Franchise Prospectus

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Franchise Prospectus An impressive franchisor that goes above and beyond to ensure its franchisees are fully equipped to deliver excellent services. BFA 2013

1 Contents Thank you for getting in touch. I am delighted to be able to introduce you to Barking Mad the award winning market leader in dog care. You will find an introduction to our professional mobile dog grooming business opportunity in this prospectus. We are passionate about dogs and excited about growing our successful franchise network so if you think you'd like to join the team, we look forward to hearing from you! Lee Dancy (M.D. & Founder) 2 A bit about us 3 A Barking Mad opportunity 4 Become a franchisee 5 Put yourself in the picture 6 Training 7 Award winning support 8 Customer Contact Centre 9 Our unique mobile salon 10 Your investment 11 Tell me more FAQ 13 Next steps 14 What our franchisee's say 15 International Partnership Programme

2 A bit about us A superb business opportunity from award winning experts Barking Mad Ltd established in 2000 and is now a respected and recognised dog care brand across the UK. We have national coverage with franchisees operating our pet sitting side of the business and 'Barking Mad the alternative to kennels' continues to grow across the UK and abroad*. We were extremely proud to win the British Franchise Association (BFA) HSBC Franchisor of the Year 2013 Award for Franchisee Support. In 2012, having identified and researched the dog care market further we expanded into mobile dog grooming. We appointed our National Operations Manager who already had 12 years of experience running her own successful mobile grooming business. Barking Mad Mobile Professional Dog Grooming is a stand alone, full time franchise opportunity that provides a turn-key operation with everything you need to run your own successful business. We have many years experience in supporting business success from territory mapping and business planning to training and award winning customer support. Barking Mad provides everything you need in a ready made package as well as the potential of a great deal of cross referred business between pet care and mobile grooming. Currently there are 20,000* people involved in Barking Mad. Franchisees are well supported and all calls are managed by a customer contact centre at HQ. Franchisees sales will be generated via customers from the internet, local and national press, PR, social media, advertising and marketing. The franchise is highly profitable and based upon quality customer service and regular repeat business. Customers book well in advance from one appointment to the next and overheads are low. * The Barking Mad International Partnership Programme launched in 2010 and the system expanded into the USA in 2011 under the FlipFlopDogs brand. **Includes Barking Mad customers, hosts, franchisees and staff.

3 A Barking Mad Opportunity Market Potential The UK's dog population is estimated at 8 million and approximately 23% of the UK households own at least one dog**. The customer basis therefore is ready and waiting in every area of the UK giving franchisees the potential to operate one or more vans successfully to build up a highly profitable venture. A growth industry All dogs need and to be kept clean and groomed with most owners preferring a professional to take the hard work out of the job for them. So much so, that grooming benefits from excellent repeat business meaning a good groomer's diary is always full. In fact, the UK pet care market is worth over 4bn* a year and has demonstrated strong growing over recent years. Whilst many businesses have struggled the grooming market has continued to expand demonstrating a recession proof nature. Today's customers are savvy and want more than the usual parlour where their beloved pet can be left for many hours. They demand convenience and relish the one to one doorstep service with the unique personal touch that mobile grooming in a specialised grooming van delivers. Mobile grooming is the future of canine care. A life changing opportunity **PFMA 2012

4 Become a Franchisee Why Franchising? Starting out on your own is tough and new entrants to the market need to stay ahead of the competition. Franchising delivers better results at less risk and therefore launching a franchise with a prominent brand name such as Barking Mad plus the support of a dedicated HQ team brings enormous benefits to the new business owner. Barking Mad is the first and only dedicated grooming business to be members of the British Franchise Association (BFA). This accreditation acts as a seal of approval independently verifying that we offer the very best in quality care, ethics and business practices. Our National Operations Manager has over 12 years experience working in the mobile grooming business and will be readily on hand to help and develop your grooming career to its maximum potential. Become part of Barking Mad Professional Grooming, enjoy the highs of being your own boss, working hands on with lots of dogs every day, growing your creative grooming skills and let us help you reach your full potential as you build your successful business. Barking Mad is a member of the British Dog Groomers' Association and each franchisee will also become a member as the first year's individual membership is included in the package. A tried & tested system with support every step of the way * Euromonitor October 2012

5 Put Yourself in the Picture First Step Following your initial enquiry we'll look together at the territory available within your area and have an initial chat on the phone () or discuss via email Hello@BarkingMadGrooming.uk.com. Second Step Come along and meet Lee and see the rest of the support team at HQ. At this confidential meeting you ll get to see our operation at first hand, ask all the questions you want to ask and answer some of ours too. You ll learn about the business advantages such as the fact that the operation is cash flow positive with repeat customers booking on a regular basis. And of course, running your business from a van means your overheads are kept to a minimum. You ll also discover, as we have, that business isn t seasonal. Third Step When you re completely happy to go ahead, and the Franchise Agreement has been signed, you ll visit our Lancashire based head office for three day training and two days on-the-job training with other folks just like you. Back in your local area, you will have all the tools you need to get your business known quickly. We arrange and pay for advertising in your target marketplace during the first eight weeks and send out heaps of press releases to all of our local media contacts. We look forward to meeting you

6 Training Barking Mad is the only dedicated grooming business to be BFA members Things you need to know You will need City and Guilds level 3 certification. We can arrange this for you if you are not already trained. Your initial training is for 5 days, 3 spent at HQ in Lancashire and 2 spent working with our National Operations Manager. After your initial training, we guide you through the first 6 months working with you both in the field and remotely. We don t expect you to be an expert in every area and there will almost certainly be at least one part of the business you ll need more assistance with such as sales and marketing, accounts or telephone technique. But don t worry help is always on hand. Support isn t restricted to the initial launch of your business, indeed we have a robust franchise development template which is specifically designed to help franchisees increase turnover during all stages of their business. So what makes an ideal franchisee we hear you ask? A dog lover, that goes without saying. But we also look for enthusiastic communicators with the ambition to grow a successful business. We re really selective about who we work with and we hope you are too.

7 Award Winning Support When it comes to supporting franchisees, this is the area in which we excel. We understand that the very reason you would buy a franchise is to have the security of a tried and tested business model. There are no short cuts, and you certainly get what you pay for. Barking Mad Ltd have been full members of the British Franchise Association since 2003 and were crowned winners of the British Franchise Association HSBC Support Franchisor of the Year 2013 Award. Barking Mad Mobile Grooming are also BFA members in their own right and call upon the same team of dedicated professional staff. We are the first and only to offer such backing and consequently we have an excellent relationship with all major banks. We are extremely confident in the support and facilities we provide. There are 9* members of the team (*correct at time of going to press 2013) all of whom specialise in different areas of the business. Because you are the IT department in your own business, we ve made it easy for you by building an on-line data storage system and intranet which sounds a bit boring, so we ve called it FIDO short for Franchisee Intranet Data Operator. Put simply, you can work on any PC or Laptop, anywhere in the world at any time of day or night. Support comes from our network of franchisees too, and so there are lots of opportunities to get together with other like minded folks like you, such as our National Conference and Regional Sales Meetings.

8 Customer Contact Centre First Impressions Count A dedicated Contact centre phone service that gives your customers the very best. It takes the stress out of trying to respond when you are busy grooming or driving. Unique Customer Contact Centre Care There's nothing worse than getting an answering machine or a bad mobile phone line when you are contacting a business for the first time. Customers have a choice where to go and will very easily go to the next name on the list or hang up if they feel they are not getting the service they deserve. The Barking Mad system makes sure that every customer's experience is excellent, every time. Our unique Customer Contact Centre takes calls and messages from across the UK so that when a Barking Mad customer contacts us they get to talk to a real person who is friendly and knowledgeable. All our contact centre staff work at our own head office and are dog lovers and dog owners themselves. By dealing with customers day in, day out we are able to offer award winning customer service and take bookings for you whilst you are busy at work. It's a genuine competitive advantage! We Get Social! Watch the YouTube video Social Media support Barking Mad has a number of busy and highly engaged social media sites with a reach of 100,000's. It is a valuable and positive tool that markets every Barking Mad business.

9 Our Unique Mobile Salon Our vans have been designed with the groomer in mind. It is important that there is a pleasant and safe work environment for both dog and groomer. You will achieve the best results with quality equipment and the very best in ergonomic design. Advantages Pleasant working environment natural sunlight, spacious, excellent lighting Attractive eye catching design full colour graphics with Barking Mad national brand High grade vinyl laminated digital print Brand new vehicle Fully converted ready to drive off and groom to the moon! no need to worry about reliability no MOT for 3 years taxed for 1st year choice of finance options without needing to own the van Van specification Attractive and ergonomically designed interior Finished to a very high standard Sleek dual level bath with no sharp edges Fully lined washable walls and floor Courtesy light activated by side door opening Large water tanks -2 x (175 ltrs each) One for fresh water and one for waste. Window for day light as well as LED bright lights Wet area throughout Plenty of storage & shelving High quality fixtures and fittings Professional electric hydraulic dog grooming table Powerful 1600 blow drier (less noise) Heater for day (and overnight to protect from frost) Electric fan Pump, water heater and leisure battery.

10 Your Investment What s the deal? THE COST OF SETTING UP Franchise Licence Fee to operate in an agreed and exclusive territory for 5 years 11,950.00 including City & Guilds Level 3 Training Franchise Licence Fee to operate in an agreed and exclusive territory for 5 years 9,450.00 excluding City & Guilds Level 3 Training Comprehensive Business Training at HQ Issue of Operations Manual Bespoke FIDO Business Software PIF 1st year's Membership INCLUSIVE INCLUSIVE INCLUSIVE INCLUSIVE Business stationery, personalised to you as Franchisee 350.00 Headed paper, business cards and posters Corporate apparel 140.00 5 polo shirts, gilet and waterproof jacket Equipment Pack 430.00 TOTAL with City & Guilds Training 12,670 * TOTAL without City & Guilds Training 10,170 * Fully Fitted, Liveried Vehicle Complete with Lease Deposit 1500.00 3.5t Citroen Relay L3 H2 long wheel base high top Telecommunications PDQ Machine Smart Phone and ipad 10.00 per month 18.00 per month Variable * V.A.T. is applicable to the above. We can discuss insurance requirements relating to your business during our initial meeting. Bank financing may be available, subject to status. Please call us for details.

11 Tell me more FAQ We re really selective about who we work with and we hope you are too. Here are a few things you'll want to know... 1.What experience will I need? The only real requirement is that you are a passionate dog lover and have experience of being around them. That, and a willingness to work hard and follow the system gives you the perfect ingredients to groom to the moon! 2. Why is buying a franchise my best option? Any high street bank or business expert will tell you that the majority of new independent business starters fail within the first 12 months and even more won't last more than 3 years. A quality and accredited franchise system offers a tried a tested system that delivers better results at less risk. This is the reason banks are far more likely to support a franchise than securing funds on your own. On top of that there are 101 further reasons why you'll love working with Barking Mad; not least because you'll be part of a network where you can share your experiences and questions with people who are doing exactly the same as you and their success makes your brand more valuable. 3. What makes Barking Mad Mobile Grooming vans the best? Our vans are unique brand spanking new, state of the art shiny vans that have been designed to our specific requirements that have been determined from years of working on the job so we know exactly what works best for both dog and groomer. (See Van specification page 9). Better still, we help with the right finance deal for you which often means you rent the vehicle and simply hand it back for a new one every 4 years. 4. Does anyone get to be a Barking Mad franchisee? Absolutely not! Our franchisees are our business partners and their success is our success. In fact, we put so much effort into your business that we work with you constantly to make sure our investment in you is a wise one. We always meet with every applicant face to face so we can get to know you and find out what it is you want to achieve. Only the individuals with a professional attitude that we feel are capable, enthusiastic and will benefit the Barking Mad brand will be sent an offer letter inviting them to join our team. 5. How long will I be Barking Mad for? The Barking Mad franchise agreement is renewable every 5 years (free of charge) and you are free to sell you valuable asset at any time. The longer you have had to establish a loyal client base and build up your turnover the more valuable your asset will be.

12 Tell me more FAQ Continued 6. Do I get my own website? Yes, part of your package includes your own page which we update regularly for you with photos and events as well as other local businesses you might pal up with. 7. What about Facebook & Twitter? Barking Mad loves being social and we have thousands of people regularly interacting with us on-line. We create loads of great content to share and you can help too by taking photos of your happy customers. It's great information for people looking to use your services and works well as a marketing tool. 8. What are my annual costs to Barking Mad? You get exclusive use of the Barking Mad system and brand in your territory including all the business support and benefits of being part of a national network all for 10% of your turnover paid monthly. 9. What does membership of the British Franchise Association (BFA), British Dog Groomers' Association and Pet Industry federation mean to me? As a member of the BFA we have passed a number of checks and are independently proven to be above board adhering to the European Code of Franchise Ethics. 10. What do most customers want for their dogs? Most customers want to know their best friend can be kept clean and looking good regularly and you will strike up an excellent relationship to work with them to find out exactly what works best. 11. What qualifications will I get / need? See Training p6 12. Is it possible to have multiple vans? Yes! We are happy to work with you on business plans that include multiple vans with employees. If you have the resources and we think that it is something you are capable of then we will work with you to build your empire! 13. What's next for the Barking Mad brand? Well, never say never we already have partners in the USA and regularly get enquiries from other countries. We have loads of ideas and want to take the Barking Mad brand a lot further yet!

13 Next Steps We meet with all our business partners face to face so the next step is to speak to us to arrange this. We look forward to it! Meeting Notes

14 What Our Franchisee's Say I felt from the word go, that I wasn t on my own. The support in all areas of Barking Mad have been professional and always someone on the end of the telephone with help and answers. Out in the field training and support was tailored to the individual and structured, all the IT support is first class, with answers quickly. No one gets forgotten about, everyone is very positive and the systems work, and constantly being improved. There is no reason why franchisees don t succeed with Barking Mad, everything from head office is first class. The team at head office, don t sit on their laurels they are constantly improving, and looking at all aspects of the business to make it better!! Julie Sampson (Bristol) Our daily activity involves being out and about and the Customer Contact Centre gives us the freedom to do this knowing that when new or existing customers call they get a human response rather than a voice message. Immediate feedback to ourselves by text on the detail of the call made means we can respond directly and as soon as possible. Customers regularly comment on the professional nature of our communications and response times. Read more... Chris & Alex Cowe (Perthshire, Clackmannanshire, West & Central Fife) We both feel that the annual BDR s from head office are extremely useful in driving our business forward in new innovitive ways. Also, we always feel refreshed and newly motivated afterwards which gives you the drive to throw yourself into the year to come and grow your business. This is support, we feel is invaluable. Laura and Veronica Young (Derby) The Fido back up proved so invaluable in December last year when we lost our trusty PC s services and it decided enough was enough. I cannot imagine the long hours that would have to be put in to replace all of the lost data that is currently stored and easily replaced on our systems. Mad Mimi facillity is so simple to use and having a template to just activate means really no excuse for folks not to use it monthly or quarterly at least. I find it fascinating to watch the participating customers numbers grow and interact with it. Having regular get togethers with our fellow franchisees is vital. It is so important to bounce ideas off one another and talk to like minded people and share views and ideas. Cate Court (Oxford)

15 International Partnership Programme Barking Mad s International Partnership Programme officially launched in October 2010. The project involves the Barking Mad business model being sold on a non-compete Teaching System Agreement where our partners have complete access to our unique Franchisee/Franchisor intellectual property, disclosed during an 8 day training programme, held here at Barking Mad HQ. This Agreement is clearly different from a typical Master License Agreement as it provides far greater flexibility. The Key Advantages are: No necessity to pay on-going fees No onerous monthly reporting Freedom to select a business name/term appropriate to the country Ability to adapt the system to meet local market demands Exchange of best practice with other business partners Full training and discloser of the Barking Mad System We are delighted to announce the launch of our first business partner in the USA. In line with our International Business expansion plans, this is a great step towards meeting pet care needs of dog owners around the world. Jack and Taffy Miltz were first introduced to Barking Mad when their friends in Bridgwater, Somerset used the service for their own dog in 2000. The Miltz s have over 25 years experience in the American Pet Care Sector. We became intrigued with the Barking Mad business model, after hearing a friend s story of how they had used a traditional kennel for their Westie Rocky, only to find upon their return, Rocky was distraught over 3 weeks. Our friends used Barking Mad for their next holiday and were delighted with their experience. Researching similar businesses to Barking Mad in the USA, we quickly realized there was a void in the marketplace. Upon contacting Lee at Barking Mad, we realized that she provided the level of professional service and operations that pet lovers in the USA are looking for. The staff and training program at Barking Mad has exceeded our expectations and will serve as a strong foundation as we grow our business. Jack & Taffy Miltz