FRANCHISING PROJECT

10 Franchising Strategy
11 European development plan
2006-08: targets

12 Positioning & Location
Requirements
13 Multiple Franchising:
Benefits
14 Design e Format
15 Navigation CD
16 Store Requirements
17 Opening Roll-Out & Timing
18 Opening & Fitting Costs
19 Store Performance Indicators
20 Retail Network: Epos system
21 Training
22 Opening Assistance
23 Buying support
24 Visual Merchandising &
Windows
25 Windows Planning & Timing
26 Visual Merchaindising
Set Up
27 Opening & Local
Store Marketing
28 P.o.p. & In-Store Marketing
29 Management Assistance
30 Web & Helpdesk
Index
1 Company Profile
2 Worldwide Distribution
3 Brand History & Mission
4 Collections
5 Marketing
6 Store Madrid
7 Store Paris
8 Store Catania
9 Worldwide Retail Network
GROUP FRANCHISING OPENING SERVICES
31 Franchising Contract
32 Preliminary Agreement
33 Bank Guarantee
34 Commercial Conditions
35 Payment Terms
36 Orders and Replenishment
37 Franchisee Requirements &
Selection
CONTRACT
Group
Group
Worldwide Distribution
2
Brand History & Mission
3
I was created in 1984 as shop sign name for a clothing store and became soon afterwards a collection brand name.
Its target group is composed of young men, who are careful and curious about what is going on around them,
and like and choose Energie items because they can be used to help them create their own personal style, thus communicating
a precise way of being. Denim is definitely the Core Business of the Energie brand, as this fabric allows more than
any other to carry out experimentation and innovative interventions, which are the main activities of research on the brand.
In a world that is packed with denim, Energie has always focused on experimentation, the main company asset.
It is the brand of change that aims at promoting its original commitments:research and continuous innovation. New fabrics,
washes, treatments and initiatives, in addition to new cuts and innovative design, give the collection many different
concepts and inspirations; hence the unique features and transgression of any garment, from the most basic to the highly
fashionable ones. Since the Fall/Winter Season 2001/2002 Energie has directly realized also its own footwear line
Energie Footwear, throughout all the phases of design, development and production.
In Spirng 2006 an Energie bags line, produced by Principe, was also introduced.
4
Collections
Marketing
5
Spring/Summer 2006 marketing campaign
Madrid
6
MADRID Fuencarral
Paris
7
PARIS Etienne Marcel
8
Catania
CATANIA via Etnea
Franchising
Franchising
10
Franchising Strategy
Developing brand awareness and Maximising Sixty Group's turnover
Spreading Energies Lifestyle
Penetrating market through dedicated managerial skills
Implementing a successful and profitable business Idea
Optimizing store operations & management
12
Positioning & Location
Requirements
Cities, High-profile Shopping Malls, Key Tourist Spots:
Close to the best denim retailers, street wear and fashion designer shops
Main streets/avenues or exclusive shopping areas with design,
art and entertainment shops
13
Franchising: Benefits
Optimization of Investment and Maximization of Profits
Commercial and Distribution benefits
Bringing Local Market Know-How to Brand Equity
Management, Administration and Marketing Synergies
Delivery priority
REINFORCEMENT OF PARTNERSHIP WITH SIXTY GROUP
Opening
Opening
Design e Format
14
OBERHAUSEN Halle Center
16
Store Requirements
At least 100 sq. mt. shop area
Store Frontage Length: Minimum 7 Linear Meters
Stockroom at least 10% of the shop area
Valuable real estate
Great Brand & Signage visibility
17
Opening Roll-Out & Timing
Store opening
Enabling
Works start
Estimates
approval
Executive
project
Project
Survey
Enabling Works Period
Activities
0 1 2 3 4 5 6 7 8 9 10 11 12 13
20
Retail Network: Epos system
Print screen Best Store system
Services
Services
21
Training
Company and brands history and mission
Product & visual merchandising
Customer service e selling techniques
Epos system
AND SEASONAL UPDATES
OPENING IN PROGRESS
22
Opening Assistance
First order assistance
In-store training session
In store pop supply free of charge
Windows materials and visual merchandising set-up
Software installation and training
Store launch and local marketing
23
Retail Buying support
Analysis of local market & competitors
Collection selection
Recommended & advertising items
Buying capacity & sizes
Category mix
Final order review
Replenishment planning
24
ROMA via del Corso, 179
Visual Merchandising & Windows
26
Visual Merchandising Set Up
Seasonal Merchandising Book: with in-store set-up indications
sorted by theme and instructions for window outfits

General Visual Book : Rules on keeping the standards in Miss Sixty stores, brochures,
denim wall, to implement the same image worldwide
Windows Display Materials
Professional Visuals Assistance: two visits per season for windows set-up,
in-store set-up and sales staff training

27
Opening & Local
Store Marketing
Fidelity & vips cards
Billboards, leaflets and posters
Customized graphics and promotional material
Branded giveaways
Hangers and shopping bags
OPENING EVENT INVITATION:
28
P.o.p. e in-store marketing
Magazine rack Tiger rug Energie aircraft miniature
29
Store Operations &
Management Assistance
Seasonal visits by commercial and retail managers from Sixty
Visual merchandiser store check
Trend & performance indicators analysis
Seasonal orders assistance
Replenishment planning
Assistance on local marketing activities
Additional training session for store staff&management
RETAIL EXCELLENCE = PROFITABILITY
30
Web & Helpdesk
Online updating on franchising project
Communication & statistics
Helpdesk franchising
Customer service franchisee
Customer care
Web-based replenishment
Updates on design, product, marketing
Contract
Contract
31
Franchising Contract

3-year contract, renewable
Bank guarantee
First option to take over the store or the branch
No royalty, no entry fee

TO BE SUBSCRIBED ONE MONTH BEFORE STORE OPENING
32
Preliminary Agreement


Preliminary agreement submission
Agreement on all preliminary negotiations
Definition of commercial and contractual conditions
Protection and commitment of the parties
Opening date definition
Activation of design and store set-up process

TO BE SIGNED AT THE AGREEMENT
33
Bank Guarantee


Amount related to store buying plan
At first demand
Not revocable
TO BE ISSUED ONE MONTH BEFORE OPENING
34
Commercial Conditions




Customized commercial package for franchisees need
Improvement of store mark up
Support to reduce stock levels
Contribution on local marketing actions
35
Payment Terms


Fixed bank guarantee
Customized payment terms
Commencement dates: according to seasonality


36
Orders and Replenishment


Minimum purchases based on break-even analysis
Replenishment via website
Introduction to flash and in-season production policies
37
Franchisee Requirements
& Selection
REQUIREMENTS
SELECTION BASED ON:
Retail entrepreneurial expertise, possibly in denim market
Motivation & passion for the brand
Proven knowledge of local market
Reasonable expectations of profitability in the middle long run
Presentation & motivation
Resume and company profile
3-year business&financial plan
Interviews with country sales manager and/or franchising development director