FRANCHISE. Information Package
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1 FRANCHISE Information Package
2 OUR SERVICE PROMISE Velofix is committed to providing the best and most convenient Service in the Cycling Industry. We will achieve this by establishing loyalty and long term relationships with both our Clients and Suppliers. We will focus on Customer Service, Technology, & Innovation to allow us to deliver this Premium Service at competitive pricing.
3 TABLE OF CONTENTS 4 ABOUT US OUR MISSION OUR STORY VELOFIX TEAM FRANCHISEE PROFILE ARE WE THE RIGHT BUSINESS FOR YOU? TRAINING PROVIDED SUPPORT OFFERED GENERAL COSTS & FEES FREQUENTLY ASKED QUESTIONS NEXT STEPS #3-5 East Broadway Vancouver, BC, V6B 1V4, Canada
4 ABOUT US Founded with a passion for Cycling, we believe that Bicycles can help change the world. Our goal is to offer a convenient Premium Service that gives you more time to do what you love... RIDE! 4
5 OUR MISSION To provide our Clients with the most efficient and professional Bike Service experience in the World. Our Premium level of Service will allow our Clients to Save Time. Ride More 5
6 OUR STORY Velofix was founded in 2012 in Vancouver, BC, with a goal to give people more time to do what they love, Ride! Velofix is a Mobile Bike ProShop in a 24-foot Mercedes Sprinter Van. We provide a Premium Service offering for all types of bikes: Road, Mountain, & Commuter. Our Proprietary Booking System, integrated SalesForce CRM, & Inventory Management Systems have been developed to provide a Premium Service to all our clients. Our Certified Mechanics use only the best tools and parts available in the industry. 6
7 VELOFIX TEAM Boris is a 3-time Canadian National Track Champion. Boris is a Master Certified bicycle mechanic from the Barnett Bicycle Institute based out of Colorado Springs, Colorado. Boris is a graduate for the Bachelor of Business Administration program at Langara College. BORIS MARTIN --- Chief Operating Officer & Co-Founder Davide has represented Canada at the Olympic and World Cup levels of soccer. He finished his professional career plying his trade across Europe and North America in Davide has a finance degree from the Pamplin School of Business from the University of Portland. DAVIDE XAUSA --- President & Co-Founder Chris brings over 20 years of Business Experience to Velofix. In 2010 a 2:54 Boston Marathon & in 2012 a 38th overall finish at IronMan Canada are his race highlights. Chris is a graduate of the SFU Executive Management Program. CHRIS GUILLEMET --- Chief Executive Officer & Co-Founder Simon is a 4 time Olympian and 2 time Olympic Medalist (2000 Sydney-Gold & 2008 Beijing-Silver). Now retired from international competition, Simon is active with his Business Ventures. SIMON WHITFIELD --- Investor & Advisor Charles is President & Founder of VEGA. VEGA is a $70 Million company with distribution in over 5,000 retailers in North America. Profit magazine s 100 fastest growing companies for the past 5 years and one of the best workplaces in Canada for the past 3 years. Charles is an active member of Young President s Organization. CHARLES CHANG --- Investor & Advisor 7
8 FRANCHISEE PROFILE Simon Whitfield is a Co - Founder & future Franchise Owner. Simon explains why he invested in Velofix: As a father of two young girls and with a busy work schedule, I immediately understood the value of the Velofix business model. I am proud to be a part of this incredible company and to own the Franchise in my home town of Victoria. - Simon Whitfield 4 TIME OLYMPIAN 2 TIME OLYMPIC MEDALLIST 2000: Sydney - GOLD 2008: Beijing - SILVER 14 WORLD CUP VICTORIES 21 PODIUM FINISHES 7 TOP-10 FINISHES AT WORLD CHAMPIONSHIPS 8
9 ARE WE THE RIGHT BUSINESS FOR YOU? At Velofix, we seek to partner with like-minded people who have a strong desire to drive change in the cycling industry. Qualities We Seek: Commitment to being hands on in the business. Are You Ready To: Follow the Velofix System. Passion for Cycling. Work in a physically demanding environment. Thrive in a Relationship driven business. Be active in your success & failures. Strong business acumen. Get involved with your local cycling community. 9
10 TRAINING PROVIDED Velofix Franchise owners will be given the tools & training necessary to facilitate a successful operations of the business. Dedication & commitment to the fundamental philosophies & best practices of the Velofix brand will be essential to the operation of a Velofix Franchise day-today. A Velofix Franchise owner will deliver a Premium Service & be consistent in offering the best possible customer service daily. Training provided: - Sprinter Van Operations - Inventory Management - VeloNet TM Online Management System - Sales & Marketing - Product Knowledge Training is conducted up to 5 days in Vancouver. Training takes place in a Mercedes Sprinter Van & in an Office environment. Franchisee s will be awarded after training and mechanical competency is demonstrated. 10
11 SUPPORT OFFERED Velofix offers hands-on support and proven business procedures and systems to assist in managing your business to success. These systems & policies are continually enhanced to provide franchisees with streamlined, relevant, and timely support in a range of areas. MARKETING Strategic marketing support in the areas of advertising, media, design, product pricing, public relations, merchandising, and local marketing. INVENTORY SOURCING Inventory sourcing solutions & vendor relationships maintained by Velofix. Purchase Orders submitted by Franchise to Velofix on an ongoing basis. TRAINING Franchisee training program conducted in Vancouver for up to 5 days prior to launch. Additional training & development provided on an on-going basis. PROMOTIONAL MATERIAL Promotional material, programs, & customer incentive programs provided and organized by Velofix. OPERATIONS Provide ongoing support and guidance for effective business management. VEHICLE PROCUREMENT Vehicle procurement and build-out completed before launch by Velofix as per Franchise Agreement. POINT OF SALE Reporting, customer loyalty programs and Point of Sale solutions. NETWORK Provide opportunities and tools to network with other franchises and benchmark results provides an invaluable support system. 11
12 GENERAL COSTS & FEES Potential franchisees have the opportunity to purchase new and existing territories. As we expand across Canada, it is important to match individuals with suitable territories. The average outlay to establish a new Velofix territory is outlined below. FRANCHISE PURCHASE FEE (NEW TERRITORY) Franchise Purchase Fee $25,000 ONGOING FEES Monthly Royalty Payments 8% Monthly Branding Fund 2% Monthly VeloNet TM User Fee $
13 MOBILE PRO SHOP
14 FREQUENTLY ASKED QUESTIONS DO I NEED A MECHANIC? No, but your Lead Mechanic must be fully Barnett Institute Certified prior to Launch & training in Vancouver. WHAT IS THE TERM OF THE AGREEMENT & INITIAL FEES? The Franchise Agreement is a Five year term. Initial fees equate to $25,000. WILL VELOFIX ASSIST WITH FINANCING? It is the franchisee s responsibility to secure financing. We expect all applicants to discuss financing with their financial advisor or financial institution. However, we do have representatives that we have connected with at various financial institutions that have a copy of our disclosure document and may be able to facilitate the loan approval process. 14
15 AM I ABLE TO CHOOSE MY OWN TERRITORY? We are looking to expand across Canada. Velofix operates in a territory defined by Postal Code. Velofix offers entry into a turnkey operation. Territory selection, vehicle procurement, and franchise setup are all carried out by our experienced team. CAN I PURCHASE MULTIPLE TERRITORIES? Yes. Consideration for multiple Sprinter Vans operating in a single territory will be considered after at least One year of operation. WHAT IS THE AVERAGE SIZE OF A VELOFIX TERRITORY? An average territory is defined by having a population of 500,000. DOES THE FRANCHISE AGREEMENT IN- CLUDE ANY TRADE AREA / TERRITORY PROTECTION? Yes, you will have exclusive rights to an agreed upon territory. HOW DOES VELOFIX SPEND THE 2% MARKETING AND ADVERTISING FEE? The marketing and advertising fund is allocated into three categories: a) National - Public Relations, Brand Awareness, Advertising b) Regional - Resources tand initiatives that benefit a specific market will be applied accordingly. c) Local - Support is offered to Franchises for local initiatives & campaigns. IS VELOFIX A MEMBER OF THE CANA- DIAN FRANCHISE ASSOCIATION? Yes, we have been a member since WHAT ARE THE TYPICAL HOURS OF OPERATION? Bookings are available from 7:00am - 9:00pm, Monday - Sunday, every week of the year. HOW LONG DOES THE PROCESS TAKE? It is in our experience that from the time of application to the time that the Franchise is operational is usually 4-6 months. This timeframe is variable. 15
16 NEXT STEPS Excited to join the Velofix family? We are sure that this document will raise a number of questions and we are excited about working with you during this due diligene stage in order to provide the answers needed to make an informed decision. FOR MORE INFORMATION PLEASE franchiseinfo@velofix.com Please visit - Own a Territory for further information. 16
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