OpportunityA Sweet

For Franchise Information call

407-248-6400

5966 Lakehurst Dr.Orlando, FL 32819www.schakolad.com

Schakolad (pronounced shaq-oh-LAD) — a

combination of “Schaked” and “Chocolate” – is a name associated

with three generations of chocolate making. Baruch Schaked,

founder of Schakolad, has been a chocolatier since 1969. He

began his career as a chocolatier in Argentina while working for

his father-in-law, Gustavo Bar, owner of one of South America's

largest chocolate factories.

Mr. Schaked traveled extensively through Europe to participate in

courses and seminars at prestigious schools, where he mastered the

art and science of chocolate making. His experiences paid off in

the form of numerous first-prize truffles at the Fontainebleau

Chocolate Festival, including his internationally acclaimed

raspberry truffle.

And, that is just the beginning of the story.

The Schaked’s chocolate adventure really got its sweet start when

Baruch Schaked announced that he was selling his chocolate shop

in South Florida in order to retire. His son, Edgar, determined to

keep the family’s passion alive, scrapped his engineering career to

continue the family legacy.

In 1995, the first Schakolad Chocolate Factory opened inWinter

Park, Florida.

After four years of developing a time-tested, proven business

model, Schakolad began franchising their unique system. The

Schakolad secret is both in their family recipe passed down three

Generations and in the art of handcrafting fine European-style

chocolates on premises using only the freshest ingredients.

"What Makes the Schakolad Concept Unique?"Schakolad Chocolate Factory is a hands-on business – whichmeans that the chocolate is made, molded and sold at eachlocation. It is as fresh as you can get. The creamy, decadentflavors and divine aromas tell the story. As a Schakoladchocolatier, we will teach you the pure art and specializedproduction of chocolate confectionery. You will learn and masterthe techniques and skills to create award winning truffles, exoticchocolate covered fruits, mouth-watering clusters and anextensive line of exquisitely designed custom pieces. The finalproduct is a reflection of the quality of the brand, the eleganceof the packaging and the personality of the chocolatier. Schakolad has an aggressive strategic marketing approach thatreaches out to six different markets:

Retail

Hotels

Weddings

Corporate Clients

Fountain Rentals

Corporate Events/Birthday Parties

Our Story What Makes the SchakoladConcept Unique?

Chocolate has historically been a reliable money-maker. Thereare no global figures compiled, but US annual sales areestimated at $13 billion, and world sales exceed $40 billion.Americans consume 12 lbs. of chocolates each year.

The billion dollar industry

Franchise Growth

Year U.S. Franchises Foreign Franchises Company Owned

2006 32 2 0

2005 29 2 0

2004 26 3 0

2003 15 3 1

2002 9 3 1

2001 2 1 1

Schakolad Chocolate Factory © 2005

The Ideal CandidateSchakolad is a hands-on business, both inside and outside the

store. A successful owner understands and is committed to

superior customer service, interacting within the community and

an owner/operator mentality. Owners should be outgoing, driven

to succeed and detail oriented. Our corporate strategy targets six

markets, so it is important that owners should either have

experience in, or have a natural ability for, marketing and sales.

The optimal balance is 50% of time spent in the retail store and

50% outside the store on marketing or sales calls.

The Ideal LocationAn integral part of the success of a Schakolad store is to ensure that you

are located in a high traffic area. Ideal locations would be on the main

street – a walking/shopping in small towns, outdoor shopping/lifestyle

centers and high-profile grocery-anchored community shopping

centers, Parking/Access Convenience and Visibility are essential for

both new and return customers.

Typical stores range between 1,200 and 1,600 sq. feet. In some special

locations they might be smaller. Many Schakolad stores offer our specialty

coffee beverages, Schako Latte™ (chocolate drinks made with real

chocolate), the Schakolad Fondue Fountain experience and fresh

gelato that comes in up to six flavors. Our handmade chocolate,

beverages and gelato prove to be a great combination – drawing

customers throughout the day and into the early evening. We do

recommend creating a comfortable seating area with café tables

and/or elegant sofas which make it more attractive for

customers to spend more time in the store enjoying the

Schakolad experience.

InvestmentThe complete cost to open a Schakolad Chocolate Factory

store is $110,000-$150,000 (depending on the location) and

it includes the franchise fee. You will receive over 45 years of

experience in the chocolate business, license to use the

Schakolad Chocolate Factory name, training in Orlando and

at your location, assistance on production procedures and store

set-up, and future updates on new products and marketing

strategies to make your new venture a success.

The initial franchise fee is $30,000. The monthly ongoing license

fee starts at $600 and the monthly marketing fund fee is $100.

System for SuccessSchakolad provides franchisees with two levels of outstanding support:

Schakolad Chocolate Factory © 2005

Before you open the store we provide you with:

Selecting a LocationWe provide you with recommended guidelines forselection and are available to assist in lease negotiations

Operation’s Manual We have designed a comprehensive Operation’sManual which will prove to be your right-handguide to production, operation and marketing.Updates are added on a regular basis.

Store LayoutWe will provide you with a store layout, design andhelp you negotiate with a local general contractor forthe construction of the store.

Pre-Opening Advertising/MarketingWe provide you with a check-list of marketingstrategies to “get the word out” prior to you openingyour doors. Advertising support comes in the formof custom signage, flyers, ads, radio promotion andinvitations for your Grand Opening.

TrainingOur training is extensive. One week of training atour Corporate Headquarters and One week at yourstore location. While at your location, we will alsotrain your staff.

After you open the store we will provide you with:

SupportThe Schakolad promise is that we are available toyou 24/7 for questions, suggestions or advice.

Research and DevelopmentAs part of our system you will benefit from therelationships that we have with our vendors and thenew products that we test and put on to market.Our standards are extremely high – you can beconfident that we have done due diligence to ensurethat you get the best products, services available.

CommunicationsOur internal intranet communications system is away of allowing us to share up-to-the-minute information with the franchisebody. It also increases youropportunity for success byallowing you to shareand interact withother owners on adaily basis.