Franchise Information Kit

Franchise Information Kit“Over 21 Years as Australia’s Premier Trade and Industrial Tool Retailer”

www.totaltools.com.au

Steps to building with us

1

Welcome to the Total Tools Franchise GroupBeing the best means selling the best. Australia’s most trusted tools retailer, Total Tools supplies

only quality trade, industrial or commercial tools and hardware. So you’ll find we’re specialists in

leading brands such as Makita, Sidchrome, Hitachi, Bosch, Stanley, Irwin, Cigweld, Milwaukee,

DeWalt and Sutton.

Already a successful national franchise, Total Tools is currently on a growth trajectory. This retail

network expansion means Total Tools is presently seeking potential franchisees. Read on if you

envisage being part of a dynamic franchise network, actively involved in an exciting growth phase.

A Total Tools franchise is an unrivalled opportunity for anyone with a passion for tools.

You will:

• be guided by a proven retailing and franchising system;

• enjoy the strength of Total Tools’ trusted brand;

• be supported by a national management team and support office.

Total Tools franchisees are positive, focused people, usually with tool or trade experience. Many

already have a good head for business and people management. They choose Total Tools for brand

strength, proven systems, security and the kind of return on investment only great franchises offer.

If you have what it takes to build a successful Total Tools business, we want to talk to you.

“Total Tools appear to us to be the leader in the Australian market in the Professional Trade Retail sector.” Michael Kirkman, Managing Director, Stanley Works Australia

“Our company’s growth with Total Tools has been outstanding and we consider them a great retail partner.” Tom Fukaya, Managing Director Sales and Marketing, Makita Australia

ABOUT THE MARKET

3

About the Tools MarketLike every Total Tools business, your franchise has the advantage of selling into a buoyant and high value

market. In fact, the Domestic Hardware Retailing Industry recently valued Australia’s tools market at

$11.13 billion annual sales. Imagine being part of that.

The market can be divided into 3 primary segments:

Total Tools specialises in supplying tools and machinery to people who make their living

using them. This robust sector comprises anyone who aspires to use professional quality

tools and includes:

• tradespersons

• sub contractor

• government bodies

• construction companies

• manufacturers

• engineers

• farmers

New Household Estimated @ 25%

Professional Tradespeople Estimated @ 15%

Replacement & Renovation Estimated @ 60% 60%

15%25%

4

About the Tools MarketKey tools market facts

• New construction and existing dwelling alterations have driven strong market growth.1

• Current hardware industry revenue is forecasted at $26 billion, of which 60% is considered

‘trade’ or $15.6 billion.2

• 2 million Australians intend spending over $5,000 renovating or extending their home.

• 32% of people plan to make minor repairs/alterations or redecorate/refurbish a house.3

1. Source: IBIS World Domestic Hardware Retailing in Australia. 2. Source: Australian Financial Review. 3. Source: Roy Morgan Research, Mar 07

Bunnings

Mitre 10

Home Hardware

Autobarn

Supercheap Auto

Repco

DIY TRADE

$11.99 Billion

INDUSTRIAL

Reece

BOC

United Tools

Sydney Tools

Trade Tools

DIY Light IndustrialSerious DIY Heavy Industrial

Blackwoods

WHO ARE TOTAL TOOLS

Who are Total Tools?Total Tools is Australia’s leading trade and industrial tools retailer. Each store offers a wide product range

and experienced staff who deliver fast, individual attention and professional advice. Thanks to a detailed

retail strategy for store owners, we are able to deliver Tool Heaven.

Total Tools is sought out and recognised for:

• an extensive range of professional tools;

• superior service and trusted, qualified advice;

• a “can get it, will get it” customer approach.

Because Total Tools is a team passionate about tools, we’ve

built a range and quality reputation that is exciting and

irresistible to customers. Smart, competent staff offer

advice and product knowledge to support customers in

a way that keeps them coming back.

Through strategic marketing, Total Tools works

continuously to extend an already recognised brand.

Efforts encompass advertising and promotion, strong

store level visibility and online marketing.

“My Total Tools store gives me the perfect work/life balance. I have a profitable business whilst still having time to enjoy life”

Ian Chambers Total Tools Braeside

6

7

Who are Total Tools?Total Tools product importing division provides a strong advantage over competitors.

By importing direct, Total Tools not only sources quality tools and equipment, but because those

products are branded for exclusive sale through Total Tools retail stores, customers seek them out.

Plus private brands offer franchise owners like you improved profit margin.

Our goal is to be Australia’s ultimate

“One Stop Tool Shop” for people who use

tools for a living.

Total Tools also guarantee everything we

sell, regardless of the manufacturer’s policy.

There’s a clear focus on continuous

improvement in every area of the business.

Your Total Tools franchise business will be

part of a progressive modern company with

a quality philosophy and growth objective.

8

o be Aust tool retai

ols.

We will provide

• Expert advice

• Best practice and processes

• Competitive, profi table, quality products

• The right solution fast

• A big product range

• Tool Heaven

that meets and exceeds customers expecta relationships with all stakeholders.

Who are Total Tools?Vision

Total Tools aspires to be Australia’s most profi table and robust professional tool retailer for people who make a living out of using tools.

We will provide

• Expert advice

• Best practice and processes

• Competitive, profi table, quality products

• The right solution fast

• A big product range

• Tool Heaven

that meets and exceeds customers expectations whilst developing superior relationships with all stakeholders.

VISION

Our goal is to grow the business responsibly by nurturing long-term stakeholder relationships plus meeting and exceeding customer expectations.

9

2. Big Range of Professional Tools

3. Knowledgeable Service

4. Total Tools Logo

5. Can and Will Get It

Personality1. Excitement - IRRESISTABLE

2. Ruggedness - RUGGED

3. Competence - SMART

4. Sincerity - HONEST

5. Sophistication - DOWN TO EARTH

BRESS

TOHEA

Who are Total Tools?Values

Brand Attributes1. Red Sheds

2. Big Range of Professional Tools

3. Knowledgeable Service

4. Total Tools Logo

5. Can and Will Get It

Personality1. Excitement - IRRESISTABLE

2. Ruggedness - RUGGED

3. Competence - SMART

4. Sincerity - HONEST

5. Sophistication - DOWN TO EARTH

Derived Benefi ts1. Easy to Spot

2. Got What I Need

3. Get the Right Solution Fast

4. Signpost

5. One Stop Shop

Values1. Honest and Ethical

2. Service Oriented

3. Innovative

4. Reliable

5. Passionate

BRAND

BRANDESSENCE

TOOLHEAVEN

• Honest and Ethical

• Service Orientated

• Innovative

• Reliable

• Passionate

10

Total Tools HistoryTool retailing has changed dramatically in 21 years. In 1989, tools were sold from behind a counter.

Staff would take the customers order and go “out the back” to grab the product. Back then, service

and knowledge were the lifeline of a successful business.

At Total Tools, the products and retail environment may have changed, but the service and knowledge

we provide customers has not.

Total Tools began in 1989 as a co-operative of independent tool outlets. Early stores in Victoria and New

South Wales traded under the name Total Tools Industrial. Later expanding interstate to South Australia

and Queensland, the group updated its identity to Total Tools and has since become Australia’s premier

franchised tool retailer.

In taking its November 2007 decision to

implement a Network Development

Plan, Total Tools’ board resolved to

adopt a successful franchise model.

The National Support Office was

suitably resourced to implement a

growth strategy, and the office

relocated to Derrimut, Victoria to better support an expanding network.

Implementing the structured franchise network plan has realised a goal... to become Australia’s market

leader. Total Tools is now entrenched as Australia’s paramount professional industrial and trade tool retailer.

WHAT W

E OFFER

12

What a Total Tools Franchise OffersBecoming a Total Tools franchisee means you benefit from:

• Proven Business ModelThe Total Tools business model has been tried and tested, so all you need to do is apply the formula.

• 21 Years StrongBecause Total Tools has been trading since 1989, you are joining a

firmly established business. Having managed steady, consistent

growth over 21 years, Total Tools is poised and resourced to expand

even greater nationally.

• Turn-Key SystemWith store setup and technology carefully organised for optimum

results, you simply walk in and set up. Total Tools draw on decades of

experience, research and new technology in advising on store layout,

site location, point of sale and stock systems, plus marketing.

13


• Selling Premium ToolsYou will always feel confident about the tools and equipment your business sells. Total Tools know

believing in your product improves sales. So stores only carry quality items and reputable brands.

That way you will always offer customers the right solution.

• Promotion and MarketingNot every franchise is a national brand or supports its network on a national

scale. As a Total Tools franchisee you’ll be involved in the development of

national marketing campaigns, local promotions and store-specific

neighbourhood marketing initiatives.

Total Tools brand awareness and customer loyalty are driven by a website, TV and Radio

advertising, email marketing and catalogue distributions.

14

tional Operational Support

exists to ensure the success f every franchisee and their Total Tools store.


• National Operational SupportBe guided and supported by a talented and experienced team.

• IT InfrastructureEnjoy the world-class capabilities of Pronto Store Management Software system. Fully integrated across

the Total Tools network, you’ll have all the backup and support you need. Dedicated National Operational

IT Support staff are on-hand with help desk assistance.

National Operational Support exists to ensure the success of every franchisee and their Total Tools store.

FRANCHISE SUPPORT

16

Supporting your Business from the startFranchise Establishment Support

Like every new Total Tools franchisee you will benefit from National Support Office guidance and

assistance during the setup and establishment of your store.

Establishment support includes:

• site location advice

• demographic research data

• commercial lease guidance

• document support and assistance

• store design and fit-out

• staff recruitment, training and mentoring

Store Site Location & Selection

To help put your new Total Tools store in an ideal position, you will receive professional advice

with regard to:

• a preferred store location, the suitability of properties and site selection;

• aspects of commercial leasing, contract negotiation and documentation support.

17

Supporting your Business from the startFranchise Establishment Support

Demographic Research & New Store Sites

Total Tools’ external research consultants have completed detailed analysis of sales drivers and

demographic data across Australia. To offer each franchise the best chance of success, this study

was used to carefully map exclusive territories for every Total Tools store.

Census Mesh Blocks

18

Supporting your Business from the startFranchise Establishment Support (cont)

Store Design & Fit-Out Support

To maximise operating efficiency and sales performance, Total Tools provides a specific and proven store

layout. In partnership with each franchisee we plan and implement your optimal store layout and fit out.

The Total Tools store merchandising layout is fully specified and based on a successful formula. This

includes Total Tools’ proprietary Power Tool Zone that is versatile, efficient, cost and retail effective.

Total Tools uses a national store design company to strategically create the ideal atmosphere and

environment of a tool store. Our aim at Total Tools is to create “Tool Heaven” for our customers.

19

Supporting your Business from the startFranchise Establishment Support (cont)

Induction Training

As a successful franchisee you will enjoy a comprehensive initial training program. Gather skills and

confidence throughout, especially during your store placement.

You will create network relationships and become familiar with all aspects of operations so you can

successfully manage your own store from day one.

The initial training compromises but is not limited to the following components:

• Sales

• Service

• Financials

• IT

• Merchandise

• Visual Merchandising

• HR

• Back Office

20

Supporting your Business from the startOngoing Franchise Support

Total Tools’ National Support Office assists you to grow and run a successful business. Ask the dedicated

staff to advise on operations, marketing, product management, product purchasing, store management,

and staff management.

All franchisees benefit from a constant drive to:

• provide professional and reliable systems, programs and advice;

• offer support that allows the business to focus tool retailing;

• ensure programs, systems and advice comply with professional standards;

• always promote Total Tools’ business interests;

• plan, develop and grow fresh business with new franchisees;

• continuously improve performance of systems and programs;

• develop franchise owner’s abilities to manage their total business;

• understand and respond to the needs of franchisees.

21

Supporting your Business from the startOngoing Franchise Support

Marketing Support

Total Tools takes its investment in marketing and promotion seriously. The success and growth

of your store (and the overall franchise network) relies on rolling out smart, practical and proven

marketing initiatives.

Because Total Tools enjoys buying power across all franchise stores, many suppliers provide

marketing rebates. These rebates make up Total Tools’ Marketing Fund, so individual stores need

not directly contribute. All other supplier trading terms like additional rebates, payment settlement,

quantity discounts and volume incentives are passed on to you in full.

The 3 marketing budgets resourced by the Marketing Fund are:

1. National Marketing controlled by the National Marketing Manager to promote all stores nationally.

3. Local Marketing allocated to individual stores for local area marketing initiatives and activities.

2. Regional Marketing regionally controlled in consultation with the National Marketing Manager to support dedicated regional marketing.

22

Supporting your Business from the startOngoing Franchise Support (cont)Another key investment area is national catalogues and flyers. These promotional items are designed,

printed and distributed by Total Tools’ National Support Office to every store. Copies are provided for your

‘in-store’ use, letterbox distribution and folded ready for mail-out.

Key features and benefits:

• National Marketing Fund

• National, regional and local marketing programs

• Strong, recognised branding across stores, vehicles merchandise and POS

• National store owner Advertising Committee

• Extensive catalogue printing and distribution program

• Exclusive customer loyalty program - Insiders

• National Style Guide

23

Supporting your Business from the startOngoing Franchise Support (cont)

Operations Support

Ongoing operational support ensures your franchise business can maximise store profit and performance.

The National Support Office assists Total Tools stores through:

• Regular business analysis of your store and staff performance.

• Measuring and reporting against Key Performance Indicators (KPI).

• Help and guidance to increase sales and store owner profit. (“If you can’t measure it; you can’t improve it”. )

• Total Tools benchmarking includes but is not limited to:

- Sales. Sales by category. Sales by supplier.

- Stocked lines

- Gross profit margin

- Out of stocks

- Aged stock

- Customer visits

- Average sales

- Items per sale

• A “Buddy” system linking your

new franchise with a successful store

owner and mentor.

Ongoing Training

Keep your store Managers and staff on top of key

business functions with ongoing training support.

24


Conferences

At Total Tools, we believe the best environment to learn new ideas, concepts and sales drivers are from

your fellow store owners. That is why Total Tools holds 2 conferences a year for both you and your family

to attend. Our annual December conference culminates is a supplier showcase where you will have an

opportunity to see and speak to all our major suppliers in one location.

Product Support & Private Brand Program

Through its national multi-store buying power, Total Tools has secured many purchase related benefits.

As a store owner, you will enjoy volume incentives, favourable trading terms and quantity discounts.

Local Product Support

The Total Tools product support team has successfully negotiated favourable

trading terms with leading suppliers like Makita, Stanley, Bosch, Irwin and Cigweld.

Special trading terms free up cash flow so you can maximise profit, plus save time

and money. Many deals are negotiated on

stores’ behalf, allowing you more time to

work on your business.

Trading terms with local suppliers allow

for rebates, settlement discounts and

over and above offers or concessions.

25

Exclusivity

Over 1000 products ranged through 5 private brands that provide exclusivity and price protection in the market.

Greater Profit Because we import direct, Total Tools’ private brands offer franchisees attractive profit margins. The combined network buying power imports around 200 containers each year.


Private Brands

Total Tools Importing sources exclusive private branded products for Total Tools stores.

Key features and benefits of this program include:

dLibrary - Online Digital Asset Management System

Total Tools has an online photographic library of all private branded products in their portfolio. That is over

1000 products under 5 brands. As a store owner, you have 24 hour access to high resolution images to use for

marketing purposes such as print and TV ads as well for tenders and quote purposes.

26


IT Support

Total Tools recognise how integral technology and computer systems are to the success of your store

and our national franchise network. Information technology is an everyday part of our operations.

The Total Tools network is integrated from local store point of sale right through to national marketing

and promotions. This includes:

• Network Store Management Software System (Pronto)

• Dedicated Support Office personnel

• Secure Virtual Private Network

• Cost & Bar Code Stock Management

• Standardised Computer Software

• Standardised Computer Hardware

World class Pronto software provides a leading Enterprise Resource Planning (ERP) system.

Deployed across the Total Tools network, Pronto offers your store, other franchises and the National

Support Office advanced functionality such as:

• Central Server Based Integrated Management System

• Purchase Order Tracking Custom Order Facilities

• Product File Managed (TTI) Automatic Reordering

• EDI Private Brand Orders Detailed Sales Analysis Reports

• General Ledger Fully Supported by TTI

• Set Chart of Accounts Comparative Store Performance

• Special tracking of NS Lines – catalogue/slow moving lines

FRANCHISE COSTS

28

Franchise Investment DetailsFranchise Setup Costs

Depending on chosen location and store size, your initial Total Tools investment may vary.

For more detailed information on initial fees and set up costs, please speak to our staff who will be able

to discuss all areas in detail with you.

Total Tools recommends that you seek independent financial advice when contemplating opening a Total

Tools store. Your financial advisor will be able to talk you through the financial implications and ways to

structure your accounts.

Franchise Fees

A Total Tools Administration Fee applies to gross sales. This covers all your franchise business support

and services. Total Tools charge no additional, ongoing or franchise performance fees.

STEPS TO SUCCESS

30

STEP 1: ENQUIRY STAGE

A Make a Franchise Enquiry to Total Tools

B Read and Assess Franchise Information Kit

C Informal Interview with Total Tools

STEP 2: APPLICATION STAGE

A Complete Application Form

B Review Total Tools Documentation

C Seek Independent Franchising Advice

D Seek Funding Advice

STEP 3: ACCEPTANCE/APPROVAL STAGE

A Formal Interview with Total Tools Management

B New Franchisee Acceptance

C Business Plan Presentation

D Contract Sign Up

STEP 4: STORE ESTABLISHMENT

A Site Identification and Acquisition

B Legal Documentation

C Induction and Training

D Store Establishment

STEP 5: STORE OPENING

A Store Open

Steps to a Total Tools Franchise:

On Your Way to Building with Us!

For further assistance please contact:

TOTAL TOOLS19 Grimes Court, Derrimut,Victoria, Australia. 3030Tel: +3 9394 4300Fax: +3 9394 1699email: [email protected]

www.totaltools.com.au

Franchise Information Kit

Documents

Transcript of Franchise Information Kit