Franchise Opportunities

Great food is our passion.

We live for the tantalizing smells, sights, tastes and textures

of meals that are made to perfection. We are obsessed

with discovering new recipes and reimagining old favorites -

especially our Newcomb Family Recipes. We insist on sourcing

the finest ingredients. Nothing is pre-chopped, pre-sliced

or pre-packaged. We are uncompromising about quality from

kitchen to table and our dedication to personal service.

That’s a passion shared by everyone you will meet at Newk’s.

Newk’s was founded in 2004 by Don Newcomb, Debra Bryson and Chris Newcomb in Oxford, Mississippi. The team had previously founded McAlister’s Deli and transformed the restaurant into one of the fastest-growing fast-casual restaurants of the time. After providing a solid foundation and establishing strong upward growth for McAlister’s Deli, they sold the chain and soon began to focus on their new venture, using an abbreviated version of “Newcomb” for the restaurant name.

SAND

WICH

ES 3

4%

Menu Sales Mix

SALA

DS 2

4%

PIZZ

AS 1

1%

SOUP

S 10

%

BEVE

RAGE

S 11

%

OTHE

R 9%

DINE IN58%

CALL IN & ONLINE14%

TO GO18%CATERING

10%

SALES BY SEGMENT

Hours11 AM TO 10 PM

ConceptFAST-CASUAL

Average unit square footage3,200–3,800

Wine & beer OFFERED WHERE LEGAL

BreakfastNO

Royalty fee5% NET

Marketing fund fee1.5% NET

†Total investment necessary to begin operations$932,000–$1,131,000

Check Averages• Total check average: $17.26• Per-person check average: $10.11

*Average unit volumeCORPORATE - $2,097,229FRANCHISE - $1,947,454

The Numbers

First Newk’s opens in Oxford, Mississippi

TOP

LIST10

First franchised Newk’s opens

“Top Ten Restaurant Concept” by Restaurant Chains

“Top 10 Best FranchiseDeal” by QSR

Inc. 5000 Fastest-Growing Company

Opened record 14 new units

“GrowingConcept” by Nation’s Restaurant News

Technomic Top 150Fast-Casual Chains

Rebranded as Newk’s EateryOpened 14 new units

Fast Casual’s “Top 10 Marketing Campaigns” (#2)

Franchise Times Fast and Serious “25 Smartest Growing Brands”

Fast Casual’s “Top 20 Movers and Shakers”

2004

2005 2008 2009 2010 2011 2012 2013 2014 2015 2016

Next 20 “Standout Brand” by Nation’s Restaurant News

Best Franchise Deals “Rising Star” by QSR

Fast Casual’s “Top 20 Movers and Shakers”

*Figures reflect averages for 19 affiliate-owned and 81 franchised restaurants that were open on or before July 1, 2017 and operated throughout the entire fiscal year as published in Item 19 of our April 2019 Franchise Disclosure Document (“FDD”). These averages are based on 13 four-week periods from January 1, 2018 – December 31, 2018. †Figures represent a range of estimated costs based on information from affiliate-owned and franchised Newk’s restaurants, as set forth in Item 7 of our FDD. A new franchisee’s results may differ from the represented performance. There is no assurance that you will do as well, and you must accept that risk. Franchise offering are made by Franchise Disclosure Document only. 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. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, South Dakota, Virginia, Washington and Wisconsin. If you are a resident of or want to locate a franchise in one of these states we will not offer you a franchise unless we have complied with the applicable pre-sale registration and disclosure information in your state.

Operations-focused, unit- level model that is easy for franchisees to learn.

Brand Differentiators

Scratch-Made Approach – Broad menu of meticulously prepared meals, made from scratch with fresh, high-quality ingredients.

Culinary Driven Menu – Unique fast-casual dining experience highlighted by the Roundtable, signature take-home cup, free bread-sticks, famous iced tea and large portions.

Hospitality First – Exceptional customer service in a comfortable setting that appeals to multiple demographics and is suitable for multiple occasions.

Open Kitchen & Warm, Inviting Interior – Best-in-class concept with superior competitive positioning in the fast-casual sector.

LUNCH59%

DINNER31%

CATERING10%

Day Part Mix

Chris Newcomb Co-Founder & CEOIn addition to co-founding Newk’s with his father, Dr. Newcomb, and Debra Bryson, Chris Newcomb co-founded McAlister’s Deli and was instrumental in the chain’s success. As CEO, Chris is responsible for implementing the strategic goals and objectives of the company and also serving as the administrator of all company locations.

Fast-casual restaurants are the fastest-growing segment of the restaurant industry, leading industry growth since 2007.

Newk’s has significantly outpaced the fast-casual sector due to our unique concept and market positioning.

THE IDEAL NEWK’S FRANCHISEE

• Prior restaurant experience• Passionate about the hospitality industry• Active in the business, with a priority on local marketing and customer service• Well capitalized 3 to 5 restaurants: $3MM net worth and $1.5MM liquid 5 to 8 restaurants: $4MM net worth and $2.5MM liquid 8+ restaurants: $5MM net worth and $3.5MM liquid

BENEFITS OF NEWK’S FRANCHISE OWNERSHIP

• A concept validated by industry trends• Streamlined, efficient operational system• Flexible menu, adaptable to change with trends and tastes• Flexible store design and location options• Long-term, multi-unit franchise focus• Experienced, respected management team• Strong training and marketing programs• Ongoing support of a dedicated franchise company

The right concept. The right opportunity.

CHRIS CHEEKChief Development Officer

TOM MARSHALLChief Financial Officer

ANGEL McGOWAN Director of Purchasing

MICHELLE SPOHNHOLZVP of Marketing

COURTNEY SMITHVP of Off-Premise

KLARA SMITHCorporate Counsel

ADAM KARVELLERVP of Information

Technology

MICHAEL CLOCKPresident

MARK REEDY VP of Franchise Operations

KEVIN ANDERSONVP of Company Operations

BeveragesIn addition to our standard 32-ounce fountain drinks, you’ll find upscale favorites like Orangina, Pellegrino® and Acqua Panna®. Our classic iced tea is available sweet, unsweetened and presweetened with Splenda®. And, where permitted by law, imported and domestic bottled beers and premium wines are also offered.

Artisan PizzasEach and every pizza is hand-rolled to order from our own artisan dough. We brush it with our house- made garlic olive oil, and then bake your 10" pizza to crispy perfection with your choice of premium toppings.

Homemade DessertsOur Newcomb Family Recipe cakes and treats are made from scratch in our own bakery, so they are always guaranteed to satisfy your sweet tooth.

Kettle Batch SoupsOur signature soups are handmade in small batches, ensuring slowly simmered perfection in every spoonful. Soup menus change daily and seasonally.

Fresh-Tossed SaladsSalads should be beautiful. We start with vibrant greens – a hearty Arcadian mix of greens, aromatic arugula or crisp romaine fillets – then build your bowl to order with impeccable ingredients like hand-chopped vegetables, premium meats, nuts and imported cheeses. It’s all tossed with our made-from-scratch Newcomb Family Recipe dressings.

Specialty Toasted SandwichesWe live for the perfect sandwich. It all begins with the bread – our dough recipe bakes up perfectly soft and airy inside, then we toast it to order for a light and flaky crust. We slice it with a hinge to help you keep a handle on your flavors of choice: flame-grilled meats, imported cheeses, hand-chopped vegetables and Newcomb Family Recipes like homemade pimiento cheese or chicken salad.

Loaded PotatoTomato BasilLobster & Crab BisqueBroccoli CheeseChicken TortillaNewk’s Signature Chili

Chicken ChiliChicken Sausage GumboChicken NoodleCorn & Crab ChowderWhite Bean & KaleHoppin John

Ahi TunaShrimp & AvocadoShrimp Remoulade

Newk’s Favorite UltimateBlack & Bleu

CobbChefSouthern

GreekSimply Caesar

Spicy ShrimpDeluxeSausage & PepperoniThe DebraVeggieSpicy ChickenBBQ ChickenPepperoniMediterraneanFive CheeseMargherita Newk’s “Q”

Homemade CakesBrownies

Big Crispies Peanut Butter Crispies

Shrimp Po’ BoyPesto ChickenNewk’s ClubVegetarian ClubGrilled SteakThe ItalianGrilled Chicken

The RoyalNewk’s “Q”Pimiento CheeseChicken SaladChoice Roast BeefSmoked Ham Turkey Breast

Seasonal TemptationsWe’re always looking to raise the bar, so we pepper our menu with limited-time offers to try out new recipes and appeal to seasonal preferences. Soups and cakes are also rotated to keep our menu fresh.

The IngredientsImagine painting a masterpiece using only three colors. Or composing a symphony with no sharps or flats.

Preparing food is no different. Of course, it would be easier to order all of our ingredients from the same food distributor checklist that everyone else uses. We could save time and money using pre-made, pre-processed ingredients from the lowest-price suppliers.

But we don’t do easy.

We start from scratch to build our culinary masterpieces. The right ingredients, in the right combination, synergistically affect the quality of the final product. That’s why we devote so much attention to finding the best suppliers for our premium ingredients.

Shortcuts have their place.That place is in someone else’s restaurant.Open kitchens have become popular in the restaurant industry over the past several years. Newk’s restaurants do have open kitchens. But our reasons have nothing to do with restaurant trends.

Our kitchens are open because we believe in preparing our food in a manner that’s open and respectful of our guests’ expectations.

We have nothing to hide. You won’t find deep fryers or microwave ovens in our kitchens. No boxes of pre-cooked meats (the kind with the grill marks painted on) or tubs of pre-shredded cheese. Instead, we grill and slice our meats and cheeses, shred our lettuce, roll our dough, bake our own croutons and even mix our own salad dressings.

At Newk’s, we prepare food for our guests the same way we would do it for ourselves. It’s our golden rule.

We don’t have customers at Newk’s. We have guests.A customer buys goods or services.A guest receives hospitality at the home or table of another.

The difference is more than just semantics. Treating guests with respect, kindness and genuine care is a notion that’s embedded into our culture. It’s why we believe that guest service should continue after the order has been taken and the ticket paid.

Likewise, we have hourly partners – not employees or team members. It’s a reminder that everyone who works at Newk’s plays an integral role in the success of our brand and each restaurant.

Other restaurants have condiment bars, but we take it to the next level. Our Roundtable features an array of premium ingredients used by our guests to customize their meals with additional variety.

The Roundtable

BREAD & BUTTER PICKLESMost popular Roundtable item

EXTRA VIRGIN OLIVE OILTaken from the first pressingBALSAMIC, SHERRY & RED WINE VINEGARS

CRACKERS CAPERSImported from Italy

SEA SALT & COARSE PEPPER GRINDERSAlso imported from Italy

GRATED PARMESANPrepared in house, every morning

PEPPERONCINIImported from Italy, too

SRIRACHA, TABASCO AND CHOLULA HOT SAUCES

CROUTONSHand cut, seasoned and baked in houseJALAPEÑOS

Imported from Peru for better crunch

BREADSTICKSTorinesi-style, straight from Italy

HOT CHERRY PEPPERSPlenty of heat to go around

ROASTED GARLICRoasted in olive oil in house

Grab-N-GoOur guests tend to be educated and hardworking with a busy lifestyle. They crave convenience almost as much as they crave our bold flavors.

In addition to the typical call-ahead takeout order, we offer Grab-N-Go items in a cooler next to our takeout cash register for people in a hurry. Guests can choose from a wide selection of sandwiches, soups, salads, desserts and beverages. All food is prepared daily and replenished as needed.

We like to call it #InstantGrabification.

CateringCatering is a popular business segment among fast-casual restaurants, and our emphasis on high-quality food has led to continued growth in our catering business.

When preparing for a new restaurant to open, we provide free samples from our catering menu to nearby businesses’ decision makers. It’s an effective way to pre-sell the Newk’s concept and encourage sales for both the catering and dine-in segments.

Existing locations - sold out

Existing locations - some territories available

Target locations

Not currently franchising in these states

System MapNewk’s restaurants are located within the fast-growing southeastern U.S. We are pursuing expansion opportunities within both existing markets and new markets outside of our current geographic footprint.

Finding the perfect place.Finding the perfect location is one of the most important decisions you’ll make. Look for locations with high visibility and appropriate age and income demographics. Plans are available for stand-alone, in-line and end-cap sites.

We like to keep our interiors fresh, too. From the warm, inviting Tuscan color scheme to the open kitchen and our attractive furnishings and fixtures, we strive to make our interiors look as good as our food tastes.

• Open kitchen• Roundtable condiments bar

Standard Floor Plan• Beverage bar• Grab-N-Go station

(with separate entrance where available)

• Interior and patio dining• 3,200–3,800 sq ft

Each store gets a piece of original artwork customized to its city.

Franchise Support Newk’s offers extensive support in the following areas: real estate, training, operations and marketing.

REAL ESTATE & CONSTRUCTION – With the support of a dedicated development team, we assist with location selection, including market planning and analysis, tenant-rep broker management and lease negotiation. Additionally, our construction team is there to manage the construction process, including space planning, bid review, general contractor selection and necessary support for architecture and FF&E packages.

TRAINING – New franchise training is provided at our Support Center in Jackson, Mississippi and is covered under your franchise fee. (You pay salary and travel expenses.) Prior to opening a new location, your hourly partners will be trained on site by a certified Newk’s training team. Ongoing training is provided as needed on site, at the Support Center and in certified regional training restaurants.

OPERATIONS – We support your operation via regular visits and contact by your franchise business consultant and our operations support teams. Support includes conference calls each period with operators and principles to discuss performance, opportunities, challenges and solutions. P&Ls are reviewed quarterly, and POS equipment and software are available for management reports. Food prices and distributor partnerships are negotiated in house, and franchise partners have access to all corporate vendors for small wares, paper goods, marketing materials and supplies.

MARKETING – Through regular visits and contact by your field marketing manager, Newk’s will provide comprehensive marketing support, from grand opening events, social media setup and management to Roundtable Loyalty Club emails and catering business development. All franchise partners have access to an online toolkit with marketing materials and an in-house graphic design team for site-specific advertising needs.

Super foods don’t need a cape.

Red Quinoa & Kale Salad

Your National Soup Month Headquarters.

Prepared by hand – not by bag.

OUTDOOR

MENU

DIGITAL AD

POP

BRAND PHOTOGRAPHY

WINDOW CLING

Newk’s Marketing Newk’s has a library of marketing materials and a marketing calendar available for use by all franchisees. The library contains print, radio, outdoor, rich-media online ads, catering van wrap designs and window clings.

Newk’s conducts brand-level social media marketing and encourages all franchisees to operate social media accounts for local store marketing. We assist with setup and support of local social media and email marketing accounts and hold regularly scheduled social media conference calls with franchisees.

APP

EBLASTSOCIAL

Newk’s UniversityPeople who visit chain restaurants expect consistency in food, service and overall dining experience.

To ensure that every Newk’s restaurant meets the high expectations of our guests, we created a proprietary training program that we call Newk’s University.

Participants receive hands-on training covering the specific procedures required to run a Newk’s Eatery – from the manager’s responsibilities to tasks conducted by our hourly partners. This is also where we detail our unique culture and how our mission and values translate into real-world success.

Franchise FAQs Q. IS NEWK’S INTERESTED IN EXPANDING OUTSIDE OF THE U.S.?

A. Currently, we are focused on opportunities in the U.S. only.

Q. WHAT DOES IT TAKE TO BE A SUCCESSFUL FRANCHISEE?

A. The three most important factors are experience managing and operating successful restaurants, sufficient capital to weather financial ups and downs, and a passion for the business. In our experience, people who open a franchise for the investment potential but don’t want to be actively involved in its operation tend to be unsuccessful.

Q. HOW MUCH DOES IT COST TO OPEN A NEWK’S UNIT?

A. For most franchisees, the estimated cost to open ranges from $932,000 to $1,131,000†. This range includes the initial franchise fee, real estate costs, furnishings, fixtures and equipment, architect fees, insurance fees, initial supply inventories, training expenses, grand opening advertising costs and other necessary costs. Costs may vary by market and business decisions that franchisees make in their start-up.

Q. HOW LONG DOES IT TAKE TO OPEN A NEWK’S LOCATION AFTER THE FRANCHISE AGREEMENT IS SIGNED?

A. You should allow a minimum of nine months to prepare for the opening of your restaurant. The time frame may be slightly more or less, depending on your experience with opening restaurants.

Q. WHAT COSTS AND FEES ARE ASSOCIATED WITH BEING A NEWK’S FRANCHISEE?

A. Newk’s franchisees pay an initial franchise fee of $40,000, due when you sign the Franchisee Agreement. Operating a Newk’s unit requires ongoing monthly royalties of 5 percent of net revenue and an annual marketing fund fee of 1.5 percent of net revenue.

Q. I’M INTERESTED. HOW DO I GET STARTED?

A. First, contact us so that we can discuss any questions or needs you may have and discuss market opportunities and available territories. Next, you’ll need to complete our application process, provide supporting financial documents and attend a Discovery Day before we can finalize a franchise agreement and start planning your grand opening.

Newk’s Cares is our way of giving back, as we rally behind an important cause that continues to affect the lives of many. Ovarian cancer has personally impacted the Newk’s family, and we are determined to give women a fighting chance against this killer.

Our goal is to improve the rate of early diagnosis by funding research and creating greater awareness about the early symptoms of ovarian cancer.

To accomplish this, we host community events, including our annual Ovarian Cycle, to raise funds for research. We constantly promote awareness with teal cups and information readily available in our stores and on our website, newkscares.com.

Lori NewcombCo-Founder of Newk’s Cares

Our passion goes beyond the kitchen.

Fast Fact: Each year, 200,000 women worldwide are diagnosed with ovarian cancer,

and 125,000 women die from this disease.

5.2019

For more information about franchise opportunities, visit newks.com or call 601.326.4539.