At Ali Baba we aim to provide our patrons with a delightful, healthy and nutritional taste sensation, ensuring with

integrity that satisfaction prevails.

Ali Baba...

Welcome to the future!

Contents
Creation Consistency Trust Quality Simplicity Team Customers Technology Next Steps Support 5 6 7 8 9 10 11 12 13 15 7th September 2006 Dear Prospective Franchisee, Thank you for expressing interest in the Ali Baba food chain. Ali Baba has experienced amazing growth in franchisee owned and operated stores throughout Australia with great success, reaching over 50 stores. The key principles of continuous customer focus and quality management have been critical in achieving growth and making the franchise relationship a rewarding venture. Ali Baba, is currently experiencing rapid expansion of its business throughout Australia, and is looking for dedicated hands on people to become part of the franchise network system. Our influence of the supply chain creates a substantial profit opportunity for prospective Franchisees. Ali Baba has also established and enhanced relationships with key suppliers and buyers ensuring that a compelling business model is available to all franchises. We are the best quality food chain in the world! Ali Baba is very proud of its heritage and accomplishments. Our franchises continue to benefit from our 27 years of experience, business acumen and buying power. We hope that your application is successful and are enthusiastic for you to share in a rewarding venture in the world of Ali Baba. Best wishes for the future.

Yours faithfully,

Mick Marjan
Mick Marjan Executive Chairman Ali Baba

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Creation

Establish.Learn.Grow.

A new force in the fast food industry had begun to emerge!

Ali Baba was established in Canberra, Australia in 1979. The first outlet, located at Woden Plaza Shopping Centre, offered a combination of KBab and Wrap oriented eat-in and takeaway style food. Within weeks of its doors opening, customer queues at the take-away counter were 10 deep at lunch on some days, and valued customers of the restaurant were travelling from many miles distant to enjoy the unique taste sensations. Today Ali Baba is a solidly established business that has experienced steady growth since it commenced Franchising its business model in 1991. The first Franchise store opened in the Westfield Liverpool Foodcourt, New South Wales. Existing Franchisees of the Ali Baba model are generally a very satisfied group of people. Most stores are making great returns on investment, with almost 50% of Franchisees owning more than one Ali Baba Store.

Ali Baba is 100% Australian owned.

Original Ali Baba store opened in Canberra, 1979

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Ali Babas fantastic reputation in the Australian marketplace adds value to the growth of new stores.

Consistency

Returns.Business.Cashflow.

Ali Baba stores are highly welcomed in new areas of establishment due to the reputation and consistent customer experience delivered throughout Australia. On Average, Ali Baba Franchises enjoy a cash flow return of between 20% and 25% on gross sales excluding GST after all expenses, but before owners drawings. This is in line with the best food Franchises available. Ali Babas key suppliers also acclaim the company: Coca-Cola Amatil: Edgells:

The rapid growth of the Ali Baba Franchise is a testament to the strong management in place and their dedicated focus on continuous improvement. We value Ali Baba as our key business partner and look forward to a prosperous relationship. Alex Braham National Trade Promotions Manager Coca Cola Amatil.

An admirable Australian icon, with lmost 30 years experience in the food industry and over 50 Franchises nationally. Ali Baba proudly chooses our 100% Cholesterol Free Chips- Edgell Choice Chips. Tony Green Product Manager Edgell Potato

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serving over 3 million customers per year, Ali Baba is the Most Trusted KBabTM & Wrap Oriented Retail Food Chain in Australia.

Trust

Food.International Standards. Stakeholders.

As customer tastes and preferences evolve, we aim to satisfy these changes by providing our products & services through internationally recognised standards and practices.
But what makes a healthy diet from a nutritional perspective? First, a moderate amount of high-quality protein; second, moderate portions of complex carbohydrates (especially fresh vegetables); and third, an assurance that products have the lowest fat content possible typically less than 10%. The favourable ratio helps keep the bodys blood sugar levels stable which is the key to keeping body fat low. In addition, research shows that keeping blood sugar and insulin levels stable aids concentration (avoid the 3:30pm sugar crash) and assists the body in many ways to stay healthy by providing a balanced internal hormone environment. When you add Ali Babas authentic sauces and dips it is surprising how healthy great flavour can be; the tahini (sesame seed) based sauces will add some of the best unsaturated oil (lineleic acid) based sauces to the diet. The yogurt-based beetroot dip adds lactobacillus acidophilus to the body, another universally recognised health food. The eggplant in ghannouge is well-known for its high level of dietary fibre, no fat and very low calorie count. Chick peas, the primary ingredient in both homos and falafel, are an excellent vegetarian source of protein and very low in fat, and the fresh salads used has been shown to be a powerful natural anti-biotic in many recent studies.

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Quality

Knowledge.Health.Management.

What are the highlights of Ali Babas Quality Charter?

Knowledge Ali Babas knowledge in sourcing livestock based on atmospheric pressure ensures the highest quality of meat products to the end consumer. The livestock portfolio utilises animals from the mountain ranges throughout Australia, which are generally more tender than other livestock due to the air pressure in the atmosphere among the mountain ranges. Health Ali Babas commitment to providing the highest quality meat products has been endorsed with the company seal. All Products Sold at Ali Baba are 100% natural and preservative free! Management Ali Babas Internal quality management strategy has been validated and praised by Australias leading business consultants.
The ethos for the business of operational excellence ensures we continuously improve and look for simpler and more effective ways to do things.

All Products Sold At Ali Baba Are 100% Natural & Preservative Free!

The Franchising sector in Australia is worth approx. $80 Billion. Ali Baba is a member of the Franchise Council of Australia (FCA). The relationship with the FCA ensures that we can leverage the evolution of Franchising, with a solid Franchise network as the beneficiary.

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Simplicity

Operational.Customer.Product.

Why is Ali Baba one of the Simplest Franchises to Operate?

Few Suppliers: 75% of a Franchises operating goods are purchased from 1 supplier and delivered to you. Low Administration Requirements: The proactivity of Ali Babas business operating system, allows Franchisees to focus their time and energy on other areas of the business. Technological Support: Ali Babas substantial investment in eBusiness and Electronic Data Interchange (EDI) Systems give Franchises the edge. Relatively Low Food Preparation: Within 60 minutes, a Franchise is fully operational on a daily basis.

The simplicity of running an Ali Baba Franchise Leads to Higher Profits!

Because of the simplicity of running an Ali Baba outlet, the Franchise has one of the lowest ratios of employee wages to gross turnover in the fast food industry hence high levels of profitability.

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the Franchise model is tailored to suit individual Franchise needs with flexibility and autonomy, making the relationship a win-win outcome for all.

Team

Together.Everyone.Achieves More.

Ali Baba has been approached by various shopping centres to take over existing competitor food businesses that are struggling. Following acquisition of these stores Ali Babas business model gave rise to sales increases of between 50% and 100%. In all cases the businesses were changed from loss makers into substantial profit makers. Ali Baba is also perceived and treated as a team player by their strategic partners and suppliers. The benefit of the mutual respect between Ali Baba and their stakeholders is the effective deals made on behalf on the Franchisee.

Why has the Ali Baba team expanded from 1 to 50 Franchised stores?
Supply Chain Power: Ali Babas Franchisees enjoy one of the lowest product costs in the market. Solid Profitability: each outlet has a high gross profit margin, and a low ratio of employee wages to sales, which typically results in a very satisfying bottom line. Management Style: an emphasis on quality and customer satisfaction in business management. Confidence in the Business Model: almost 50% of Franchisees own more than 1 store, proving their confidence in the business model. Competitive Royalties and Fees: Ali Babas cost-effective percentage (%) of sales structure ensures the Franchisees return is boosted.

What does it take to be an Ali Baba Franchisee? Ali Baba supports prospective Franchisees who are enthusiastic and highly motivated. The basis of Ali Babas success has been driven by individuals and Franchises that focus on: Achievement and Self Actualisation Customer Engagement Affiliation and Pro-activity in Running their Franchise Encouraging Others Within the Franchise to be Effective The point of difference with Ali Baba is the manner in which the Franchise model is tailored to suit individual Franchise needs with flexibility and autonomy, making the relationship a win-win outcome for all.

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Customers

Listen.Pursue.Satisfy.

Where has Ali Babas customer focus taken us?

Everything we do at Ali Baba starts with the customer.

We aim to make their experience more enjoyable, different and satisfying by focusing on the little things which make them smile. Ali Baba believes in the philosophy of CARE; Customers Are Really Everything!

Ali Babas customer orientation has also led to the following product & packaging initiatives:
Up To 97% Fat Free KBabs and Wraps: Offering more variety and less fat. Bowls: the low G.I alternative to the keep customers feeling great all day! Wholemeal and Gluten Free Bread: Catering for the different needs and requirements of customers in the market. Amazing Kids Meals: Keeping the kids amused whilst the folks enjoy their fresh KBab, Wrap, Bowl or Roll. Innovative Packaging: Making the experience more convenient, enjoyable and vibrant!

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Technology

Data.Support.Reporting.

Ali Baba has invested in innovative technologies, delivering rich information faster to Franchisees, making their lives easier and simpler in operating the store.
The ability to access and retrieve vital information efficiently allows for faster decision making and clarity on direction with managing your Franchise. Franchises have the luxury of viewing sales, reporting and communication at any time conveniently through an integrated secured system that is easy to use and understand.

The other key benefit to Franchisees is the understanding of trends in the retail calendar and the pro-activity of the reporting system to closely monitor business activity. Ali Baba continues to invest in further technological advancements to better service Franchises and allow more information to be captured and reported in a simplistic manner.

faster decision making and clarity on direction with managing your Franchise.

Whats Next?

Application.Approval.Launch!
Simply review the information provided and complete the attached Franchise application form.

Application Form
The Ali Baba Franchise System
Personal Information Principal Applicant Surname: Current address: Own Telephone: Email: Previous address: Own Rent How long at previous address? State: Postcode: Rent How long at current address? Mobile: Fax: First name: State: Postcode:

Secondary Applicant (if more than one) Relation to principal: Surname: Current Address: Telephone: Email: Own Rent How long at current address? State: How long at previous address? Postcode: Mobile: First Name: State: Fax: Postcode:

Previous Address: Own Rent

Business Experience If granted an Ali Baba Franchise would this be your main source of income: Yes Current Employer: Address: Duties: Reference name: Previous Employer: Address: Duties: Reference name: Educational Details - Primary Applicant Highest level of qualification achieved: Institution attended: Other qualifications achieved: Institution attended: Educational Details - Secondary Applicant Highest level of qualification achieved: Institution attended: Other qualifications achieved: Institution attended: State: State: Year finalised: Country: Year finalised: Country: State: State: Year finalised: Country: Year finalised: Country: Position: Telephone: Position: Position: Telephone: How long in this position: State: Postcode: Position: No How long in this position: State: Postcode:

Application Form Continued...

Other Relevant Business or Educational Information Financial Details It is essential that all Franchisees have an appropriate level of funds available not only to stock and fitout a Franchise location but also to ensure that there is a degree of working capital available to support the business in case of any eventuality. Current income: Other income: (provide details)

Total disposable income per month (income available after living and other expenses per month): Current cash assets (Including Bank Accounts): Current non cash assets (including real estate and property): Do you have a secured source of finance: Finance available: Accountants name: Other relevant financial information: Other Details Will other individuals will be involved with the day to day running and operation of the business? If so, provide details: Have you or anyone who will have direct involvement with the business been declared bankrupt during the last ten years? If so, provide details: Have you or anyone who will have direct involvement with the business been the subject of any court proceedings? If so, provide details: References Name: Position: Name: Position: Relationship: Telephone: Relationship: Telephone: Contact:

I declare that the information contained in this application is true and correct and that it will be relied upon in assessing this application. Attach relevant personal and business resumes. Principal Applicant Signature Secondary Applicant Signature

Date

Date

All information supplied will be treated in strict confidence. We will contact you within 10 business days upon receipt. Please return signed application form to Ali Baba Franchise Applications, 29 Williamson Road, Ingleburn NSW 2565

Support

Brand.Promotional.Marketing. Promotional.Marketing.

29 Williamson Road, Ingleburn NSW 2565 T 02 9829 8600 F 02 9829 8611 E franchise@alibaba.com.au www.alibaba.com.au/franchise