FRANCHISE

The continuing services, or “royalty fee,” is 8.00% of your gross sales (excluding taxes before discounts) and is paid monthly. This fee entitles you to use THE SMASH ROOM service mark, use of distinctive system, marketing assistance, ongoing business development and counseling, and other benefits that come with being a THE SMASH ROOM franchisee.

Instead of slamming your phone against the ground or punching a hole in the wall or flipping a table, you can come to the Smash Room and shatter, break, stomp, tear, yell, and embrace an animalistic release you can only find here, a therapy that doesn't involve reflection, a meditation that doesn't involve soul searching. The idea for Smash Room was inspired by a difficult time in Hiba's life, a time when the traditional, more peaceful mechanisms of coping just weren't cutting it. So, she took old junk into the backyard and smashed it to bits, and it made her feel massively better. Right then, came that lightbulb moment. This is a freaking good idea! She then teamed up with her best friend and partner in craziness Ibrahim and brought you this badass version of a spa day! It is the prescription you need when you are about to explode.

The size of a typical THE SMASH ROOM unit is between 2,000 sq. ft. and 4000 sq. ft. THE SMASH ROOM serves multicultural middle to high-end income customers.

The initial franchise fee for an Individual franchise unit is AED 90,000 (24,500 USD).

The initial investment for an individual unit ranges AED 870,000 (USD 237,000) [AED 715,000 (USD 194,500) on average] this includes Franchise Fee, Training, 6 Months Rental, 3 Months Working Capital and Others. The initial investment estimates are based on the UAE.

For the Area Development franchise fee (3 units and above the franchise fee per unit will be AED 72,000 (19,600 USD) [instead of AED 270,000 (73,500 USD) for 3 units, the discounted amount is AED 216,000 (58,800 USD)].

The continuing services, or “royalty fee,” is 8.00% of your gross sales (excluding taxes before discounts) and is paid monthly. This fee entitles you to use THE SMASH ROOM service mark, use of distinctive system, marketing assistance, ongoing business development and counseling, and other benefits that come with being a THE SMASH ROOM franchisee.

THE SMASH ROOM grants an exclusive territory for a minimum of 3 units and agreed upon on a case-by-case basis. In the case of an Individual agreement, there will be a minimum radius to prevent cannibalization between units.

THE SMASH ROOM name and reputation is an important part of our business. Franchisee will spend at least 2% of your gross sales per month on local advertising. In addition, Franchisee will be required to contribute 1% of their gross sales to international marketing funds.

Initial assistance provided by THE SMASH ROOM will include the following franchisee training programs: Phase I - Training provided at a location designated by franchisor: THE SMASH ROOM’s management will provide franchisees with approximately Five (5) to Seven(7) days of initial training at headquarters or at a location designated by THE SMASH ROOM’s management, beginning approximately 6 to 9 weeks before the franchisee is scheduled to open for business. Phase I Instruction will pertain to administrative, operational, and sales/marketing matters; it will also include a liberal amount of on- the-job training. This training will be provided for the franchisee and One (1) designated attendee. Phase II - Training provided at the franchisee's location: On-site training typically takes place when the franchisee commences operations. Experienced trainers from THE SMASH ROOM will provide on-site training for a period of Seven (7) to Ten (10) days to assist the franchisee in the commencement of operations.

The initial term of the Franchise Agreement is 5 years from the date the Franchise Agreement is signed. The franchise is renewable for 4 additional terms of 5 years each, for a total of 25 years providing you have complied with the provisions of the Franchise Agreement.

Operational Support – THE SMASH ROOM Management will provide ongoing training and support in many areas critical to the success of the franchisee's business, including unit’s operations and maintenance, customer-service techniques, product/equipment ordering, suggested pricing guidelines, quality standards and administrative procedures. Site Selection – Prior to approving a site for THE SMASH ROOM unit, the Management will provide franchisees with clear guidelines for a suitable location. THE SMASH ROOM requires franchisees to follow these instructions to ensure that an appropriate site is located. Marketing Support – THE SMASH ROOM coordinates development of advertising materials and strategies for the benefit of all members of the franchise network. It also provides franchisees with consumer marketing plans and materials for use at the local or regional level and retains the right to approve all local advertising materials that the franchisee chooses to develop. Purchasing – THE SMASH ROOM Management or its affiliate will negotiate quantity discounts on behalf of all its members, passing some or all these savings on to the franchisees. Accounting/Audit/Legal – Reporting directly to administration, this department is responsible for the financial and legal oversight of franchisees. Internal Support – The functional areas of training, purchasing, franchisee communications, and research and development are typically included in such a department. Ongoing Research and Development – THE SMASH ROOM continues to research methods and techniques for franchise operations (including purchasing and promotional schemes) that enhance unit-level profitability. Overall Program Oversight – THE SMASH ROOM Management will provide the overall coordination and planning for the entire franchise system.