BOUTIOUE. Shopping for success A FRANCHISE BUSINESS OPPORTUNITY

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BOUTIOUE Shopping for success A FRANCHISE BUSINESS OPPORTUNITY

Own It. Proven Business Model Our business experience and operational model help our franchisees grow their businesses quickly, efficiently and successfully.

What is scout & molly s? LISA KORNSTEIN Founder, Chief Operating Officer, Franlogic Scout Development d.b.a. Scout & Molly s Development Lisa may have loved clothes since childhood, but never envisioned herself actually working in fashion. While attending graduate school in South Carolina, Lisa worked part-time at a boutique. She fell in love with sales. Lisa dreamed of starting her own store; a boutique where women would feel comfortable shopping. A place where they didn t have to worry about what they were wearing when they walked in the store. A place where they could always count on a friendly face and an honest opinion. A place where a customer would feel like she was browsing in her best friend s closet. Finally getting up the nerve, Lisa took a leap of faith and opened her first boutique in the spring of 2002. The fresh and fun ambiance not only attracted women to the store, but also prompted comments on how they wished they could open their own Scout & Molly s. So Lisa took another leap of faith and licensed her business so she could grow the brand in other markets. Today, Scout & Molly s is a popular destination for unique clothing, jewelry and accessories where women can find distinctive ways of expressing their style. Each boutique stays true to Lisa s original vision to carry fabulous clothes in a warm, welcoming atmosphere and provide outstanding service. Whether a customer is searching for that perfect pair of jeans or a dazzling dress for an upcoming event, the Style Scouts of Scout & Molly s Boutique make the experience enjoyable and productive.

overview & support Scout & Molly s is completely dedicated to the success of its franchisees; therefore, each franchisee can expect consistent and ongoing support from the corporate office. As part of this support, the following services and training have been developed to assist in all operational aspects of each Scout & Molly s franchise. Site Selection Scout & Molly s helps franchisees select and obtain approximately 1,200 square feet of space in a high-end strip mall. Our national team of leading retail brokers will review all features and factors to locate the best possible site. Build Out Once the location is selected and approved, our manufacturing and program management company will work with franchisees to discuss design, the store-in-a-box package, franchisee furniture and fixture responsibilities, as well as the general contractor s responsibilities. Store-in-a-box package To ensure each store has a similar look and feel, we developed a store-in-a-box package to make the build-out process as seamless as possible. This includes everything from the checkout counter to little details like the manager s desk.

inventory & supplies The Scout & Molly s buying team travels to regional apparel shows, called markets, at least four times a year. These markets are held in different cities including Atlanta, GA; Miami, FL; Las Vegas, NV; New York, NY; Los Angeles, CA; Chicago, IL; and Dallas, TX. In these regions our buyers source the best of the best in contemporary women s clothing lines. With years of fashion buying experience, their established relationships with designers and sales reps across the country provide every boutique with the top selling styles in fashion s hottest trends. One of the significant advantages of the Scout & Molly s franchise system is the ability for franchisees to benefit from purchases and service relationships negotiated by the company with key suppliers. JOOR Franchisees will be trained and have access to our wholesale marketplace, an online platform that allows selection of the merchandise available in every territory. hiring All franchisees will be trained and provided with the documents necessary for staffing their shop. This will be explored in greater detail during training week. visual standards guide Once the clothing has been selected for your store, you will need to know how to effectively display it and stock it. Franchisees will be provided with instructions on store layout and be trained in best practices and theories behind the science of merchandising.. ongoing field support Training doesn t stop on the phone or with training week. The corporate team will be on the road ensuring each store and owner is meeting and exceeding expectations for success.

in-house marketing agency The Scout & Molly s brand has the benefit of an in-house marketing and advertising agency. These media buyers and marketing experts work closely with each franchisee to get the word out about every boutique. As our brand and merchandise continues to evolve in an ever-changing industry, our in-house agency also remains ahead of digital marketing trends to promote brand awareness in your target market and across the country. online resources access to microsite We have established a corporate website at ScoutandMollys.com that provides extensive information about the company. Each franchisee s location will be featured on this website, and its geo-tagging functionality allows customers to find a boutique in a specific area. The website also serves as a tremendous marketing tool allowing franchisees to engage on social media platforms while promoting events. resource center Scout & Molly s corporate has created a password-protected Resource Center for franchisees to access 24 hours a day, 7 days a week. This online portal provides forms, documents, branded material, videos, social media images, marketing resources, and more. A forum to ask questions and share ideas with fellow owners and/or the corporate team is also available.

1 Franchisee training When you become a franchisee, training begins immediately. A member of the corporate team will initiate the relationship with a personal phone call to kick start this exciting process. An operations specialist will then follow-up to walk you through the welcome packet, the pre-opening checklist and the resource center within days of the first phone call. Ongoing training will revolve around each boutique s build-out, inventory, visual standards, marketing and advertising, and soft and grand openings. The week-long training program will introduce new practices in addition to reinforcing policies and procedures. Ongoing field support will begin once the franchisee s store has opened. Pre-opening checklist This checklist was developed for when an item or task is to be completed prior to Grand Opening Day. Action Item Approximate Days Out from Grand Opening Completion Date A copy of your signed franchise agreement has been returned. A welcome call has been completed with Lisa Kornstein or a member from Scout & Molly's Corporate. A welcome email has been sent from Baum Realty and site selection process has begun. Ensure welcome packet has arrived from Corporate. Select an accountant. Select an attorney for lease review. Decide what type of business organization you would like to form. Be sure to add "DBA, Scout & Molly's. Secure your Employer Identification Number for the IRS. First 30 Days from Signing Choose a bank and open a business checking account. Fonts have been downloaded from the resource center. All photos from the site selection process have been uploaded to the Scout & Molly's dropbox. FC Dadson sign up sheet is filled out and submit to FC Representive. This document is in welcome packet and on the resource center. A general contractor or landlord representative took field verified measurements prior to starting the project and ordering the package from FC Dadson. Download all documents off of the Resource Center under the tabs Resources>Pre-Opening>Build Out. Lease is signed and the location has been delivered to franchise partner from LL per Scout & Molly's specifications. Any required business licenses from the state, county or city that you will be operating in have been secured. Secure a sales tax permit. State Tax ID is set up with the department of revenue. Received preliminery drawings from FC Dadson. Used the GC email template from Resource Center and sourced (min 3) GCs for quotes on build out. Intro call is scheduled with The CRUSH Agency. Google voice is set up for temporary microsite phone number. Download Furniture & Fixtures Manual of Resource Center. Build out requirements confirmed from the landlord and/or municipality.

BOUTIOUE Learn more about Scout & Molly s Boutique franchise opportunities: www.scoutandmollys.com For more information, contact: Brian Garoutte, VP of Development Scout & Molly s/rhino7 919.977.9519 briangaroutte@r7fdc.com Rhino7 Franchise Development Corporation 431 Keisler Drive 2nd Floor, Suite 201 Cary, NC 27518 919.977.9517 www.r7fdc.com