FRANCHISES

Franchisee Stores - Retail Locations developed in partnership with Franchisees who wholly own the store(s) for the term of the Franchise Agreement in Exchange for a Franchise Fee and Weekly Franchise Royalties - Franchisee Operated. OUR STRATEGY - Forge relationships with Entrepreneurial, Retail and Franchise Business Savvy Development Partners. Controlled, Strategic Market Growth with Solid Branding is the KEY to Success!

LLP & FRANCHISEE ADVANTAGES

FULL COMMITMENT - Unlike independent coffee houses who can change product lines, handle competitive products, vary from defined marketing strategies, or disregard the Company’s image-building effort, Franchisees and LLP Investors are as committed as the Company to maintain the uniformity of the system and exclusively promote the branded products in order to grow the valuation of all of our individual businesses. We are all working independentaly together to consistantly build a national and/or international customer experience and operating system that is viewed as the premier, high quality, specialty coffee and internet café business.

PACE OF EXPANSION - Concentrating only on opening new businesses or converting existing independent coffee houses, the pace of opening new franchises is likely to be at least 2-3 times that of corporate stores during the next 2-4 years. In the future, the pace for new franchises could be 10-20 times that of corporate stores, depending on the support given to the state Development Partnerships, Franchisee and LLP Investor rollout plan. We have already implemented a licensing agreement to open 5 stores in Atlanta, GA and other similar opportunities are being evaluated. In addition, the company has been approached by numerous prospective franchisee investors.

INCREASED SALES - With area marketing support, extensive training, and overall positioning of the JAVAOLOGY retail store, the sales per market area is anticipated to be 1.5-2 times that of a similarly sized independent coffee house or beverage bar counterpart.

COMPANY INVESTMENT - Since most of the Company’s current expansion plans will be from individual franchisees and/or LLP Investors, we will be able to open more stores - more rapidly over the next several years. The Company’s (Franchisor’s) investment for equivalent expansion (compared to opening company-owned units) is sharply reduced and yet the entire Franchise System/LLP Investor Stores benefit from the economy of scale and growing market awareness of the JAVAOLOGY brand. Investment in the Franchise System operation is similar to costs associated with a corporate store program, but results in a far greater return on investment for everyone who becomes part of the JAVAOLOGY family of business owners.

JOB FULFILLMENT - Franchising is a natural progression for state development partners, employees, independent stores, etc, and should provide opportunities for all to succeed, feel better about themselves, earn more income and personally benefit from the long-term growth of the JAVAOLOGY brand. Ultimately, a JAVAOLOGY store will be positioned (income level and career growth) as a great place to work.

LEGAL & FINANCIAL EXPOSURE - Legal and financial risk and exposure are far less as a Franchisee or LLP Store Investor since the entire system will work to defend sister/brother stores with respect to shared product issues should that ever occur.

DEFINITIVE BRANDING & IMAGE -
The ability to control and optimize consistent marketing, merchandising, and promotion methodologies, images, and designs is far greater with franchises and LLP stores. Everyone within the Franchise and LLP Investor relationship benefits from the development of a strong brand image in the local, national and international marketplace. This creates more consistent customer experiences and increased confidence in the brand!

CULTURE AND PHILOSOPHY - The ability to secure adherence to the basic Company philosophies of customer, vendor, and employee satisfaction, and the promotion of family values, and “healthy lifestyles” is far greater with franchises. We are all working together to secure a stable and profitable future for the store staff members and ourselves. We are also constantly focused on delivering a superior customer experience to each and every consumer.

ONGOING COMMITMENT - Franchisors are contractually obligated to provide ongoing services and supplies, a defined marketing strategy, and a system-wide image-building program. Franchisors are committed to promote the brand as well as the stores in the system.

SUPPORT - Franchisees generally receive training, marketing and other support on a continual and ongoing basis while in the system, however as an independent, that support may not be provided or is incidental to any outside vendor relationships. The most significant drawback to being an independent is that the business owner generally does not receive the management systems, training, ongoing support, marketing and other support services that are the hallmark of most franchise relationships. The JAVAOLOGY management is committed to developing the most thorough and inclusive franchise system in the industry. Each Franchisee or LLP investor who joins the JAVAOLOGY team of owners is true partner in the business; we are all working together with a common goal.

EXCLUSIVITY - Franchisees offer only the products or services authorized by the Franchisor, building consistent brand awareness as opposed to a typical independent operation that may handle a variety of different products or services and have an insurmountable task to compete (Price, Promotion and Long-Term Value/Brand Building of the Business) within the market.

PROTECTED TERRITORY - In a Franchise, the purchaser (Franchisee) generally buys the rights to sell the company’s product within a Protected Territory. As an “independent, the business may not receive an exclusive or protected territory to sell a vendors products or services, allowing the manufacturer, vendor, other independents or a large corporation to out-price and out-market that type of business.

LOWER INVENTORY PRICES - The collective buying power of a franchise group allows for lower costs in purchasing inventory and equipment. Independent coffee house businesses usually have less bargaining power with suppliers.

EASIER STAFF RECRUITING - Finding good employees is a critical success factor for many independent small business owners. A franchise business with a recognized name will have greater recruiting pull than an unknown business entity.

BRAND NAME - Franchising and LLP Investor store development is about brand recognition. Using the same (Franchisor/Company) trademarks, each unit is established by the Franchisor. This plants another flag for identifying the brand. An independent store will most likely be operating on its own without benefit of special name recognition. The more established franchises provide a market awareness and brand name to Franchisees. This can amount to great savings in customer acquisition costs and allow for more time in the operation of the business.

CONSISTENCY - The consumer has grown to expect “consistency” throughout an entire franchise network or group of corporate stores. This is a major consideration when comparing franchising to non-franchised business like an independent store. With consistency comes expectation and if the expectation is met routinely in a positive way, then each unit offers support to the others in the network by way of driving traffic into those other units. In the standard non-franchised scenario, the independent is trained to use a particular system, equipment package, or service method, but if there is no consistent delivery of the product or service, one unit does not support another in terms of customer expectation.

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Disclaimer: None of the communications made through this web site should be construed as an offer to sell any Javaology® franchise in, nor is any such communication directed to, the residents of any jurisdiction requiring filing of the offering circular and/or registration of the franchise before it is offered and sold in that jurisdiction. Javaology® franchises will be sold to any resident of any such jurisdiction until the offering has been exempted from the requirements of, or duly filed and/or registered in and declared effective by, such jurisdiction and our Uniform Franchise Offering Circular has been delivered to the prospective franchisee before the sale is in compliance with applicable law. If you have any questions concerning the registration status of Javaology® franchises in your jurisdiction, please contact info@javaology.com or (651)686-6622