Wok to Walk Final Presentation Anna Fedotova Armin

Wok to Walk Final Presentation Anna Fedotova Armin Sumper Lena Grimm Maria Shilnikova Tamara Bekhbudova Tatiana Bobrikova

Product • Take-away wok • Overall perceived image: simple, fresh, young • 3 -step menu (base – favourite – sauce) • First restaurant in 2004 (Amsterdam) • Franchise in 9 countries • Target audience: high time constraint, international oriented, open-minded

Market attractiveness factors • • Product fit Market potential Competitive intensity Business friendliness Main tendencies (Saint Petersburg, Russia) • • • Political stability Development legal framework for franchising Recovery of consumer confidence Low labor costs in certain markets due to migration High urbanization level – 73% Emerging middle class Changing lifestyles – growing time constraint, westernization Developing infrastructure Location of Saint Petersburg

The Contracting Parties The Seller • WOK TO WALK Franchise BV • Location: Leidsestraat 96, 1017 PE Amsterdam The Buyer • LLC Wok To Walk Russia • Location: Stremyannaya Street, 20, 191025, Saint Petersburg

Subject of the Offer Furniture set: • Benches: 20 • Tables: 10 • Stools: 10 Prices (EUR): – Price per bench – 103€ – Price per table – 164€ – Price per stool – 87€ Total amount: 4570. 00 €

Offer Outline (1) Packaging Origin Terms of Delivery Disassembled, parts packed in bubble wrap and cardboard boxes Furniture is produced in Slovakia Shipped in 20 feet container from Rotterdam to St. Petersburg within 12 days from the date of signing the agreement CIF St. Petersburg (Incoterms 2010) Prices are fixed in EUR and include: Pricing packing and marking drawing up the accompanying and Customs documents export Customs clearing freight charge Marine Cargo Insurance, A Clause (all risks of loss and damage to the cargoes, except of washing overboard, during loading and unloading and lightning)

Offer Outline (2) Irrevocable and confirmed letter of credit The 40% upfront payment to be transferred within 14 days before the actual shipping the goods against the following documents: The Seller’s Invoice Certificate of Origin Payment Packing List The 60% final payment at sight of Bill of Lading Commercial Invoice Documents Certificate of Origin Packing List Copy of Contract Certificate of Insurance Bill of Lading SGS Inspection Certificate Assembling instructions

Counteroffer Terms of Payment • Offeree unwilling to pay in advance • Agreed to revise the terms of payment in case the franchising agreement is signed Discount • Offeree negotiating discount • Can be granted in the future in case of a long-term relationship (i. e. franchising agreement)

Why Franchising? • Cost-efficiency and less risk – For a western company the Russian market is quite unknown and risky – Only low investments which protect us from too high risk • Quick and easy expansion – Local enterpreneurs are experienced and already have contact with possible suppliers – The market can be entered in a very broad way – Cheap way to spread the brand – Advantageous in all kind of cultural issues • No loss of control and business concept – Our company provides the whole business concept (how restaurants should look like, design etc. ) – Company culture, philosophy and marketing is evereywhere the same – Franchising is very usual and successful in the Fast Food business

Franchising Agreement (1) We have developed the WOK TO WOK Concept, established a reputation and distinctive image for the WOK TO WOK restaurant, and Subject of Agreement now we wish to expand are therefore willing to grant the rights set out herein to enable you to operate a WOK TO WOK Restaurant from the Premises, while The other part desires the right during the continuance of this Agreement to operate a WOK TO WOK restaurant from the Premises in the Territory, acknowledging the risk of operating. Territory Russia. The first restaurant in Saint-Petersburg. Minimum Area Development Agreement of 3 units (1 unit per year for two years, minimum 2 units per year thereafter)

Franchising Agreement (2) WOK TO WALK Franchise BV is to: LLC Wok To Walk Russia is to Provide • • Conduct its business at all operating rules prescribed by • Parties times in compliance with the assistance; Obligations of the site selection guidelines and four-week training program; the Franchisor; • set of design plans and specifications; • Meet • signage, in-store materials and requirements; equipment at a reasonable cost; in four-week training program; • the minimum Participate • list of Our approved suppliers; • promotion materials licenses and operate business • operational support bearing all the costs. • quality control support • use of the “Wok to Walk” name Obtain all the necessary

Franchising Agreement (3) • Initial fee (to be paid 3 months • Royalty: 8% of pre-tax profit before the planned date of • Frequency of payment: quarterly opening): (financial year starting from 1 Franchise Fees and Payment – 1 st venue: 30 000 EUR Terms – 2 nd venue: 25 000 EUR January) • Manner of payment: bank transfer – 3 rd venue: 20 000 EUR – 10 000 EUR any subsequent venue Minimum financial requirements: • Minimum liquidity of 300, 000 EUR Minimum Requirements • Venue requirements: • Dining area: 35 -70 m 2 • Kitchen: 15 -20 m 2 • Storage: 8 -15 m 2 Minimum Net Worth of 1, 000 • EUR Seating capacity: 20 -45 • Exhaust hood system • All necessary licenses and authorizations, incl. signage • Outdoor signs must be clearly visible at a distance of 25 m

Benefits Caveats • Spread the brand name of “Wok to Walk” • Growing demand for Asian fast-food from the urban young society of St. Petersburg • Gain the knowledge of the Russian market • Constant source of profit • Mitigate probable risks by relatively lower investment • High risks of Russian business environment that could lead to unpredictable costs • The difficult legal environment • More difficult to resolve possible conflicts with the partner

Thank you for your attention! Questions?