KARAK HOUSE FRANCHISING COMPANY

Franchise agreement

You must compile, keep, and submit to us the books, records and reports on the forms and use the methods of bookkeeping and accounting as we periodically may prescribe.

Item 11

We or a third-party vendor approved by Franchisor may independently access the POS System and retrieve, analyze, download, and use all software, data and files from your Coffee House or used on the POS System.

Franchise agreement

You must keep books and records and submit reports as we periodically require, including but not limited to a monthly profit plan, monthly balance sheet and monthly statement of profit and loss, records of prices and special sales, check registers, purchase records, invoices, sales summaries and inventories, sales…

Item 8

Because we supply the trademarked merchandise to our franchisees, some of our officers own an interest in one of our suppliers (the Franchisor).

Item 11

We reserve the right to change the On-line Ordering App at any time but will not require you to replace these items more than three times during the initial term of the Franchise Agreement.

Item 8

During 2022, Franchisor received approximately $20,000.00 in payments from suppliers because of Coffee House purchases.

Item 8

We and our affiliates have collected rebates from Approved Suppliers.

Item 8

The estimated proportion of required purchases and leases in relation to all purchases to be made by Franchisee in establishing the business and while operating the business is 4% to 5%, based on sales volume.

Item 8

We charge at a minimum a fee of $250 or a reasonable fee to cover our costs in evaluating proposed vendors.

Item 8

if you propose to use in the operation of your Coffee House any product, supply, material, furnishing or equipment which has not yet been approved by us as conforming to our specifications and quality and system standards and/or from a supplier not yet approved in writing by us, you must first notify us in writing…

Franchise agreement

Franchisee hereby agrees to assign to Company (i) those certain telephone numbers and regular, classified, or other telephone directory listings used by Franchisee in connection with operating the Karak Coffee House (collectively, the "Numbers and Listings")

Item 1

You also must comply with all PCI Data Security Standards.

Franchise agreement

We or our authorized representative have the right to enter your Coffee House at all reasonable times during the business day for the purpose of making periodic evaluations and to ascertain if the provisions of this Agreement are being observed by you, to inspect and evaluate your building, land and equipment, and to…

Item 11

We may, from time to time, revise the contents of the Operations Manual and you must comply with each new or changed standard.

Item 11

You may not proceed to develop a Coffee House on the site unless we have provided you with our acceptance of the site.

Item 11

You must spend at least $2,500 and up to $5,000 on a grand opening campaign which will include promotional elements, merchandise/giveaways, entertainment, decorations, and labor (the "Grand Opening Marketing Campaign").

Item 11

As of the date of this Disclosure Document, you must spend Local advertisement and Promotional Fee (the “Local Advertising Fee”) of $750.00 per month, of your monthly Gross Revenue for local advertising to promote your franchise in your local market.

Item 8

For example, as of the date of this Disclosure Document, you must purchase all trademarked retail items, products, and supplies, including apparel and accessories, bags, and mugs, from us or our approved supplier.

Item 8

You must purchase certain equipment, products, merchandise and supplies only from us or our required suppliers as noted in this Item 8.

Franchise agreement

The POS System will also include any credit card processing system we designate.

Item 6

We will auto-debit your bank account (known as “ACH”) for all fees you are required to pay us under the Franchise Agreement.

Franchise agreement

You must use and honor only system-wide gift cards, certificates and checks that we designate, and you must obtain all certificates, cards or checks from an Approved Supplier.

Franchise agreement

D. Staffing. You will employ a sufficient number of competent and trained employees to ensure efficient service to your customers.

Item 8

Additionally, you must purchase your uniforms, and certain merchandise, supplies, equipment, and other materials, from us or our approved supplier.

Item 11

You must obtain and use in your Coffee House, a Karak approved Point-Of-Sale cash register system from our designated supplier, TOAST POS System (the “POS System” or “TOAST”).

Item 11

We or a third-party vendor approved by Franchisor may independently access the POS System and retrieve, analyze, download, and use all software, data and files from your Coffee House or used on the POS System.

Item 6

We have the right to charge for additional training provided, including: (i) initial training provided to persons repeating or replacing a person who did not pass initial training (ii) initial training for subsequent trainees; and (iii) periodic additional training we may provide, including our annual convention.

Item 11

In addition to attending these courses, you must attend an annual meeting of all franchisees at a location we designate.