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Spun Candy FRANCHISING

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Spun Candy FRANCHISING

Contents4 Welcome to the ‘House of Spun’

Why Spun? 6 Confectionery - a growing market

8 Our delicious products

10 Our great customers

12 Our unique revenue streams

13 A word from our Franchise Partners

14 Franchise requirements

16 Franchise steps

18 Franchise options

24 Our support

26 Our team

28 Talk to us

Spun Candy has developed a truly unique business concept which is sure to tantalise your senses.

We are candy makers, retailers, artists and teachers with a mission to put smiles on as many faces as possible by:• Making and selling delicious, fresh candy,

right before our customers’ eyes• Teaching the art and craft of traditional

candy making via our famous masterclasses

Our storySpun Candy was founded in London in 2013 as a small, premium candy store where everything was made by hand on the premises, and where customers could buy our freshly made confections. Two years later we moved to a bigger candy kitchen so that we could also teach our customers the joy of candy making. Today, it’s where we host our world-famous candy masterclasses. We have since spread our wings from London to Paris, Dubai, Abu Dhabi and Bahrain, and we are now looking for franchise partners across the world.

We’re excited about the future.

Read on to find out why you should

be too!

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Welcome to the ‘House of Spun’

+ 31% increase in sales

Global confectionery sales forecast

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Confectionery - a growing market

Innovation and demographics drive growthThe Asia Pacific and North America regions are the biggest confectionery markets. In addition to growing populations and income levels driving growth in emerging markets, new products and concepts are expanding global appeal beyond kids and teens to adults seeking premium products and experiences.

The Experience EconomyA study found that 72% of millennials would rather buy experiences than material things.*

Spun Candy is a candy kitchen, a candy store, and a candy theatre… all in one place.

The confectionery market is truly global, already huge and growing fast, especially in emerging markets. We offer experiences as well as delicious products.

* Study by Harris Group October 2018

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2

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US$

Bill

ions

2018 2025

Source: Marketwatch.com, Feb 2019

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Product ranges • Hard rock candy• Candy face lollipops • Lollipops and candy roses • Confectionery e.g fudge, popcorn,

honeycomb, nut brittle and jellies

Confectionery collections • Love mix • Birthday mix • Fruit mix • Sour mix • Seasonal mixes such as Christmas

and Halloween• Regional mixes such as London mix

and Dubai mix

Product qualities• Premium ingredients and packaging• Natural fruit flavours • Vegetarian, vegan and gluten free • Giftable • Portable and can be dispatched globally

Our delicious products

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Our great customers Our corporate customersSpun Candy is the number one choice for a vast range of businesses. We make handmade, bespoke candy for some of the most famous corporate brands in the world.

“The girls running the masterclass were great with the kids, asking them questions and getting all of them involved. It was very educational for my sons. After mixing all the ingredients they were finally taught how to make their lollies with 5 different techniques. The boys then got to make what was supposed to be 5, but somehow my youngest son made 7! They LOVED the making part. The experience will be a lasting memory. I say money well spent.

Everyone at the company was extremely polite, fun to talk too and very helpful. I’ve already recommended it.

Tim Heald

“We walked into a fantastic aroma of candy and was greeted by Katie who made such a fuss of us from the moment we arrived The candy-making class was really so informative and fun from start to finish, we were treated to drinks and music of our choice which we all sang along to.

During the experience, the owner introduced himself to us and told us more about the company. Katie guided us through the candy making we were laughing all the way. This isn’t just for children I think anybody would love this. Very highly recommend.”

Sherm 1963

“We recently attended one of their candy making masterclasses as a team-building activity. Very well structured with an introductory demonstration at the start explaining how the candy is made and all the fun ways to make lollipops followed by a more hands-on approach where you get to make your own!

You can pick your flavours and colours to make the candy how you want. Everyone in the team had a great time from start to finish and would recommend to anyone. We’ll definitely be back!”

Sapphire Systems

98% of

our reviews on TripAdvisor are

5* rated!Here are just a few of the hundreds of 5 star reviews from our happy customers:

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Our unique revenue streamsThe uniqueness of the Spun Candy concept is reflected in the broad variety of revenue streams for franchise partners across B2C (from kids to grandparents) and B2B sectors, including:

• Your own retail operations: The sale of products through your own purpose-built stores, candy kitchens, kiosks and concessions

• Experiential masterclasses: Children, adults and near enough any age come and learn how to make candy at scheduled classes, parties and events

• Bespoke candy: Customised hard rock candy, lollipops and sweet confectionery for businesses and families

• E-commerce: Online store for your customers to buy the full range of Spun Candy products direct from you

• Corporate: Candy customised with brand logos and colours, plus team-building and customer-entertainment masterclasses

• Licensed products: Partnership with local and international brands. To date we have worked with Candy Crush, Lulu Guinness, Rugby World Cup 2015 and Hello Kitty, to name a few

• Sale to third-party retailers: Develop your business in your territory and get local departments stores, candy retailers and duty-free stores to sell Spun Candy through their outlets

A word from our Franchise PartnersTestimonial from our Franchise Partner in UAE: “We were fortunate to be Spun Candy’s first overseas franchisee just months after the brand launched. Prior to that I have researched several similar brands internationally before finally making the decision of choosing Spun Candy. The brand is ‘fresh’ and modern which translates to the design of their spaces, offering amazing product range with premium quality: all natural, vegetarian; the masterclasses are not just adding great customer experience but also a strong revenue generator and… with James Ellender’s expertise and business acumen it was the obvious choice! Five years and counting, we are very pleased having Spun Candy as one of the brand highlights within Candylicious!”

Rosantina - Head of Retail

Testimonial from our Franchise Partner in Bahrain: “We started working with Spun Candy in 2016 on the business model and the store concept designs. In early 2019 we opened our flagship store in the Avenues Mall, Bahrain. We have been supported through every step… the team from the UK flying into Bahrain and mentoring us, the candy training and operations, developing our marketing strategies and the launch and our grand opening. The franchising team are very hands-on, we are true partners and working towards growing the business in Bahrain.”

Ahmed - Operations Director

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Franchise requirements

Be the King or Queen of Candy You’ll need a passion for candy and be willing to immerse yourself in our brand. Our experience has told us that the best-performing franchises are those that can make the most of every revenue stream.

Be aligned with Spun and share our visionWe exist to surprise and delight candy lovers at every turn. Sharing that desire and being aligned to our values, is the sweet spot for success.

Show long-term commitmentWe’ll expect you to have the financial stability and cash reserves to allow investment in future growth opportunities and to manage uncertainty. We’ll review the financials within your business plan, so you can commit as a long-term international partner.

Be a retail or food & beverage connoisseurHaving a deep understanding of Retail and/or the Food & Beverage sectors will greatly assist you in positioning the brand optimally in your market. Understanding fast-moving consumer goods and food operations makes for a fantastic foundation.

Understand your marketPotential new partners must know and understand their market. We’ll ask you to complete a study of your demographics, retail unit positioning and we’ll expect you to have a clear strategy for growing Spun sustainably over the long term.

Here’s what makes for a good Spun Candy franchise partner:

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Franchise stepsBecoming a Spun franchise partner, from enquiry to grand opening:

1. Initial enquiryOnce we receive your initial enquiry, we will determine if there is a franchise opportunity in your market and if you meet our minimum financial requirements.

2. Initial phone conversationWe will arrange for you to speak with one of our Franchising team to establish your background and financial qualifications.

3. Franchise document and financial obligationsIf we determine that you are a good fit for Spun Candy, we will share with you our Franchise documents, which include the financial obligations and our example working models.

4. Application/business planYou will then complete our Application and Business Plan Template, which will enable us to do our due diligence and vetting on you and your proposed development plan.

5. Franchise discovery meetingOnce accepted, we will arrange to meet with you, either at our London HQ or at another location, where we discuss the franchise operations, store location and development.

6. Site selection and acceptanceOnce the franchise agreement has been finalised, we will work with you on the site location, design and then subsequent equipment and supplies ordering.

7. Construction and trainingWe then move to the construction phase, and training of your new team.

8. Grand openingOnce training is complete and sufficient candy has been made, we can arrange for a soft opening followed by a grand opening, typically within four weeks.

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Franchise optionsSpun retail & masterclass unitProduces all candy products on-site in a purpose built interactive open kitchen. Customers can watch the candy being made, get involved at the candy personalisation bar and purchase their favourite candies. In addition there is a masterclass kitchen for customers to take part in the candy making element of childrens’ parties, corporate events or any other type of masterclass.

Size: Circa. 80-110m2

Typical locations: High footfall location on a street or within a mall. Ideally attracts ABC1 visitors and tourists.

Initial set up cost*: £400-550,000 (inclusive of single unit fee, excludes master fee)

Additional unit cost: £250-400,000 (inclusive of single unit fee)

* Estimated costs

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Spun retail unit standalone or concessionProduces all candy products on-site in a purpose-built interactive open kitchen. Customers can watch the candy being made, get involved at the candy personalisation bar and purchase their favourite candies. Size: Circa. 40-50m2 (Concession), 50-70m2 (Standalone)

Typical locations: High footfall location on a street, within a mall, in-airport, or as part of a toy or candy department (concession). Ideally attracts ABC1 visitors and tourists.

Initial set up cost*: £280-420,000 (inclusive of single unit fee, excludes master fee)

Additional unit cost: £150-300,000 (inclusive of single unit fee)

* Estimated costs

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Spun LollipodsOur Lollipods are Candy kiosks - unique spaces from which you can retail the full range of Spun products and personalise lollipops. They come in 2 sizes and are a complement to the main retail and masterclass unit, which will make inventory for the lollipods.

Size: 12m2 & 30m2

Typical locations: Located in shopping malls, airports, theme parks and tourist attractions. Lollipods can be temporary or permanent installations, and will be located in high-footfall, premium locations.

Initial set up cost*: £100-150,000 (inclusive of single unit fee, excludes master fee)

Additional unit cost: £80-130,000 (inclusive of single unit fee)

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Our supportThe Spun Candy Franchise Support Team is dedicated to making sure that our partners have all of the ingredients for the perfect business recipe, and we’re with you every step of the way:

Project ManagementFrom site selection to launch, our team can help with selecting the perfect locations, designing the stores, fitting them out and providing a fully equipped business-in-a-box, ready for opening.

Business development and marketing We’ll provide proven methods for attracting, developing and maintaining new business across the broad spectrum of revenue streams, to help drive your revenue and growth.

Spun Candy provides all the

ingredients you need to make your business

a SUCCESS!Training We’ll provide a comprehensive training programme for candy makers and management alike, with guidance on creating candy, product customisation, food safety and local marketing.

Supply chain Equipment, colours, flavours, packaging and branding - We offer the complete solution, with quality ingredients chosen by the world’s finest candy-makers.

Operational expertiseOur experienced Franchise Support Team is always on hand to provide advice and guidance on all areas of Spun Candy operations. Our online portal offers a gateway to Spun Candy resources, our newsletter keeps you in touch with our partners around the world, and we’re always just a phone call or email away.

We’re there to help make your new business another Spun success story.

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Our team

Philip has wide-ranging experience as a director, and has held executive and non-executive board appointments for more than 20 years in real estate and equity portfolio management. Philip joined Spun Candy in 2015 and his breadth of experience enables him to bring a wealth of knowledge and expertise to secure Spun Candy’s continued growth and success.

Peter became CEO in 2018. He has over 30 years of senior management experience in the Food & Beverage industry, having worked as a CEO and Senior Market Executive in companies such as PepsiCo and Diageo. Peter is a seasoned General Manager and has managed a large variety of businesses in the UK, Europe, South America and Asia.

Peter Gutierrez CHIEF EXECUTIVE OFFICER

Philip Haretos CHAIRMAN OF THE BOARD OF DIRECTORS

James Ellender FOUNDER MEMBER OF THE BOARD OF DIRECTORS

In 2013, James developed and launched Spun Candy and his vision has enabled him to define the brand, create innovative revenue opportunities, develop strong collaborations with other premium brands and secure long-term relationships to grow the business internationally. James has a keen eye for profitability, revenue generation, opportunity and scalability of a business idea.

Emma WatsonCANDY MAKER

Rachel CarsonINTERNATIONAL PARTNER LIAISON

Pete SippleFRANCHISE SUPPORT

Conor SteinHEAD OF UK OPERATIONS

Rachel has been working with our franchisees since 2016. She is responsible for coordinating everything from pre-launch, training, supply chain management, to support for operations and business development.

Pete provides support to franchise partners, working closely with them to ensure that day-to-day requirements are met. Pete has previously managed projects for Adobe, Nokia, Motorola and Samsung.

Conor has been with Spun Candy since 2014. Formerly a chef for a London hotel, he manages a team of 15 and handles recruiting and training new UK operational staff, as well as managing logistics.

As our Master Candy Maker, João provides training to our international franchise partners. He has a proved track record in the Food & Beverages industry, and currently resides in Brazil.

Originally from New Zealand and trained as a make-up artist for movie special effects, Emma joined Spun Candy in 2018. She has been instrumental in training our overseas franchise partners.

João Penha e CostaMASTER CANDY MAKER

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Talk to usIf you’d like to join the Spun Candy family – get in touch

Email our franchise team at: [email protected]

You’ll find more details at: franchise.spun-candy.com

www.spun-candy.com

London | Paris | Bahrain | Dubai | Abu Dhabi | Hong Kong (opening soon) | Cario (opening soon)