FRANCHISEInformation Package

OUR SERVICE

PROMISEVe l o f i x i s c o m m i t t e d t o p r o -v i d i n g t h e b e s t a n d m o s t c o n -v e n i e n t S e r v i c e i n t h e C y c l i n g I n d u s t r y. We w i l l a c h i e v e t h i s b y e s t a b l i s h i n g l o y a l t y a n d l o n g t e r m r e l a t i o n s h i p s w i t h b o t h o u r C l i e n t s a n d S u p p l i -e r s . We w i l l f o c u s o n C u s -t o m e r S e r v i c e , Te c h n o l o g y, & I n n o v a t i o n t o a l l ow u s t o d e l i v e r t h i s P r e m i u m S e r v i c e a t c o m p e t i t i v e p r i c i n g .

TABLE OF CONTENTS

OUR MISSIONOUR STORYVELOFIX TEAM

ARE WE THE RIGHT BUSINESS FOR YOU?TRAINING PROVIDEDSUPPORT OFFERED

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78910

#3 - 5 East BroadwayVancouver, BC, V6B 1V4, Canada

GENERAL COSTS & FEES11

FREQUENTLY ASKED QUESTIONSNEXT STEPS

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4 ABOUT US

FRANCHISEE PROFILE

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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!

ABOUT US

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OUR MISSIONTo 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

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OUR STORYVelofix 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, & Com-muter.

Our Proprietary Booking System, integrated SalesForce CRM, & Inven-tory Management Systems have been developed to provide a Pre-mium Service to all our clients.

Our Certified Mechanics use only the best tools and parts available in the industry.

VELOFIX TEAM

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SIMON WHITFIELD

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.

BORIS MARTIN

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.

DAVIDE XAUSA

Davide has represented Canada at the Olympic and World Cup levels of soccer. He finished his profes-sional career plying his trade across Europe and North America in 2005. Davide has a finance degree from the Pamplin School of Business from the University of Portland.

CHRIS GUILLEMET

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.

CHARLES CHANG

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.

--- Chief Operating Officer & Co-Founder

--- President & Co-Founder

--- Chief Executive Officer & Co-Founder

--- Investor & Advisor

--- Investor & Advisor

FRANCHISEE PROFILESimon 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 com-pany 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

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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.

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Qualities We Seek: Are You Ready To:Follow the Velofix System.Commitment to being hands on in the business.

Work in a physically demanding environment.Passion for Cycling.

Be active in your success & failures.Thrive in a Relationship driven business.

Get involved with your local cycling community.Strong business acumen.

TRAINING PROVIDEDVelofix 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-to-day. A Velofix Franchise owner will deliver a Premium Service & be consistent in offering the best possible customer service daily. Training provided:

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.

- Sprinter Van Operations- Inventory Management- VeloNetTM Online Management System- Sales & Marketing- Product Knowledge

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SUPPORT OFFEREDVelofix 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.

Strategic marketing support in the areas of advertising, media, design, product pricing, public relations, merchandising, and local marketing.

Inventory sourcing solutions & vendor relationships maintained by Velofix. Purchase Orders submitted by Franchise to Velofix on an ongoing basis.

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, programs, & customer incentive programs provided and organized by Velofix.

MARKETING

INVENTORY SOURCING

TRAINING

PROMOTIONAL MATERIAL

Provide ongoing support and guidance for effective business management.

Vehicle procurement and build-out completed before launch by Velofix as per Franchise Agreement.

Reporting, customer loyalty programs and Point of Sale solutions.

Provide opportunities and tools to network with other franchises and benchmark results provides an invaluable support system.

OPERATIONS

VEHICLE PROCUREMENT

POINT OF SALE

NETWORK

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GENERAL COSTS & FEESPotential 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.

F R A N C H I S E P U R C H A S E F E E ( N E W T E R R I T O R Y )Franchise Purchase Fee $25,000

O N G O I N G F E E SMonthly Royalty Payments 8%Monthly Branding Fund 2%Monthly VeloNetTM User Fee $90

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MOBILE PRO SHOP

FREQUENTLY ASKED QUESTIONS

No, but your Lead Mechanic must be fully Barnett Institute Certified prior to Launch & training in Vancouver.

The Franchise Agreement is a Five year term. Initial fees equate to $25,000.

DO I NEED A MECHANIC?

WHAT IS THE TERM OF THE AGREEMENT & INITIAL FEES?

It is the franchisee’s responsibility to secure financing. We expect all applicants to dis-cuss 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.

WILL VELOFIX ASSIST WITH FINANCING?

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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.

AM I ABLE TO CHOOSE MY OWN TERRITORY?

The marketing and advertising fund is allo-cated into three categories:

a) National - Public Relations, Brand Aware-ness, Advertisingb) Regional - Resources tand initiatives that benefit a specific market will be applied ac-cordingly.c) Local - Support is offered to Franchises for local initiatives & campaigns.

HOW DOES VELOFIX SPEND THE 2% MARKETING AND ADVERTISING FEE?

Yes. Consideration for multiple Sprinter Vans operating in a single territory will be considered after at least One year of operation.

CAN I PURCHASE MULTIPLE TERRITORIES?

An average territory is defined by having a population of 500,000.

WHAT IS THE AVERAGE SIZE OF A VELOFIX TERRITORY?

Bookings are available from 7:00am - 9:00pm,Monday - Sunday, every week of the year.

WHAT ARE THE TYPICAL HOURS OF OPERATION?

Yes, you will have exclusive rights to an agreed upon territory.

DOES THE FRANCHISE AGREEMENT IN-CLUDE ANY TRADE AREA / TERRITORY PROTECTION?

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 time-frame is variable.

HOW LONG DOES THE PROCESS TAKE?

Yes, we have been a member since 2013.

IS VELOFIX A MEMBER OF THE CANA-DIAN FRANCHISE ASSOCIATION?

We are sure that this document will raise a num-ber 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.

Please visit www.velofix.com - Own a Territoryfor further information.

NEXT STEPS

FOR MORE INFORMATIONPLEASE EMAIL:

franchiseinfo@velofix.com

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Excited to join the Velofix family?