Discovery Day Agenda

• Founder Bio • Concept Overview • Industry Overview • Big Smoke Press • Franchise Program Overview • Restaurant tour, sample menu, observe shift and unit level management systems Founder Bio

Mustafa Yusuf, the CEO of , has 25 years of experience in the restaurant industry, including acting as President of Big Smoke Burger since 2010, and President of its Affiliate, Craft Burger, Inc., since 2007. He developed the Big Smoke Burger concept based on serving classic burgers with a modern twist. Classic Burger Brand Overview • Founded: 2007 • The Setting: Premium, fresh gourmet burgers in a modern, clean, cool, casual environment • The Segment: Fast Casual, Better Burgers • The Concept: Handcrafted burgers grilled to perfection • The Footprint: 1,000 – 2,500 square feet, depending on location. A smaller, non-traditional format is also available (malls, travel plazas…) Brand Overview

• Focus on a “back to basics” approach to burgers, with a small, simple menu, fresh ingredients and homemade sauces • Competitively positioned as a gourmet player in the better burger segment – in addition to beef, choices include chicken and lamb burgers • Flexible enough to fit into small, non-traditional restaurant sites while handling large volumes

Our philosophy is to serve excellent gourmet burgers in a clean, cool, casual environment with exceptional service. Press And Accolades Press And Accolades Press And Accolades

Fast Casual: Big Smoke Burger signs five multiunit franchise deals

QSR: “But their franchise expansion took off worldwide after partnering with Fransmart and signing deals for NY/Chicago and Kuwait earlier in the year, and three other development deals for Colorado, Michigan, and Bahrain in the last month.” Press And Accolades

“The chain is known for its "hand cut" fries, eight varieties of custom burgers made with fresh beef and a variety of toppings including jalapeño-havarti cheese and caramelized onions, and because we're talking Canadian, we're also talking fast-service poutine, made with " cheese curds & gravy." So finally, every man, woman, and child's dream of widely available, low-cost poutine in New York City may be this close to finally happening.” Press And Accolades

"Another North American brand, -based gourmet burger joint Big Smoke Burger, announced in August that it would be opening an outlet in Kuwait within the next six months - its first outside its home continent.

The brand’s owner, Mustafa Yusuf, is also planning to take a slower approach to building out the concept.

'We’re not going to sell 15 units here, and ten units there just so we can say we have covered this market,' he said. 'We’re handpicking our franchisees to ensure that our partners have the right fit.”

What Differentiates Big Smoke Burger from other Burger concepts?

Big Smoke Burger uses only the freshest ingredients…

• We feature gourmet, hand-crafted, top quality cuisine • We use top quality beef, chicken and lamb, which are always fresh and never frozen, and burgers are always made to order • We serve fresh, hand-cut French fries which are cooked in trans fat- free canola oil, and made fresh daily • We offer a long list of all natural toppings • All our sauces are made in-house, from scratch • We offer healthy options like side salads and veggie burgers Brand Differentiators

• A gourmet, quality-driven approach to the fast- casual better burger segment • Beyond Burgers… Protein variety including fresh, never frozen ground beef burgers, organic beef burgers, grilled chicken, lamb and veggie burgers • Unique side dishes including our signature Traditional Poutine, crispy onion rings, and fresh mixed greens • Unique beverage selection including Boylan handcrafted sodas • Upscale, hip and modern décor Brand Differentiators

Benefits of Flame Grilling vs. Using a Flat-Top Grill • Burger gets that “smoky” flavor from the open flame (as promised in the name) and gets slightly charred on the outside • Leaner Meat - Fat tends to drip away when using the flame grilled method, rather than sitting in a pool of its own grease on a flat top grill • Burgers are juicier and will not dry out as quickly because they are not smashed down (the “smashing” tends to happen on a flat top grill to speed up cooking time) • Flame grilling brings out the natural beef flavorings Brand Differentiators

• Short menu list is designed for optimal efficiency during high volume hours • Flexible prototypes to fit into both urban and suburban sites, as well as traditional and non- traditional sites • Smaller initial investment, relative to similar fast casual concepts

Our Menu: A gourmet, quality-driven approach to the fast casual better burger segment…

• Handcrafted, gourmet AAA beef burgers • Organic beef burgers • Grilled Chicken, lamb and veggie burgers • Fresh hand-cut French fries, cooked in trans-fat-free canola oil • Homemade milkshakes with 3 scoops of ice cream • Fresh salad greens • Traditional Poutine

Toronto Eaton Centre Food Court Model

Open Restaurants as of February 2014

CANADA TRAVEL PLAZAS • Toronto Eaton Centre • Hwy 400 Travel Plaza – HMS Host Urban Eatery - Canada’s largest mall King City, ON • Toronto Yorkdale Shopping Centre • Cambridge North ONRoute Dine on 3 Food Collection Service Centre, Cambridge, ON • King Street East, Toronto • King Street West, Toronto • Yonge Street, Toronto • Square One Shopping Centre Middle East 100 City Centre Drive • Hwy 30, Divonne Place Mississauga, ON Abulhasani, Kuwait • Tahlia Street USA Riyadh, Saudi Arabia • 652 South Colorado Boulevard Denver, Colorado Units in Development as of February 2014 North America

• New York City: 15 Units (master franchise territory) • Chicago, Illinois: 15 Units (master franchise territory) • Detroit, Michigan: 5 Units • Denver, Colorado: 10 Units • Canada: – The Outlet Collection, Niagara Falls, Ontario Niagra On The Lake Units in Development as of February 2014 Middle East

45 Units in Development • Kuwait • Saudi Arabia • Bahrain (under construction) • Qatar • United Arab Emirates King Street East - Toronto King Street West King Street West - Toronto Yonge Street - Toronto Yonge Street - Toronto Toronto Eaton Centre Food Court Model Toronto Eaton Centre Food Court Model Toronto Eaton Centre Food Court Model Toronto Yorkdale Shopping Centre Food Court Model – 360 Degree Prototype Toronto Yorkdale Shopping Centre Food Court Model – 360 Degree Prototype Toronto Yorkdale Shopping Centre Food Court Model – 360 Degree Prototype HMS Host – King City Toronto Travel Plaza Model Glendale (Denver), Colorado Fast Casual Model Kuwait Riyadh, Saudi Arabia Square Footage Requirements

• The Footprint: 1,000 – 2,500 square feet, depending on location • A smaller, non-traditional format is also available (malls, travel plazas…) Craft Burger Red Burger Big Smoke Burger Cheese Burger Blue Burger Goat Cheese Burger Organic Beef Burger Veggie Burger Lamb Burger Fresh, Grilled Chicken Breast Burger & Onion Rings Boylan Sodas Mixed Greens Fresh Cut French Fries Traditional Poutine

Nation’s Restaurant News – 10 Trends Shaping The Restaurant Industry In 2014

“An improving economy. Real disposable income is “Segment strengths. NPD forecast to grow, inflation will remain moderate, and forecasts indicate that traffic will unemployment will continue to inch down in the year build for fast-casual restaurants” ahead.”

Nation’s Restaurant News – NPD Forecasts Traffic, Spending Growth In 2014 “NPD Group’s data showed that fast-casual and quick-service restaurants…have had more success than other concepts in 2013 and should have continued success in 2014.” Nation’s Restaurant News – NPD Forecasts Traffic, Spending Growth In 2014

“Visits to quick-service restaurants rose 1 percent for the 12 months ended in September…NPD Group’s quick-service classification also encompasses fast- casual brands, and those restaurants collectively reported an 8-percent increase in traffic for the 12 months ended in September.” “Food franchises dominate the Franchise 500®, making up half of the top 10 and more than a quarter of all ranked companies. It's no surprise, since the category contains some of the oldest and biggest franchises around. But there are plenty of newer, smaller franchises making their mark, too.” Fast Casual Restaurant Trend Mashup - FastCasual

Fast casual pulling ahead: The impressive growth of the fast casual segment demonstrates consumers, who are still focused on price, are willing to pay more for foods they consider to be of better quality or healthier. To meet that demand, concepts focusing on customization, speed of service and convenience, have recently popped up, including high-quality burger chains, health-focused concepts and top-your-own pizza restaurants. Fast Casual Restaurant Trend Mashup - FastCasual

“While some consumers focus on healthy eating, just as many will indulge and seek out carbs, cheeses, fried appetizers and other extravagant items this year.” – Technomic Restaurant Execs Predict What’s Coming In 2014 – Nation’s Restaurant News

“I think the business environment in 2014 is going to be the strongest we have seen in years. In terms of restaurants, real estate is still relatively inexpensive. The poor economy over the last four to five years has also weeded out a lot of the inexperienced players and made their spaces and assets, including lease reassignments, easy to snatch and grab. This will in turn allow for quicker openings, more jobs available for the community and potentially lower, or stable, pricing for the consumer — all in all, a formula for a stronger economy.” — Andrew Gruel, co-founder and corporate chef, Slapfish Restaurant Group LLC, Huntington Beach, Calif. In Nation’s Restaurant News’ Annual Restaurant Operator Survey, half of respondents said that they expect their 2014 profit to better than 2013, while 56% said that they expect their sales to be better this year The National Restaurant Association predicts Restaurant Industry Sales for 2014 in the U.S. to reach $683.4 Billion

National Restaurant Industry 2014 Facts At A Glance: • 990,000 Restaurant locations in the United States • $1.8 billion in (typical) daily restaurant industry sales • 13.5 million restaurant industry employees • 3.6% increase in restaurant industry sales A new report from Technomic didn’t tell us much we didn’t know: Americans really love their burgers. But astoundingly, we love them even more today than ever before, and we especially prefer ones made with high quality meats, ingredients and toppings.

That, at least, was according to Technomic’s “Burger Consumer Trend Report,” which surveyed 1,500 consumers on the topic. Ninety-five percent say they eat burgers monthly, up from 91 percent two years ago. Sixty-two percent of those consumers cite meat quality and taste as the prime considerations in their purchasing decisions, up from 56 percent in 2011. More than half (51 percent) say the meat should be additive-free and not frozen. Consumers still craving better burgers

New report shows quality ingredients and customizable offerings are the driving force in the sector’s growth.

“The better burger sector continues to thrive in the overall burger category, and that shows no signs of stopping,” says Darren Tristano, e.v.p of Technomic. “If you were into burger and steak sellers in 2013, chances are you're showing quite a gain these days. Not in your waistline — in your stock portfolio.

Restaurants known best for beef surpassed the market and the dining- out industry overall in the past year, climbing more than 60%” Technomic Report Finds Cravings, Value and "Better Burgers" Driving High Burger Consumption and Category Growth in Canada Burger-chain value menus remain prevalent in the industry, but the traditional model is shifting to one that emphasizes higher quality, variety and craveability for a lower price.

"The better-burger sector is an up-and-coming segment within the overall burger category," says Darren Tristano, Executive Vice President of Technomic Inc. "As the burger category evolves, consumer demands are changing. Consumers expect ‘something extra' when dining out, and better burgers—with high-quality ingredients, the customer's choice of toppings, alternative proteins or specialty preparations— can really help deliver that as part of a solid value equation." Better Burger Market

Dan Rowe, Fransmart Founder and CEO, on claims that the better burger market is saturated:

“According to an article in Burger Business, the total system-wide sales for the top 7 U.S. burger brands* in 2012 was $124.04 Billion.

If you add up the system-wide sales for the same number of players in the better burger segment it’s less than 2% of that number. There is still plenty of room in the market, and the world is always hungry for better.”

*McDonald’s, , Wendy’s, Sonic Drive-In, Jack In The Box, Hardee’s, Carl’s Jr Our Fans Marketing Programs

• Grand Opening Support • Local Store Marketing (LSM) Programs  Trial  Frequency  Party Size  Check Average • Four Walls Marketing & Community Outreach Suppliers

• POS: Aloha/NCR • Beverage: Coca-Cola & Boylan Bottling Company • Rastelli Global of Rastelli Foods Group Our Franchise Program Franchisees can expect superior support in the following areas: • Real Estate and Site Selection • Lease Approval • Pre-opening • Management Training • Vendor Selection and Equipment • Store Opening Support • Information Technology • Marketing and Public Relations • Operations Support Real Estate Development Targets

Real estate Co-tenants • Live • Grocery Stores • Work • Movies • Shop • Regional Malls • Entertainment • Lifestyle Centers • Foot traffic  Conversion Non-Traditional Sites Opportunities • Airports • Travel Plazas • Food Courts • Office Buildings Conversion Opportunities

Potential opportunity to decrease build-out costs Potential to shorten time to open Real Estate Process

• Market Analysis – Market Penetration – Competition – Trade Area Strength • Territory Description – Typically along county lines or major traffic arteries – Radius Protection What do we look for in a franchisee?

Big Smoke Burger wants to partner with franchisees that possess the necessary skills and drive to build and run a professional multi-unit restaurant company. Ideal candidates will have:  Solid Experience: Operations, Business and Financial  Meet financial qualifications for net worth and cash liquidity  Commitment: This is a long term plan.  Knowledge of real estate and trade areas in development territory  Enthusiasm, drive and passion for our concept  Compatible: Personalities, Goals, Standards FDD Includes: • Company History • Management Experience • Litigation • Trademarks & Patents • Financial Statements • List of Franchisees and Restaurants • Fees and Initial Investment • Franchisor and Franchisee Obligations • Restaurant Earnings Claims • Forms of Franchise and Development Agreements FDD Item 19

Average Sales & Profit: We do not furnish or authorize our salespersons to disclose any oral or written information concerning the actual or potential sales, costs, income or profits of a restaurant other than disclosed in the FDD. Actual results vary from restaurant to restaurant and upon restaurant ownership we cannot estimate the results of any particular franchisee. Thank You!