FRANCHISE Information Package

OUR

SERVICE

PROMISE

Ve l o f i x i s c o m m i t t e d t o p r o viding the best and most convenient Ser vice in the Cycling I n d u s t r y. We w i l l a c h i e v e t h i s by establishing loyalty and long term relationships with both our Clients and Supplie 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, & Innovation to allow us to deliver this Premium Ser vice at competitive pricing.

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ABOUT US OUR MISSION OUR STORY VELOFIX TEAM FRANCHISEE PROFILE ARE WE THE RIGHT BUSINESS FOR YOU? TRAINING PROVIDED SUPPORT OFFERED GENERAL COSTS & FEES FREQUENTLY ASKED QUESTIONS NEXT STEPS

#3 - 5 East Broadway Vancouver, BC, V6B 1V4, Canada

ABOUT US 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!

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OUR MISSION To 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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TEAM VELOFIX FOUNDERS

Chris brings over 20 years of Business Experience to Velofix. His Senior Management experience includes growing a Company to $90 million and a successful IPO, launching an Internet startup that has raised $45 million in Financing and driving growth at a $30 Billion Consumer Packaged Goods Company Chris is active in endurance sports and his most recent results are a 2:54 Boston Marathon & a 38th overall finish at IronMan Canada 2012 Chris is a graduate of the SFU Executive Management Program.

CHRIS GUILLEMET

--- CEO & Founder

Davide’s business experience includes President of a Real Estate Investment Trust and Senior Management at a Renewable Energy Company Davide has represented Canada at the Olympic and World Cup levels of soccer. He finished his professional career in Europe and North America in 2005. Davide has a Finance Degree from the Pamplin School of Business from the University of Portland.

DAVIDE XAUSA

--- President & Founder

Boris is a Master Certified Bicycle Mechanic from the Barnett Bicycle Institute Colorado Springs, Colorado. Boris has 9+ Years of Bike Shop Mechanical & Management experience Boris is a 3-time Canadian National Track Champion. He is a graduate for the Bachelor of Business Administration program at Langara College.

BORIS MARTIN

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--- COO & Founder

TEAM VELOFIX STRATEGIC ADVISORS

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.

CHARLES CHANG

--- Investor & Advisor

Simon is an Investor, Franchise Owner (Victoria) & Strategic Advisor to Velofix. Simon is a 4 x Olympian 2 x Olympic Medalist & Flag Bearer London 2012 (2000 Gold & 2008 Beijing Silver). Now retired from international competition, Simon is the Director of Sports Entertainment @ The Fantan Group and active with his Business & Charity Ventures.

SIMON WHITFIELD

--- Investor & Advisor

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OUR STORY Velofix 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, & Commuter. Our Proprietary Booking System, integrated SalesForce CRM, & Inventory Management Systems have been developed to provide a Premium Service to all our clients. Our Certified Mechanics use only the best tools and parts available in the industry.

FRANCHISEE PROFILE Simon 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 company 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 wit h like-minded people who have a strong desire to drive c hange in t he cycling industr y.

Qualities We Seek:

Are You Ready To:

Commitment to being hands on in the business.

Follow the Velofix System.

Passion for Cycling.

Work in a physically demanding environment.

Thrive in a Relationship driven business.

Be active in your success & failures.

Strong business acumen.

Get involved with your local cycling community.

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

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

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.

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SUPPORT OFFERED Velofix 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.

MARKETING

OPERATIONS

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

Provide ongoing support and guidance for effective business management.

INVENTORY SOURCING

VEHICLE PROCUREMENT

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

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

TRAINING

POINT OF SALE

Franchisee training program conducted in Vancouver for up to 5 days prior to launch. Additional training & development provided on an on-going basis.

Reporting, customer loyalty programs and Point of Sale solutions.

PROMOTIONAL MATERIAL Promotional material, programs, & customer incentive programs provided and organized by Velofix.

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

GENERAL COSTS & FEES Potential 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. FRANCHISE PURCHASE FEE (NEW TERRITORY) $25,000

Franchise Purchase Fee ONGOING FEES

8%

Monthly Royalty Payments Monthly Branding Fund Monthly VeloNetTM User Fee

2% $90

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FREQUENTLY ASKED QUESTIONS DO I NEED TO BE A MECHANIC? No, but your Lead Mechanic must be fully Barnett Institute Certified prior to Launch & training in Vancouver.

WHAT IS THE TERM OF THE AGREEMENT & INITIAL FEES?

The term of the initial agreement is 5 years. The term is renewable for an additional 5 years of the Franchisee has satisfied its obligations during the original term.

DOES VELOFIX HAVE ANY LEASING OPTIONS IN PLACE TO SUPPORT A FRANCHISE PURCHASE? Yes Velofix has partnered with two well known and respected leasing companies that can bundle into a fixed asset lease approximately 70% of the total franchise start up costs. This percentage is based on the applicants credit history.

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HOW DO I KNOW A SPECIFIC TERRITORY IS AVAILABLE? Velofix has predetermined service territories in key cities across Canada. Once we receive your application and background information document we will narrow down those service areas with you.

DOES VELOFIX ALSO ISSUE MULTI-UNIT FRANCHISES OR AREA DEVELOPER CONTRACTS? Yes. Velofix will look at direct franchises, multi-unit franchises and area developer contracts based on the applicants history and experience.

WHAT ARE THE TYPICAL HOURS OF OPERATION? Bookings are available from 7:00am - 9:00pm, Monday - Sunday, every week of the year.

HOW LONG BEFORE I AM UP AND RUNNING IN MY VELOFIX FRANCHISE? Depending on the due dilligence required by Velofix or our leasing partners, a potential franchisee can expect to be in their new franchise within 3 months after application submission.

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DOES THE FRANCHISE AGREEMENT INCLUDE ANY TRADE AREA / TERRITORY PROTECTION? Yes, you will have exclusive rights to an agreed upon territory.

HOW DOES VELOFIX SPEND THE 2% MARKETING AND ADVERTISING FEE? The marketing and advertising fund is allocated into three categories: a) National - Public Relations, Brand Awareness, Advertising b) Regional - Resources tand initiatives that benefit a specific market will be applied accordingly. c) Local - Support is offered to Franchises for local initiatives & campaigns.

IS VELOFIX A MEMBER OF THE CANADIAN FRANCHISE ASSOCIATION? Yes, we have been a member since 2013.

NEXT STEPS

Excited to join the Velofix family? We are sure that this document will raise a number 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.

FOR MORE INFORMATION PLEASE EMAIL: [email protected]

Please visit www.velofix.com - Own a Territory for further information.

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