BURGER KINGS 9 STEP APPLICATION PROCESS

1 Initial Contact The Franchisee contacts BK Franchise Sales Dept at BK to register interest. Initial discussion takes place to establish motivation / capability of becoming BK Franchisee. 2 Franchise Application The franchisee is sent corporate application form and supporting docs. Once BK are in receipt of completed docs and any supporting docs, if the franchisee meets initial BK criteria an interview is arranged between the franchise sales director The franchisee is given a Franchise information package which is intended to summarise some of the basic facts fundamental to a BK franchise. 3 Internal Approvals After the initial interview BK will perform initial finance/ credit legal approvals based around the information submitted and discussed. Under financial approval BK reviews each franchise application with reference to matters such as certain financial ratios other criteria for all proposed and existing restaurants, as shown or estimated by the applicant. This financial evaluation is carried out for BKs internal purposes and is not a guarantee or assurance of adequacy for success of your particular site. For information purposes, can BK advise you that unless other relevant factors apply, it principally looks for the following: 1) Cash Flow/Fixed charge coverage ratio 2) Debt / Equity Ratio 3) Current Ratio. To evaluate new Franchisees starting up a business BK require certain information, which may include personal net worth statements and trade and personal references, in addition to the initial corporate franchise application form. Legal approval involves in summary meeting the legal and ownership requirements of BK. In addition the prospective franchisee must not be in breach of any legal obligation to, or be involved in a claim against Burger King. In parallel the prospective franchisee will go through a 20 hour orientation and evaluation at a designated BK. 4 The 15 week Franchise training programme and senior management interview The franchise sales team or training dept will contact the prospective franchisee to arrange the structured 220 hours (4weeks) of training which BK require to be successfully completed by the Franchisee in order to be able to give full operational approval. This is then followed by a further 11 weeks of training after a formal interview by members of the BK senior management team. 5 Franchise Approval The above is not an exhaustive list of those matters, which BK and its affiliates may take into account in determining whether to grant or maintain franchise approval. Franchise approval may be withdrawn if the franchisee fails to continue to meet relevant requirements and BK will not grant a franchise if franchise approval is not in place when the restaurant is due to open. 6 Site Selection If the franchise has a proposed site then they will move straight to the site approval stage. If not then the franchisee will liaise with the BK development team to discuss potential locations that may be available as part of the current BK development process.

BURGER KINGS 9 STEP APPLICATION PROCESS

7 Site approval (subject to receipt of preliminary franchise approval) Once the prospective franchisee has found a site, the franchisee will be required to submit BK standard form of New Restaurant Site Pack. BK will review the new restaurant site pack and accept or reject the proposed site in its sole discretion. If BK approves the proposed site by granting written site approval and an A number, the franchisee may proceed to secure the proposed site. The franchisee must receive written site approval. 8 Final Approval / Construction Starts Once the prospective franchisee has successfully completed the 220 hours of structured training programme, the final operations approval is given. Each prospective franchisee must submit all building plans, designs. Colours and landscaping to BK for written building plan approval. No construction may begin without building plan approval. The franchisee must receive written building plan approval and a BK number and all subsequent changes must be approved in writing. Prior to the restaurant opening the BK construction manager will confirm his approval for the compliance of the restaurant. At this point the remainder of all required franchise training must be completed, involving both the franchisee and the management and staff. 9 Franchise Agreement / Opening Prior to the restaurant opening (normally 14 days prior) the franchise sales department will arrange with the BK legal department to prepare a Franchise agreement to be sent to the franchisee for signature and return. At the same time the franchise sales director will request the finance dept to issue an invoice for the franchise fee, whish is sent to the franchisee for payment. N.B. A signed franchise agreement and payment of the Franchise Fee invoice must be in place prior to the restaurant opening. Once all of the above steps of the development process have been completed the franchisee is authorised to open the BK restaurant.