INVITATION TO JOINBRIDGESTONE SELECT

The power of the Bridgestone brand ......................................................................................................4

An industry that’s growing year on year ................................................................................................ 6

Why choose franchising? ........................................................................................................................ 8

The birth of Bridgestone Select ............................................................................................................. 10

The Bridgestone Select difference ....................................................................................................... 13

What to expect ....................................................................................................................................... 14

What the franchisees say ...................................................................................................................... 16

Auto Service ............................................................................................................................................ 19

What are the costs? ............................................................................................................................... 20

Is it right for you? ..................................................................................................................................... 22

Frequently Asked Questions .................................................................................................................. 23

Bridgestone in Australia ......................................................................................................................... 26

Next Steps ................................................................................................................................................ 27

CONTENTS

When you’re weighing up the options of purchasing a franchise, one very important consideration is the power of the brand you’re buying into.

Having a global reputation as the tyre industry market leader, the Bridgestone brand is synonymous with quality products and being at the forefront of technology, innovation and continuous improvement. With high – profile sponsorships such the Olympic games, within Motorsport, golf and the general community, the Bridgestone brand is consistently at the top of the consumers’ mind making it the most recognisable tyre brand with Australian customers.

It’s this brand power that sets Bridgestone Select apart from other franchise systems, and having that power behind you gives you a significant advantage.

THE POWER OF THE BRIDGESTONE BRAND

Murrumba Downs – Queensland5

Another important consideration when reviewing franchise systems is the health of the industry it’s in and its potential.

The automotive after-market industry around the world is growing year on year and Australia is no different. We have the second highest level of car ownership in the world, with 565 passenger vehicles per 1,000 people which equates to around 13 million on our roads. This has been growing at a steady annual rate of 2% every year since 2008.

With an annualised running cost of an average car being well over $1,000 for tyres, servicing and repairs, the outlook is positive for Bridgestone Select’s model of providing consumers with a ‘one stop shop’ for all their tyre and auto servicing needs.

AN INDUSTRY THAT’S GROWING YEAR ON YEAR

2% 13ANNUAL GROWTH

MILLION

9.8YEARS

AVERAGE AGE

6

AND GROWING

BILLION

$1 3IT ALL ADDS UP TO

AN INDUSTRY WORTH

7

The benefits of being part of a franchise system are significant. A franchise increases your chances of business success as you have the backing of an established, proven retail approach and management system and are associating with proven products and methods.

A franchise provides you with an established product or service which may already enjoy widespread brand-name recognition. This recognition gives you the benefits of a customer base which would ordinarily take years to establish.

And the benefits don’t stop there.

WHY CHOOSE FRANCHISING?

8

Bethania – Queensland 9

In 2005, Bridgestone Australia conducted an extensive consumer research project that showed many consumers wanted a comfortable tyre purchasing environment. Traditional outlets were often viewed by consumers as masculine, intimidating, cold and uninviting and made them feel disempowered as the salesperson stood behind a large and imposing counter, quoting them a price off a hidden computer screen. Consumers wanted access to more user-friendly information in the purchase process. And 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. We listened, and in 2006 we launched the Bridgestone Select concept that revolutionised the industry. Today, the Bridgestone Select franchise exceeds 140 stores nationwide and caters for around 300,000 tyre and auto service customers each year.

THE BIRTH OF BRIDGESTONE SELECT

10

To be the most approachable, desirable

and successful tyre and automotive services retailer in Australia.

All Bridgestone Select stores promise to deliver to you, our valued customer,

your ideal experience and to ensure that you leave the store with a smile.

OUR GOAL

OUR MISSION

11

Being associated with the industry’s strongest brand is a good start but if that brand is leveraged through a truly great franchise system, it becomes an unbeatable combination. We truly believe the Bridgestone Select franchise system is the best in the industry, with processes and systems honed over 30 years of retailing in Australia.

A core component of the success of Bridgestone Select is the ability to offer consumers a one-stop-shop for all their tyre and auto servicing needs. This allows our franchisees to improve customer loyalty and retention by engaging with their customers regularly throughout the year which generates additional revenue.

Joining Australia’s Bridgestone Select network is like joining a family, with support and advice being shared freely. You could say it’s the real secret of our success. Once you join you’ll experience a level of support that’s unparalleled among automotive franchises. The foundation for this is the simple maxim that our success only comes from your success. So we ensure our franchise training, marketing, promotions, research and product development is industry leading.

As Bridgestone is also a manufacturer, our ongoing levels of support may be high but our fees are not. Our ongoing franchise fee of 3.5% is very low and we don’t charge a separate marketing levy like many other franchise systems.

THE BRIDGESTONE SELECT DIFFERENCE.

IS VERY LOW

AND WE DON’T CHARGE A SEPARATE

MARKETING LEVY

3.5 % OUR ONGOING

FRANCHISE FEE OF

12

As a Bridgestone Select franchisee, you’ll benefit from an established, proven system that provides everything you need to succeed.

1. Franchisee Induction Programme. Our extensive training programme is customised to each franchisee’s experience and understanding of the tyre and auto servicing industry. A comprehensive induction program including classroom, in-store and online training is followed by online modules, in-store experience and training, and comprehensive product knowledge training.

2. Ongoing Training and Support. Your personal Franchise Support Executive and the Auto Services team will be your active support crew. They’ll help you implement the proven Bridgestone Select systems and processes, and provide you with ongoing feedback on how your store is performing and how you can improve its profitability. Our Retail Department has over 50 people focussed on your success.

WHAT TO EXPECT.

3. Marketing. Advertising and marketing are fundamental to the growth of your business. That’s why Bridgestone Australia invests millions of dollars annually into retail advertising, brand campaigns, product development, consumer research and brand profiling. This investment is one of the key reasons Bridgestone’s brands enjoy such a premium position in the market. We also work with you closely to conduct Local Area Marketing by covering the cost of artwork creation, assisting you with the developing the offer, and aid in the production and distribution of your advertising. Plus we contribute to your store’s opening campaign.

1.

2.

3.

13

4. Exclusive Tyre Products. You will have access to exclusive products only available to Bridgestone franchisees.

5. Signage Funding. We fund the cost of your exterior signage along with branding your work vehicle, ensuring you benefit from brand recall and gain maximum street presence.

6. Group Buying Power. With over 140 Bridgestone Select stores and 170 Bridgestone Service Centres nationwide, you’ll benefit from immense buying power. This applies to initial equipment purchases as well as the Point of Sale system, inventory, uniforms and everything else you’ll need on an ongoing basis.

7. Proven System. With many years’ experience in franchise tyre retailing in Australia, Bridgestone has developed a proven business system. One specifically designed to exceed customer expectations and provide the consistency that builds brand strength.

8. Exclusive Marketing Zone. As a Bridgestone Select franchisee you will enjoy an exclusive geographical area, otherwise known as a Marketing Zone. No other franchise store will operate within it.

14

9. Auto Service. Our Auto Services program complements your tyre business, providing your customers with a One Stop Shop for all their tyre and mechanical needs. You do not need to be a mechanic, our experienced Auto Services team will provide all the support you need.

10. Rebates and buying packages. You’ll be able to purchase tyre products at attractive, market leading rates.

11. Premises. We invest heavily in site selection, using demand modelling and network planning. Only sites that meet the strict requirements of Bridgestone Select are chosen. Bridgestone negotiates with the landlord on a Head Lease and on approval, the franchisee is granted a sub-lease on the property.

12. Industry-standard Point of Sale system. All Bridgestone Select stores use a standard POS system from a leading supplier to the Australian tyre industry. A standardised Product Masterfile is maintained by Bridgestone, providing you with all the products and service codes you need.

13. Operations Manual. The Bridgestone Select Operations Manual details everything you need to know on how to run your Bridgestone Select store. It covers systems, sales and service, operations and administration, standards, marketing and promotions, training, support and details about National Fleet business.

15

Shalvin Raju | Bridestone Select – Woolloongabba, QLD

WHAT THE FRANCHISEES SAY

I’ve been involved in the automotive industry for much of my working life, but never directly with the tyre industry. I find the ability to discuss a tailored plan for business support with my Franchise Support Executive, and State management to be very helpful. As a business grows, its needs and the needs of those that run it changes. It is great to have a franchisor who is prepared to grow and change with each business.

The benefits of a franchise model, particularly at the outset, are clear. Especially getting the existing reputation and brand awareness of Bridgestone. It certainly helps to create business growth within a new store. I explored many different opportunities, but the company ethos and initial interactions with Bridgestone representatives swung it for me.

Bridgestone now have a team in place who are finding a very good balance within our business. My Franchise Support Executive is a great FSE and continues to offer assistance when required, while still respecting the fact that people become business owners to create their own path. Guidance rather than enforcement, much like any management, is critical and well applied. Shalvin Raju

Bridgestone Select Woolloongabba

and Mount Gravatt Queensland

My family are, and always will be, the primary reason for this. Whether that be business, or life in general. With that in mind we came into this business knowing that initially time would be the main sacrifice. Certainly now, we are finding that the hard work is allowing us more freedom. Once the systems and right staff are in place, a balance is easier to find. A franchise model that doesn’t operate seven days a week helps, and was a big selling point for me!

I came into this business expecting to be challenged, and I have been. I also expected that I could and would achieve my goals through hard work, a consistent work ethic, great staff and, of course, franchisor support. It’s still too early to say that I have reached my goals but I certainly have enjoyed the journey so far. I have appreciated the support to date, and I am excited to continue to grow and succeed with Bridgestone.

16

Gary Swift Bridgestone Select – Upper Coomera, QLD

Prior to becoming a Bridgestone Select franchisee, I had basic knowledge but no direct experience in the industry. I was motivated to buy a Bridgestone Select franchise as opposed to other franchise models and/or running an independent business because of my prior association with Bridgestone franchisees who had direct experience with the business. The financial and franchisee support offered to me by Bridgestone was far superior to anything else I had seen.

When I first became a Bridgestone Select franchisee, I was provided with extensive support in all aspects of product knowledge, practical experience and business set up and support. Currently, I receive strong support from my Franchise Support Executive including ordering, target achievements and assistance with a variety of operation matters.

The level of support and my relationship with Bridgestone is excellent. Availability of Bridgestone support staff has been very good. I have had the ability to structure most aspects of the business, financial and operational with a quality team focused on mutual support and success, job satisfaction and a good work/life balance.

Although early in the establishment and operation phase (just over 9 months), my expectations have been met and some even exceeded. Costs have been reasonable and cash-flow strong. I am looking forward to the first “full year” result.

17

Prior to becoming a Bridgestone Select franchisee, I was working in the insurance industry, but had a long held desire to own and operate my own business. The tyre and automotive industry is one that I had identified as having maintained steady growth over a long period of time, even in challenging economic times, with more and more vehicles on the road each year. This, combined with a passion for cars and motorsport, lead me to Bridgestone Select. Bridgestone ticked a number of important criteria for me – a trusted brand name, quality products, and genuine support from the franchisor. After investigating a number of different franchise programs, it was clear that Bridgestone Select was for me.

The benefits of the Bridgestone Select franchise are wide ranging. The support and training are excellent, in particular the ongoing relationship with my Franchise Support Executive (FSE). My FSE is a true business partner with plenty of practical industry experience and knowledge that he shares with me in the operation of my stores. The FSE’s , also understand my goals and aspirations for the businesses, and bring forward ideas, and suggested improvements to assist me in achieving them.

Stuart Brown | Bridgestone Select – Fountain Gate, Richmond, Rowville, Cranbourne, Oakleigh (Victoria)

The product range is comprehensive, and most importantly competitive. Bridgestone provide a strong national marketing program for the stores, as well as a number of customer retention and promotional tools that are all critical elements in the current and ongoing success of my stores.

Having started off with one store, I’m now a multi store franchisee with Bridgestone. It’s been a lot of hard work, but if you are prepared to put in the effort and follow the systems, the benefits will follow. If you enjoy retail and dealing with people, and are looking at a franchise that is with a trusted brand and provides terrific franchisor support, then Bridgestone Select is a great opportunity.

18

AUTO SERVICE Auto Services are an essential component in the success of Bridgestone Select. To ensure you maximise this component of your business we will provide you with –

Comprehensive training

Proven business processes

Access to preferred supplier agreements

In store support from our team

Auto Service store branding

19

WHAT ARE THE COSTS?Initial Franchise and Training FeesThe investment required to open a Bridgestone Select store depends on the size and location of the property and whether you’re purchasing a new or existing store. Indicative cost of setting up a new store or purchasing an existing one is from $285,000 including your franchise fee.

Ongoing Franchise FeesThese are calculated on sales of all qualifying products and services at an extremely attractive rate of 3.5%. Unlike many franchise systems Bridgestone does not charge a separate marketing levy.

20

Jenny and Eric MiltonBridgestone Select Slacks Creek and Bethania – Queensland 21

ASK YOURSELF:

If you can honestly answer ‘YES’ to all of these questions, you could be a successful Bridgestone Select franchisee.

• Do I have a passion for retailing?

• Do I really want to take control of my destiny?

• Do I have the necessary self-motivation to be a business owner?

• Do I have a strong desire to achieve and succeed?

• Do I have strong communication skills?

• Do I have a genuine interest in people?

• Do I have the ability to deliver outstanding customer service?

• Do I have the ability to relate well to employees?

• Am I prepared to be actively involved in my business?

• Will I be comfortable working within a franchise system?

Only you can know for sure whether being a Bridgestone Select franchisee is the right choice. Previous experience in the automotive industry might be useful but it’s not essential–we’ll provide all the training you need. But management capabilities and a commitment to fantastic customer service are prerequisites.

IS IT RIGHT FOR YOU?

22

Are Franchisees expected to actively work in store?Yes. Franchisees are expected to work in store. This is an important factor in the success of our stores.

FREQUENTLY ASKED QUESTIONSWhat is the term of a franchise?For a new store the franchise has a five year term with a five year option.

Do I have to be a mechanic? No, an interest in cars and Auto Service is certainly valuable, however we have a highly qualified team of Auto Service experts to assist you in driving the mechanical component of your business.

Can I own more than one Bridgestone Select Store? Yes you can, after a period of time successfully running your first Bridgestone Select store.

Who selects the site?Bridgestone will select the site and secure the lease. Ultimately however, you must satisfy yourself as to the suitability of the premises.

Have you got any sites ready to go?For existing stores please contact the state based Franchise Development Advisor and they will refer you onto any stores currently available.

Is previous experience in tyres required?No, we will provide you with all you need to know.

23

Andrew Andrawos Bridgestone Select – Glenelg, Kidman

Park, Aberfoyle Park and Osborne Park – South Australia

24

25

The Bridgestone brand has a global reputation as the tyre industry market leader, renowned for producing quality products and being at the forefront of technology, innovation and continuous improvement. Bridgestone Corporation is the largest tyre manufacturer in the world.

The company’s products had a presence in Australia going back to the 1960s and beyond. But it was in 1980 that the brand took a major step forward in this country when it purchased Uniroyal Holdings Ltd., renaming it Bridgestone Australia in 1981. Initially independent stores were affiliated with Bridgestone and had some branded signage.

Then Bridgestone approached these stores to become Bridgestone Tyre Centres and sign up to supply agreements (early franchises). In 1986 the first official franchises were signed up after new franchising control laws were introduced by the government. The Bridgestone Tyre Centre franchise network steadily grew to a national retail chain of 200 stores by 1990.

In 2003 Bridgestone Australia created a Retail Department, specifically to improve the performance and appearance of the stores. In early 2004 the new Bridgestone Tyre Centre store livery and internal standards were launched, and the first Operations Manuals were produced. Meanwhile, field staff dedicated to improving businesses were employed nationally. In 2005 comprehensive consumer research was commissioned to ask: “What do consumers want from a Tyre Retailer?” The results drove Bridgestone to consider major improvements to their retail presence in Australia, and the Bridgestone Select model was born. To further strengthen the franchise model, vehicle servicing and repairs were introduced as a core offering of Bridgestone Select in 2010. It has since proven such a success that it has been rolled out across the Asia-Pacific region and will consist of over 500 stores by the end of 2014.

BRIDGESTONE IN AUSTRALIA

26

If you are interested in becoming a Bridgestone Select franchisee, make an enquiry at the web address below.

One important thing to let us know is whether you’ll be looking at establishing a new store or converting your existing business to become part of the Bridgestone Select family.

We’ll be there to support you every step of the way through the application process.

You can enquire at: www.bridgestonetyres.com.au/franchise-opportunity

Or call us on 08 8206 0200 to talk to the Franchise Development Advisor in your State.

NEXT STEPS

27

Tyre Marketing & Operations 196 Greenhill Road, Eastwood, SA 5063 T. 08 8206 0200 F. 08 8206 0399

www.bridgestonetyres.com.au