FRANCHISING

Saudi Rakeen Company is the Master Franchisee for the Karmello Brand in GCC countries, Egypt, Jordan and Yemen. Karmello is the core franchise-able business,

Conceptually, a franchise–based operation develops as follows:

A party (the sub-franchisee) outside Saudi Rakeen Company‘s current region of operations recognizes the success of Karmello brand and wishes to reproduce that success in another region.

Saudi Rakeen Company, using the rights granted to it from the Trade Mark Owners, allows the sub-franchisee to use the brand, (inclusive of all operating systems, management expertise, design features, images, materials, and all other aspects of Karmello business model).

In return for this the Saudi Rakeen Company requires a license fee for the right to use the Karmello name with all related branding designs, images, menus and systems. The license may be granted for a city, a country, or a region depending on requirements and negotiations, and will be for an agreed term with an option to renew by mutual agreement.

Saudi Rakeen Company will provide all information and assistance in terms of interior design drawings, furniture design, showroom plan, set-up support, equipment purchasing and training to enable the Karmello brand to be operated in its entirety in the franchisee’s location.

Saudi Rakeen Company will continue to support the sub-franchisee’s operation of Karmello brand during the term of the license agreement by regular management visits, ongoing training support, marketing support, and providing the benefits of any new product and design development.

The franchisee will pay, each month, a percentage of the monthly gross sales revenue to the company.

Depending on the size of the market, Saudi Rakeen Company may require the franchisee to open a minimum number of outlets within a specified time frame. Each new outlet will receive pre-opening assistance from the Saudi Rakeen Company, Recognizing that each franchise opportunity will be unique to a particular situation, a party wishing to explore the franchise concept with Karmello should embark on preliminary discussions to identify territorial requirements etc, and with Saudi Rakeen Company will negotiate all details of the franchise arrangement to the satisfaction of both parties.