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3	"Sub Zero Ice Cream is..." Sub Zero Ice Cream is the most exciting and innovative franchise to come along for years. How about instant frozen ice cream without the need for freezers or ice cream making equipment? You will want to read more and take advantage of the early stages by acting as quickly as you can. On behalf of Sub Zero Ice Cream family, we would like to welcome you and thank you for inquiring about our exciting franchise opportunity. Sub Zero Ice Cream is unique and we believe you will agree that it is one of the best franchise opportunities out there. Please take the time to review this information package and make a note of questions that come to mind. We’ll contact you in the next few days. Introduction One factor stands out above all the rest when it comes to Sub Zero Ice Cream — it is great ice cream as well as a technological innovative way to serve it! It makes sense to open a business that will bring in customers and keep them coming back for more. For many who consider purchasing a franchise, owning your own business is often a new experience. We are convinced that as you read this information package, you will be excited and intrigued by what you learn. If you have been looking for an opportunity, in the food business or not, you are on the right track. It doesn’t matter what your background is, Sub Zero Ice Cream could be right for you. We are looking for people who understand the value of an established system and who are anxious to provide excellent products to their customers.
4	What is Sub Zero Ice Cream When we were thinking of how to serve ice cream we didn't want anything ordinary. Our background is in chemistry and education, so we decided to make an Ice Cream store based on a science theme. There is nothing like this anywhere. We use cryogenic technology to customize the ice cream for each individual. Why go to this extent for just a bowl of ice cream? We are dedicated to taking a common ice cream and making an extraordinary experience, using a science theme. We also provide some of the best ice cream you have ever had. The faster you freeze cream the smoother the texture. Yes, there is science behind this. We’re selling an experience not just Ice Cream. Ice cream is the commodity.
5	Founders Jerry Hancock– Founders, Inventors BS Chemistry – BYU Software Engineer Started two restaurants and managed operations – 4 years Naomi Hancock – Founder, Trainer BA English Education Tour Guide for Timpanogos Cave – 9 years Vern Hancock – Architect, Site Location Private Practice Architect – 15 years Director of Building and Temple Construction – LDS Church
6	Market Overview Consumption --Total U.S. production of ice cream and related frozen desserts in 2006 amounted to about 1.55 billion gallons, an increase of 0.73 percent over 2005, according to the U.S. Department of Agriculture. --In 2006, total U.S. sales of ice cream and frozen desserts reached $22.8 billion. Of that total, $8.9 billion was spent on products for at-home consumption, while $13.9 billion was spent on away-from-home frozen dessert purchases in venues such as scoop shops, foodservice, and other retail sales outlets, according to IDFA Dairy Facts/International Ice Cream Association research. --Ice cream and related frozen desserts are consumed by more than 90 percent of U.S. households, according to product trends tracker Mintel. --Regular ice cream accounts for the largest share of the frozen dessert market, at 62.4 percent. Reduced-fat, light, low-fat, and nonfat ice cream account for 25 percent of the market, followed by frozen yogurt (4.3 percent), water ice (4.1 percent), sherbet (3.4 percent), and other products (0.7percent), according to the USDA.
7	Market Overview part 2 Production --In 2006 California once again produced the largest volume of ice cream and related frozen desserts in the United States, followed by Texas, Indiana, Pennsylvania, and Massachusetts, according to the USDA. --The U.S. led the world in annual production of ice cream and related frozen desserts at about 1.6 billion gallons in 2006, according to the USDA. --In 2006 about 7.8 percent of the milk produced in the United States was used to make frozen dairy products, according to the USDA.
8	Market Overview part 3 Novelties --The total frozen novelty market in 2006 was valued at $6.1 billion, up from $5.7 billion in 2005, according to IRI research. --IRI data from 2001 showed that, mirroring a similar trend in ice cream, vanilla was the top flavor for novelties, with more than 27 percent of the volume share. Fudge was the next highest standalone flavor share, with nearly 8 percent. --In 2001 ice cream bars held the largest dollar market share (25 percent) of the frozen novelty market in supermarkets, followed by yogurt novelties (20 percent) frozen ice (14.1 percent), ice cream sandwiches (13.5 percent), and ice cream cones (10 percent), according to the same IRI data.
9	Market Overview part 4 International view --Total U.S. exports of ice cream reached nearly 58 million pounds in 2006 -- worth about $60 million, according to reports from USDA and the International Ice Cream Association. --In 2006 Mexico was the single largest market for U.S. frozen dessert exports, with an estimated value of almost $30 million. Canada was the No. 2 destination for U.S. frozen dessert exports, valued at $8.1 million. United Kingdom ($2.55 million), Bahamas ($2.05 million), and Hong Kong ($1.6 million) were third, fourth, and fifth respectively. This information came from the USDA/International Ice Cream Association.
10	Competition Cold Stone Creamery- Nearly 1400 stores. $294,250 and $438,850 startup cost Maggie Moo’s – 393 stores $243,800 and $336,500 startup cost Baskin Robbins – 5000 stores Marble Slab – 541 stores since 1983 $225,275 - 376,375 startup cost Carvel’s Ice Cream
11	Target Market Families Custom ice cream is a very broad ~ 90% of America 10 % of Americans that don’t eat ice cream and would like a custom Soy or Rice product. Mid 20 to 30 year old dating market. Because of our current location our store is a complete destination store. Very few people that frequent our store live within 1 mile.
12	Competitive Advantage Lower startup cost - $125,000 - $200,000 Comparable markup to other Ice Cream stores 5x. Fresher product – completely custom ice cream (no freezers). Alternative choices such as Soy and Rice Milk Novel product – Special effects entertains during production Patent pending process – Filed by Harrison Colter PC. 3 years of research and development. Changes the Business Model of ice cream. Fixed Costs become variable Waste is eliminated Labor is streamlined
13	Media Coverage TV KUTV – Michelle King, Allie Mackay Fox13 – Big Budda KTVX – Good Morning Utah Magazine – Papers Deseret News Cold Facts (National Cryogenic Society) Daily Universe BYU Alumni Magazine Square Magazine American Automobile Association – VIA Travel magazine Orem Geneva Times Daily Herald
14	Media Reviews American Automobile Association VIA Magazine “Ice Cream Just Got Cooler” Cool Facts – (National Cryogenic Society) Sub Zero is redefining the definition what is cream is. Daily Universe “Fascinating and fun to watch, you can believe your eyes and the ice cream is exceptional… very creamy.” Orem Geneva Times “I’ve eaten custard all over the world and this is the finest in the nation.” DaVee Wennerholm.
15	"Sub Zero Ice Cream" Sub Zero Ice Cream Opportunity 1. Sub Zero Ice Cream offers a proven business model, a system that has worked for many years and will work for you. As a franchisee you will be given all the tools--the system, the training, the name, the market, the support—that, if you use them, will insure your success. 2. We will help you decide on the best location(s) for your Sub Zero Ice Cream. 3. We provide you with the initial and ongoing training and support. Our detailed Operations Manual will teach you everything from lease negotiation to food preparation to marketing. We do not leave a stone unturned when it comes to teaching you our business, and we will continue to help you to ensure our mutual success throughout our entire business relationship. 4. We share our proven system and procedures. Both have been developed over many years to allow the successful operation of one or multiple Sub Zero Ice Cream. Immediately upon signing the Franchise Agreement, you will have access to the best systems and methods in the industry. 5. You will enjoy the benefits from our name recognition and marketing experience. You will be part of Sub Zero Ice Cream network of successful Franchisees. If you can follow a system, want to own a business and are not afraid of building some ‘sweat equity’ then Sub Zero Ice Cream is where you need to be.
16	"Buy a Store Front or..." Buy a Store Front or a Mobile Sub Zero Ice Cream Franchise. We understand that your objective is to make money and provide an income for you. A Sub Zero Ice Cream Franchise can do this for you either in a fixed location or a mobile unit. The initial franchise fee has not yet been determined as the legal documentation is still being prepared. This information packet is only to create a list of persons who may be interested in receiving the Uniform Franchise Offering Circular and exhibits describing the franchise in detail, and from which you will make your decision. If after you have read this information, you are interested in getting the UFOC when completed, you need to fill out the accompanying Request For Consideration Form. This way we can measure your interest level and keep track of the priority of those interested. A benefit of a franchised business is that you own it, but you have the benefit of the franchiser’s expertise and experience to drastically reduce the cost to get started. So your chances of success are much greater, and you have a model that has consistently made money for the franchiser and other family members.
17	"About Sub Zero Ice Cream" About Sub Zero Ice Cream Sub Zero Ice Cream is located in Orem, Utah and was founded by Jerry Hancock, and inventor and entrepreneur. Many of you already know the process or you would not have requested this information. How about instant frozen ice cream of any favor that can be made to taste or preference from rich creamy, regular or low fat yogurt. And it is mixed in a bowl and freezes instantly as soon as the special equipment invented by Jerry, causes the ice cream to freeze. This makes it ideal for an existing location, a new location or even a mobile unit, which is being designed. Those who purchase a fixed location franchise will have the first right of refusal for mobile units in the territory purchased. Because no freezer or ice cream making equipment is needed, only the ingredients are required. People will come to see how it works, but will continue to come because they will love the ice cream. The franchise also has a science theme because of its founder, and besides the ice cream, patrons will be treated to a great learning experience each time they come. Kids will love it as well. Fill out the Request For Consideration Form and email to curt@duplicateyourbusiness.com to insure that you are on the list. The list will be kept in the order the form is received based on the e-mail date. If you have no e-mail fax to 801-261-8151 and the fax machine will record the date of the transmission.
18	"Other Information" Other Information Generally, franchised businesses generate jobs for more than 18 million Americans and account for 9.5 percent of the private sector economic output according to a recent study conducted by the International Franchise Association. The study found that more than 760,000 franchised businesses generate a total economic output of more than $1.53 trillion or nearly 10 percent of the US private sector. Why don't you get your share of that by owning a Sub Zero Ice Cream Franchise? The benefits of owning a Sub Zero Ice Cream Franchise are many. In general you will receive all of the following, which add up to $$$$: Experience. Franchisers already have units up and running. This means you can avoid expensive start-up mistakes. Support. You’ll be taught what you need to know to start and run your business. Name Recognition. Brand names bring more customers into the business and provide a competitive advantage that independent units can seldom afford. Advertising. Professionally prepared and well-tested advertising can give you a huge advantage in a competitive market. Cooperative advertising programs with the company and other franchisees can provide national and regional exposure at a more affordable price. Site Selection. You’ll receive advice in selecting a site and arranging the interior for your most efficient usage. Speed and Efficiency. The franchiser will save you time in starting up so that you can begin working with customers right away instead of trying to work out unforeseen problems. Simplicity. Franchisers try to keep your business as simple as possible so that you can concentrate on the activities that will make you the most money. Friendship. Because franchises often tend to attract certain personality styles to each type of business, you will find many like-minded people in the group. You’ll make friendships that will last a lifetime.
19	Purchasing a Sub Zero Ice Cream Franchise is a 7-step process. Step 1: Ask for and receive this information package. Step 2: Fill out the attached Sub Zero Ice Cream Request For Consideration Form and e-mail to curt@duplicateyourbusiness.com Step 3: After receiving the Sub Zero Ice Cream Request For Consideration Form you will receive the Uniform Franchise Offering Circular with exhibits including the Franchise Agreement. Step 4: Review the UFOC and gather information from owners and FD&MG. This step may include meeting with owners, asking questions, etc. Step 5: Make decision to either purchase or pass on the opportunity. Step 6: Set closing date, sign documents including the Franchise Agreement & pay franchise fee. Step 7: Attend training in Salt Lake City, receive Operations Manual and start looking for location.
20	"Sub Zero Ice Cream" Sub Zero Ice Cream Note: While your decision to purchase a Sub Zero Ice Cream Franchise will be based on your receipt and review of the Uniform Franchise Offering Circular and Exhibits thereto, this information will help you decide if you desire to receive a copy of the UFOC. For a copy of the UFOC please call Curt @ 801-541-4813 or contact curt@duplicateyourbusiness.com.