AO Brochure Inserts (Franchising)

7/29/2019 AO Brochure Inserts (Franchising)

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By offering attentive customer service, variety and value, the customer is the focus ofour operations.

Our ability to continuously adapt to trends in the market, ensures that we keep ourpromise in delivering added value to our stakeholders at all times.

Our people, through dedication and commitment to our values vis--vis businessethics, are the pillar for our continued growth.

Abdul-Aziz Al-Jasser

President

Presidents Message


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Arabian Oud is an unique franchise business.

As a franchise owner, you get to experience the best of both business ownership

in a key trade such as perfume, leadership and support from an experienced

operating network of more than 480 stores and the added profit of trading

in perfume scents for its beauty.

We are committed to providing the highest attention possible to provide youwith a smooth operation.

We are family is the promise we will sustain.

Welcome Note to Franchisees


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We are the largest Oud-perfume retailer in the US$1.2 billion industry, with experience of

over 20 years in manufacturing Arabic fragrances .

Arabian Oud owns & operates 480 stores in 26 cities, with revenues that exceeds US$200million

We average 25,000 sales transactions per day and produce 25 million perfume bottles peryear.

Our records shows that we have 230,000 loyal, regular customers.

Customers age group starts at 21 years of age and above, mainly ladies and businessexecutives buying an unique, sensual gift for their loved ones

Eastern perfume exceeds 2000 fragrances, ranging from natural Oud Oils (Agarwood),Oud-based perfume blends & Eau-de-Parfum sprays.

Premium Oud costs US$ 20,000 / 1 Kilo

Facts & Figures


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Our Priority markets are:

GCC, Middle East Levant,

North Africa, Europe,

North America, South East Pacific,Indian Sub-Continent Australia

Our Strategic Plans aim at 2010

when we will have:

1000 stores worldwideUS$1 billion of sales

Expansion Strategy

An opportunity to own and operate the first and leading specialty Arabian andoriental perfume franchise, which is unique on the retail and franchise scene.

An opportunity to own and operate a successful business in one of thetop five industries in the world.

The ability to own and operate in a market with little or no competition.

The security of joining a chain with more than 480 stores worldwide.

Embark at the highest point of the learning curve of Arabian Oud,which offers vast experience in the perfume and fragrance business.

Advantages of Arabian Oud Franchise


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The right to use Arabian Oud trade name and marks, expertise and know-how, operational

systems and all literature and other material protected by copyrights.

The right to own, manage and operate the business as an area developer for an initial ten

(10) years, renewable for another term, subject to fulfilling Arabian Ouds conditions at the

time of renewal.

An Option to develop, manage and operate a distribution network subject to fulfilling

Arabian Oud requirements.

The right to use a substantial amount of accumulated know-how of business management,

sales and marketing, business administration and day-to-day operation systems including

principles, practices and corporate policies of Arabian Oud.

Franchise Rights


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A two-week initial training for the Area Developer and two Executives at the Arabian OudHQ and in company owned stores in Dubai covering the business concept, objectives,mission, philosophy, management, leadership, sales, teamwork and supervisorytechniques.

The training also covers starting the Arabian Oud business in the target market,communication, support, responsibilities and obligations of both parties.

Product knowledge constitutes a major subject to be covered in the initial trainingincluding ordering, supply chain and product handling.

Technical training will cover the customization of software programs including POS and accounting.

On-going refreshment training as and when deemed necessary by Arabian Oudto ensure continued success.

Initial and On-going Training

Provision of investment plan and financial analysis for the target area including profit & lossstatements and other analysis, such as break even point and return on investment.Assistance and training in establishing and operating the business.

Assistance with the identification of nominated suppliers including specifications and qualitystandards of such supplies.

Pre-launch Support


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Store (s) Opening Support

Provision of Training & Operating Manual "on loan",Provision of the design of Corporate Identity Manual, Corporate Stationary, Advertising &Promotional Material.

Provision of Software required for the day-to-day operations.Launch marketing plans including above and below the line media tools and advertisingcampaigns.

We are constantly researching the international markets identifying new trends, methods,products and materials.With the Arabian Oud Franchise, you will be able to network with other Franchisees throughcontributing to our newsletter, meetings, seminars, training and franchisee of the year program.

Regular updates of the operating manual as may be necessary, in addition to the facility of ahelp-line for advice on all aspects of the complete business method.Periodical visits to our franchisees in order to provide an opportunity for review, analysis, adviceand guidance.

Support Material

Elements of On-going Support

Assistance with the identification of the most appropriate sites for the establishment of the ArabianOud stores.

Evaluation of site plans and provision of designs , layouts, sketches and artistic impressions of theArabian Oud stores.

Provision of lists of equipment, furniture, fixtures and accessories for the Arabian Oud stores.

Provision of store fittings and their specifications.


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Official Synopsis

Intent to Proceed Deposit:In consideration of a non-refundable deposit by the potential areadeveloper to Arabian Oud, an initial agreement will be signed between both parties. The

potential area developer will be granted the right for an agreed time to enter into an area

development agreement for the proposed territory. During such period Arabian Oud will not

grant or negotiate the granting of the area development rights in the same territory.

Confidentiality:The potential area developer agrees that all confidential information is the

exclusive property of Arabian Oud to be held in the strictest confidence. The potential area

developer agrees that such confidential information may not be reproduced, distributed or

disclosed without the written consent of Arabian Oud.

Area Development Agreement:A legal agreement will be provided for each potential area

developer. The issue of the area development agreement enables the potential area developer to

secure the rights for Arabian Oud for the allocated territory.

Store Opening Agreement:A separate agreement will be issued for each new store opening

as per the development plan in the allocated territory.

Supply Agreement:The potential area developer will enter into a separate supply agreement,

which will include a list of mandatory purchases from Arabian Oud including the related costs

associated with the purchase and distribution of such goods.

Support Service Fees:1.5% of gross sales

International Marketing Levy:1.5% of gross sales

Minimum Local Marketing Commitment:4% of gross sales


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Single Unit Investment Level in US$

Investment Chart

Store Area in sq.m 60 80 Average

Professional Fees & Services 4,500 5,463 4,981Pre-Opening Inventory 66,966 66,966 66,966Pre-opening Payroll & Employees' Benefits 3,750 3,750 3,750Pre-opening Rent & Utility 20,531 20,531 20,531Advertising, Promotion &Signs 28,950 39,083 34,016Total Pre-opening Expenses 124,697 135,792 130,245

Store Fittings, Dcor, Contracting & Furniture 51,500 68,725 60,113Equipment & Software 8,750 11,813 10,281Total Capital Investment 60,250 80,538 70,394

Total Investment 184,947 216,330 200,638

Pre-opening Expenses

Capital Investment


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Next Step

Stage One: Mutual Evaluation1. Collect as much data on Arabian Oud Franchise.

2. Complete the application form.

3. Attend our mutual evaluation meetings.

4. Seek premises and develop your initial business plan.

5. Complete and return the Confidentiality and Intent to Proceed Agreement.

1. Work with Arabian Oud support team to customize the financial template.

2. Seek advise from your accountant and ask your lawyer to explain thellegal implications of the franchise agreement (s).

3. Arrange necessary funding.

4. Sign premises lease.

5. Sign and return area development agreement.

6. Join the scheduled Arabian Oud training program

7. Work through our action plan

Stage Two: Research Confidential Information

Having decided that Arabian Oud is a suitable franchise opportunity, you will

undertake the following actions:

F hi I iti l A li tiA b O d @


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Franchise Initial Application

Name:Street Address:City: Country:

P O Box Number:Telephone: Fax:Mobile Phone: Home Number:

What value you/your company can bring to Arabian Oud Franchise?___________________________________________________________________________________________________________________________________________________________________________________________________

What are your expectations from obtaining Arabian Oud franchise rights?

___________________________________________________________________________________________________________________________________________________________________________________________________

Do you own any other businesses/properties? Yes NoIf yes, please give details: _________________________________

Please advise on the cash assets that most closely reflects your financial standing:Below $ 1,000,000 Below $1,500,000 - $ 2,000,000 Over $ 2,000,000

Will you/your company commit to invest in Arabian Oud Franchise within 12weeks? Yes No

I / We understand that the purpose of this application is for information only and isin no way binding upon either Arabian Oud or the Applicant.

Signature of Applicant Dated

Please type or print and answer all questions completely.All information will be held in the strictest confidence.

Arabian Oud c Hh@

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AO Brochure Inserts (Franchising)