MARY PAULINE SALON GROUP

FRANCHISE KIT

TO OUR PROSPECTIVE FRANCHISEE

Thank you for your Franchise Inquiry.
The Mary Pauline Salon Group is one of the fastest-growing beauty and hair
salons in Metro Manila. We provide our clients with a high quality beauty
enhancement experience based on our creative teams in- depth training, creativity
and professional approach.
The enclosed package is designed to provide you with an introduction to Mary
Pauline Salon operations and our franchising system. You will find information about
our background, structure and approach to franchising.
As a franchise, you will have opportunity to take advantage of our hard work,
experience and proven system in order to create a successful business.
Our franchising program relies on teamwork that enables qualified and
capable business people to participate as a Mary Pauline Salon Group team
member and to enjoy the benefits of our promising market.
The Mary Pauline Salon Group is an exciting and progressive company, which
has a strong focus on training and professional development, quality equipment and
products, and providing a high level of customer service. In just five years, we have
built a solid reputation and recognized brand by having a fantastic team of beauty
and hair experts and by using the best techniques, equipment and products.

HOW THE MARY PAULINE SALON GROUP FRANCHISING WORKS

As a franchisee, you will be participating as part of team that works within a
proven system. YOU ARE NOT ON YOUR OWN. You will be fully supported by our
system, knowledge, advice and assistance.
A few of the features of a Mary Pauline Salon Group Franchise are the
following:

The franchise is an independent business, which shares expertise, knowledge and

experience gained by it.
We allow our franchisee to use our name, logo and other support materials within the
scope of our franchise agreement and operations manual.
A Franchise Fee is required in order to become a part of the team. There are is NO
ROYALTY FEE for the WHOLE DURATION OF THE FRANCHISE.
The very affordable franchise package includes a feasibility study, the hiring and
training of personnel, management training, continuous training for the next five
years, management training, accounting systems as well as assistance in site
location. An operation manual will also be provided as well on the sixth (6 th) month of
operation.

An Agreement is usually good for 5 years with an option to renew.

We will help you in locating prospective sites and in assessing the opportunities in all
possible locations. Ultimately, you will have the final choice on where you want to
establish your business.
You will receive initial training, assistance in setting- up your salon, promotion and
marketing programs as well as on-going coordination of the products and system.
LETTER OF INTENT
Registration Date:

THE FRANCHISE MANAGER/ GENERAL MANAGER

60 City Lifestyle Building, Timog, Quezon City
This is to express my interest n the Mary Pauline Salon Group Franchise
System
I would like to inquire the details of this business opportunity by attending the
Mary Pauline Salon Group Franchise Briefing scheduled by your good office at the
soonest, and most convenient time. Outlined below are other pertinent details which
the franchisor can use to assess my application.
Preferred Location:
Residential Address:
Daytime Phone:
Evening Phone:

Best time to call:

Best time to call:

Email Address:
Mobile Number:
Current Occupation:
How soon do you want to be in the Business? (Number of months from now)

Sincerely yours,
Name and Signature of Applicant
Terms of this letter of intent are informal and confidential. They only become
contractual should a definite agreement be executed.

MARY PAULINE SALON EXPRESS FRANCHISE OPPORTUTIES

History of Mary Pauline Salon Group

The Company and the Industry
The Opportunity
Why should I buy a Mary Pauline Salon Group Franchise
The Franchise Package
Our System
Estimated Initial Investment
Sample Income Statement of Mary Pauline Salon Group
Frequently Asked Questions
Branches of Mary Pauline Salon
TV, Magazines and Events Sponsorships of Mary Pauline Salon Group
List of Celebrity Clients
HISTORY OF MARY PAULINE SALON GROUP
Choosing a Franchisor with a strong, reliable and effective background and
brand is essential. Our track record and operating system are both proven reliable.
The Mary Pauline Salon Group came into being in 2004, when its owner, Mary
Pauline S. Danga, acquired several salons and established her own salon brand.
Mary Pauline Salon Group thus burst into the world of hair and beauty care.
Throughout 2005, the Mary Pauline Salon Group continued to shape up its
formidable roster of stylists and staff and expanded its services to incorporate the
latest trends in the market. Parallel to this development was an expansion plan to
penetrate the Shoe Mart (SM) chain of shopping malls.
Currently, the Mary Pauline Salon Group has 13 branches nationwide. The
key to success of the Mary Pauline Salon Group is our relationships with our clients.
Our system has made us successful, and in order for you to replicate this success,
you will need to operate within the guidelines. You will be provided with a detailed
operations manual and on- going training.
To this end, we offer constant support in all aspects of the business.
With the Mary Pauline Salon Group, you will always have a dedicated team to
support you!
THE COMPANY AND THE INDUSTRY

Beauty Industry is a billion dollar business and one of the top growth
industries of this decade. It is one of the most dynamic, consistently growing and
potentially profitable industries in the country, and yet, one of the most disorganized.
It is this combination of the huge market potential and the lack of organization in the
industry that has produced the opportunity for Mary Pauline Salon Group and its
franchises.
Mary Pauline Salon Group recognized the need and developed a proven
system that disciplines and controls the business. The RESULT? A highly successful
and growing chain of beauty salons in the Philippines.
At Mary Pauline Salon Group the standards of products, services and overall
environment are high and rigidly maintained. In order to maintain this standard, every
creative team member must pass a rigid company training program before beginning
his/ her employment. Each Salon must adhere to our high standards of maintenance
and appearance both inside and outside. Our personnel are required to wear
uniforms at all times to enhance the professional atmosphere of the entire Mary
Pauline Salon operations. This proven system of standardized operation at every
Mary Pauline Salon attracts a volume of business. Customer satisfaction is foremost
of our objectives because this contributes substantially to the success of each salon.
With a proven track record of success, Mary Pauline Salon Group is definitely
poised to lead the way for people who have the desire to become part of the growing
industry. It is an industry thriving with opportunity where people can write their own
success stories.
THE OPPORTUNITY
Welcome to a new choice in franchise investment opportunity. The franchising
industry is exploding, but burgers, pizza and tacos are not the major parts of that
boom. It is a service explosion and according to experts, there is an even bigger
outburst to come in service franchising. In the past three years, service franchises
have grown twice as fast as traditional franchises like fast food and auto centers. It
is also predicted that their growth rate will be even higher in the next three to five
years- THREE TIMES THE TRADITONAL FRANCHISES. The publics demand for
our services, coupled with the lack of major competitions make a Mary Pauline Salon
a very attractive investment opportunity. Another key to our success has been our
ability to bring some business precepts to the largely fragmented salon industry
which is played by sloppy business practices, lack of attention to clients needs
preferences and ignorance of modern marketing techniques. You will agree that if
you will take a highly demanded service such as a beauty salon, package it
attractively, promote it intelligently and price it competitively, your success can almost
be assured.

WHY SHOULD I BUY A FRANCHISE

According to the Department of Trade and Industry (DTI), Franchising is one
of the most creative of various marketing techniques which have emerged in this
century. The key to a successful franchise is a strong system. It is the system that
provides the appearance that all outlets to the chain; it is the system that all
franchisees can follow; it is the system that provides the know- how to franchisees to
keep one step ahead of the competition; and it is the system that will continue to
provide abundant opportunities to all who want to fulfill the dream of owning ones
business.
Franchising keeps on growing because it offers long term assurance, the
security that comes in working with industry experts, coupled with the independence
of owning your own business. As the Department of Trade and Industry sums it up,
Franchising may be the best hope of the small business person to be able to
compete with giants by using franchisors know- how and trademarks. It also offers
unique opportunities to people with limited capital experience. The statistics tell it all.
The Franchisors serve a multifold purpose by providing greater efficiency
through sophisticated marketing techniques, technological development,
standardization and quality control. Add to this list such things as Training, Site
Selection, Volume Purchasing Power, Well-known Names and Logos and
Continuous Management Assistance and the reasons for franchisees phenomenal
success become more than apparent.
FRANCHISE PACKAGE OF MARY PAULINE SALON

P250, 000.00
This is inclusive of the following:
Hiring and training of salon personnel which includes:
Senior Hair Stylists
Junior Nail Technicians
Manager/Receptionist/Inventory Clerk
Management training
Accounting, Payroll and Commission System
Operations Manual
Follow up training of employees every six months
Help in Site Location and Design
Advertising and Promotions

OUR SYSTEM

The Mary Pauline Salon Group Franchise Support System blends every
aspect of your operations with the comprehensive business training and assistance
you will need to get your business off to a good start.

HERES WHAT YOU GET WITH YOUR MARY PAULINE SALON FRANCHISE
Site Selection and Design: We will help you select the best possible location
for your store with high visibility, adequate size for optimum use and with the
professional image you want. Then we will show you how to design it including
guidelines from layout to color schemes and from display to lighting.
In-depth training: You will be thoroughly familiarized with all aspects of
running a Mary Pauline Salon before opening your doors for business- from
accounting to inventory and from personnel to cost controls. On- the- job training at
our headquarters office will give you the experience you need to get started.
Daily Operations Guidance: Your confidential operations manual covers all
aspects of your day to day business operations. It also contains samples of the
forms you will use as well as instructions for using them. Additionally, your
employees will be trained in using hair care techniques by our creative team.
Grand Opening: You will want everyone in your market to be informed about
your new business right away. We will help you design the grand opening celebration
to make sure they do.
Advertising and Promotions: We will share with you our advertising and
promotional strategies that have been successful over the years. Your marketing
materials, of course, will stress the professional image and customer benefits you
offer your clients.
Products and Supplies: We will provide you a complete line of hair products
which will cater to your varied customer group.
On-going Support: Our operations expert will periodically visit your location
with suggestions on how to improve your business. Your continued satisfaction is our
primary goal. We will always welcome your questions, comments and suggestions,
and will continue to keep you informed about new products and developments.
REMEMBER, WE WANT THE MARY PAULINE SALON GROUP TO KEEP
GROWING WITH YOU AS A MEMBER OF THE TEAM.

BREAKDOWN OF ESTIMATED INITIAL INVESTMENT

The following is an estimate of franchisees initial investment for a 40-60
square meter Mary Pauline Salon franchise
ITEMS
Franchise Fee
Hiring and Training of Creative Team
Management Training
Nationwide Marketing Collaterals
Accounting/ Payroll System
Commission System
Operations Manual
Fund for on-going support
ITEM
LOW
Total
Construction
200,000.00
Leasehold Improvements (may vary
upon geographic location.)
Rental Deposits for 3 months
48,000.00
(Based on actual existing outlets)
Signage
15,000.00
(Depending on the size)
Additional Furniture, Fixture and
20,000.00
Equipment
Opening Advertisement
3,000.00
Grand Opening Cost (Including
40,000.00
catering, sounds, lights and flowers)
One (1) month advance
16,000.00
Petty Cash
5,000.00
Change Fund
3,000.00
Working Capital
50,000.00
Business Permits, BIR Registration,
10,000.00
Municipal Clearances
TOTAL
390,000.00

AMOUNT (PESOS)
70,000.00
50,000.00
30,000.00
30,000.00
10,000.00
10,000.00
20,000.00
30,000.00
HIGH
P250,000.00
400,000.00

150,000.00
25,000.00
50,000.00
10,000.00
60,000.00
50,000.00
7,000.00
5,000.00
100,000.00
15,000.00
872,000.00

(The above items are already included in the P250, 000.00 franchise fee.)
There are however additional expenses which the franchise will incur for the
construction and additional salon equipment and materials needed for the operations
of the MARY PAULINE SALON. However, said quotation DOES NOT APPLY TO
SALONS BEING CONSTRUECTED INSIDE THE MALL.
ESTIMATED SAMPLE INCOME STATEMENT
(INSIDE THE MALL)
Inclusive of NET of VAT
Sales and Services:
(i.e., P 13,500.00 worth of technical services in a day)

Less Cost of Sales

Add Purchase:

P 10,000.00

Total:

P 10,000.00

Less: Salon Supplies used

----------------

Ending Salon Supplies

P 10,000.00

Total Product Supplies

P 10,000.00

Total Product Investment:

(10,000.00)

GROSS INCOME:

P 390,000.00

Less: Operating Expenses:

Salaries and Wages

P 36,000.00

Commission

P 20,000.00

Laundry Expense

P 3,000.00

Office Supplies

P 1,000.00

Reproduction

P250.00

Transportation

1,000.00

Common Area Maintenance

9,000.00

Light and Power

12,000.00

Rental

75,000.00

Water Expenses

4,500.00

Taxes and licenses

8,500.00

Promo and Ads

2,500.00

Repair and Maintenance

520.00

Postage, Tel and Internet 1,600.00

Bank Charges

3,500.00

Professional Fee

3,000.00

Miscellaneous Expenses

3,000.00

TOTAL OPERATING EXPENSES

NET INCOME

P 185,620.00
P 214,380.00

MARY PAULINE SALON

INCOME STATEMENT
(Net of VAT/Outside the Mall)

Sales and Service

Less: Cost Of Sales
P 150,000.00
Add : Purchase

P 50,000.00

TOTAL
Less : Salon Supplies used
Ending Salon Supplies
Total Cost

-------------10,000.00
10,000.00

Less : Operating Expenses

Salaries and Wages

36,000.00

Commission
Projected commission for the next 6 months
Projected commission for the 7th month & onwards
Laundry expenses

10,000.00
20,000.00
3,000.00

Office supplies

800 1,000.00

Reproduction

300-500 (Risograph)

Transportation

500-1,000.00

Representation

1,000.00

Rental
Light and Power

20,000.00 35,000.00
3,000.00 5,000.00

Water Expenses
Taxes and Licenses

1,000.00 1,500.00
non-vat
With vat

Promo and Ads

Repair and Maintenance
Postage, Telephone and Internet

1,000.00 2,000.00
3,000.00-5,000.00
1,500.00
2,000.00
2,000.00

Professional Fee

3,000.00

Miscellaneous Expenses

1,000.00 1,500.00

Total Operating Expenses

NET INCOME

105,000.00
35,000.00

FREQUENTLY ASKED QUESTIONS

The answers to the following most frequently asked questions about Mary
Pauline Salon Group franchise are provided here to help you accurately assess and
make a fully informed decision concerning our franchise opportunity.

WHAT TYPE OF FRANCHISE ARE AVAILABLE?

We are currently offering individual and multiple franchise locations

WHAT KIND OF EXPERIENCE AND BACKGROUND DO I NEED?

No prior experience in a beauty salon is required. Our comprehensive training
is designed to educate a new franchise in all areas of operating a Mary Pauline
Salon Franchise.

WHAT IS THE NATURE OF TRAINING AND ONGOING SUPPORT PROVIDED?

Everything you need to know to operate a successful MARY PAULINE
SALON Franchise is included in our training program. Among other things, it
includes advice on store layout and design, equipment selection, methods of
inventory control and maintenance, standards of quality, advertising and promotion,
personnel policies and employer training. The training cost included in your franchise
fee, however, does not include your personal expenses such as transportation,
lodging and meals, etc. You will receive a MARY PAULINE SALON Operations

Manual covering all the above areas of importance to your business plus a lot more
as ready references.
Since we are continually striving for excellence, you will be periodically
updated and kept current on all industry trends, new products and services as well
as new advertising and promotional techniques, etc.
To help your business get off to a good start, one of our representatives will
work with you for one week during your first month of operations. In addition, you will
be provided total on- going supervision and support in the form of periodic visits by
our experienced staff on all aspects of your operations. You can also call our office
whenever you need advice. Remember, our goal is to provide you with all the
guidance and support you need to help you maximize the return on your investment
and the enjoyment of owning a MARY PAULINE SALON Franchise.

WHAT DOES A MARY PAULINE SALON COST?

The total franchise fee is Php 250, 000.00. This is inclusive of the franchise
fee, hiring and training of the creative team, management training, accounting
system, payroll systems, commission system and operations manual. THERE IS NO
FRANCHISE FEE. For information on total investment required, we will provide you
a feasibility study.
DOES MARY PAULINE SALON OFFER FINANCING?
MARY PAULINE SALON GROUP does not offer direct or indirect financing
but may choose to at its discretion. MARY PAULINE SALON Group does not
guarantee your notes, lease or obligations.

HOW CAN I DETERMINE IF A GEOGRAPHIC AREA IS AVAILABLE FOR

FRANCHISE?
Availability of geographic areas change quickly as franchises are
awarded. However, one of the advantages of getting in with a relatively new
franchise is that choice markets are still available. You may designate where you
wish to locate as long as it does not infringe upon any other franchises territory.
Naturally, the more flexible you are, the quicker a location can be found.

HOW DO I SELECT A LOCATION?

Based on our experience, we can provide valuable assistance to our
franchisees in site location decisions. Your business may be located in a shopping

mall, a strip center, an agreed standing building on the prevailing market conditions
in the area of your choice.

WILL MY TERRITORY BE PROTECTED?

Yes. Each franchise is granted an exclusive area in which no other franchise
is awarded.
WHAT IS THE TERM OF THE FRANCHISE AGREEMENT?
The initial franchise agreement is for five (5) years with an option to renew for
another five (5) years with an additional P100, 000.00 franchise fee requirement.

AM I REQUIRED TO PURCHASE EQUIPMENT, INVENTORY OR SUPPLIES

FROM YOU?
Yes. This is to ensure consistent quality and conformity in standards.

DO YOU PROVIDE BUSINESS AIDS I CAN USE?

Yes. We have developed appropriate forms to support our business system
and to make inventory control, bookkeeping and accounting, purchasing, daily record
keeping, reporting and payroll easy to accomplish in an efficient and accurate
manner. Advertising and marketing aids which have been professionally prepared
will also be made available for you to help you promote your business.
HOW WILL ADVERTISING BE HANDLED?
Building recognition of the MARY PAULINE SALON Franchise, name and
reputation is an essential ongoing objective of our organization that benefits
everyone. We will not charge an additional cost for the NATIONWIDE MARKETTING
OF THE SALON.
CAN I SELL MY MARY PAULINE SALON FRANCHISE?
Yes. Our franchise agreement details all the terms and conditions of business
sales and transfers.

HOW SOON CAN MY BUSINESS BE IN OPERATION ONCE I HAVE BEEN

ACCEPTED FOR A FRANCHISE?

Once a mutually agreed upon location has been secure, construction and
supplying your new business for opening should take approximately one (1) month.
OK. I AM READY TO PROCEED. WHAT DO I DO NEXT?
First, fill up the enclosed franchise application form and letter of intent. Text
or Call Miss Pauline at 09178012006. You can also drop said application form at
#60 City lifestyle Building, Timog, Quezon City. Upon receipt, we will arrange a
personal meeting with you. After we have had an opportunity to meet each other and
the necessary disclosure requirements have been met, a franchise agreement may
be executed.
We have attempted to answer the most commonly asked questions about the
MARY PAULINE SALON franchise. We are sure you must have a few more that
we have not covered, so please free to call or text Miss Pauline at the numbers
above. Thank you for your interest.
BRANCHES
1. Sir George Salon by Mary Pauline, Timog, Quezon City
2. Sir George Salon by Mary Pauline, SM Fairview, Quezon City
3. Mary Pauline Salon, Dapitan, Manila
4. Beauty Hub By Mary Pauline, Manila
5. Mary Pauline Salon, Visayas Street, Quezon City
6. Mary Pauline Salon, Cavite
7. Mary Pauline Salon, Zamboanga Branch
8. Mary Pauline Salon, Cebu Branch (2 branches)
9. Mary Pauline Salon, Malibay, Pasay
10. Mary Pauline Salon, Basilan Branch
11. Mary Pauline Salon, SBMA Branch
12. Mary Pauline Salon, Castillejos, Zambales Branch

EVENTS MAGAZINES AND TV SPONSORSHIPS OF MARY PAULINE SALON

GROUP
o SHOW TIME

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ASAP
PARTY ON FIVE
SWEET LIFE
UNANG HIRIT
MAJOR SPONSOR IN MUTYA NG PILIPINAS
MAJOR SPONSOR IN SEARCH FOR THE NEXT WHITE CASTLE WHISKY
GIRL
PINOY BIG BROTHER
PINOY DREAM ACADEMY
MAJOR PARTICIPANT IN SUNSILK LAUNCHING EVENT
MAJOR PARTICIPANT IN HAIR ASIA COMPETITION
CHOSEN AS ONE OF THE MOST OUTSTANDING SALONS
FEATURED IN KABUHAYANG SWAK NA SWAK
FEATURED IN FIT AND FAB
FEATURED IN COSMOPOLITAN PHILIPPINES
FEATURED IN LAKBAY ASIA
FEATURED IN CANDY MAGAZINE
FEATURED IN METRO MAGAZINE
CELEBRITY CLIENTS

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EDU MANZANO
FRANCINE PRIETO
PIOLO PASCUAL
PINKY WEBB
GELLI AND JANICE DE BELEN
CARMINA VILLAROEL
ISABEL OLI
CARLO AQUINO
CARLOS AGASSI
BAYANI AGBAYANI
KIM CHUI
GERALD ANDERSON
CHERRIE PIE PICACHE
ALI SOTTO
BUGOY
WILMA DOESNT
IZA CALZADO
PAOLO BALLESTEROS
JED MADELA
VHONG NAVARO
MARVIN AGUSTIN
JEREMY MARQUEZ
ALVIN PATRIMONIO
CHRISTINE REYES
ANGELICA DELA CRUZ
DIRECTOR MARIO J DELOS REYES

PJ VELERIO
JENNELYN MERCADO
PIA GUANIO
RAFAEL ROSSEL
MICHAEL V
SUNSHINE CRUZ MONTANO
POLO RAVALES
JOROSS GAMBOA
RHIAN RAMOS
CHYNA ORTALEZA
MAUI TAYLOR
ANGEL LOCSIN
DESIREE DEL VALLE
PAOLO CONTIS
o ISABEL OLI
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