franchise proposal 170806-1

8/3/2019 Franchise Proposal 170806-1

1/18

F

RA

N

C

H

I

S

E

PR

O

P

O

S

A

L

CARGROOMERS AUSTRALIA AND YOU

Thank you for your interest in Cargroomers Australia.

It is with great pleasure that we enclose a Cargroomers' Franchise

Proposal for your perusal.

Cargroomers is a National Franchise Operation in the business of mobile

car care, taking the service direct to the market.

Cargroomers Australia, by taking full advantage of the benefits of

franchising, has nurtured a network of successful Franchise Owners,

which is growing and developing steadily.

Since inception, Cargroomers has experienced incredible growth and

internal development. This expansion has not only been reflected in size,

numbers and profitability, but also in improved service to the customer

and better overall business operations.

Cargroomers is an organisation founded on teamwork - each member ofthat team carrying out their role to the best of their ability. The result -

a successful and dynamic organisation.

If you have any questions regarding the information contained in theproposal, please contact myself, or the relevant Cargroomers' State or

Regional Licensee.

Yours faithfully,

CARGROOMERS AUSTRALIA

ERROL WOOLCOTT

NATIONAL FRANCHISOR


2/18

2

WHAT IS FRANCHISING?

Many people think franchising is an industry, but its not, its simply a way ofdoing business. A unique way to distribute independently.

There are key characteristics in the way all franchise companies do business.

First and most valuable is the unique, protected trademark. Each franchise

offers comprehensive training, not just the usual manual and product. There is

an on-going businessrelationship between the Franchisor, State and Regional

Licensee and the Franchise Owner. There are tested market plans, operating

manuals, standards and quality control.

Within the franchise system there is a lot oftwo-way communication and there

is a license agreement spelling out the business relationship. If the publicunderstood that franchising is basically only a tried-and-true, tested way ofdoing business, some of the mystery and confusion would disappear.

The very first company to use a franchise system was the Singer SewingMachine Company in the 1860's. Singer turned to franchising because it was away of spreading inventory costs and establishing a dealer network that could

service, what was at the time, a fairly sophisticated piece of equipment.

In 1886, Coca-Cola turned to franchising, as a way of creating a network of

bottlers that would sell at the wholesale level.

Then, around the turn of the century, some manufacturers were working on anew invention. This one cost even more than the sewing machine and it

demanded dealers at a local level who could service the thing. Thesemanufacturers turned to franchising and the automobile has changed the courseof history.

The automobile dealership and service stations were followed by the major oilcompanies and eventually Holiday Inn, McDonalds and Kentucky Fried

Chicken.

Franchising is a form of marketing that gives consumers what they want, whenthey want it, the way they want it ... all at a price they can afford.

Customers want quality at a reasonable price, franchising with its system-wide

management controls, provides it. Consumers want consistent quality from a

name they can trust; franchising, with its quality standards and uniform tradename, gives them just that.


3/18

3

AREA FRANCHISE SUMMARY

FIRSTLYFor a business to have a better chance of succeeding it has to havesomething distinctive about its products and service of which the business

owner can 'hang his/her hat on. It's the POINTS OF DIFFERENCE' that

makes CARGROOMERS a cut above the rest. The business focus is squarelyon satisfying market demand, adjusting to those demands and providing the

standard of service that secures repeat and referral business. Cargroomers

strong business philosophies and proactive working ethic have positioned this

network of dedicated home service operators as one of the largest and most

respected of its kind in the Southern Hemisphere. CARGROOMERS are not part of a network of other Home Service businesses. The CARGROOMERS

Executive Team is committed solely to the CARGROOMERS business and

providing the necessary ongoing support to Franchisees. YOUR FULL

INVESTIGATION INTO THIS UNIQUE BUSINESS OPPORTUNITY

WIILL BE WORTH YOUR TIME.

THE SERVICE AND PRODUCTS: Whilst CARGROOMERS provide thebudget conscious customer with a standard car wash service at their home or

workplace, the range of services extends much further, to include full exteriorcar grooming, comprehensive car detailing, and paint or fabric protection.

CARGROOMERS services continue to evolve with operational procedures

being developed to minimise the labour component of the service and maximise

the returns to an operator.

CARGROOMERS have also worked tirelessly to source, develop andmanufacture a product range of cleaning agents, equipment and supplies.

CARGROOMERS now produce a complete range of cleaning agents such as

detergents, degreasers, polishes and fragrances. The entire CARGROOMERS

range is manufactured at CARGROOMERS head office in Binary Street,

Yatala.

WHAT CARGROOMERS DOES FOR YOU: YOU can find comfort and

security as a team member of this substantial organisation. Full technical and

operational procedures are documented and are contained in theCARGROOMERSconfidential Operations Manual. Proven Business Buildingtechniques are immediately activated to ensure YOUR business gets the

necessary 'kick start'. This includes working with YOU to formulate a

Powerful marketing/advertising strategy for the long-term financial growth ofYOUR territory).


4/18

4

YOUR JOB AS FRANCHISE OWNER: With CARGROOMERSassistance,YOU establish and maintain at least one operating unit within YOUR Territory.

As Franchise Owner YOU are given the option to expand YOUR business byappointing contract operators within the Territory. It will be your responsibilityto provide the operators with start-up and ongoing support.

WHAT YOU GET: - An Exclusive Territory - Low Overhead Business - The

BEST possible initial and ongoing training/support in all facets of the

business - Initial Start-Up Inventory and equipment- Substantial Yellow

Pages Display Advertising.

Your investment is $29, 950 including GST- a sum that can be rapidly

recouped.

THE SKILLS YOU WILL NEED: The most important skill or attribute will

be YOUR determination to build a successful business from the solidfoundations that CARGROOMERSwill provide. This will only be achieved

through YOUR ability to effectively communicate with customers and contractoperators.

ADVICE:

You are encouraged to seek professional advice in making your decision. The

people who know most about the CARGROOMERSbusiness are the existingFranchise Owners. You are encouraged to meet as many of the existing

operators as you like to find out first hand how they feel about their businessand the support they receive from their State or Regional Licensee.

VAN OPTION:

You are able to operate from an approved white van or utility. You areresponsible for the purchase of the van. Sign writing will be arranged by the

State or Regional Licensee.

TAXATION:

There are definite taxation advantages in running a small business. As you are

operating your business from home, part of your telephone, vehicle expenses,electricity costs etc are tax deductible. Interest on a business loan can also be

deducted. Your Accountant will assist you in this regard.


5/18

5

1.0 Cargroomers:

An Introduction to the Organisation

1.1 History

Cargroomers first franchise operation began trading in Brisbane, Queensland,in November 1990. During its introductory phase of operations the companyexperienced excellent growth in customer demand for its car washing and

detailing services. Additionally, it received a large amount of interest from

business people all around Australia eager to secure state and regional franchiseareas.

By the end of its first trading year Cargroomers was operating in Queensland,Northern Territory, Victoria, Tasmania, New South Wales and South Australia.

1.2 Cargroomers MissionTo bring together a team of people who have the skills, knowledge and stabilityto work towards a common goal - to optimise and fine-tune the CargroomersAustralia franchise network, and to profitably and successfully provide value-

for-money car grooming service to all customers.

1.3 The Way We Do BusinessThe business philosophy of Cargroomers Australia is to conduct all levels of business professionally and effectively. Fairness, honesty and integrity shall

characterise all dealings between the National Franchisor, State and Regional

Licensees, and Franchise Owners.

1.4 The Cargroomers' Organisational StructureAs a franchise, the Cargroomers hierarchical structure has been specifically

designed to take advantage of the geographic layout of Australia, while stillenabling each individual within Cargroomers the autonomy needed to run theirown business.

1.5 BankersNational Australia Bank, James Street, Beenleigh Qld 4207

1.6 Registered Office

For Cargroomers Australia Pty Limited,Dignan Stephens AccountantsPO Box 922,Nerang Qld 4211

Cargroomers Queensland Pty Limited,

Dignan Stephens AccountantsPO Box 922, Nerang Qld 4211


6/18

6

1.7 Trade Mark and Registration No.575 252

Cargroomers Queensland is a Member of the Franchising Council of Australia.

Cargroomers nationally has been divided into eight state-based divisions.These are:

Brisbane & Northern Territories

Sunshine CoastGold CoastN.S.W

South Australia

Victoria & TasmaniaWestern Australia

Cargroomers Australia

CargroomersGoldCoast

CargroomersBrisbane &NorthernTerritories

CargroomersSunshine

Coast

CargroomersN.S.W

CargroomersSouth

Australia

CargroomersWesternAustralia

CargroomersVictoria

Gold CoastFranchiseOwners

Brisbane &NorthernTerritoriesFranchiseOwners

SunshineCoast

FranchiseOwners

N.S.WFranchiseOwners

SouthAustralianFranchiseOwners

WesternAustralianFranchiseOwners

VictorianFranchiseOwners

Each State or regional licensee is responsible for their specified geographic area and isdirectly responsible to the National Franchisor. Cargroomers, in each state of

Australia, is regionally divided to enable an optimised spread of franchise areas.


7/18

7

2.0 The People Behind Cargroomers

Cargroomers Australia is operated by a number of people, and receives professionalsupport from external bodies, that play an integral role in the organisation, including

legal, accounting and financial advisers.

National Franchisor

Errol Woolcott

Gold CoastRegion

JohnHarrison &

CraigMandall

Brisbane &NorthernTerritories

ErrolWoolcott

SunshineCoast

LicenseeGeoff

McCracken

N.S.W StateLicensee

David andLeigh-Anne

Amos

SouthAustralian

StateLicenseeGabrielle

Coles

VictorianState

LicenseeKennethTaplin

WesternAustralia

StateLicensee

ErrolWoolcott

Gold CoastFranchiseOwners

Brisbane &NorthernTerritoriesFranchiseOwners

SunshineCoast

FranchiseOwners

N.S.WFranchiseOwners

SouthAustralianFranchiseOwners

Victorian &TasmanianFranchiseOwners

WesternAustralianFranchiseOwners

2.1 Internal

Internally, Cargroomers is a three-tiered franchise organisation comprising:

The National Franchisor

State and Regional Licensees, andFranchise Owners.

Each Cargroomers participant has an individual role to play. However, as a franchiseteam, all members collectively pool their experience, knowledge, and attributes to

ensure that Cargroomers operates effectively and optimally.

2.1.1. The National Franchisor

Name: Errol Woolcott

Specialisation: Small Business Management New Product Development

Professional Background & Experience:

Possessing a varied and comprehensive background in the area of Small Business

Management and New Product Development, Errol is well equipped to administer the

direction and overall running of Cargroomers Australia Pty Ltd.


8/18

8

From 1974 to 1984 Errol was South Island Manager of a progressive National

Importing Company in New Zealand, Errol contributed to the firm's National

Marketing, Purchasing and Service policies.

Errol then established his own international trading firm involved in importation and

distribution of small engine parts for lawn mowers and chain saws. He was one of the

first to import ride-on mowers to New Zealand direct from the United States.

Following his arrival in Australia, Errol was instrumental in establishing the BudgetHand Car Wash (now Cargroomers) franchise operation. His principal role as Co-

Director involved coordination of Technical and Product aspects of the operation.

In November 1990 he assumed the position of Sole National Franchisor for Budget

Hand Car Wash, now Cargroomers Australia. As the catalyst behind Cargroomers' new

business direction, Errol was the driving force behind the new Cargroomers image andname, together with various new product developments and service improvements.

For the future, Errol, in his capacity as National Franchisor, is keen to continueexpansion of existing Cargroomers services and products, and to increase the earning

capacity of all Franchise Owners.

2.1.2 State/Regional LicenseesBRISBANE, NORTHERN TERRITORIES LICENSEE

Name: Errol Woolcott

Specialisation: Small Business Management, Customer Liaison and Financial

Control.Certificate Of Franchise Administration.

GOLD COAST REGIONAL LICENSEE

Name: John Harrison & Craig Mandall

John Harrison

Specialisation: Small Business Management & Marketing, Staff Training &

Recruitment

Professional Background and Experience:John Harrison's experience in small business management has been augmented by hisattendance at various courses in staff training, management, and other relevant

business techniques.

Prior to purchasing the licensee rights to the Gold Coast Region, John worked

throughout the region as a Cargroomers employee and he has wide hands-on

experience and knowledge of this area.


9/18

9

Craig Mandall

Specialisation: Office Administration & Staff Recruitment

Professional Background and Experience:

Craig holds an Associate Diploma in Business Marketing and Management and his

administrative and staffing skills together with his hands on approach ensure the

smooth efficient running of the regional franchise.

SUNSHINE COAST REGIONAL LICENSEE

Name: Geoff McCracken

Specialisation: Management, Sales and Marketing

Professional Background and Experience:Prior to joining Cargroomers in 1994, Geoff had over 20 years Sales, Marketing andManagerial experience in the Ice Cream and Frozen Food Industry. During his term

as Metropolitan Sales Manager Brisbane with Peters Ice Cream, Geoff and his sales

team achieved record market share in the Metropolitan area. Having worked theSunshine Coast as a Cargroomers Franchisee for two years, he has a wide hand on

experience and knowledge of the area.

NEW SOUTH WALES STATE LICENSEE

Name: David and Leigh-Anne Amos

Specialisation: Automotive Industry Service

Professional Background & Experience:

David and Leigh-Ann took control of the Cargroomers New South Wales State licensein 2005. Prior to joining Cargroomers, David and Leigh-Ann owned and operated a

window tinting franchise in Newcastle. Other services available from this franchise

include home or office window tinting and rustproofing. This business quickly grew to

a multi-site franchise employing over 50 people.

Davids first foray into the automotive industry was in the area of Finance and

Insurance in 1991. In 1999 he became a Group General Manager for five car

dealerships.

With a wealth of experience in the automotive industry and small business within New

South Wales, David and Leigh-Anne are well placed to capitalise on the availablemarket in their state.

SOUTH AUSTRALIA STATE LICENSEE


10/18

10

Name: Gabrielle Coles

Specialisation: Business, Accounting


VICTORIA

Name: Kenneth Taplin

Specialisation: Financial Planning


In the last thirteen years Kenneth has been involved with leading financial institutionssuch as IOOF Trustees, IOOF LTD, Adelaide Bank, Financial Services Direct and the

National Australia Bank. His association with these institutions has involved the

design and implementation of marketing programs, training programs and companybusiness plans.

Kenneth has extensive experience in establishing company brands and the assessmentof business strategies and methodologies to suit available products and customer

demographics. Kenneth also brings to Cargroomers a wealth of experience in the

management of human resources.

2.1.3 Franchise Owners

The role of the Cargroomers Franchise Owners is:

1. To maintain any existing Cargroomers customers and to attract and securepotential Cargroomers' customers;

2. To recommend and carry out in a competent manner Cargroomers car detailingservice for the customer;

3. To record the necessary customer information and relay this back to the State or

Regional Licensee;

4. If necessary, to implement marketing policies outlined at National or State level;5. To possess a thorough knowledge of all services and products and;6. To keep abreast of improvements to Cargroomers' products and services.

Experience:Although experience in car washing and detailing is not a compulsory prerequisite to

become a franchise owner, a basic knowledge, appreciation and interest in cars isfavourable. A background in retailing and selling would also be a decided advantage,

but again, is not compulsory.

A Franchise Owner must have a greater than satisfactory ability to work with people

and communicate well with customers.

Personality & Attitude:


11/18

11

The Franchise Owner is the prime ambassador for Cargroomers. Franchise Owners

are our frontline sales people whose personality and attitude dictate how Cargroomers

is perceived in the eyes of customers. Therefore effective communication skills and the

ability to deal with all kinds of people are essential. A positive and enthusiastic attitudeis compulsory. A Franchise Owner must work well individually and feel comfortable

in a team situation.

Finance:

The Franchise Owner must be in the position to finance his/her own business.

Age:There is no age restriction. However, a minimum of 20 years is desirable due to the

maturity and experience levels needed to competently execute the role of Franchise

Owner.

Health:In the Franchise Owner's best interest it is advisable that he/she be of reasonable health

to avoid down-time due to illness or injury.

Business/Work History:Franchise Owners must have had a stable work history and be in a position to furnish

positive employment and character references.

2.2 External

When Cargroomers has been unable to source certain expertise internally, these

professional services have been obtained from external organisations.

The main areas of expertise called upon cover the disciplines of the law and

accounting. Profiles on these organisations, which advise Cargroomers at a nationallevel, are contained in the Appendix to this franchise proposal.

3.0 Cargroomers' Products and Services

Cargroomers market a range of car detailing services and a range of retail products to

its customers, manufactured by Cargroomers Queensland Pty Ltd. at the Brisbane

plant. By using Cargroomers the customer is assured of receiving a comprehensive,convenient service at an affordable price.

Customers can have their vehicles washed, polished, waxed and detailed at their homes

or places of work. With standard service prices starting at $39 including GST for theDeluxe Wash and Wax Plus, and progressing through to the Premier Wash and Polish

Plus, marketed at $187 including GST, the Franchise Owners have a large scope andearning capacity.

4.0 The Cargroomers' Franchise Option


12/18

12

Cargroomers State and Regional Licensees allocate each Franchise Owner a specific

Franchise Area on a Post Code basis.

This area will feature domestic, retail, commercial and industrial customers, all ofwhich are potential clients.

The cost of a Cargroomers franchise is $29 950 including GST. Cargroomers providesall the tools and equipment and the professional support a Franchise Owner / Operator

will require in order to provide the client with the best possible service.

4.1 Professional Support

Cargroomers Australia will provide the Franchise Owner/Operator with the necessarybusiness and managerial support in order to establish and then operate a Cargroomersfranchise on an ongoing basis.

By calling on human resources internal to the organisation, and also the external

helpers of Cargroomers, the organisation is continually able to provide meaningfulassistance to its Franchise Owners.

Assistance and support with any technical or operational issues or problem is simply a

phone call away, and when necessary on-site assistance can be provided.

The Cargroomers network of State and Regional Licensees exists to assist FranchiseOwners at all times. The licensees are experienced problem solvers who generally

endeavour to solve problems before they occur.

4.2 Comprehensive Technical and Customer Training

Cargroomers Australia provides all Franchise Owners with the technical trainingneeded to first set up, and then operate the franchise successfully. This training focuses

on learning the tools and techniques of the Cargroomers' service.

All product and service procedures and instructions are outlined in the Cargroomers'

Operations Manual, but also are addressed during the on-the-job training sessions.

Each Cargroomers' Franchise Owner is also trained in the art of small businessmanagement via the detailed and informative Cargroomers' Operations Manual.

4.3 Equipment

All materials are supplied to the Franchise Owner directly from Cargroomers Australia,unless the franchised business is being purchased from an existing franchise owner. In

which case, the materials and equipment will be supplied by the existing franchise

owner. Starting equipment includes:

* Custom-made trailer registered and sign-written, featuring a fibreglass canopy* 240 Volt Variable Speed Rotary Buffing Machine

* 240 Volt Random Orbital Polishing Machine


13/18

13

* 240 Volt High Pressure Washer and Water Pressure Gun

* Wet and dry vacuum cleaner (including shampoo capability)

* 30 metre car wash hose and reel

* 2 x 20 metre power cables* Electrical safety switch

* Three perforated large chamois

* Bag of light mixed rags* Two large heavy-duty sponges

* Scrubbing brush* Mag wheel brush

* Car wash brush* Ten 1 litre spray bottles

* Two buckets

* Scraper and blades

* One pair PVC gloves* Protective mask

* 40 mm brass padlock

* Funnel* Paintbrush

*Industrial Scourer* Measurer

* Stepladder* Business cards

* Card system box* Company stamp

* Invoice book and cover

* 500 brochures

* Five monogrammed, collared shirts* Three pairs of shorts

* Two sweaters* One cap

Chemicals, Cleaners, Polishes & Accessories

A Franchise Owner is provided with the essential Cargroomers' chemicals used toprovide the various Cargroomers services. To see you through your initial months of

trading you are supplied with the following:

Cargroomers Quick Clean 20 litres

Cargroomers Truck Wash 5 litres

Cargroomers Wash and Wax 5 litresCargroomers Glass Magic 5 litresCargroomers New Look TyreDressing 20 litres

Cargroomers Deodoriser 5 litresCargroomers All-Purpose Cleaner 5 litres

Cargroomers Tar & Glue Remover 4 litres

Cargroomers K.O.Degreaser 5litres

Cargroomers Nu-Guard Vinyl & Rubber Restorer 5 litres


14/18

14

Cargroomers Seal Brite 2 litres

Cargroomers Rough 'n' Ready Compound 1 litre

Cargroomers Fine Finishing Compound 1 litre

Cargroomers Medium Compound 1 litre.Cargroomers Gold Wax 5 litres

Cargroomers Blue Magic Polish 5 litres

Cargroomers Express Wax 5 litresOverspray Clay Bar

Polish Applicator Pads * 3All Metal Polish 100g

Wonder cloth * 2Velcro Backing Plate

Single Sided Wool Buffing Pad

Velcro Foam Buffing Pad

Velcro Foam Polishing PadVelcro Foam Finishing Pad

Black Again 500ml

Cargroomers Final Shine 5 litresCargroomers Leather Conditioner 500ml

Environment Water 7 Containment Mat

Insurance

During the first year of operation, the insurance costs covering public and product

liability, driving risk cover, tools, equipment and trailer is included in the total packageof $29, 950.00 including GST.

5.0 The Investor's Benefits

5.1 Benefits to the Investor

Cargroomers provides an Owner/Operator with the business infrastructure, equipmentand know-how needed to establish and operate a successful mobile car care business.

The advantages of franchising, such as economies of scales (the buying power of a

large group), are optimised. All available human resources and support systems are at

you fingertips on an on-going basis. Your contribution to the team is hard work anddedication BUT, most of all, a willingness to learn new skills along with a desire to

continually improve yourself and your business.

6.0 The Next Step

In order to assist you in your decision-making process, or for further or specific

information, you may wish to speak to the Cargroomers' State or Regional Licensee in

your area, or the Cargroomers' National Franchisor. Contact details of each are:

Errol Woolcott

National Franchisor


15/18

15

Ph: +61 7 3807 7577

Fax: +61 7 3807 7473

Email: [email protected]

Scott Smith

Brisbane & Northern Territories Franchise Co-Ordinator

Ph: +61 7 3807 7577Fax: +61 7 3807 7473

Email:[email protected]

John Harrison & Craig Mandall

Gold Coast Licensees

Ph: +61 7 5594 9398

Fax: +61 7 3808 6399

Gabrielle Coles

South Australia State Licensee

Ph: +61 419 805 498Email: [email protected]

Kenneth Taplin

Victoria regional LicenseePh: 0413 447 040


Geoff McCracken

Sunshine Coast LicenseePh: +61 7 5441 1651

David and Leigh-Anne AmosNew South Wales Licensee

Ph: 0402 476 666


TheCargroomers website is located at www.cargroomers.com.

Key Personnel Supporting Cargroomers:

SOLICITOR: Deacons

Deacons is a major international law firm with more than 900 lawyers across Australiaand Asia.


16/18

16

With several lawyers specialising in franchise interests, including partner Stephen Giles

who is the current National Chairman of the Franchise Council of Australia, Deacons

are well positioned to provide ongoing advice to Cargroomers.

ACCOUNTANTS: Dignan Stephens

Dignan Stephens Accountants is a long standing CPA accounting firm established for

past 18 years ago.

The current partners of the practice are Alison Kerrigan and Shaun Stephens. Shaunhas been with the practice since its inception and Alison had been a valuable staff

member for 4 years before undertaking her current position as a partner. Currently,

Dignan Stephens, employs 14 staff ranging from receptionists, bookkeepers and

qualified accountants. The office is situated in Nerang just off the M1 Motorwaywhich provides easy access for clients.

Dignan Stephens has a commitment to provide the highest quality advice in:

Taxation Compliance Self Managed Superannuation Business Management Services In-House Finance Services Financial Planning Business Succession

Dignan Stephens prides themselves on attention to detail and provide a high level of

customer service to their clients.

CARGROOMERS

MAIN POINTS OF AREA FRANCHISE AGREEMENT


17/18

17

Territory: Exclusive territory protected by Post Codes

Refer Territory map.

Area Franchise Fee: $29, 950 including GST

Area Franchise includes: 1. Use of Name and Proven Operating System

2. Right to sell Cargroomers Retail products3. Equipment, cleaning products and tools.

4. Full initial training5. On-site Start-up Support and Marketing Plan

6. National Marketing Support

7. Full support documentation including

Operations Manual.

Terms of Agreement: 10 years

Initial term: 4 years

First Renewal Term: 3 yearsSecond Renewal Term: 3 years

Area Franchise Service Fee: $120.00 per week including GST

Advertising Levy: $40.00 per week including GST

Communication Levy: $15.00 per week including GST

Who Controls the Advertising

Fund: The Franchisor, State or Regional Licensees.

Is Company & Business Name

Fully Protected: Yes

Cost of Renewal: $1100.00 including GST

First Right of Refusal in case of Transfer:

Franchisor has First Right of Refusal on sameTerms and Conditions as offered by proposed

Transferee.

Timing of Various Payments: INITIAL AREA FRANCHISE FEE -


18/18

18

$3,000 on signing. Balance prior to commencing

training.

FRANCHISE SERVICE FEE - in arrears, payment on or before the Wednesday of each

accounting week.

OTHER PURCHASES C.O.D.

Details of Training to be provided: One week minimum start assistance in your

territory. This assistance includes localcanvassing, start-up local marketing and

operational systems set-up etc. One Day trainingat Cargroomers head office.

Termination Provisos: Adherence to operational policy and procedure

and Terms and Conditions of the License

Agreement

Indemnities: All parties agree they are independent and do notact as agents for each other.

Each Party indemnifies the other against any

action taken by others against them as

independent operations.

franchise proposal 170806-1

Documents