Finest Alterations Franchisee Booklet

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THE PERFECT FIT INFORMATION BOOKLET


The Finest Invitation Finest Alterations warmly extends an invitation to join our team. A group of distinguished professionals genuinely differentiated through: • A True Partnership Attitude • Extensive Tailoring Lineage and Experience • A Familial & Professional Culture Grounded in Values • Support of Community • World Class Franchising Training & Service • Generous Incentives • High Caliber Clientele • And More… We believe our offering is exceptionally compelling for those who strive for excellence in all that they do and expect the rewards associated with such dedication. We will help position you for success through our processes and training. You need only bring your passion and commitment to building your own unique and lasting business. This brochure is your first step to a highly satisfying and profitable career in fine tailoring and alterations. We’re excited to have an opportunity to share our unique business model with you.


Dear Future Partner, Our family has been providing fine tailoring for generations. Our parents and grandparents taught us in the historically tested techniques that have grown our business consistently over the years. In the end, we know true success is driven by exceptional service and trusted client relationships. We base our business on timeless values that provide the foundation of our company culture. We emphasize a thoughtful approach to lasting profitability for our Franchising team. We believe that when you win, we win. Its as simple as that. This is what true partnership is all about. We believe this fundamental pretense - a “True Partner Attitude� makes our invitation unique when compared to others. We find many who may say they are partners, but then subsequently price their services like profiteers. We don’t believe that kind of behavior is sustainable and we are in business to offer a real and lasting alternative. This should be apparent in all that we do. We look forward to getting to know you and hope that this brochure will give you a better idea of who we are and what you can personally expect as a member of our team.

Warmest Regards,

Norliza Pavlakos


Finest Values Never Go Out Of Style The Finest Alterations’ company culture is built around five core values that we always strive to keep top of mind. We believe that in our fast paced world, values still matter…especially when building a truly “stand out” team. Finest Alterations’ values include: 1. Relationships – Putting clients first, respecting your team’s input and giving back to the community who makes you successful. 2. Integrity – Being straightforward with customers and business partners. 3. Passion – Having pride in what you do and a the drive to always improve. 4. Commitment – The discipline to do what you know is right for your clients and your team. 5. Excellence – Surrounding yourself with the best in your business and not tolerating less. By coupling the values above with our deep industry and process expertise, we believe those who join us will be uniquely positioned for exceptional results. We trust Finest Alterations is the company you have been waiting for, one that believes in something and follows through on those beliefs where it counts.


Our Business Basics and History Our stores specialise in altering, restyling, remaking and repairing clothes for both men and women. Our mission is to provide customers with the finest quality in clothing alterations and tailoring that caters to women and men of all sizes, shapes and ages. This mission is the foundation of building a loyal and trusting customer base. Our services include: • Linings – Replace or Repair • Zipper Replacement & More… • Leather Repairs • Sleeves and Hems – Shorten/Lengthen • Hem and Seam Repair • Shoulder Pads and Dress Shields • Button Holes – Make or Repair • Pockets – Replace or Repair • Beadwork – Replace or Repair • Made to measure items (men & women)


Who We Are For over 20 years we have provided a personalized alteration, tailoring and repair service. The values of our company, and that delivered to our customers, have been built on trust, quality and service. And these strengths continue to be delivered by Nick Pavlakos – founder and fully trained bespoke tailor and the team at Finest Alterations. The company is now undertaking an aggressive approach to developing the brand via business development, sales and marketing. This is enthusiastically driven by Managing Director, Norliza Pavlakos. Liza has a strong background in owning and managing businesses and is passionately leading this business development which now includes franchise opportunities. We can now better serve the retail, fashion and clothing stores and have developed relationships with the larger retailers and shopping complexes to provide an after sales service for alterations. This service is therefore adding value to the retailers and the centre’s business. Finest Alterations also offers a personalized tailoring service for any garments from wedding gowns to corporate wear and uniforms.



OUR NEW RETAIL LOOK

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FINEST CLOTHING ALTERATIONS SERVICE MENU BEADWORK - REPLACE OR REPAIR BUTTONHOLES - MAKE OR REPAIR BUTTONS, HOOKS AND EYES, OR SNAPS HEM AND SEAM REPAIR (HEMMING) LEATHER REPAIRS LININGS - REPLACE OR REPAIR MADE TO MEASURE DRESSES & GOWNS MADE TO MEASURE SUITS & SHIRTS POCKETS - REPLACE OR REPAIR SHOULDER PADS AND DRESS SHIELDS SLEEVES AND HEMS - SHORTEN OR LENGTHEN ZIPPERS REPLACE

FINEST ALTERATIONS C LOTHING S PEC IALIS TS

Typical store interior

MADE TO MEASURE BUTTONS HEM & SEAM LEATHER LININGS POCKETS

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OFFICE

STORE

WORKSHOP

SHELVES X 12 APPROX

CLOTHNG CUPBOARD

SERVICE DESK 2000 X 750

SEATING FIRE HYDRANT CUPBOARD SEATING

FINEST ALTERATIONS

CLOTHING ALTERATIONS & TAILORING

C L O T H I N G S P EC I A L I S T S

C LOTH ING SPEC IALISTS

FINEST ALTERATIONS

Typical floor plan

THE FINEST MADE TO MEASURE

Typical front elevation

MADE TO MEASURE BUTTONS HEM & SEAM LEATHER LININGS POCKETS

BEADWORK BUTTONHOLES BUTTONS, HOOKS AND EYES HEM AND SEAM LEATHER REPAIRS LININGS MADE TO MEASURE DRESSES & GOWNS SUITS & SHIRTS POCKETS SHOULDER PADS DRESS SHIELDS

FINEST ALTERATIONS C L O T H I N G S P E C I AL I S T S

SLEEVES AND HEMS ZIPPERS REPLACE

MADE TO MEASURE BUTTONS HEM & SEAM LEATHER LININGS POCKETS


Leadership Team Profiles Norliza Pavlakos - Managing Director Dip Bus (Management), Dip Bus (Franchising), Fellow FCA Norliza has been in business for the past 20 years. She has run successful events that were Internationally accredited beauty pageants like Miss India, Miss Australasia and Miss Euro Pageants. Norliza also ran her own bar and restaurant in Melbourne in 2003. She came into the business of clothing alterations in 2005 and since then has expanded the business and is managing the expansion of the business via franchising. She has a Diploma in Business Management and Diploma in Franchising. She is a member of Franchise Council of Australia and currently studying Master of Business Administration in Melbourne.

Nick Pavlakos- Founding Partner Dip Bus (Management), Fellow FCA Nick began the business in 1989 and is now an esteemed tailor in the industry having tailored for a long list of clientele including celebreties. Nick has been in business for the past 25 years having owned a Tattersals newsagency and Drycleaning business. He has a diploma in Management and is a qualified bespoke tailor. He is a member of Franchise Council of Australia


Tony Maddock, Franchise Recruitment Manager Tony has over thirty years of retail, management, franchising and international business. He has worked with Australia’s largest retailer, has been a Franchisee, Master Franchisee, Franchisor as well as undertaking a number significant business projects. Understanding and working with people is Tony’s favourite, with a little bit of flair added in as a bonus! Tony Maddock joined Finest Alterations in 2012 and is the franchise Recruitment Manager for the company.

Yasmeen Seedat, Financial Controller Bachelor Accounting, Fellow FCA Yasmeen Seedat, completed a Bachelor of Business (Accounting) at Queensland University of Technology in 1999. With many years of experience working in some of the best firms in Brisbane, Yasmeen had the vision of creating her own boutique firm with a service that the big firms can not provide. Seedat Accounting was created in 2005, has experienced strong growth and holds a highly experienced team of staff. Yasmeen is an Income Tax Specialist and Business advisor. She Specialises in all areas of accounting and advising for; Businesses, Companies, Trusts, Self Managed Superannuation Funds and Business Structuring. She holds a particular interest in the growth and opportunities that arrive from successful Franchising partnerships. Yasmeen joined our team at Finest Alterations as the Financial Controller at the start of 2011. She, along with her team at Seedat Accounting, provide, the management, support and advice for all financial aspects of our business.


The Finest Support Finest Alterations will assist you in securing a site, store fit out and recruiting staff. We have the luxury of serving a particular niche market that has previously been poorly serviced. Our mission is simply to provide our customers with the highest quality alteration, tailoring and repair service. Ours is a simple business, built on customer needs and delivered by highly skilled individuals providing exceptional customer service. Finest Alterations has managed to amass a great deal of goodwill from the retail sector as well as a growing corporate market. This can only benefit a potential franchisee.



Winning Major Accounts Through our current stores, we offer account services to major retailers – providing outsourced tailoring to the different clothing sales teams at each store. We help sales people close their own sales by providing services they and their customers can rely upon. Our timely courier service either collects garments or we send professionals to our clients’ stores to ensure deadlines are met. We even teach retailers to pin themselves when they so desire. All this builds a relationship of trust that keeps a high volume of work coming back…again and again. In addition to retailers we offer services for specialized groups, including sports and corporate groups. We provide on site fitting or rapid turn for work taken off site. Whether it’s a sports team, the Melbourne Cup, Grand Prix, Australian Open, Melbourne Fashion Week or the Aria’s, we’ve got the experience to keep big organizations looking good…so they keep coming back. Being our Franchise partner means we have a vested interest in your success. If you require assistance with potential major clients in your area, we are here to help. We lend our experience and ability to land major deals. This help comes at no additional cost. We simply provide you services that help you succeed. Where else can you get this kind of flexibility in supporting your growth and achieving increasing success.


Supporting Your Success We know excellence doesn’t just happen, it is consciously and consistently created. This is why we have designed a support structure and training regimen that gives you what matters most, without wasting your time or money on training you don’t need. We believe this is an efficient recipe for success. Our standard support includes: Our approach is designed by people who have “been in the trenches” and who understand what it takes to open a store as well as the nuances of keeping a store running successfully. Do you have an special area of concern? The Finest Alterations team can custom design a training program in an area tailored to your needs. Joining our team means you have a

partner in virtually anything you might want to undertake as you grow your business. And, just like with our assistance in landing new major accounts, these services can come at no added cost. We don’t believe you will find customised training like ours anywhere else in the marketplace.



Making a Difference We are thankful to the community that has allowed us to prosper and we know that getting involved doesn’t just build our brand, it gives our team a chance to work together to make a difference in the lives of those who are less fortunate. This is why Finest Alterations is proud to be a strong supporter of the Salvation Army of Australia. Our stores donate a percentage of all alterations to the Women’s Services and Domestic Violence cause run by the Salvation Army. We believe being united behind a common annual cause helps customers understand that we believe in taking business to the next level in all that we do. Making a donation costs very little, but shows a big part of who we are… responsible corporate citizens who are community minded, not just a company looking to line our own pockets. We believe that giving back is a great way to expand our company values to the community at large. By joining our team, you are saying you stand for more. That you are not too busy to believe you can make a real difference. We like people with this kind of courage, who understand that a very small amount of time or money can drive positive change for others. It breeds respect and future success for all.


A Good Time To Start Your Business We find that through tougher economic times people alter their existing clothes more frequently. In better times, people buy new garments that require customisation. So even when the broader economic picture looks a bit stormy, its probably a safe bet to start an alterations business. Especially one that pays you back for working smart to build your business further. People are always changing. They change their style preferences and they also change their weight‌.sometimes when they don’t really want to do so. We are there to help customers during these inevitable wardrobe changes and when we do a fantastic job, they come back. This is why such a large percentage of our customers are repeats. An added advantage to joining our team is that we have been through good and bad times alike, and have always come out on top. We can help you by lending our experience in the event times get tough again in the future.




STEPS TO BECOMING THE FINEST FRANCHISEE Whether you want to own and operate your own store or purchase a store already up and running, we can supply a great opportunity for you. You should find the next steps to be straight forward. This is a guide to the steps to be taken in evaluating and purchasing a franchise. The dates will be agreed between us to ensure that the timeframes are sensible and allow sufficient time to complete all tasks without undue pressure. Do not rush any of these steps; take the time to do things properly.


STEP 1 Initial Contact This meeting may allow an opportunity to look at an actual Finest Alterations business in operation and to imagine you operating a Finest Alterations franchise. Take the time to ask questions and make sure you understand the way things work. Take particular notice of the professional and friendly image that is projected. If this business interests you and is within your budget then you will need to seek more detailed information. We will also want to know things about you, even at this early stage. Be prepared to provide your own detailed story in the form of a Franchise Application Form. NOTE: You will be required to sign a simple Confidentiality Agreement at this stage so that the Franchisor can ensure the confidentiality of their information.

STEP 2 Complete Franchisee Application and Information Form A summary of your personal career and financial background is required to enable an assessment of your suitability as a future Franchisee with Finest Alterations. NOTE: You must return the completed form to the Franchisor prior to step 3.

STEP 3 Franchisor Interview This is an open and frank “get to know you� session in which both parties are assessing their comfort with each other and gathering more information (more than one meeting is usual). Prepare for the meetings before you attend. We will expect you to ask detailed questions and seek information on the present and future prospects for the group. The discussion must be two sided as both parties have a role to play in a Franchise relationship, so prepare well. Being in business for oneself can be quite demanding at times, so some aspects of your personal or family life may be discussed too.


STEP 4 Initial Deposit We will ask for an initial deposit of $5,000 as an illustration of your commitment to us. The deposit will be fully refundable until 14 days after your acknowledgement of receipt of the final Franchise Agreement, Disclosure Document and ancillary documentation. If you change your mind within 7 days of entering into the Franchise Agreement, we will refund the deposit to you, less our reasonable costs as outlined in the Disclosure Document and the Franchise Agreement. Ask for this to be explained to you if you are uncertain of the amounts. Franchisor will conduct relevant background checks, including Reference, Credit and Police checks.

STEP 5 1st Disclosure–Provision of Blank Finest Alterations Documents We provide you with a copy of the blank Finest Alterations Disclosure Document (including a copy of the Franchising Code of Conduct) and Franchise Agreement so that you can study the facts about the business and the people involved. You will need to give these documents to your lawyer, accountant and other business advisors for their consideration, so that you can move forward with comfort and security. Please note that the provision of a blank copy of the Disclosure Document and Franchise Agreement in no way constitutes disclosure pursuant to the Franchising Code of Conduct. At this stage the documentation will not be specific to you, as details such as the Franchisee entity, business premises and commencement date are unlikely to have been discussed or decided at this preliminary stage. If you are invited to proceed with the Finest Alterations franchise opportunity, you will be provided with a 2nd Finest Alterations Disclosure Document attaching a signing copy of the Franchise Agreement at least 14 days before signing.

STEP 6 Investigation of Franchise You will now have 10 days to investigate the Franchise in greater detail. This will involve processing several things concurrently so that you do not waste your valuable time and money. Property leases and finance will be the main issues to tidy up. The Franchisor may agree to an extension of this period.


STEP 7 Finance Application You may need to lodge a finance application for any borrowings anticipated as well as applying for any leasing or HP finance that might be appropriate in your overall funding package.

STEP 8 Financial Study You and your accountant and business advisor should assess the opportunity in relation to your own personal circumstances, and with regard to your own financial structure. This is a specific recommendation of the Franchising Code of Conduct. We will require a certificate from you to the effect that you have had independent business and accounting advice, or that you have been advised to obtain such advice and have decided not to do so.

STEP 9 Franchise Agreement We strongly recommend that you seek independent legal advice prior to signing any franchise documents from a lawyer who understands Franchising. There are issues that require experience in providing the correct advice on your franchise future. This step will help you better understand both your rights and obligations within the franchise. This is a specific recommendation of the Franchising Code of Conduct. By Step 13, we will require a certificate from your legal advisor to the effect that you have had independent legal advice.

STEP 10 Plant And Equipment If the opportunity that you are considering is already an established business you may wish to inspect the equipment, etc, to confirm that you are familiar with its condition.


STEP 11 Lifting the Conditions As each step in this process is taken, you will be required to lift or release any conditions that have arisen. Once you are satisfied with all the conditions that you applied then, subject to that, you will be ready to proceed toward settlement and full payment for your franchise. NOTE: If you are unable to reasonably satisfy yourself regarding any of the conditions and wish to withdraw, or if your time for investigation expires, your deposit will be refunded in full and other interested parties may be introduced to the Franchise. It may be possible, however, for an extension of time to be granted to you.

STEP 12 2nd Disclosure–Final Copies of Documentation If you are approved as an Finest Alterations Franchisee, and if you decide to proceed with the business opportunity, we will require details of your Franchisee entity e.g. the name of your Company, its A.C.N. and A.B.N. and a copy of any relevant trust deed. Finest Alterations will now instruct their lawyers to prepare the final set of documents and we will require written acknowledgement from you of the receipt of these documents and you will be advised that your deposit will no longer be fully refundable after 14 days of that acknowledgement. A 2nd Finest Alterations Disclosure Document (including a copy of the Franchising Code of Conduct) will be provided to you, attached to which will be final signing copies of the Franchise Agreement and all ancillary documentation (e.g. Code Certificate and business name forms). The Franchising Code of Conduct stipulates that you must wait for 14 days after receiving this suite of documents before you sign the Franchise Agreement.


STEP 13 Signing of Documents This involves the signing of the Franchisee Agreement and payment of the Initial Franchise Fee and any initial contributions to the Marketing Fund, less the deposit paid. As stated above, this cannot take place until at least 14 days after Stage 12 has been completed. At this point all lease, insurance or HP arrangements must be in place and written confirmation of that provided to us. You must be prepared for organising the many details involved in the opening of your Franchise. We will assist you with this process. We will also require a certificate from your legal advisor to the effect that you have had independent legal advice. We would also like you to provide us with certifcates signed by your Accountant and Business Adviser to the effect that you have had independent business and accounting advice, or that you have been advised to obtain such advice and have decided not to do so.

STEP 14 Training Over the next 4 weeks and beyond we will show you how to operate a Finest Alterations franchise and prepare you for your own opening day. Training will not commence for at least 7 days after the completion of Stage 13.

STEP 15 Time for Work You have got the “key to the door” and now you will be enthusiastically embracing all the training and hard work that is involved in getting into your own business. Don’t forget, you’re in business for yourself, but not by yourself. We are with you all the way. You will have joined a team with whom you can look forward to many years of excitement and reward - all part of Franchising in Australia today.



Frequently Asked Questions What is a Franchise? A franchise is an arrangement for the distribution of a service into the market place. At least two parties are involved; the franchisor, who lends the Trade Mark and business system, and the franchisee, who pays a royalty and an initial fee to do business under the franchisor’s name and system. Technically, the contract binding the two parties is ‘the franchise’, but that term is often used to mean the actual business that the franchisee operates under the franchisor’s system.

What do I get with my Finest Alterations franchise? When you become a Finest Alterations franchisee you have access to the Finest Alterations name, concept, business systems, support and ongoing business development. You become part of the Finest Alterations network, sharing experience and advertising costs, and benefiting from all our knowledge and developed skills for our industry. You are provided with everything that you need to commence trading.

Will I be running my own business? Yes. While franchising means you will never have to be in business by yourself, you certainly are in business for yourself!


What background and experience do I need? The right attitude is the most important asset that you can bring to the business and what you really need to be a Finest Alterations Franchised Partner. Sewing skills are not necessary but preferable. This is a franchise about managing staff and your clients. Having a passion for fashion is also highly favourable as well as being business savvy. f your not business savvy, then let us teach you the tools to becoming a successful business entrepreneur.

Does Finest Alterations provide training? Yes. Finest Alterations provides full comprehensive training in all aspects of the system, as well as giving you additional support with those ‘once off’ activities which need to be done when you set up a new business. Our training is presented in a structured program and we have checklists to make sure everything is covered. The Finest Alterations Induction Training (initial training) will take about two weeks and you must be prepared to allocate your time to this. Finest Alterations will provide ongoing training according to your feedback and our interpretation of your needs.

How much capital will I need to invest in my business? The total business opportunity could amount to $150,000 or higher, depending upon the opportunity in question. This amount provides for everything required to start business. The Disclosure Document gives you all the details in a comprehensive manner.


What do I get for my Franchise Fee? In the formal sense it is the fee you pay to be granted the Intellectual Property rights and privileges that go with operating a Finest Alterations franchise. You also get the on going support when you need it, in the running of your business.

What ongoing fees do I have to pay? You pay an ongoing Service Fee for the use of the Finest Alterations name and system and with that comes a great deal of business advice and support. You will also contribute to advertising and that too is detailed in the Disclosure Document.

Can I sell my Franchise? Yes. The business is yours to build up and sell if you wish although Finest Alterations do need to approve the new franchisee.

How long is my Franchise Agreement for? It runs for five years. At the end of that time you will be able to renew for a further five years. There is a small Renewal Fee to cover legal costs. As our success is measured by your success, it is in our interest to ensure you stay with us for as long as you desire.


How long until I am up and running? The timing of your store opening is completely dependant on the handover and lease commencement date outlined in the lease. Our internal Leasing Department negotiates all of the commercial terms of the lease, including the handover date. We nominate a date suitable to you, to the landlord and to Finest Alterations

I would like to pursue multi-site franchise opportunities. Is this possible? Yes. Finest Alterations encourages Multi-Site ownership, however there is a comprehensive Multi-Site Assessment process that you will be required to under-go to be approved as a Multi-Site Finest Alterations Partner. Our criteria for Multi-Site ownership include operation of your initial store for a minimum of six months, achievement of certain KPI’s such as mystery shopper averages, store audits, compliance to the Franchise Agreement and business acumen.

I am interested and I think I qualify, what do I do next? Telephone Tony Maddock or Norliza Pavlakos at Finest Alterations and they will answer some basic questions to see if our business appeals to you and see if you can imagine yourself having fun and running a franchise all at the same time! We will then ask you to complete our Confidentiality Agreement and Application Form. After the application is in our hands we will contact you and begin the process of taking you through a careful and detailed review of our existing business before you make any final decision.


THANK YOU

Contact Norliza Pavlakos Managing Director Telephone 03 9598 3202 Mobile 0424 600 179 norliza@finestalterations.com.au PO Box 6216 South Yarra, Victoria 3141 Nick Pavlakos Founding Partner Telephone 03 9826 5004 Mobile 0411 550 862 nick@finestalterations.com.au PO Box 6216 South Yarra, Victoria 3141 Tony Maddock Franchise Recruitment Manager Telephone 03 9428 1088 Mobile +61 400 017 882 tony@finestalterations.com.au

www.finestalterations.com.au


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