Queens Cleaners & Dyers Limited

Contents:

1. Executive Summary
2. Introduction & Historical Perspective
3. Business Features – Strengths & Opportunities
4. Business Features – Operations
5. Market and Marketing Strategy
6. Industry & Competitive Analysis
7. Why Franchise
8. Growth & Business Development Plans
9. Proposed Franchisee Operations
10. Franchise Offering / Franchise Agreement
11.Investment Proposition
12.Projected Franchisee Performance

1. Executive Summary

• Limited Investment opportunities in Kenya

• Creation of value by developing pre-listing companies
• 60year old brand expansion program through franchising
• Entry requirements includes a KShs. 500,000 franchise fee
• Other costs include set-up and location acquisition
• Projected IRR of between 89% and 109% year on year
• Projected Value of the franchise of between KShs. 0.7mn and KShs.
3.5mn
• Initially seeking investors for 3 new outlets only

2. Introduction & Historical Perspective

• 6 decades of cleaning business through 3 generations

• Business founded in 1947 and developed by founder for 40years
• 2nd largest dry cleaning brand in Kenya after White Rose
• Also had the 2nd largest dry cleaning distribution after White Rose
• Acquired by the Karia family in 1990 when founder retired
• Used by the Karia family to develop Kwik Fit and Hyper Media
• Acquired by Eternity Investments Limited with a view to
o Consolidate on the brand
o Expand the business through franchising and merchandising
o Develop and encourage a multi-ownership structure
o IPO

3. Business Features (Strengths & Opportunities)

• Solid track record until the Karia family diversified into telecoms
 • Minimal meaningful competition from existing players
• High minimum entry barriers to new players
• Possibilities for immediate expansion into merchandizing
• Possibilities of franchise expansion into launderettes and valet
cleaning
• The Jim Collins effect on current management and employees
• Very well equipped coupled with an aggressive replacement
program

4. Business Features (Market & Operations)

• Market demographics place 10% of populations to high
income
• 20 - 30% of population is considered medium income
• Market differentiation is skewed towards client service
and price
• Processing factory located at Koinange Street branch
• Locations include 3 company owned dry-stores; and
• 1 franchised store in Limuru
• A host of dry cleaning, laundry, pressing and other cleaning
equipment
• Hotel contracts (Fairview/Oakwood/Karen Blixen)
• Corporate & institutional contracts (UN / IBERA / AON / Kobil)

5. Industry & Competitive Analysis

•Dry cleaning industry is made up of numerous mum & pap shops
•Most outlets are estate based and hence run minimal services
•Asian investors continue to take advantage of the opportunity space
•Trattoria and Lavage targeting the high income market
•White Rose and Cleanpoint targeting medium income market
•Queens targeting medium-to-high income market
•Other than White Rose, no other brands in rest of the country

6. Why A Franchise
• Business for yourself and not by yourself
• Tried business package for start-up and risk averse
entrepreneurs
• Support on site selections, personnel development and
marketing
• Become part of a 60year old proven system in a start-up
situation
• Consistent, focused, individualized on-going field support
• Operations, marketing and business planning support
• The 4M’s approach: Motivating, Monitoring, Managing &
Mentoring
• On-going system and operational development increasing
success rates
 • Pooled marketing and advertising resources for increased
visibility

7. Growth & Business Development Plans

• Queens Pressed4Time Mobile Launderettes

• Queens On-site Cleaning Services
• Queens Window Cleaning Services
• Queens Surface Doctors
• Queens Carpet Home Cleaners

8. Proposed Franchisee Operations

• Local area marketing
• Receiving and dispatching of garments to processing factory
• Day to day customer relations/servicing
• Day to day logistics receiving/dispatching management

9. Franchise Offering / Franchise Agreement

• Site Selection – Location, Location, Location
• Exclusivity on Territories
• Exclusivity on Product & Service Sales
• Initial Franchise Fees & Other Fees
• Operations Manual & Staff Training
• Franchisee’s Obligations
• Franchisor’s Obligations
• Renewal, Termination, Transfer and other Exit Arrangements

10.Investment Proposition

GOLD ZONE DIAMOND ZONE CLASSIC ZONE

Locations: Locations: Locations:
1. Town Center 1. Highridge 1. South B/C
2. Westlands 2. Karen 2. Nairobi West
3. Gigiri 3. Upperhill 3. Ongata Rongai
4. Industrial Area 4. Buru buru 4. Donholm
5. etc 5. etc 5. etc
Franchise License Franchise License Franchise License
Fee: Fee: Fees:
1. KShs. 600,000 1. KShs. 300,000 1. KShs. 150,000

Marketing Pool Fee: Marketing Pool Fee: Marketing Pool Fee:

1. 5% of factory 1. 5% of factory 1. 5% of factory
processing cost processing cost processing cost

11.Projected Franchise Performance

12.Proposed Events Time Table

• Presentation – Sept 14th 2006

• Latest date to receive commitment – Oct 15th 2006
• Negotiation and signing of Franchise Agreements - Oct
31st 2006
• Location branding, partitioning and set-up – Nov 30th
2006
• Site Launch date – Dec 1st 2006.

13.Conclusion

The door to opportunities is usually quite big but rather hasty to close.
Queens is offering you one that is easy to establish and run, take it while
it’s still available. The “right of first refusal” will apply for any new outlets
after this and obviously at a much higher price.