EVERYTHING YOU NEED TO KNOW ABOUT BECOMING A SNOOZE FRANCHISE PARTNER

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1 EVERYTHING YOU NEED TO KNOW ABOUT BECOMING A SNOOZE FRANCHISE PARTNER

2 WELCOME TO SNOOZE FRANCHISING If you ve always dreamed about owning your own business, becoming a Snooze Franchise Partner might be just what you re looking for. Snooze is proudly owned by Steinhoff International, an integrated retailer that manufactures, sources and retails furniture and household goods across the globe. This means if you become a Snooze Franchise Partner, you won t just be joining one of Australia s most successful bedding specialist retailers, you ll enjoy the backing and buying power of a global organisation. With our tried and tested business model, (that has seen our business grow from 6 stores to 78 stores), training program and support, and your winning attitude, this could be the start of a new, exciting and successful career. Stop dreaming and enquire now about becoming a Snooze Franchise Partner!

3 HOW TO BECOME A SNOOZE FRANCHISE PARTNER 1. Call or for an initial discussion. 2. Attend a formal interview to discuss becoming a Snooze Franchise Partner. This includes the commitment required, costs involved and location opportunities. 3. Submit a business proposal for assessment. 4. If becoming a Snooze Franchise Partner is still everything you dreamed it would be, and you fit our selection criteria, further meetings will be set up to guide you through the entire process from helping you secure finance to your grand opening.

4 MEET SOME SNOOZE FRANCHISE PARTNERS Russell Cooper from Snooze Capalaba Russell joined the Snooze team 9 years ago as the Queensland Regional Manager. In 2008 he was promoted to National Operations Manager. In 2010, he took a leap of faith and purchased the Snooze Capalaba store. Since then, Russell and the team at Capalaba have received many Snooze awards including National Retailer of the Year and Excellence in Retailing. When we asked Russell what he loved most about being a Snooze Franchise Partner he replied, Having an improved balance in my life so I can spend more time with my family. I now work to live, not live to work. Jane and Robert Giles from Snooze Ballina When Jane and Robert moved from Sydney to Ballina they didn t have a career plan. Twenty years later, they re 2 of the most successful Snooze Franchise Partners in Australia. Why did they choose Snooze? At the time, Snooze had just won Franchisor of the Year for 2 consecutive years and had been recommended to us an as option worth pursuing, says Jane. So we attended interviews in Sydney and visited several stores and felt the business suited us. When they re not working hard in their Snooze store, Jane and Robert spend time with their 3 children and extended family. You can read more about Russell and Jane & Robert, as well as a few other Franchise Partners on our Inspiration page. Just visit: snooze.com.au/inspiration/franchising

5 WHY SNOOZE FRANCHISING? Iconic Australian brand with 40 years experience The first Snooze store was opened in Melbourne in 1974 under the trading name, Capt n Snooze. We quickly adopted the franchising model and 40 years later, now have 78 stores operating throughout Australia. Unique bedmatch system and Snooze bedbuilder Snooze is the only bedding store in Australia to offer the bedmatch system, which helps take the guesswork out of buying a bed, and assists our Franchise Partners to identify a range of mattresses that may better suit a customer s needs. Our online bedbuilder tool allows customers to create their dream bed online. Proven business model We ve had plenty of time to create, test and improve our business model. Over 40 years, in fact. This means our Franchise Partners enjoy proven systems and processes, so the risks usually associated with a start-up business or independent business are reduced. Award-winning digital In 2013, thanks to the diligence, creativity and commitment of our digital team, we received the Website of the Year award at the Victorian Web Awards and the Best Digital Experience - Website category at the 2012 Melbourne Design Awards. Multi-million dollar advertising Every year, Snooze commits to a multi-faced advertising campaign to raise awareness of the brand, and to help drive sales, market share and profitability. Our extensive media schedule includes national television commercials, digital catalogues and advertisements, videos, website updates and social media. Our Franchise Partners are also encouraged to participate in local area marketing and receive support, guidance and expertise from our in-house marketing team.

6 WHY SNOOZE FRANCHISING? Competitive in the marketplace We are highly competitive in the Australian bedroom retail market. In terms of mattress sales, Snooze is in the top 3 in Australia, while in the mattress and bedroom furniture market combined, Snooze is in the top 5. Multi-site opportunity Many of our Franchise Partners own more than 1 Snooze store. If the opportunity arises, we encourage our Franchise Partners to seek ownership of additional stores. Sales & product training Our Franchise Partners attend a 4 week training program to ensure they re knowledgeable in all areas of products and sales, including the exclusive bedmatch system and bedbuilder tool. Ongoing business management support Training and support doesn t stop when a Franchise Partner opens their store. If required, our Business Development Manager can coach and assist our Franchise Partner on an ongoing basis. Strategic marketing programs Our Franchise Partners enjoy the benefit of working for an iconic Australian brand that offers a strong promise and great vision. We continually offer to help take the guesswork out of buying a bed and ensure our tagline, It s amazing what a little Snooze can do, is used consistently to emphasise that promise. Insights into industry standards and trends To help our Franchise Partners keep up-to-date with the latest industry standards and trends, we organise regular forums and conferences. These events give our Franchise Partners an opportunity to network with colleagues, learn about the business, speak directly with senior management, and view new products and technologies from our suppliers. IT training & support All Snooze Franchise Partners receive IT training and operational support. We also provide a help desk so we can respond quickly and efficiently if any technical issues or queries arise. Exclusive products and store design Many of the products in Snooze stores including beds, mattresses, bedroom furniture and kids beds, are exclusive to Snooze. We also provide a store layout and design, fixtures and fittings, visual merchandising support and in store point of sale. This ensures a shopping experience at Snooze that is consistent across Australia. Annual conference with internal awards program Every year, Snooze hosts a conference and Gala Ball. This is an opportunity for Snooze Management to acknowledge Franchise Partners for their hard work with a variety of awards including, Excellence in Retailing, Retailer of the Year, Store Manager of the Year and Sales Person of the Year. Site selection and property negotiation We provide assistance in negotiations with centre management or landlords, as well as drafting floor plans. Benchmarking and Finance Plan Snooze maintains financial, product and retail benchmarking for each Snooze store in Australia. This means each Franchise Partner benefits from an individual financial plan and business model. Top 10 Top Franchise Award Winner Since 2010, the Snooze brand has been recognised in the Top 10 Top Franchise Awards, which highlights Australia s most desired franchises. The poll involves over 1,000 Australian franchise owners, from 44 different companies, voting in 7 key areas covering support, marketing, passion, lifestyle, brand, opportunities for expansion and financial success. In 2014, Snooze was 1st place in the brand category, 2nd place in the passion category and was rated 5th overall.

7 FREQUENTLY ASKED QUESTIONS What are the set up fees and costs? As there are many variables when purchasing a Snooze franchise, such as the type of store (new or existing), the location (regional or metro) and the size of the store, we prefer to discuss each opportunity on a case-by-case basis. Do I need retail experience? As we provide training and support to cover all aspects of operating a Snooze franchise, all you need is a positive outlook, a passion and ability for dealing with people (customers and staff), and a committed attitude. How much training will I receive? We provide a minimum 4 week training program, which includes in store training at an existing Snooze store, and formal training at the Snooze Support Centre. This training covers all operation aspects of a Snooze franchise including IT and financial systems, marketing, compliance, small business management, merchandising, supplier training and sales skills. Can I own more than one Snooze store? Absolutely. Many of our current Franchise Partners own more than one Snooze store. Am I required to work in the store? We encourage our Franchise Partners to work in their store/s as it s their involvement and commitment that can contribute to their success. We ve noted, anecdotally, that the most successful Snooze stores are the ones where the Franchise Partner is actively involved in the day to day running of their store/s. Can I expect a good work/lifestyle balance? This is entirely up to you. Many of our Franchise Partners work full-time, while some work part-time. A few of our Franchise Partners employ members of their family (partners, adult children, and siblings) so they see more of their family than they did in their previous jobs.

8 FREQUENTLY ASKED QUESTIONS How much can I expert to earn? This is a hard one to predict. While earnings are based on many factors including the size and location of a store, they re also affected by the attitude of each Franchise Partner, their work ethic and their commitment to following the Snooze business model. To achieve financial success, Franchise Partners should be prepared to work hard and have a positive attitude. Do I have to pay for advertising? Every Snooze Franchise Partner contributes to our marketing & advertising fund. We also encourage our Franchise Partners to participate in local area marketing with the support, guidance and expertise from our in-house marketing team. What sort of advertising does Snooze implement? Our yearly marketing & advertising campaigns cover national television and radio commercials, digital catalogues and advertisements, videos, website updates, social media and local area marketing. Our digital team also invests in website analytics and SEO to ensure the Snooze brand is prominent in the digital space. Can I become a Snooze Franchise Partner in my own state? Yes, as long as there is a Snooze store for sale in your state, or there is a location we feel is appropriate for a new Snooze store. Can my spouse/partner and I become joint Franchise Partners? Absolutely. Many of our Franchise Partners are married/partners. We also have stores owned by siblings, parent/child teams and close friends. Is there any literature provided by the Australian Government about franchising? Yes there are many websites, including government websites, that provide objective information and advise on franchising. You ll find a list on page 9.

9 START-UP, INDEPENDENT BUSINESS OR FRANCHISE? Start-up This is when a business is started from scratch. The person registers the business name, applies for finance (if required) and sets up shop. The advantages of a start-up include not entering into a formal agreement with anyone, not having a boss, and having total control of the business. The disadvantages of a start-up include a higher risk of failure, no training or support, and no brand recognition. Independent Business Buying an independent business rather than starting a new business is often a good option for someone who d like to become a business owner. The advantages include a proven business model, existing customers and accounts, and possibly staff who know how things work. The disadvantages include the complex and time-consuming process involved in buying an independent business, competition from national brands, and lack of business, marketing and advertising knowledge. Franchise Buying a franchise within a successful brand is generally seen as a smart move, particularly if the new business owner has never owned a business or experienced being self-employed. The advantages include buying into a brand with a tried and tested business model, possibly less risk if you are prepared to work hard and follow the systems, and ongoing training and support. The disadvantages include not having total control of the business, brand and system, restrictions on what you can sell and how you operate, and the set-up and ongoing fees to the franchisor.

10 DON T WAIT ANOTHER MINUTE At Snooze, we believe it s important you make a measured and informed decision about Snooze franchise opportunities. It s important to understand that becoming a Snooze Franchise Partner requires commitment, a positive attitude, adhering to a business model, an excellent work ethic and a passion for working with people (staff and customers). If you d like more information and advice about becoming a franchisee, visit the websites listed here. The Australian Competition & Consumerism Commission: Franchisor Compliance Manual Link: The Franchise Council of Australia: Buying a Franchise Guidelines Link: The Australian Competition & Consumerism Commission: Franchising Code of Conduct Link: Australian Government Business: Franchising Link: Australian Government Business: Buying an established business Link: The Commonwealth Bank: Buying a Franchise Link:

11 SNOOZE FRANCHISING CONTACT DETAILS phone: website: snooze.com.au Copyright 2015

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