OUR BRAND TOUCHING LIVES ONE BREADSTICK AT A TIME. To serve America premium quality Italian food, fast, fresh & friendly.

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2 OUR BRAND TOUCHING LIVES ONE BREADSTICK AT A TIME Fazoli s offers a vast menu of traditional Italian favorites headlined by our worldfamous, mouthwatering breadsticks. But after nearly 30 years as a leader in the Quick-Service Restaurant industry, we know success is about more than what s in the sauce. From our flavorful menu to our internal operations, we never stop improving our business. We don t compromise on our commitment to quality, ensuring our guests and franchisees only get the best in all categories. OUR VALUES: Great guest service is what we do People come first Integrity is everything Teamwork makes the difference Pursuit of excellence is never-ending OUR MISSION: To serve America premium quality Italian food, fast, fresh & friendly. 2

3 OUR CONCEPT WHAT MAKES US DIFFERENT? The QSR industry is a very crowded space filled with burgers, chicken and tacos. At Fazoli s, the only Italian QSR concept, we do things differently. It starts by offering what we call the elevated QSR experience at each of our over 200 locations. That means on top of our cravable, Italian cuisine, we serve guests an unforgettable experience in a contemporary restaurant environment. And, it s all available at an affordable price. No one in the industry can do what Fazoli s does at a $7 price point. We re so differentiated that we own the space. That s powerful stuff. MIKE FEINMAN FAZOLI S FRANCHISEE, TEXAS It s the Little Things That Count Although our customers are enjoying a QSR meal, they get the same service and quality they would expect from a sit-down restaurant. Dine-in guests never have to use plastic plates or flatware and have access to unlimited breadsticks. We don t compromise quality for to-go guests, either (the proof is in the packaging). Now that s what we call value. 3

4 OUR GROWTH POTENTIAL THERE S NO BETTER TIME TO FRANCHISE WITH FAZOLI S Fazoli s is a differentiated concept with limited competition. We provide a strong value proposition for the consumer and a substantial investment proposition for the franchisees. $1,567,895 Average Net Revenue Top 3rd of Franchised Restaurants 26.4% Average Cost of Goods Sold - Company Restaurants 99% Franchisee Recommended 2017 FBR Survey Fazoli s provides a remarkably good dining experience at a value and price point that no one can touch. There has never been a better time to be a Fazoli s franchisee than now. BOB SIRKIS FAZOLI S FRANCHISEE, GEORGIA 95% Unit Continuity Rate Since New Openings Per Year 4

5 OUR PROMISE SUSTAINED AND STEADY GROWTH STARTS WITH A PROMISE Our success rides on the satisfaction of our guests. And we empower them to share their Fazoli s experience with us, good or bad. That s why we post the direct line to our top executive leaders Carl T. Howard, President and CEO and Doug Bostick, Senior Vice President of Operations in each of our restaurants. We are proud of our teams & operations and this shows our commitment and confidence in our team s ability to deliver on this promise every day. DOUG BOSTICK SR. VICE PRESIDENT OF OPERATIONS OUR PROMISE Our guests are our top priority, and we make it a point to prove it every day. 5

6 OUR FOOD FOOD FOR PEOPLE WHO KNOW GREAT WHEN THEY TASTE IT We created Fazoli s for everyday people looking for exceptional Italian cuisine at a price point that doesn t break the bank. And every dish is made to order using fresh, high-quality ingredients. From cravable seasonal offerings and Limited-Time Menu items to classic pasta entrées and salads, Fazoli s provides a flavor for every palette. We have a better menu than we ve ever had. There s a new energy in the concept. We have great value, we do it right and our guests see that. MARK CRAYNE FAZOLI S FRANCHISEE OUR FOOD: Classic Italian favorites made with fresh high-quality ingredients 6

7 OUR REACH AND WE NEVER LET THEM FUGEDDABOUDIT We love filling our guests stomachs with Fazoli s even when they re not dining in-restaurant. So, our off-premise revenue streams make it easy for your customers to enjoy Fazoli s anytime, anywhere, any occasion. Drive-Thru Every Fazoli s location has a drive-thru option, so guests can satisfy their craving for breadsticks even when they are on-the-go. Catering Catering is a crucial initiative at Fazoli s because it drives revenue, allows new customers to try our cravable cuisine and maximizes labor hours. Pronto Pick Up & Mobile App The Fazoli s mobile app and Pronto Pick Up area make it easy for guests to enjoy our cuisine wherever they want. It also keeps them engaged with digital coupons, notifications and loyalty points. I ve been doing this for 22 years, and it s been profitable every year. DUANE MCINTYRE FAZOLI S FRANCHISEE, ILLINOIS 7

8 OUR FAMILY BUT, Y-FAZOLI S? We deliver on making the brand better every year. And, we take care of our own. We believe that real change comes from the inside out. So, we put a strong emphasis on brand culture while also perfecting our operational systems and processes. This way, we re able to provide the best value to not only franchisees but their employees, too. It s how we keep our guests happy and the reason they keep coming back. at Fazoli s we re family Fazoli s is a company that is really moving forward. As a franchisee, they offer great support and shared values. TERRY CHEPY FAZOLI S FRANCHISEE Trusted and experienced leadership Strong brand reputation Stable and growing system performance High growth potential Attractive financial performance Operational & portfolio compatibility 8

9 OUR LEADERS BUILD REVENUE BY BUILDING RELATIONSHIPS At Fazoli s, we believe reputation is earned, not given. From the customers to our franchisees and employees, no matter who you are, we make it a point to build our reputation with every life we touch. And it starts with relationships. That s why our leadership team is so easily accessible. If you call, they promise to always answer as soon as possible. It s how we evoke change in our business for the better. And it s proven through a steady and growing sales trend, high franchisee satisfaction rates and strong customer loyalty. 95%* FRANCHISEES SAY THEY... Respect the Leadership Trust the Brand Vision Feel Valued as a Franchisee Enjoy Operating the Business *FBR Fazoli s Franchise Satisfaction Report, 2017 What I am most proud of is the relationship with our franchisees. Our collaborative relationship is one of the keys to the success of the Fazoli s brand and is something myself and our leadership team focus on every day CARL HOWARD PRESIDENT AND CEO 9

10 OUR TRAINING & SUPPORT WE TAKE CARE OF OUR OWN Fazoli s has one of the most comprehensive, hands-on training programs in the franchise industry because we believe there s always room to learn and grow. Our extensive manager training program is followed by two weeks of on-site opening support. We also help you stay on track throughout your franchise journey with supplemental workshops and e-learning tools. Our Support Doesn t End There, Either As operators of over 50 Fazoli s locations, we understand what goes into running a successful restaurant. That s why we also support our franchise partners in the following areas: Real Estate & Site Selection Design & Construction Restaurant Information Systems Labor and Cost Controls Profitable Sales Drivers Cleanliness & Safety Supply Chain & Distribution 10

11 OUR MARKETING IT S HOW WE KEEP THEM CRAVING FOR MORE Every year, we implement widespread marketing strategies and roll out promotions proven to drive traffic, help upsell and cross-sell products, as well as forge meaningful connections with existing and future guests. We even provide a comprehensive yearly marketing calendar, including limitedtime and value menu offerings. creative & Cravable Advertising Marketing Support & Guidance: Grand Opening Marketing Annual Marketing & Media Planning Quarterly Promo Planning & Materials Brand Communications Social Media, efamily, Public Relations Catering Planning Local Restaurant Marketing In-House Creative Development 11

12 OUR AVAILABLE MARKETS BRING FAZOLI S TO YOUR COMMUNITY We are seeking experienced multi-unit franchisees looking to disrupt the QSR industry with us. Fazoli s is growing in the states highlighted in green, with a focus on suburban markets of larger DMAs, mid-size cities and smaller markets with populations as low as 25,000*. OPEN MARKETS *Although we prefer multi-unit franchisees, we will consider single-unit options in specific geographic areas where appropriate 12

13 OUR EXPECTATIONS DO YOU SHARE OUR PASSIONS AND VALUES? We re not interested in bossing you around, we re interested in making you a partner in business. Owning a Fazoli s franchise is a serious but rewarding commitment. We re looking for operators who have a collaborative mindset and share our dedication to high standards, including: A track record of success in the restaurant industry Multi-unit operator experience An appreciation for the franchise relationship A desire to offer a rewarding work environment and memorable experience for our guests An ability to truly partner with Fazoli s and other franchisees 13

14 OUR Development criteria INVESTING IN THE FAZOLI S FRANCHISE CONCEPT We prefer area development agreements of three to 10 restaurants but will consider one- to two-unit commitments in smaller markets and communities. Net Worth $1,500,000 Criteria Liquidity $500,000 Ability to Invest Minimum of 20% of Total Project Cost Investment Free-Standing Restaurant $1,098,000 - $1,739,818 3,300 sq. ft. & 3,600 sq. ft. with drive-thru End-Cap Restaurant $646,200 - $1,058,000 3,000 sq. ft. with drive-thru All fees and costs are outlined in our Franchise Disclosure Document (FDD). Request a copy of our FDD to help determine if owning a Fazoli s is the right choice for you. 14

15 INTERESTED IN JOINING THE FAZOLI S FRANCHISE FAMILY? LET S TALK OWNAFAZOLIS@FAZOLIS.COM ownafazolis.com