EclipseRestaurants at cost because of
  trademark restrictions on this equipment.

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Research Development

• Quality Assurance (Q.A.)
• Ongoing testing program
• Periodical plant visits by our Research
  Development personnel
• Product development
• Tropicalization of menu items
• New systemwide menu items introductions
• Over 70 years of combined FB experience

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Franchising
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Franchisee Profile

• Enthusiasm for the brand !
• Business experience in the market considered,
  preferably in Foodservice, Retail or Hospitality
• Capability to set up a full support
  infrastructure, with a General Manager possessing
  foodservice experience, focused 100 on the
  business
• Proven ability to access high quality real
  estate
• Financial strength and long-term commitment

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Present Focus

• Currently we are primarily working to develop the
  Asian marketplace.
• While our partner in the Middle East The
  Hospitality Solutions Company focuses strongly
  on establishing the brands in all Middle East
  countries and markets.
• With the fast development in these two areas we
  are confident that these markets will continue to
  prosper.
• Therefore we are putting much of our energies
  into the development of EclipseRestaurants in
  Asia and the Middle East.
• Developments outside our main Areas of interest
  is currently restricted to the Multi Unit
  Development Program

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Multi Unit Development Program

• We will award the exclusive store development
  rights to only one franchisee for a territory.
• The territory granted will depend on the
  prospective franchisees strengths and interests
  and the areas market potential.
• There are no sub-franchising rights all stores
  are to be owned and operated by the franchisee
  group itself.
• Products are sold only in EclipseRestaurants
  stores.
• A minimum of 5 Taste Centers and/or 10 Speed
  Centers need to be committed by the Developer

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Fee structure Multi Unit Development

• Development Fee US80,000 500,000 depending on
  market potential (one-time, non-recurring fee
  for the territory rights)
• Store Franchise Fees
• Sub Delicious - 20,000 for each of the first
  three stores, 12,500 per store afterwards
• Flames - 25,000 for each of the first three
  stores, 15,000 per store afterwards
• Kaffeelicious - 15,000 for each of the first
  three stores, 7,500 per store afterwards
• Noodelicious - 15,000 for each of the first
  three stores, 7,500 per store afterwards
• Royalty Fees
• Sub Delicious Flames 5 of Monthly Gross
  Sales
• Noodelicious Kaffeelicious 8 of Monthly
  Gross Sales

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Single Unit Development

• We will award the non-exclusive store development
  rights to the franchisee after site approval and
  verification that the location does not lay
  within an exclusive territory.
• The store will depend on the prospective
  franchisees strengths and interests and the
  areas market potential.
• There are no sub-franchising rights stores are
  to be owned and operated by the franchisee or
  franchisee group itself.
• Products are sold only in EclipseRestaurants
  stores.
• A minimum of 1 Taste Center and/or 2 Speed
  Centers need to be committed by the Franchisee
  for any development

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Fee structure Single Unit

• Initial Franchise Fee
• Flames Taste Center US 50,000 per store
• Sub Delicious Taste Center US 45,000 per store
• Sub Delicious Speed Center US 22,500 per store
• Kaffeelicious Taste Center US 40,000 per store
• Kaffeelicious Speed Center US 20,000 per store
• Noodelicious Taste Center US 40,000 per store
• Noodelicious Speed Center US 20,000 per store
• Royalty Fees
• Flames Sub Delicious
• 6 of Monthly Gross Sales
• Kaffeelicious Noodelicious
• 11 of Monthly Gross Sales

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Triplelicious Program

• The Triplelicious Multi-brand concept is an
  extension of the Single-Unit Development Program.
• We will award the non-exclusive store development
  rights to the franchisee after site approval and
  verification that the location does not lay
  within an exclusive territory.
• The multi-brand store will depend on the
  prospective franchisees strengths and interests
  and the areas market potential.
• There are no sub-franchising rights stores are
  to be owned and operated by the franchisee or
  franchisee group itself.
• Products are sold only in EclipseRestaurants
  stores.
• A minimum of 1 Triplelicious Multi-brand Center
  needs to be committed by the Franchisee for any
  development

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Fee structure Multi-brand stores

• Initial Franchise Fee
• Triplelicious Multi-brand Store US 90,000 per
  development with 3 brands
• Doublelicious Multi-brand Store US 70,000 per
  development with 2 brands
• Royalty Fees
• Triplelicious (Kaffeelicious Sub Delicious
  Noodelicious)
• 6 of Monthly Gross Sales
• Doublelicious (Kaffeelicious Noodelicious)
• 9 of Monthly Gross Sales
• Doublelicious (Kaffeelicious Sub Delicious)
• 8 of Monthly Gross Sales
• Doublelicious (Noodelicious Sub Delicious)
• 8 of Monthly Gross Sales

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Process

• Our process can take a long or a short time
  depending on various factors, but we hope it will
  result in a solid relationship It can take 1-12
  months from the first meeting to the signature of
  a multi unit development agreement, and then 3-4
  months to open the first few stores in the new
  area, while single unit developments may be
  developed much faster.
• We will need to get to know each other as well as
  study the area carefully, through visits by our
  development, marketing and operations specialists
  to your market while you will make at least one
  visit to our Headquarter in Manila or the THIS
  Headquarter in Jeddah.

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Next steps

• Store visits
• Visit our sample stores (where available) and see
  our operations there.
• Business planning
• We will work together on your business plan,
  using our templates.
• We will facilitate communication with some of our
  existing franchisees, to help you evaluate the
  business opportunity, as well as our companys
  support!
• Discovery Day
• It will be helpful to visit EclipseRestaurants in
  Manila, Philippines, to meet and discuss with all
  our key support personnel as well as executives
  such as our Chief Operating Officer
• Legal review and discussion
• We will be pleased to discuss with you the terms
  of the agreement.
• Application
• The business plan, along with due diligence
  items, is the application for the franchise. It
  is presented to EclipseHotels Executive Review
  Committee for approval.

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Why EclipseRestaurants?

• Solid ownership
• World-class support
• Consistent growth
• Proven concepts
• Unique product lines
• Flexibility to adapt to various locations and
  market conditions

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Thank you!www.eclipserestaurants.com
Contact Thomas G. Milani, Chief Operating
Officer Telephone [phone], e-mail
coo_at_eclipsehotels.com