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MARASIL FASHION FOR THE NEW GENERATION Franchise & Cooperation System Athens, September 2011

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MARASILFASHION FOR THE NEW GENERATION

Franchise & Cooperation SystemAthens, September 2011

Founders Quote

Dear entrepreneur,

“I would like to thank you for taking the time to read through our short company and business proposal.

After many years of hard work and commitment to quality and style, I am honored to welcome you to our MARASIL family.

For us, designing children’s clothes is more than doing business the usual way; it is implementation of raw inspiration. It is experience transformed into children’s smiles. It is the feeling of satisfaction we see in the parents’ eyes. This is what keeps us going, the real motivating factor behind our success.

We take pride and joy in creating “Quality& Style” for our customers, partners and associates. We strongly believe in achieving results, fir us, our franchisees and the society we live in. Adopting our philosophy and lifestyle is part of our turn-key cooperation package, which you hold in hands and which we prepared especially for you, our new partner, which will carry on the light and spirit of MARASIL all over the world.

We promise to be on your site, to support and to guide you. Our franchise system is totally focused on you being part of our MARASIL family. We look forward to working together in the future.

… caring for a better world for our children”

With complimentsPanagiotis FragosPresident & CEO!

Who We Are

For more than 20 years, their smile has been for us a source of inspiration and creation.

For more than two decades now, we have been at the centre of children’s fashion.

Fragos S. A. was founded in 1987 and has since then been active and successful in the field of children’s wear design, manufacture and retail operations

Today, the heart of our company along with the heart of children’s fashion beat in an impressive privately owned building at 423rd Vouliagmeni Avenue in downtown Athens, where our Head Offices are housed.

What We Do

We design, produce and distribute the crème de la crème of valued children’s fashion clothes, and other children’s apparel products for the modern customer who has demands on quality and style, putting children in the role of the everyday protagonist.

This protagonist is our favorite client, the one we love, the one we serve, the one who is destined to become a leader, the one who reflects our own passion and our own lifestyle – the MARASIL lifestyle.

We consider children’s fashion an expression.

Fashion trends, are applied to the stylistic needs of the contemporary MARASIL child with the strictest quality specifications.

From the style, to the cut, the fabrics, the stitching and the accessories, they are all worked and reworked to their minutest details.

Company’s Key Facts & Info

Country of origin Athens, GR, EUROPE

Year established 1987

Franchising since 1997

Type of company S.A.

Number of Employees more than 350

Number of different Brands 6

Franchised stores worldwide 42

Outlet stores 4

Soft shops – corners – P.O.S 621

Currently operating in countries Greece, Cyprus, Russia, Italy, KSA, UAE

Expansion Worldwide

Currently the MARASIL network consists of:More than 650 Sales Points all over the world - on 4 different continents - and growing.

Location of stores:central high-end locations, malls, high volume street markets, shopping parks, preferably in close proximity of international children’s fashion brands.

All in all, a sound network that guarantees the market visibility of the concept.

“MARASIL is one of the leading brands in the world of children's clothing.”

MARASILToday’s success, a promising future!

MARASIL's successful performance over the years demonstrates a concept that fully covers the needs of its target group and justifies the strategic choices that were made over the years. It also guarantees that it will continue to perform well in the future.

MARASIL's performance and growth are indicative of its dynamic presence and strong position on the market, standing out from competition.

Sales over the last five years have been rising steadily and placing it among the leading European children’s fashion brands worldwide.

Our objective for the next five years is to strengthen and develop our network of stores with franchising and to expand even further into the European and international market.

MARASIL“Every Kid’s First Clothes”

Unparalleled quality, great look and unique style fully covering the children’s needs and desires, are principle values of MARASIL.

Designed with particular care, sensitivity and love, with new contemporary elements, cutting edge technology materials and fabrics suitable for children's sensitive skin, with a great range of patterns and colours available in combination with the high quality, aesthetic and practicality MARASIL garments have become a reference point for children's clothing and the best choice for parents.

MARASIL garments come in three basic collections: Newborn, Baby, and Kid.

MARASIL quality is the result of many factors: knowledge, experience, specialization, organization, planning and above all dedication and care for the product manufactured that is characterized by details and high quality, designs, colours, cuts, character and style, durability and functionality.

MARASIL “Marketing & Advertising”

Marketing is of great importance to us; it is the fertile ground in which talent, inspiration and ideas can be cultivated and developed in order to meet the needs of a sensitive group: children.

MARASIL's commercial policy has been based on market researches. We monitor and analyse global fashion trends and business developments, we design communication policies and merchandising practices.

MARASIL uses its know-how to continuously improve and adapt successfully to the needs of its target market.

Above the line advertising via TV & radio, outdoor campaigns, full coloured ads in magazines and below the line activities inside and outside our stores, have kept MARASIL up to date and continuously increase demand for its products. Modern outlook, innovation, high aesthetics and a creative approach are the main characteristics of MARASIL’s marketing & advertising approach.

Full coloured ads in magazines

Using stylish shots published in the best, properly targeted magazines and presentations of its collections each season, MARASIL embraces the general public and its loyal clients presenting its own special, unique style.

In-store displays (decorative stands)

The company uses top-quality promotional material with selected, enlarged subjects (vertical or horizontal stands) for in-store visual decoration. These stands are used in window displays, near cash registers or other visible points inside the stores.

Advertising bags

Paper bags using luxury materials, with 2 photos from the current collection on both sides are used helping to strengthen the image and brand awareness of MARASIL products.

MARASIL “Marketing & Advertising”

MARASIL catalogues

The MARASIL catalogue contains the complete collection for each season.

This high quality, well-designed, impressive catalogue, presents MARASIL fashion based on a specific concept, thus promoting and emphasizing the unique aspects of the brand.

MARASIL “Marketing & Advertising”

MARASIL “Marketing & Advertising”

TV advertising

We believe in brand advertising using TV commercials in order to achieve nationwide coverage.

We advertise our image, style, quality and the MARASIL philosophy to ensure that MARASILclothes are ‘every kid’s first clothes‘.

MARASIL’s presence in the media is a constant stream of exciting and interesting news

Utilizing the power of the Web and the impact of Social Media is also a project that deserves our special attention in the years to come!

The MARASIL Franchise System

In a dynamically developing and international business environment, the need to adapt to new conditions and to move away from old practices is vital for a company to ensure its growth & development.

Today the ability to change is considered to be a major competitive advantage.

For retail stores this means the existence of a new, clear, unique concept that will differentiate their concept and merchandise from the competition and ensure a strong position in the global marketplace.

The MARASIL Franchise System

MARASIL's franchise system grants various benefits such as:

A powerful position in the global marketplace offered by a dynamic brand name

A complete turn-key package that enables rapid market penetration

Effective and sophisticated support procedures

High quality, competitive products with a strong image protection and coverage against the competition

“In the children's clothing sector, placing your store under the MARASIL umbrella is a strategic decision, which guarantees growth, success and prosperity that only a leading company like MARASIL can provide.”

Cooperation & Benefits

The MARASIL network acts as a “protective shield” for the new entrepreneur.

Using sophisticated procedures and high-end technology enables our qualified support team to be “Your Partner” lending a hand whenever needed.

Cooperation and support is a cornerstone of the MARASLFranchise philosophy.

Substantial support is a choice, MARASIL’s choice, for all our franchisees, all over the world.

Cooperation & Benefits

Our Franchisees have a significant advantage compared to competition since they are offered:

Security due to the prestige, dynamism and financial status of Fragos S.A.

A brand name with a high brand image and high brand awareness - worldwide

A fully integrated business package

Complete collections of clothing for all children regardless of sex, age and for all social occasions with high quality and at affordable prices

Financial cooperation with competitive franchise terms

Full Marketing & PR support

Easy new market penetration

Organised and reliable logistics

Significant profit margins

Benefits & Advantages

Preparation and Organisation Advice and guidance in selecting and evaluating the

appropriate store location Guidance in the design and layout of the new store Advice on management issues, profitability control

factors etc Initial training provided Zero entry fee policy

Services provided on-site and on a continuous basis On-going essential on-site support without the

obligation to pay royalties Complete staff monitoring, re-training and

development using innovative training methods Support in evaluating the local market to increase

store competitiveness Support in local marketing and guidance on CRM

procedures, client loyalty programs and more

The MARASIL Store Philosophy & Image

All MARASIL stores have been developed based on a specific and defined image, in terms of architectural design, the quality and the functionality of the store, with exceptional colour combinations within the shop and last but not least by the careful placement and the merchandising of the garments and accessories.

Consumers looking for a friendly, warm and relaxed environment will find it inside every MARASIL store together with exceptional customer service.

Even more: MARASIL Stores provide a shopping experience to our “little consumers”, creating a playful, friendly, warm atmosphere, which will stimulate parents and young children alike.Size

The main store area should be a minimum of 80 – 120 m2 and the shop front should be not less than 5 – 6 m.

Strong Visual Merchandising

Our Partner – Our Franchisee - YOU

MARASIL places great importance in the selection of the right franchisee.

Our Franchisee should be dynamic, reliable, with a clear business vision, a team player ready to successfully adapt to changes in his local market.

He should be able to follow policies and procedures of the franchise system and to adapt to the rest of the network, thus conveying the MARASIL concept in every business activity.

Prerequisites required to commence collaboration are:

a suitable shop

sufficient capital to open and run a MARASIL store

excellent communication and cooperation skills

Leadership qualities

Managerial experience

Next Steps & Crital Milestones

MARASIL

For any information please feel free to

contact us at

[email protected]

NOTICE REGARDING FRANCHISE OFFERS OR SALES:

This information is not intended as an offer to sell, or the solicitation of an offer to buy a franchise. It is for information purposes only.

There are approximately 19 countries that regulate the offer and sale of franchises. The countries are Australia, Belgium, Brazil, Canada (provinces of Alberta, Ontario and Prince Edward Island), China, France, Indonesia, Italy, Japan, Lithuania, Malaysia, Mexico, Romania, Russia, South Africa, South Korea, Spain, Taiwan and the United States of America. If you are a resident of one of these countries, and are receiving this message in one of these states or countries, or intend to operate a franchise in any of these states or countries, we will not offer you a franchise unless and until we have complied with any applicable pre-sale registration and/or disclosure requirements in the applicable jurisdiction. This offering is not an offering of a franchise.