Franchise Information pack THE FUTURE OF TYRE RETAILING HAS ARRIVED

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1 Franchise Information pack THE FUTURE OF TYRE RETAILING HAS ARRIVED

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3 Welcome to the Future Welcome to the future of tyre retailing in Australia. Welcome to a place that puts a premium on customer service. An environment that promotes trust through transparency and makes selling simple. A world-famous brand and a franchise network the envy of the competition. A place where a committed franchise owner can realise their full potential, giving them the freedom to control their own destiny. Welcome to Bridgestone Select.

4 Service that moves you Bridgestone Select is an entirely new approach to tyre retailing in Australia. With more than two decades of franchise expertise and more tyre outlets in Australia than any other company, it is little wonder that Bridgestone are the recognised leaders in tyre retailing. Our industry-leading market intelligence has kept our franchise owners at the forefront of their craft since Now, that expertise has delivered the next evolution in tyre retailing. The Bridgestone Select difference is service. Not just service, but service that moves you. Bridgestone Select is the result of extensive qualitative research that revealed many customers were not comfortable purchasing tyres. Traditional outlets were often viewed as masculine and intimidating and even cold, smelly and uninviting. Many said they felt completely disempowered as the retailer stood behind a large and imposing counter, quoting them a price off a hidden computer screen. Customers told us they wanted a store environment that was pleasant and non-threatening. They told us they wanted access to more user-friendly information. They told us they wanted more transparency in the purchase process. They told us they were more interested in a buying experience that helped them choose a tyre that was right for them, not just their car. So, we delivered the best tyre retail concept in Australia. It s our commitment in keeping with our vision: To be the most approachable, desirable and successful tyre and automotive services retailer in Australia.

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6 A customer experience like no other The first thing you notice walking into a Bridgestone Select is the total lack of tyres crowding the retail space and filling the air with the smell of cold rubber. Instead, customers are greeted by the aroma of fresh coffee and a spacious, well-lit, showroom environment. A comfortable lounge, plasma TV and fresh coffee complements the welcoming feel. The traditional barriers have been removed at Bridgestone Select. Rather than be on opposite sides of a counter, the Bridgestone Select experience places both retailer and customer on the same side of free-standing computer pods with information on-screen. All information is shared at the pod including tyre availability and price a system driven by the Trust Through Transparency philosophy. Large banners and matching brochures guide consumers through their options based on tyre use and lifestyle such as Family, Performance, Street, Luxury, Touring, Explorer, Urban Domain or Trade - rather than simply presenting prices by size alone. Bridgestone Select also provides the opportunity for customers to purchase our exclusive in-store merchandise and a range of quality brand accessories, such as wheels and batteries. These additional products, which are displayed on-line, are a strong incentive for customers to purchase items other than tyres, providing them with a value-added experience and giving franchise owners an additional channel for boosting sales and profits. Bridgestone Select is a retail concept that is all about attracting customers time and again. It s built on our mission: To earn customer trust through transparency and caring staff. All Bridgestone Select stores promise to deliver to you, our valued customer, your ideal experience and to ensure that you leave our store with a smile. That s got to be good for your business. But not so good for the competition.

7 The Bridgestone Customer Service Cycle Customers have very clear expectations about service. They place a value on it, they measure it and, at the end of the service experience, they ll make a judgement on whether it has been delivered to their satisfaction. With that in mind, it is perhaps surprising that so few businesses approach their customer service with any real science. Bridgestone Select is different because we understand the very first rule of providing superior customer service taking the time necessary to understand what the customer really wants. This often begins with the realisation that the customer may not really know what they want, or why they want it. The information boards and computer pods assist customers to identify their needs and to choose tyres and other accessories that suit their individual requirements. By engaging customers in a sales process that is built on a partnership, they are comfortable because their views are respected and there is a genuine feeling of being in control. For franchise owners, the Customer Service Cycle is an innovative strategy that engenders confidence. It means that you don t need to necessarily have a background in the tyre industry to run a successful outlet. By bringing science to the art of customer service, we give you a sound structure to help grow your business.

8 The support of Australia s leading tyre retail network Owning a franchise should be about running a business for yourself, but not by yourself. The Bridgestone philosophy is one of total support for franchisees from the very beginning and for the life of your business. We begin the Bridgestone Select process by helping you find the right site. That s critical, because every Bridgestone Select franchise is assigned a geographical Marketing Zone to conduct business within. Your Marketing Zone is exclusive to your store. Naturally, we are right there as your store takes shape; from the signage to the interior fit-out, from the merchandising to the products. Then we get to work on you and your staff. Bridgestone Australia Ltd. is a Registered Training Organisation (RTO). In fact, we are a leading RTO for the tyre industry. That means our programs deliver to you and your staff the specific skills needed to maximise your productivity and profitability. The Bridgestone philosophy is one of total support for franchisees. Whether you are purchasing an existing franchise or starting out with a new site, we are with you every step of the way. It s an ongoing commitment.

9 A personal commitment Some sales reps think that if they visit their stores occasionally for a chat and a coffee, then they re doing their job just fine. At Bridgestone, we happen to think that our franchise owners deserve more than that, a lot more. As a Bridgestone Select franchise owner, you will benefit from a personal relationship with a Franchise Support Executive. Their role is to work with you to implement the Bridgestone Select standards and give you regular feedback about how your store is performing. They will also help you maintain the standards required of the prestigious Bridgestone Master Class program, which measures and rewards excellence in customer service. They are your support, someone who knows and understands your business intimately. Then, there s our Franchise Development Advisors. Their role is to help you maximise the potential of your business. They will spend time with you to tailor a Performance Program specifically for your store and staff. They are like a personal trainer for your business. Bridgestone s commitment to investing in our personnel will ensure that open lines of communication and trust are established and maintained.

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11 The best products, the best marketing Motorists the world over know and trust Bridgestone tyres. Bridgestone s Turanza, Potenza and Dueler brands are synonymous with superior ride, performance, safety and handling. Bridgestone brings world-renowned motorsport success and technology to the road, delivering benefits that can truly be felt from behind the wheel. Naturally, every Bridgestone Select store offers a huge range of our famous brand tyres including product that is exclusive only to Bridgestone outlets. We like to think our products sell themselves. Of course, the truth is that it s a team effort. That is why Bridgestone has a dedicated advertising and promotions function as an integral part of our wider marketing team. We run extensive retail television advertising campaigns, backed by a calendar of catalogues and local area marketing, public relations and promotions. That is just for starters. Everything we do is designed to drive business to your door. It is the sort of commitment that has attracted more franchise members to our brand than any other tyre retailer in the country.

12 Local support, global might Customers look for brands they trust, and there are few more trusted brands in the world than Bridgestone. From its origins in Japan, the Bridgestone Corporation is a true global performer. Bridgestone is a powerful organisation that has embraced a passion for the very best in technology, quality and service for its customers throughout the world, backed by the commitment: Bridgestone wants to inspire and move you. This background means that as a franchisee you are dealing with a respected global company with a sound financial structure. Unlike some franchise companies, we do not rely solely on franchise fees for income, allowing us to concentrate on quality products and systems which flow on to our franchise partners. Customers know and trust the Bridgestone name and so can you. Bridgestone s commitment to translating race-winning motorsport technology into benefits for everyday drivers is legendary. That means our retail outlets are armed with the very latest and best range of tyres, all designed to deliver outstanding performance, durability and value. Consumers see our brand all over the world whether on the wheels of Formula 1 or rally cars, earthmovers or jet airliners Bridgestone is everywhere.

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14 1 Letter of interest Complete and lodge an expression of interest (EOI), including initial equity position. 2 Initial meeting Informal expectations and get to know you. You will be asked to complete an extensive on-line franchise profile questionnaire. 3 Formal interview Full overview of the franchise programe, including roles and expectations of both parties. Full outline of the Bridgestone Select system and what s involved. 4 Detailed financial information Lodge the following information: - equity status - funding proposal - proposed business plan - cash-flow projections 5 Issue formal documents Disclosure documents. Draft franchise agreement and completed schedules. Commitment to a time-line and dates. There is 14-day cooling off period during which you should seek independent advice. 6 Signing, commitment and payment of fees Sign the franchise documents, Receive full copy of the security papers and lease Confidential Operations documents. Pay initial Manual. Franchisee franchise fee and training fee. training commences at There is a further 7-day the national facility and in cooling off period from here. your home state. 7 Training 8 Congratulations and Go-Live Start operation as a fully accredited Bridgestone Select Franchise Owner in your store. 9 Support and follow-up Bridgestone in-store support and on-going training commences. The next steps to becoming a Bridgestone Select franchise member OK, so you re interested in exploring the idea of owning your own Bridgestone Select franchise. So, where to from here? The flowchart above demonstrates the steps you will take on your journey to becoming a Bridgestone Select franchisee. As you can see, our process takes you all the way from our first meetings to the opening of your store. It looks straightforward and that s how it should be. However, along the way, you will be challenged. Becoming a part of the Bridgestone retail network demands commitment, energy and desire. It s a big decision. But, with the support of Bridgestone behind you, the opportunities are even bigger. Welcome to the future of tyre retailing in Australia. Welcome to Bridgestone Select. You will find enclosed the expression of interest application. To start the process of becoming a Bridgestone Select Franchisee, please complete and return to the address below: Retail Channel Department Tyre Marketing and Operations Division Bridgestone Australia Ltd GPO Box 2200 Adelaide SA, 5001

15 National Head Office Tyre Marketing and Operations Retail Departments 196 Greenhill Road Eastwood, SA 5063 Telephone: Facsmile:

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