Introduction
Corporate & Operating Philosophies
What We Expect From The Franchisee
“Foundations For Success”
Franchise Investment
Frequently Asked Questions
What To Do Next

INTRODUCTION

La Paloma Gelateria & Café is a unique Italian ice-cream experience thriving in the North American marketplace. It began as a single location at the heart of Toronto’s little Italy and it continues to grow to meet customers’ demand. It is a product of a hardworking and loyal immigrant experience that combines passion, dedication and commitment to quality.

Our emphasis is on providing an authentic Italian gelato product of uncompromised quality. We have developed and refined recipes that began in Sicily centuries ago and we are committed to keeping the tradition alive in North America. Few North American gelato establishments have met with the success of La Paloma Gelateria & Café. Our tradition keeps us true to the Italian flavour and our passion for culture keeps us striving to create an environment that recalls Italy’s gelato-café meeting places. In fact, La Paloma Gelateria & Café is known by its’ customers as a place to taste and experience Italy. La Paloma’s original concept and design invite customers to be immersed in a memory of piazzas, holiday and ‘relax.’ For however long it takes to savour an espresso, eat a foccaccia sandwich or enjoy a gelato, our customer indulges in a taste of ‘La Dolce Vita’. Few products bring the happy indulgence of gelato or the private moment of an espresso. La Paloma nurtures the spirit. Animated, social, friendly—all the small pleasures of Italy in North America.

La Paloma began in 1967. With over forty years of gelato experience the original founding family strives to meet the demands of an ever -increasing customer base. We seek qualified franchisees with a strong work ethic, professionalism and a commitment to keeping the Italian gelato and coffee culture flourishing in North America.

What You Can Expect From La Paloma

Generations of hands-on experience have earned us a position of strength and stability. We have developed the methods necessary to operate a successful franchise organization. When you invest in a La Paloma Gelateria & Cafe franchise, you become our priority. Your establishment will be built on years of commitment, pride and expertise. We offer you our full line of services, from site selection to opening day and beyond. Owning a La Paloma Gelateria & Café Franchise is a unique opportunity—Unlike many existing food franchises, La Paloma is a commitment to a product that brings with it an art and an appreciation of food culture. Far from being another fixture on the fast food horizon, it is a commitment to Italian artesian gelato production. You will be part of a tradition that has earned its’ place in the art of slow, not fast food. We are proud to offer qualified franchisees a part of this important, highly respected tradition.

Site Selection

We research and select all of our sites carefully. We qualify all sites before we enter into negotiations on behalf of each franchisee.

Design & Construction

We have coordinated a team of professional designers, engineers and contractors to fully coordinate the construction and build-out of your Gelateria. We work in partnership with you to ensure an operation that is structured for success. Full and partial turnkey operations are available.

Training

You will be fully trained in all aspects of operating a La Paloma Gelateria & Cafe. Our comprehensive training program incorporates the use of detailed and organized Operating Manuals. You will also receive hands on training in your own location or at another La Paloma site. An experienced La Paloma Operations manager/site supervisor will be available to you to ensure that you can confidently operate a location.

Grand Opening Support

We would like you to begin your experience with our support. When you are ready to open, we promote your success through our existing client base. Together will work with you to inform all local shopping mall/area merchants and staff of your opening. It is our goal to increase awareness of our gelato and our many other products. We offer people an opportunity to participate in the La Paloma experience. The word spreads fast; be prepared for some excitement.

Ongoing support

You will receive timely visits from our Operations manager and his staff to ensure that things are well organized for success. We can be easily reached by phone and are available for meetings upon request.

OUR COMMITMENT HAS A PROVEN TRACK RECORD

CORPORATE PHILOSOPHY

We will provide the North American market with an authentic Italian Gelato and Café experience. We will become a North American leader in the Italian Retail Gelato and Café market.

Our goal is to build, for the long term, a first-rate operating company providing solid growth, earnings, and value for our franchise partners through the development and management of exceptional franchises.

Our operations will provide the customer with an Italian experience of the highest level through systems designed for excellence in Quality, Service, Value and Atmosphere.

OPERATING PHILOSOPHY

Our operating philosophy is our ‘AUTHENTIC GELATO and CAFE’ guarantee to customers.

It reads: La Paloma will always endeavor to provide the highest level of customer experience. We are committed to the continuous pursuit of excellence in:

If you are not satisfied with your experience at this Gelateria, please speak to the manager or call our Operations Manager.

WHAT WE EXPECT FROM YOU

A Successful La Paloma Gelateria & Cafe franchise is the result of a combination of our strengths and yours--a combination of our passion and commitment and yours. Franchisees who embody specific strengths and talents are carefully selected by La Paloma Gelateria & Cafe in order to help ensure the prerequisites for success are in place.

A La Paloma Gelateria & Cafe franchise can provide significant rewards. Pride of owning your own business, self-reliance, potential for greater future earnings and the opportunity to be part of a cultural tradition are some of the advantages. It follows that the benefits require a considerable commitment in terms of time, effort and finances.

It is essential that franchisees be committed to the La Paloma system. We have invested many resources in developing a vision of La Paloma’s future and in order for you to be an effective member of our team, it is important that you share our vision. When you buy a franchise, you are buying into a proven business with proven methods. Uniformity and consistency are part of our success. We expect that you will maintain our high standards and work ethic in keeping with our system. We do also encourage input from our franchisees. Your input will be part of our ongoing effort to grow and improve. La Paloma takes great care in selecting our franchisees; we will succeed if you succeed.

With hard work, dedication and a love for the product, operating a La Paloma Gelateria & Café can be very exciting and rewarding. Your full time involvement in the business is crucial to its success, as is your commitment to our proven system. When selecting the perfect candidate for a La Paloma Gelateria & Cafe franchise, we place great emphasis on the following:

• You must be prepared to devote your full-time energy and enthusiasm towards operating your Gelateria. Personal, full-time commitment is essential
• Operating a business can be physically and mentally demanding; a healthy lifestyle is important
• You must have a good financial rating and demonstrate the ability to finance the capital cost, ongoing operating costs of the Gelateria and working capital as required
• You must have a strong character, be self-motivated, maintain a positive attitude, have the ability to work in a team environment, and show the ability to operate a business in the fashion and standards required by La Paloma
• You must show a genuine interest and willingness to maintain an authentic Italian gelato/café culture in a North American context
• You must be a high energy person who enjoys interacting with customers; a gracious host
• You must be willing to follow a structured operating system

FOUNDATIONS FOR SUCCESS

Quality Food Products

La Paloma Gelateria Café is committed to providing products of the highest quality and freshness to its customers. Our business is based on artesian gelato making methods that focus on Daily Production, Fresh Produce, Imported Ingredients and a High Degree of Craftsmanship.

Quality and service are part of a long-standing Italian Gelato/café tradition; they are not part of our business—they are our business. All of our gelato is produced in a state-of-the-art artesian lab by our experienced gelatieri. We guarantee a fresh product of uncompromised quality to our franchisees. We have a selection of over seventy-five (75) specialty flavours including sorbets and Soya based products. Product is delivered fresh on a daily basis and is monitored to maintain its integrity.

In keeping with the Italian Gelateria Café experience, we also provide an extensive selection of other products. Custom La Paloma Coffee blends; grilled foccaccia/panini, single-portion Italian deserts and La Paloma Pizzette, traditional Italian cakes, and gelato cakes are important parts of our menu selection.

Ready-To-Serve-System

All the franchisee’s gelato and confection orders will be available in a convenient one-stop delivery. Most products require little if no preparation. This allows for the franchisee to focus on maintenance, presentation and exceptional service.

Product Development

We are constantly researching and revising our gelato flavours and food selection. We are sensitive to the needs and demands of our customer base and we dedicate much time to researching and refining our product, service and image.

New products are introduced after much testing and changes are made to existing menus only if the product meets the needs of the customer and is true to the Gelateria Café experience. Variety and tradition coexist to create a perfect balance.

To facilitate the operation of a La Paloma franchise, we continually refine our operating procedures as well. This allows franchisees to run an efficient operation and ultimately offers customers better service and products. New equipment testing and the monitoring of suppliers also aids in this effort.

Purchasing

We arrange all contracts with suppliers and distributors thus providing the franchisee with a direct and concise ordering system. We are able to negotiate the best prices through contracts with suppliers thereby enabling better control of the costs in doing business. The franchisee is freed of any dealings with distributors and is in a position to dedicate more time to his/her growing business.

Operating Manuals

You will receive an Operating Manual, which detail every aspect of running a La Paloma Gelateria Café franchise. It is updated whenever there are new operations procedures or menu items put into place.

Each new franchisee is given extensive training in order to learn to run his or her business. Franchisees profit from the valuable knowledge of over forty years of experience. La Paloma employs comprehensive Operating Manuals and an experienced Operations Manager and Field supervisor to thoroughly train franchisees in such areas as:

• Front End Procedures
• Point of Sale System
• Sanitation and Maintenance
• Resources and Administration

Much of what the Franchisee learns is also ‘hands-on.’ Franchisees will also be trained on-site at one of our locations. Support is readily available on an on-going basis.

Store Visitations

A La Paloma representative will visit your Gelateria to evaluate your performance and provide you with assistance.

After your Gelateria opens, field staff is available on an on-going basis. We will provide effective guidance to improve sales and profitability. Your Gelateria will be visited on an going basis to ensure all facets of the operation are running efficiently. Your performance will also be evaluated periodically to help identify areas that many need attention or improvement.

Trademark Usage

When you purchase a La Paloma Gelateria & Cafe franchise, you are entitled to use the La Paloma Gelateria & Café trademark, design and operating procedures. These are an important part of image and brand development.

Advertising & Promotions

Franchisees are able to promote their locations and occasionally take part in chain-wide promotions to help advertise and market your Gelateria & Café, as well as the La Paloma brand. A nominal monthly fee will be charged to help support our long-term customer loyalty program.

FRANCHISE INVESTMENT

The following figures are only estimates. Actual figures will vary per location depending on overall Gelateria Café size, design & leasehold improvements and any landlord special requirements and recharges. Final prices will be confirmed in writing and based on approved Architectural & Engineering drawings and final bids from contractors.

Section One (Hard Costs)

Section Two (Soft Costs)

Note:
Construction includes: All fixtures, millwork, and leasehold improvements.
Equipment includes: All buyouts, custom fabrication, small wares and soft drink equipment (GST not included)

FREQUENTLY ASKED QUESTIONS

	What is the initial Franchise Fee?
	The initial Franchise Fee is $25,000.
	What does the Franchise Fee cover?
	The Franchise Fee allows you the right to own and operate a La Paloma Gelateria & Café in a given area. It allows you the right to use the La Paloma name, trademark and products and to participate in the advertising and promotions. Included in the fee are lease negotiation, operating manuals, initial administrative support, a training program and any services we provide to assist in the opening of the new restaurant.
	What is the term of the Franchise Agreement?
	The term of the Franchise Agreement typically coincides directly with the term of the lease (10 yrs.).
	What are the hours of operation for a Gelateria & Café?
	In a typical mall location, an outlet is open from 10:00am to 9:00pm weekdays, 10:00am to 6:00pm on Saturdays and 12:00pm noon to 5:00pm on Sundays. Gelateria Café opening procedures usually begin one hour prior to restaurant opening and restaurant closing procedures usually require one hour after closing.
	What are the requirements to becoming a franchisee? Do I need prior experience in food retailing?
	Related experience is helpful but not necessary. All products are supplied by La Paloma Production facilities and La Paloma provides retail training. In assessing possible franchisees, we consider the ability to satisfy capital requirements. Success is also contingent on the franchisee’s commitment to our standards and procedures and a willingness to work hard. A franchisees interest and commitment to the Italian Gelato Café experience is also an important factor when considering candidates. Motivation, effort, energy and passion are also important qualities that contribute to the success of our business. Unlike many other franchises, La Paloma Gelateria & Café requires a commitment to quality, concept and tradition. A successful candidate is proud of the part he/she plays in this history of food culture.
	Does La Paloma require franchisees to be actively involved in operating the Gelateria Café?
	Yes, definitively. Our service-oriented establishment requires the careful attention and personal input and presence of the owner. Our customers seek an experience and that experience is often driven by an approachable, committed and dependable personality. It is essential that franchisees operate the Gelateria Café personally and become involved in all facets of the operation.
	What is the monthly royalty fee?
	The monthly royalty fee for 2005 is currently at 5% of gross revenue sales per calendar month (subject to change without notice).
	What is the advertising/marketing fee?
	The advertising/marketing fee for 2005 is currently an amount equal to 3% of Gross Revenue Sales per calendar month (subject to change without notice).

WHAT TO DO NEXT

To submit your name for consideration for a La Paloma Gelateria & Café franchise you are required to fill out a LA PALOMA GELATERIA & CAFÉ APPLICATION FORM and submit it to our Operations Manager. All information provided will be kept in strictest confidence.

If we find your application suitable to our expansion program we will contact you about opportunities in your area. If you prefer, we can discuss a time to meet.