First…Refine the Franchise By Expanding the Retail Options

With the development of a variety of retailing options the company has the ability to market franchises that take advantage of the new convenience trends appearing in transit, commercial and institutional environments. Completely turn-key, pre-fab and portable these units are one example of a modified retail option that is easily installed into existing spaces in less than a day. The addition of these smaller retail configurations in addition to custom design and traditional stand alone franchises gives potential franchisees a wide variety of store options. More choices and price ranges for units means more opportunity.

Next to new retail options, new menu items and restaurant themeing are crucial ingredients for expansion success. For instance, as the consumer demand for health oriented menu items increases, QRVI's partner Sobik's, a subshop similar to Subway, is in an excellent position to broaden it's selection of healthy menu items without significant need for new equipment or stocking of new consumables. Low-fat, low-carb salads and sandwich menu items are easily added without any new stocking, equipment or major training costs. A restaurant with a flexible menu is able to keep in step with the times capturing new food trends and additional market share.

Second…Aggressively Market The Franchisee Brand

Three avenues for expanding the franchise network are being implemented…

1) Lease Acquisitions and New Co-Branding Opportunities - As competition rises for positioning in new convenience outlets the ability to serve this segment becomes increasingly valuable. Industry research has unveiled a large number of potential co-branding opportunities in individually owned and small chain convenience stores that are positioned for growth but are lacking funding and expansion management skills and experience. The acquisition strategy will be to first select opportunities based on territorial presence in non-existing markets. With the Sobik's brand coexisting with these outlets the owners will be able to extend their offerings without investment in equipment, training and inventory that would otherwise be prohibitive.

2) Expansion From Within - Opportunities are immediately available within the existing structure of QRVC franchises and with the sister businesses and business partners that are already part of Quality Restaurant Ventures. These experienced operators are already trained and integrated into the QRVC operations and into their local communities and retail environments. Offering these operators the first opportunities for expansion will be the most expedient and financially efficient and work to create less organizational structure.

3) Traditional Franchising - Traditional franchising programs are currently in place and being marketed both through authorized company agents, business brokers and overseas investment firms. An impressive and aggressive Internet information bank will provide the communications backbone for enabling Investor opportunities to develop in territories where retail visibility and one-on-one interaction has not been established. Numerous smaller town and retirement communities have investment minded individuals who are seeking the opportunity to enhance their incomes. This will be a primary focus of franchising efforts on a region by region basis.