2017 FRANCHISE PROSPECTUS

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1 WE D LOVE TO HEAR FROM YOU! FOR FRANCHISE INQUIRIES CONTACT Anneke Feldtmann Melissa s Franchise Manager anneke@melissas.co.za Tel: @melissas_za 2017 FRANCHISE PROSPECTUS

2 THE MELISSA S STORY Mark and Melissa van Hoogstraten opened their first Melissa s store in August 1996 in Kloof Street,. The opening of their first store happened very much at the beginning of their life together and the business mirrors their lifestyle, values and appreciation for the classic and quality things in life. It was these values that inspired them to create Melissa s stores & branded products which are classic, timeless and true to their understanding of the value of quality. Today, Mark and Melissa continue to be very involved in driving all aspects of this multifaceted business. The company has entered a very exciting phase of growth driven by new franchised stores, an extensive wholesale division supplying franchised stores and over 300 national retailers plus an e-commerce platform. Additional business units include export, corporate gifting and hospitality. Fantastic opportunities exist for franchisees to own a Melissa s store. We are constantly expanding to new locations across South Africa. With over 20 years experience, we know what it takes to operate a successful franchise and can guide you every step of the way to ensure your store is a success.

3 CONTENTS 2. Melissa s Prospectus A Winning Concept 3 The Melissa s Advantage 4 Media Coverage 5 Three Pillars for Success 6 Our Services 7 Signature Store Design 8 Franchisee Support 9 Marketing Support 10 Our Stores 11 Financial Information 12

Melissa s offers a unique retail & dining experience for discerning customers with an eye for detail and an appreciation for quality. A WINNING CONCEPT The Melissa s Food. Home.

4 Melissa s offers a unique retail & dining experience for discerning customers with an eye for detail and an appreciation for quality. A WINNING CONCEPT The Melissa s Food. Home. Gift format is the original Melissa s concept where customers can shop Melissa s range of food and homeware products alongside a sophisticated café style restaurant serving light meals, cakes and artisan coffee all day. Whether stocking up on Melissa s essentials for a dinner party, searching for the perfect gift for a close friend, meeting someone for coffee or conducting a quick business meeting, Melissa s offers a unique retail and dining experience for discerning customers with an eye for detail and an appreciation for quality. At Melissa s, we are constantly researching, developing and evolving our offering ensuring our brand remains ahead of the curve and relevant to our affluent and loyal customer base. In addition, our store interiors are carefully considered, with the finest materials creating an inviting and comforting space and a home away from home. Finally, with Melissa & Mark leading the business day to day, not only are you guaranteed a superb store offering, but you will also benefit from their collective 20 years experience running the business. Melissa s Prospectus 3.

5 THE MELISSA S ADVANTAGE Leveraging our brand... STRONG BRAND EQUITY Melissa s has been an industry leader for over 20 years. Melissa s is a prominent South African brand synonymous with quality, integrity and authenticity. AFFLUENT, LOYAL CUSTOMER BASE The brand attracts a higher income customer with sophisticated taste and appreciation for wholesome food, beautiful gifts and homeware. DEEP CUSTOMER UNDERSTANDING With years of experience and a proven track record, we understand the Melissa s customer and know how to continuously exceed their expectations with the best products and outstanding service. UNPARALLELED PRODUCT RANGE The Melissa s branded product range is unmatched in South Africa - from the packaging design, to the attention to detail in every product and unmistakable signature navy and white branding. UNIQUE RESTAURANT & RETAIL EXPERIENCE The combined offering of retail and restaurant creates a unique experience where our customers can enjoy a meal, a cup of coffee and at the same time shop within a familiar, inviting and relaxed atmosphere. 4. Melissa s Prospectus

apart from the competition, drives a deeper customer

6 MELISSA S IN THE MEDIA The Melissa s brand is a regular feature in local and international media publications, delivering valuable brand exposure for franchisees. Having Melissa s unique personality behind the brand sets it apart from the competition, drives a deeper customer connection and makes for a truly original offering that cannot be replicated. Melissa s Prospectus 5.

7 THREE PILLARS OF SUCCESS FOOD HOME GIFT Our food offering spans restaurant and retail categories. In our stores, customers can shop a diverse range of popular Melissa s branded food products or sit down to enjoy a light meal, a sweet treat or a delicious cup of coffee in a welcoming atmosphere. Our signature buffet table is a popular choice amongst customers who can select from a range of home-style meals that are prepared fresh daily. Melissa s stores are designed to feel like a home away from home, a place where customers can escape the stresses of modern life and be reminded of what makes life good delicious food and great company in a beautiful setting. The Melissa s homeware collection is locally and internationally sourced, offering shoppers a range of kitchen, living and dining products that make the perfect gifts or stylish additions to any home. The third core element of the Melissa s offering is the gift category. Our customers recognize Melissa s as the ideal place to shop for the perfect gift for a variety of occassions from weddings to birthdays, dinner parties to baby showers. We also offer a catalogue of luxury gift hampers that customers can choose from. The Melissa s format spans three lifestyle categories which are core to our success. 6. Melissa s Prospectus

8 OUR SERVICES In addition to our core restaurant and retail offering, we provide a range of services which further enhance the overall Melissa s experience. CORPORATE GIFTING E-COMMERCE HOME CATERING GIFT WRAPPING READY MADE MEALS TAKE-AWAY MENU Melissa s Prospectus 7.

9 A SIGNATURE STORE DESIGN The Melissa s interior is inviting, warm and presents a home away from home. The carefully considered design is brought to life with layered colour, texture and the finest quality fixtures and fittings. Our exclusive range of homeware, food and gift products is strategically merchandised around the store, creating an unmistakable Melissa shop and a feast for the senses. 8. Melissa s Prospectus

As a Melissa s franchisee you will benefit from an extensive network of expertise and support. FRANCHISEE SUPPORT Advice and guidance from Melissa s founders. Location of the store premises.

10 As a Melissa s franchisee you will benefit from an extensive network of expertise and support. FRANCHISEE SUPPORT Advice and guidance from Melissa s founders. Location of the store premises. Full store design and set-up by our project management team. Recruitment and staff training. Business management training for owners and managers. Assigned area manager for ongoing direction and support. Handover of a fully operational store. Ongoing marketing support. Melissa s Prospectus 9.

11 MARKETING SUPPORT Branding and Design National Brand Advertising Centralised social media strategy Store Merchandising Media and Customer Events Digital Marketing In-Store Promotions Customer Relationship Management (CRM) PR/Influencer Engagement As a Melissa s franchisee, you will benefit from extensive national & local support. 10. Melissa s Prospectus

12 OUR STORES EASTERN CAPE Melissa s Port Elizabeth Baywest Mall, Level 1 Shop 83, Hunters Retreat Port Elizabeth Melissa s Mthatha Shop 141, BT Ngebs City Mall, Errol Springs Avenue Mthatha GAUTENG Melissa s Dainfern Dainfern Square, William Nicol and Broad Acres Rd, Dainfern Johannesburg KWAZULU-NATAL Melissa s Ballito Coming soon. WESTERN CAPE Melissa s Blouberg Aquarius Building, Block B, Ground Floor, 10 Blaauwberg Rd Melissa s Constantia Shop 1&2, Constantia Courtyard, Main Rd, Constantia Melissa s Durbanville Coming soon. Melissa s Du Toitskloof Du Toitskloof Wine Cellar Rawsonville Melissa s Hermanus Coming soon. Melissa s Franschhoek The Yard, Huguenot Rd, Franschhoek Melissa s Kloof Street 94 Kloof Street, Tamboerskloof Melissa s Newlands Shop 3, Cardiff Castel, Kildare Rd, Newlands Melissa s Paarl 40A, Main rd, Frater Square, Paarl Melissa s Plettenberg Bay Coming soon. Melissa s Somerset Mall Shop 40 & 41, Somerset Mall, Somerset West Melissa s Stellenbosch 86 Dorp Street, Stellenbosch Melissa s Table Bay Mall Coming soon. Melissa s Tygervalley Ground Floor, The Gihon, C/o Sportica and Bill Bezuidenhout Rd, Melissa s V&A Waterfront Shop 6195, Victoria Wharf, V&A Waterfront Melissa s Prospectus 11.

Initial Franchise Fee 30% R400 000 ex VAT R4 600 000 ex VAT MIN.

13 FINANCIAL INFORMATION ACHIEVABLE ROI INITIAL FRANCHISE FEE APPROX FRANCHISE COST Incl. Initial Franchise Fee 30% R ex VAT R ex VAT MIN. OWNERS CONTRIBUTION MANAGEMENT SERVICE FEE MARKETING FEE R % of turnover 1% of turnover 12. Melissa s Prospectus

14 WE D LOVE TO HEAR FROM YOU! FOR FRANCHISE INQUIRIES CONTACT Anneke Feldtmann Melissa s Franchise Manager anneke@melissas.co.za Tel: @melissas_za 2017 FRANCHISE PROSPECTUS

Why our customers LOVE. the Melissa s way of

Why our customers LOVE. the Melissa s way of FRANCHISE PROSPECTUS 2016 Why our customers LOVE the Melissa s way of life Melissa s Café is an upmarket but casual restaurant that also offers a retail experience. Melissa s love for the good oldfashioned