Franchise Information

Highway Business Park 84 Park Avenue South

Rooihuiskraal Ext. 31 Gauteng, South Africa

Phone :+27 0 12 748 3800 Fax: +27 0 12 7483821

franchise@goldwagen.com www.goldwagen.com

Table of Contents I. Executive Summary ......................................................................................................... 3

Highlights ................................................................................................ 3

Objectives ............................................................................................... 3

Mission Statement ................................................................................. 3

Keys to Success ...................................................................................... 3

II. Description of Business .................................................................................................. 4

Company Ownership/Legal Entity .................................................... 4

Location................................................................................................... 4

Hours of Operation............................................................................... 4

Interior ...................................................................................... 5

Products and Services .......................................................... 5

Management ........................................................................... 6

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Executive Summary

We would like to thank you for your enquiry regarding our dynamic and exciting concept. With 80 branches in operation, we know that we have a winning concept. Summary

Established in 1992, the company started in small premises situated in Souter Street, Pretoria West, Gauteng, South Africa. Since then WAG has grown into a premier supplier boasting more than 80 Goldwagen outlets across South Africa and strategically located in several other countries.

The Group deals in an extensive range of products that are distributed to the Goldwagen outlets which in turn, retails to mechanical workshops, wholesale outlets, DIY enthusiasts, retailers, body repair shops and directly to the public.

Starting with the distribution of Volkswagen and Audi parts only, demand and opportunity quickly presented itself to rapidly broaden our value proposition to include Opel, BMW, Mercedes Benz, Toyota, Chevrolet and Renault to maintain a consistent supply of original quality parts. We control our own sourcing and shipping operations.

We also enjoy direct supplier agreements with most of the manufacturers we deal with. We can't deliver quality without a top workforce and currently we have more than 250 proud employees that make a difference between a good and great company.

With over 25 000 product lines, WAG remains the market leader.

Highlights

Goldwagen Franchise Partners benefit extensively from our premier brands and excellent reputation. For example, having access to exclusive and in-depth product knowledge that has been gathered over the years and presented in easy-to-use formats.

Objectives

The Goldwagen Vision is to retain its standing as the leading Auto Motive Parts Distributor offering its Franchisees and Customers the best quality products and affordable products.

Mission Statement

The Goldwagen Mission is to combine aggressive strategic marketing with quality products and services at competitive prices and the best value for consumers. To maintain our reputation in the market as being the premier provider of targeted specialized motor spares and products and related services throughout Southern Africa and selected alternative markets. Our aim at Goldwagen is for our brand to be synonymous with affordability, quality and world class service for our customers.

Keys to Success

Goldwagen has stores around the country even expanding beyond our borders. Find a store near you to take advantage of our amazing products.

Description of Business

Worldwide Automotive Group (Enterprises) Pty (Ltd) and MotoEuro (Motor Part Wholesalers) (Pty) Ltd. Specializes in the import and distribution of top quality replacement parts suitable for Volkswagen, Audi; Opel, BMW, Mercedes Benz, Toyota, Chevrolet and Renault vehicles. There are more brands to follow in the near future.

Company Ownership/Legal Entity

Franchisor: WAG Worldwide Automotive Group (Enterprises) (Pty) Ltd. is a registered, privately owned company. The company has been in operation since 1992.

Location

Worldwide Automotive Group (Enterprises) (Pty) Ltd.

Highway Business Park 84 Park Avenue South Rooihuiskraal Ext.31 0157 Gauteng South Africa

Associated Company: MOTOEURO MotoEuro (Motor Part Wholesalers) (Pty) Ltd.

Highway Business Park 34 Park Avenue South Rooihuiskraal Ext.31 0157 Gauteng South Africa

Hours of Operation

Office Hours: 08:00 – 17:00 Monday to Friday

Public Holiday: Closed

Weekend Trading: 08:00 – 13:00 (Saturdays and some stores, Sundays)

Interior

Goldwagen Stores require an under roof space of roughly + 500, sq.metres, and adequate parking is essential. Goldwagen has a formalized store layout and signage design. The stores layout will be conceptualized by WAG and a professional graphic artist will provide assistance with the signage design. These specifications must be adhered to and no deviation or alterations will be permitted. Only WAG approved suppliers are to be used.

Products and Services

WAG and MotoEuro have a substantial product range, with continuous research and development into new brands. Once a franchisee applicant is approved (which includes extensive credit checks), a credit application as well as a franchise agreement is concluded regulating all aspects of the franchise relationship. Please take into account, which other costs such as Office Furniture and Fittings, Printers, Copiers, Telephones, Fax machine, and any delivery vehicles must be taken into consideration and will vary from Branch to Branch. If you have capital of R 3 625 000.00 all the below mentioned setup costs should easily be covered, which would include initial minimum stock of approximately R2 400 000.00 and R1 225 000.00 for capital outlay. NOTE: All the amounts mentioned above are an estimate and may vary from time to time.

Delivery Cost: WAG will deliver free of charge if within delivery range. If outside the area agreed upon, a minimum order value of R40 000.00 will need to be placed for WAG to cover Courier costs, otherwise any freight will be for your own expense especially for franchisees outside South Africa.

Training: A minimum of one month’s training at Goldwagen Pretoria West providing that the trainees have had previous Auto parts experience, however we recommend that two to three months training be completed. If the trainees do not have any parts experience a minimum of six months training is recommended.

The Franchise Agreement must be signed and your Joining fee, and advertising fee, to be paid in full before any training commences at Goldwagen Pretoria West, which is a company owned store.

Retail / Building Space: “under roof” of + 500 sq.metres - preferably in a well-situated and visible Some of our OE Quality Brands

Management

Meetings are held on a regular basis, where items of a general nature and operations are discussed. It is recommended that everyone attend. Computers

WAG offers a complete solution to run and maintain your investment and give you information at your fingertips right from the word go, even if you are new to the industry. By using state of the art software and systems backed with our knowledge and expertise we can offer you peace of mind that your business has the best potential to grow. With everything from Stock Control, Debtors & Creditors Control, Stock forecasting and a fully integrated accounts system as well as many more features. WAG gives you the complete confidence to run your business at peak proficiency.

VoIP rates excluded and billed directly from Neotel

It is compulsory that all computers are bought through WAG.

A License fee will be charged monthly with a 10% annual escalation thereafter. Advertising:

Compulsory by all franchisees as discussed at Monthly Meetings. We advertise in a variety of different media, including printed, audio and visual. We also exhibit in certain trade shows. All amounts in relation to the initial capital outlay of R3 625 000.00 are subject to change without prior notice.

Should you require any further information please do not hesitate to contact us?

Shawn Gilbert 012 7483800

franchise@wag-online.co.za

WORLDWIDE AUTOMOTIVE GROUP