Dodo Pizza RomaniaDodo Pizza Romania

Investor ProposalInvestor Proposal20172017

The StoryThe Story

Hello! My name is Bolocan Sergiu and I'm a Dodo Pizza franchisee in Romania since 2014. Before Dodo Pizza I've operated two companies that I have been founded (consumer electronics and contract cleaning supplies) and have already had a business experience. In the last couple of years, I was looking for a new idea of business and Dodo Pizza, was exactly what I've wished for.

In autumn of 2013, after I received a negative answer from Dodo Pizza HQ, motivating that the company wasn't ready for an international franchising yet, I flew to Syktyvkar to convince that we can open a franchise in Romania. And we did it!

After 3 months of training in Syktyvkar I came back to Romania and on 1st October 2014 Dodo Pizza Romania delivered it's first pizza in Romania, in Brasov city, where I moved from Bucharest.

What we didWhat we didIn October 2014 we've opened our first location, in Brasov, financed entirely with personal funds. After 6 month – we've opened a second location, in the same city, on the food-court of the biggest shopping mall in Transylvania, in a partnership with an investor.

It was a hard start for Brasov-1 and this helped to elaborate a strategy and measures for bringing any pizzeria, even on hard markets, in expected parameters. Now Brasov-1 is in Top-15 by sales in the entire network of restaurants, considering prices in Romania are the lowest.

Brasov-2 got into operational profit since second month of operations. Now it's one of most successful pizzerias in Dodo Pizza Express format.

Brasov-1 Brasov-2

What we didWhat we did

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Brasov-1 is the first international franchise of Dodo Pizza. It was our stress-test: in the middle of 2015 we realized the pizzeria was still on loses and we started a complex optimization: replaced electric ovens with gas ones, lowered the prices in order to gain market share, started sourcing major ingredients directly from manufacturers, changed the type of packaging and more.

All this measures have brought results: in 2016 we started to grow and in the second part of it, entered in Top-15 sales.

Since September 2016 we've started a profit optimization program: gradually increasing the prices, cut low-profit products and improving menu structure. This measures have gave us a general improvement of profitability and have increased ratio administrative effort vs. results.

LFL 2016 = 103%

Brasov-2 is the most successful food-court location from a total of 5 units in Express format, up to date, in sales and EBITDA, in absolute figures.

It's success is driven by the success of the mall itself - Coresi Shopping Resort, which is the biggest shopping and leisure mall in the region, covering around 500 000 population in a range of 50km, with a medium daily traffic of cca. 18 000 visitors every day and a reasonable rent fare.

It still has a great growth potential due to next phases of the mall project – building a strip mall for big retailers and a 3000 flats residential project in the same location. Within next 5-7 years the area of the mall will be highly populated with residential complexes, infrastructure and, in the end, even higher visitor traffic.

LFL 2016 = 67%

Brasov-1 Brasov-2

What we will doWhat we will do

What we will doWhat we will doOur plan for 2017 is to open 3 new locationsBucharestThe capital of Romania with a population of around 2 mln. The total Bucharest network will include 14 pizzerias and one production and logistics center by 2020. In 2017 we plan to open the first pizzeria and to enter in the biggest romanian pizza market.

Estimated investment value: 80 – 100 000$ for Delivery & Take Away location or 140 – 160 000$ for a City Restaurant location – depending on the best location we find.

SibiuIs a city within 120 km from our current center – Brasov. It has 150 000 population, with higher than average national income per inhabitant. It's a high value goods and services production center – software, engineering. This makes Sibiu an perspective market especially for pizza delivery.

Estimated investment value: 140 – 160 000$ for a City Restaurant location.

PloiestiOne of the major industrial cities in Romania – oil refineries, equipment production and logistics hub with 220 000 inhabitants, located 60 km north of Bucharest, almost in middle between capital and Brasov.

Estimated investment value: 140 – 160 000$ for a City Restaurant location.

Who we are looking for Who we are looking for We are looking for a financial partner

We've proven that the Dodo Pizza model is working. If it's managed properly - it's working very good. Now we are ready to expand our network and to enter new cities.

We are looking for one or more investors which will be interested to contribute money to make money into an European country, with a stable currency, near 0 inflation and a GDP growth of over 5% in 2016, in a business model that is demonstrated to be efficient and in a team that have proven that can do it.

We will offer full transparency of our collaboration, our full involvement and commitment for success of each actual and future pizzerias.

We have never asked our current investor, which financed the Brasov-2 project, if he is satisfied with our collaboration, but we think he is. We pay our duties right on time and generate sales which offers a return of above 25% in USD.

Would you be satisfied?

For those who are interested – we can provide contacts, for an objective reference (with his permission)

We are looking for a financial partner!

Investment amount: 80 000 – 400 000 USD

What do we offerWhat do we offerInvestorship mechanism

1. Deal regulations- the invested amount will be documented as a loan from the investor to the company of the specific project (pizzeria or pizzerias)

2. Return- the investor will receive a minimum guarantied interest of 12% in EUR / USD or 4% of net sales of the project (in the case of financing a full value for the specific pizzeria) – depending what figure is bigger.- monthly payments of the interest or any other period preferred by the investor.

3. Warranties:- the investor will receive my personal warranty for 100% funds return, in any scenario.- the investor will receive security mortgage of 50% shares of the project as additional warranty on the period of the loan.

4. Return of the investmentAfter 36 months from the project start:- at the demand of one of the parts – of the investor or the operator – the invested amount will be returned in full, with a 6 months prior notice;or - at the mutual will of both parts, the investment amount can be converted into a classical 3 year loan, with monthly payments, with 12% interest rate on balance.

2016 Showcase2016 ShowcaseBased on our current two pizzerias, below is a projection of the return of investment.

BRASOV-1 Format: City Pizzeria Investment: 170 000$

Monthly net sales, USD

4% of net sales, USD

12% interest, USD

Return, USD

Return, %

January 2016 35370 1415 1700 1700 12,0 %

February 2016 41864 1675 1700 1700 12,0 %

March 2016 49457 1978 1700 1978 13,9%

April 2016 48139 1926 1700 1926 13,6%

May 2016 49859 1994 1700 1994 14,1%

June 2016 50918 2037 1700 2037 14,4%

July 2016 61230 2449 1700 2449 17,3%

August 2016 60089 2404 1700 2404 17,0%

September 2016 61217 2449 1700 2449 17,3%

October 2016 63254 2530 1700 2530 17,8%

November 2016 63662 2546 1700 2546 18,0%

December 2016 70838 2834 1700 2834 20,0%

Thank you!Thank you!

If you have any questions or proposals,you can always find us:

s.bolocan@dodopizza.roMob: +4 0730 072 620

Skype: bolocans