Franchise information memorandum

2 3

We build relationships

with our clients providing

them with technologically

advanced non-surgical

cosmetic treatments at

an affordable price.

Thank you For Taking The FirsT sTep Toward being parT oF The

siLk Laser cLinics success sTory.

SiLK Laser Clinics has grown rapidly since the first clinic opened in Hyde Park,

Sa in 2009. We are extremely proud and driven and look forward to an exciting

future that includes generating franchise opportunities.

SiLK Laser Clinics success has and will continue to rely on several important

factors. Great people, quality and ongoing training, and a dedication to delivering

the best results for all our clients.

as an established yet youthful business we have a positive and energised outlook

and recognise the extensive opportunities in the australian market. We look

forward to growing our brand with passionate franchisees and welcome and

thank you for your interest in being a part of our growing success.

Servicing a range of clients across five key business streams we are committed

to providing the latest technology to deliver the best possible results for our

clients. We also take the time to understand their needs and educate them on

the aesthetic solutions we provide. our approach enables our staff to build

relationships with our valued clients in turn gaining their trust and respect.

this is a key factor that differentiates us from our competitors in the market.

We trust you find the initial information you need in this franchise information

memorandum and look forward to answering any questions you may have.

Martin Perelman

CEO – SILK LASER CLINIC

WELCOME

4 5

owning a Franchised business makes a LoT oF sense.

tHrouGH a SiLK LaSer CLiniCS franCHiSe, you are abLe to run your oWn buSineSS

and SHare in many of tHe advantaGeS, SuPPort and eConomieS of SCaLe avaiLabLe

to a LarGer ComPany aS WeLL aS be Part of tHe boominG aeStHetiCS induStry.

Why OWn A SILK LASEr CLInICS FrAnChISE?

FinanciaLbe the master of your own financial destiny with the added support of an established corporate structure and resources.

buying powerCapitalise on the advantage of being part of SiLK Laser Clinics’ unique buying power and established supplier contacts.

brandingbenefit from SiLK Laser

Clinics established brand, lead-generating advertising

campaigns and strong social media following.

supporTreceive on-going professional

training and technical support from SiLK Laser Clinics experienced team enabling you to provide

premium service.

Turnkey readyeach new state of the art

clinic is fully furnished and ready to begin operations

with professional, it set up, equipment and stock in place.

It’s about much more

than aesthetics.

We focus on each

individual’s objectives.

This is the

SILK Laser Clinics

Difference.

6 7

posiTioned aT The ForeFronT oF a growing indusTry siLk Laser

cLinics provides aFFordabLe access To The worLds mosT advanced

skin TechnoLogies.

A GrOWInG InDuSTry

AUCKLAND

BRISBANE

DARWIN

CAIRNS

MELBOURNE

ADELAIDE

SYDNEYACT

WELLINGTON

CHRISTCHURCH

Laser hair removal,

skin rejuvenation and

hair and beauty sectors

are now more than a

$3.8 billion retail industry

in Australia.

in 2016 SiLK Laser Clinics:

• Will service 50,000 individual clients

• Has professionally delivered in excess of 400,000 treatments

• Has developed strong repeat business with a massive 88% of our clients retuning to

us for further treatments

• Will continue to grow the business supporting the demand and plan to generate triple

digit growth year on year.

as consumer demand grows SiLK Laser Clinics are looking to expand in the following areas:

8 9

as a siLk Laser cLinics Franchisee you wiLL be parT oF our

commiTmenT To:

Our CLIEnT COMMITMEnT

Investment investing in the latest fda and tGa approved medical grade lasers and equipment,

premium anti-wrinkle injections & dermal filler products and specialist skin care.

Research We are dedicated to the research and development of new services to benefit our

clients.

Training Certifying and training our experienced specialist staff to deliver safe and effective

treatments with premium gold star service.

Protocols

Strictly following legal and medical guidelines so clients can enjoy peace of mind, safe

in the knowledge they are receiving the highest and safest standard of service possible.

Customisation

Listening and recommending a holistic approach to skin and hair concerns and

formulating individualised treatment plans including home care.

Results our Lifetime appearance Promise for all laser hair removal and tattoo clients

demonstrates our commitment to obtaining the best results for our clients.

10 11

idenTiFying a gap in The souTh ausTraLian Laser hair removaL markeT

in 2009 siLk Laser cLinics’ originaL Four direcTors recognised a need

To oFFer souTh ausTraLians a premium service providing advanced

skin TechnoLogy in a comForTabLe and convenienT environmenT aT

an aFFordabLe price.

Our STOry AnD VALuES

SiLK Laser Clinics opened the first site with a long term vision to open additional clinics

throughout the adelaide metropolitan area. in seven short years the trust in the SiLK

Laser Clinics brand grew thanks to a commitment to staff training and a high level client

satisfaction and loyalty. this enabled SiLK Laser Clinics to successfully open an additional

seven clinics in six years. each clinic is strategically positioned on a high street or shopping

centre location.

Whilst steady, profitable growth has been very exciting our commitment to client experience

and staff has remained the key focus and priority for the businesses development strategy.

by adhering to a sincere code of values we ensure our growth is built on a genuine and

robust foundation that benefits SiLK clients and all stakeholders in the business. this

commitment in turn strengthens our premium yet affordable brand, reputation and business.

SILK LASEr CLInICS’ VALuES;innovaTion using the latest technology or skincare,

finding creative ways to educate the market about our

services.

inTegriTy safety certification, ethical needs-based

selling, comprehensive training and a focus on SiLK Laser

Clinics standards rather than criticising our competitors.

respecT for our clients, our team and ourselves.

Privacy of information.

coLLaboraTion working as part of a cohesive team

to provide gold standard service to our clients and

maintain SiLK’s reputation for providing consistent

and safe treatments in a friendly and well-presented

environment. utilising others’ strengths and assisting

in improving areas for development.

responsibiLiTy taking ownership for success of

the individual, the team and the business. following

required protocols and correcting any errors made

as soon as they are evident.

We are excited and energised about SiLK Laser Clinics

new era and supporting our franchisees in implementing

our original vision of providing custom treatment plans

that deliver the best possible results for our clients.

We look forward to helping you reach your own

personal and financial goals with the support of our

Head office team.

‘I received great service from the outset,

from booking my first laser hair removal

appointment through to the consultation

and follow up appointments. I’ve been

so pleased with my results and am now

keen to try their skin treatments.’

– Sarah

‘A friend recommended SILK for cosmetic

injections, I was a little anxious but was

put at ease by the professional environment

and the friendly and confident manner of

the staff. I wouldn’t go anywhere else.’

– Kristen

‘I’m thrilled and relieved with my laser hair

removal results, I always loathed taking

my shirt off but now I don’t have to think

twice. My confidence has soared.’

– Peter

‘After having my children the pigmentation

on my face always bothered me but after

working out a tailored treatment plan

with my technician my skin has never

looked better, I no longer have to reach

for my make up every morning.’

- Connie

Don’t take our word for it?

Look what our clients have

to say about their SILK Laser

Clinics experience...

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experience and direcTion is The backbone oF siLk Laser cLinics

success and FuTure successes.

ThE SILK LASEr CLInICS BOArD

as one of the founders of SiLK Laser Clinics, martin has been instrumental in the development and evolution

of the business vision and brand. He has worked across various roles in the business and remains proactive

and hands on in order to respond to the changing expectations of consumers in the industry. Having worked

in various national Sales roles in the retail industry, martin has the skills required to successfully lead a

growing business, including sound financial management, brand development, innovative sales and marketing

strategies and team leadership.

andrew Cosh is the managing director of Colindale Group, a privately owned globally focused investment

company based in adelaide, South australia. andrew has over 20 years’ experience with international

business, private equity investment and corporate development and strategy.

Paul is a founder of the Cartridge World group and pivotal in the rise of the brand from single store in 1997 to

over 1550 franchises worldwide in 2007. Paul is regarded as a franchise veteran by business commentators and

with his background in banking, small business and franchise consulting brings successful, practical business

experience and new energy to the franchise industry.

boris bosnich is a highly regarded senior executive with over 30 years’ experience in business ownership,

directorship roles and private equity markets both as an investor and executive director. boris has expertise and skill

in the area of corporate finance, operations, business development and general management.

mark has been serving on the SiLK Laser Clinics board since its inception in 2009 and has extensive experience in

Project and Portfolio management across a wide variety of industries and disciplines. mark’s projects have included

sustainment, manufacturing and engineering development environments, the influence of which can be seen

embedded in SiLK.

boris bosnich Chairman

b.ec, mba

mark yaTes director

mba

marTin pereLman director

bbus (man)

andrew cosh director

mba

pauL wheeLer director

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Increasingly clients

want to understand more

about their treatments

and bodies. We believe

education and explanation

is vital to building our loyal

customer base.

Laser hair removaL

cosm

eTic

inje

cT

ion

s

sk

inc

ar

e

Laser TaTToo r

emo

va

L

skin

TreaTmenTs

SErVICES

Laser hair removaL. Our core business. unwanted

facial and body hair can range from an inconvenience

to a cause of low self-esteem. We provide professional

treatment plans for men and women using our Candela

GentleLaSe Class 4 medical grade lasers. this service

generates the highest percentage of turnover for our clinics.

cosmeTic injecTions. Our fastest growing service. We

provide an expanding demographic with anti-wrinkle and

dermal filler injections administered by qualified medical

practitioners ensuring we adhere to legislation and best

practice protocols at all times.

Laser TaTToo removaL. A growing market. this

service uses the world’s most advanced picosecond laser

technology delivering outstanding results with the best

clearance of any machine on the market today.

skin TreaTmenTs. High demand. utilising a diverse

range of treatments and advanced medical technologies

we address a broad range of skin conditions and concerns.

We are committed to clinical trials and being at the

forefront of this growing service offering.

skincare. A results essential. our skincare offering

incorporates a variety of skincare brands including SiLK’s

own range to maximise treatment outcomes. We are

passionate about educating clients on the benefits

of quality products as part of their daily regime.

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siLk Laser cLinics oFFers a Franchise package ThaT has been deveLoped To geT you

quickLy inTo business. beLow are The key eLemenTs siLk Laser cLinic wiLL provide:

ThE FrAnChISE PACKAGE

Licence

• rights to operate a SiLK Laser Clinics franchise

• access to use SiLK Laser Clinics’ intellectual

Property (operating methods and systems)

manuaLs

• SiLK Laser Clinics operations manual

• SiLK Laser Clinics training manual

• SiLK Laser Clinics franchise Style Guide Software

• access to SiLK Laser Clinics customized cloud based

software and digital resources

adverTising and markeTing

• Shared advertising campaigns

• Store opening promotion

• advertising templates

• branded marketing material

• branded business templates

• Corporate website

buying power

• Cost effective stock purchasing from approved

suppliers Launch program

• Hands on assistance in launching your new

SiLK Laser Clinic

Training and ongoing supporT

• a structured and comprehensive training package

covering every aspect of operating the SiLK Laser

Clinics business including products and services

• a commitment to ensure you are properly trained

on how to execute the business model. We firmly

believe in continual training at all levels within the

organisation and we will provide online and onsite

support

• technical training program to ensure your

technicians and injecting staff have the

competencies and knowledge required to

successfully service clients and grow the business

• it support for operating systems and

equipment support

• training delivered on-site in your clinic by

our experienced clinical education team

• ongoing product and technology research

and development

• Human resource support to build high

performing teams

• Support visits in order to provide an opportunity

for review, analysis, guidance and advice

• regular communication to ensure the business

progresses with mutual understanding

SILK Laser Clinics is

committed to achieving

results for all clients by

utilising the most advanced

technology in the aesthetics

industry at an affordable

price in a relaxed and

comfortable environment.

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whaT are The skiLL requiremenTs To become a siLk Laser cLinics Franchise owner?

a successful SiLK franchisee will be passionate about the aesthetics industry and will channel their passion by working closely with their team in clinic. they are commercially-minded, dedicated, people focused and always looking for ways to grow their business.

SiLK franchisees thrive on being collaborative, positive and are energised by learning about new developments in the industry and will embrace SiLK Laser Clinics values and proven systems. a franchise owner may be:

• an investor looking for a good return on investment

• a Laser or dermal therapist wanting to open their own business

• a beauty salon owner who wishes to develop their business

• doctor or nurse working in the aesthetic industry

whaT is The iniTiaL Franchise Licence Fee?

the initial franchise license fee is a one-off licence fee giving you the right to operate a SiLK Laser Clinics for the term and renewal terms of the franchise. this fee is $45,000 plus GSt and is payable upon signing the franchise agreement.

can i seLL my Franchise?

yes, subject to certain conditions. SiLK has the first right to purchase your clinic and must approve any purchaser.

whaT ongoing services wiLL be provided?

SiLK Laser Clinics will support your business throughout the term of the franchise agreement with a range of invaluable services. these include the personalised support of a dedicated franchise manager, regular support visits and operational reviews, additional training opportunities, updates to business operations and ongoing research into the best possible equipment and treatments available

where can i esTabLish a siLk Laser cLinics business?

We are appointing franchise owners throughout australia, in high profile, visible areas of shopping malls and high street locations with good foot traffic

how Long does iT Take From FirsT inTerview To The Franchise opening?

this process should take around 2-3 months depending on the individual situation of franchise owners. Securing suitable sites can take additional time.

can i Finance my Franchise?

yes. We can provide you with contacts to investigate

possible financing opportunities. there are many traditional

ways of financing any business, including borrowing from

your bank against your personal assets or plant

and equipment for the business.

FrEQuEnTLy ASKED QuESTIOnS

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It feels good to make

people happy. To restore

or build esteem and

confidence with advanced

technology and technical

knowledge.

FInAnCIAL InFOrMATIOn

The FoLLowing indicaTive cosTs are subjecT To change. acTuaL cosTs wiLL onLy be

deTermined when a speciFic siLk Laser cLinics LocaTion is oFFered To a prospecTive

Franchisee. The size oF The premises, LocaTion wiLL aFFecT cosTs.

Term oF Franchise

5 years with 3 subsequent renewal rights each comprising

5 years. Subject to lease terms and conditions.

ongoing Fees

a monthly franchise service fee of 7% of the franchise

revenue.

a monthly advertising contribution of 3% of the franchise

revenue. these funds are credited into a separate bank

account and primarily used for group marketing and

advertising campaigns and purchasing promotion items.

initial licence fee paid to SiLK Laser Clinics on execution of the franchise agreement and

prior to commencement of franchise business.$45,000 plus gsT

training fee paid to SiLK Laser Clinics on execution of the franchise agreement and prior to

commencement of the franchise business. this excludes accommodation and airfares.

training includes:

› franchisee commercial operations workshop

› two-week induction training for all employees

› franchisee/Clinic manager in-clinic observation program

› advanced training modules for all services

$15,000 plus gsT

Legal documentation. $3,500 plus GST

Store set up - fixtures, fittings, equipment and lasers, clinic construction, remodelling,

decorating and stock.

$400,000 - $650,000

(Inc. GST) (Indicative Costs)

Launch Program to provide local public awareness of the new SiLK clinic. $5,000 - $8,000 plus GST

the business is to be conducted from a Clinic comprising of four to five consulting rooms

and front reception. Location either high street or shopping centre.80-130 sqm

iniTiaL cosTs

22 23

nEXT STEPS

There are a number oF sTeps you wiLL need To Take To FormaLLy appLy For a siLk Laser

cLinics Franchise. Franchising is a Long-Term commiTmenT and ThereFore imporTanT ThaT

The agreemenT meeTs The requiremenTs oF boTh parTies.

sTep 1: onLine enquiry

• Simply complete our online enquiry form at

silklaser.com.au/franchiseform.com.au and we

will send you our franchise information

memorandum via email

sTep 2: phone inTerview

• We will arrange a phone interview with you to learn

more about you and discuss the SiLK Laser Clinics

franchise model

sTep 3: appLicaTion process

• Completed expression of interest form

• Sign confidentiality agreement

sTep 4: Face To Face

• meet for face to face catch up for a more in depth

discussion to discuss financials

sTep 5: appLicaTion, pLanning and LegaL documenT review

• Send draft copies of the;

o formal business plan

o financial forecast

o disclosure document

o franchise agreement

o all elements discussed in detail with you

sTep 6: TransacTions and preparaTion

• answer any last questions or queries

• return your signed financial documents to

SiLK Laser Clinics and pay the initial fees and costs.

sTep 7: FinaL approvaL

• Submitted to the board for final sign off

congraTuLaTions!

• We will work together on building the clinic, training,

and grand opening

We are committed

to only offering

treatments that

genuinely get results.

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ThAnK yOu

siLk Laser cLinics reLies on greaT peopLe To provide The besT

possibLe service To our cLienTs so Thank you For your inTeresT

in joining The siLk Laser Team!

We are incredibly excited about the future and look forward to continuing to provide

premium and affordable services to all our clients. fostering respect amongst all team

members, working together and striving to provide the best possible service on

the market has enabled us to grow and this commitment will remain central to the

continued growth of the business.

thank you for expressing your interest in SiLK Laser Clinics at this exciting time and

we look forward to answering your questions.

INNOVATION

INTEGRITY

RESPECT

COLLABORATION

RESPONSIBILITY

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non-disclosure and reliance statement

this document is the property of SiLK Laser Clinics. it is intended for the use

by prospective franchise investors and it contains confidential information.

SiLK Laser Clinics is the owner of the copyright and iP in all material contained

in this document. no part of this document may be reproduced, copied or

transmitted in any form or by any means (electronic, mechanical, microfilming,

photocopying, recording, storage in a retrieval system or otherwise), without

the prior written permission of a director of SiLK Laser Clinics.

it is made available subject on the express condition that it must remain in

your personal care at all times, is confidential and is given to you for your use

in evaluating the SiLK Laser Clinics franchise opportunity and must not be

divulged to anyone other than your financial business and legal advisors.

nothing in this document is intended to constitute any financial or professional

advice.

Prospective franchise owners are requested to make their own enquiries

to establish the accuracy of the information provided.

SiLK Laser Clinics or any person representing it will not be held liable for any

loss sustained by any prospective franchise investor from relying upon the

contents of this document.

this document is for guidance only and does not in any way detract from

the terms and conditions laid out in the franchise disclosure document and

franchise agreement, which shall form the legally binding contract between

SiLK Laser Clinics and the franchisee.

Franchise information memorandum

78c king william road, goodwood south australia 5034

(08) 7225 6489 franchise@silklaser.com.au

silklaser.com.au