Franchising

MAIN REQUIREMENTS FOR OPENING UP AN EXO ATRACTION

To start a profitable entertainment business, your willingness, a rented room and starting capital would suffice on the initial stage!

An Island format Exo attraction should be positioned in a lively passage of a shopping center, preferably in a gaming zone with a maximum foot traffic for impulsive sales, as the etrade offer is a novelty one. In the near future, Exo technology will be actively promoted through all available channels (mass media, Internet, TV), and the dependence on expensive leased areas with heavy foot traffic will decrease with the growth of popularity of Exo products.

Design of the pavilion and fencing shall be developed by the Franchisor in compliance with applicable requirements of the corporate style. For non-standard location of and Exo pavilion, an individual design can be allowed at the Franchisee’s expense.

The Franchisee shall manufacture and install the pavilion and fencing at its own expense in compliance with the design requirements. Signboards, light boxes, and reception stands shall be produced by the Franchisee independently. The Franchisor may recommend companies with which franchisees in other cities cooperate.

The Franchisee shall participate in any promo actions performed within the Exo attractions network. the Actions may be relevant to entrance ticket price reductions, discounts, Exo Battle format competitions, awarding of prizes, presents, etc.

During the actions, purchases of relevant promo materials and relevant decoration of Exo attraction unit shall be encouraged.

The Franchising Division shall support the Franchisee’s activities in the relevant regional market eith the use of any means of promotion of the brand and Exo attractions.

REPORTING

Within two days upon confirming its decision to cooperate, the Franchisee shall submit its bank payment details, calculations for, and description of, the potential location of the attraction in accordance with the form provided by the Franchisor.

The Franchisee shall sign the product delivery Contract with the Company and send their originals by post.

For operative control over Exo attraction units and their compliance with all the applicable requirements, the Franchisee shall submit the following basic reports (upon request):

weekly sales revenues to be submitted on Mondays and total monthly sales to be submitted on the 1st day of each month (please refer to Appendix 2, Sales Revenue Report Form);

Upon the Franchisor’s request, the Franchisee shall submit:

retail sales statistics;
Exo attraction unit performance report including costs and profit data;
a photo account of the Exo attraction opening and further photo reports.

TRAINING AND MERCHANDIZING

The Franchisee’s managers and operators may receive pre-opening training in the Company’s Franchising Division at 157, Dmitrovskoye highway, bldg. 9 (GEFEST Business Center), office 9258.
Training may also be carried out at the Exo attraction unit installation site by the YottoGroup Servicing Division employees.

Training or any other corporate events involving the Franchisee’s employees arranged in the premises of Yotto Group shall be free of charge. The Franchisee shall cover its employees’ expenses relevant to the travel to the venues of training or other corporate events, unless the Franchising Division resolves to partially compensate the transportation costs.

In the event a trainer or a merchandiser travels directly to the Franchisee’s premises, the latter shall pay for relevant travel expenses and accommodation, unless otherwise agreed by the parties.

FRANCHISEE COOPERATION STAGES AT THE PRE-OPENING STAGE.

01 RECEIPT OF EXO ATTRACTION
PURCHASE APPLICATION FORM.
02 RECEIPT OF THE SHOPPING CENTER LAYOUT PLAN AND PHOTOS,
FOOT TRAFFIC CALCULATIONS.
03 RECEIPT OF THE EXO ATTRACTION LOCATION PHOTOS,
SCHEMATIC LAYOUT AND DIMENSIONS OF THE LOCATION (ROOM) FOR AN EXO ATTRACTION UNIT.
04 APPRAISAL OF FORECAST PERFORMANCE
OF THE UNIT (FACILITY INVESTMENT ANALYSIS).
05 NEGOTIATIONS WITH THE SHOPPING CENTER
CONCERNING THE LEASE OF THE LOCATION.
06 DEVELOPMENT OF THE UNIT ROOM (LOCATION)
DESIGN (PROVIDED THE FRANCHISE FEE OR ROYALTY IS PAID).
07 PLACEMENT OF THE ORDER FOR CORPORATE STYLE DECORATION FOR THE LOCATION.
ORDERS FOR THE SIGNBOARD,
LIGHT BOXES, PRINTED MATERIALS, ETC.
08 SELECION OF CANDIDATES FOR THE POSITION OF SALES ASSISTANT.
Acquaintance with the concept of Exo attractions, personnel training, acquaintance with the labor contract terms (remuneration, schedule, corporate ethics, dress code, incentives and demotivation)
09 DELIVERY, UNLOADING AND IMSTALLATION OF THE UNIT,
SWITCHING TO POWER SUPPLY LINES,
PLACEMENT OF REQUIRED INFORMATION FOR CUSTOMERS.
10 DELIVERY TO THE FRANCHISOR OF A PHOTO ACCOUNT
SUBSTANTIATING THE UNIT’S READINESS FOR OPERATION.
11 GALA OPENING OF
THE ATTRACTION.
12 DELIVERY OF A PHOTO ACCOUNT
OF THE OPENING CEREMONY.

FRANCHISEE SUPPORT.

The Franchisor shall provide support to the Franchisee throughout the entire period of operation of the Exo attraction unit from the moment of agreement on opening up the unit.

The Franchisee shall communicate with the Franchisor in addressing the following issues:

agreement of the unit opening plans and actions;
coordination of the unit opening works;
advising the Franchisee on any issues related to the opening and operation of the unit;
coordination of the Franchisee’s communications with the Franchisor’s divisions;
submission of reports concerning current performance of the unit;
monitoring of compliance with the Contract terms;
solutions to non-standard situations;
support of on-going advertisement campaigns;
creation of the unit’s planogram;
advising on issues related to the selection of equipment;
advising on required office machinery and teller equipment;
installation and support of accounting software;
personnel training and secondment;
goods range selection and supply to the location;
support of goods sales and movements reports.