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Grow, Achieve, Succeed with your own Backcare & Seating Store


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AT A GLANCE Concept

Investment Required

Ergonomic, lifestyle and healthcare products and furniture for children, adults and seniors

$250,000 – $295,000

Territory

1990

Australia wide 60 locations

Qualifications Required

Training Provided

General business, excellent communication and people skills.

Business Established

3 weeks initial training plus 2 weeks in-store. Ongoing training and support

Ownership Options Stand Alone Store Co-Brand Store In-Store Module

Marketing Support Catalogue, product brochures, constant contact program, online local area marketing tools, internet, point of purchase, dedicated advertising and marketing team.

Point of Difference Proprietary and patented products Global network Recession proof World class business systems "Lifestyle" working hours

Agreement Terms 5 years + 5 years

Traditional Franchise Model VS Backcare Franchise Model Traditional Franchise Model

Backcare Franchise Model

FRANCHISOR

FRANCHISOR

SUPPLY CHAIN

SUPPLY CHAIN

Supplying: A. Non exclusive products B. Franchise branded products

Supplying: A. 70–80% of goods sold as exclusive

IP PRODUCT DEVELOPMENT/R&D Companies are owned & controlled by Master Global Franchisor

B. Majority of goods sold have IP C. Sales tools have IP

FRANCHISEE Stand Alone Model

FRANCHISEE Stand Alone Store

CUSTOMERS

In-Store Module

CUSTOMERS Retail

Businesses and/or Retail

Co-Branded Store

Referral

Businesses

Government

Occupational Health

Contract

Healthcare

Corporate


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Our stores are designed to model best practice retail principles, the brand positioning is designed to communicate the lifestyle benefits of our product range.

Ownership Options Stand Alone Store The stand alone store model of the Backcare & Seating franchise offers the ability to develop the retail presence in a new location with maximum exposure of the brand. With both the stand alone model and the co-brand you access the full franchise partner program giving you all the benefits of a Backcare & Seating franchise license.

Co-Brand Store This is a great option for an existing business that is keen to grow to the next level. You may already have a business selling health care products, furniture, office equipment, etc. with scope to free up retail floor space. The introduction of our sophisticated retail system can enhance significantly your existing operations whilst, building an iconic presence in your community. Lets discuss whether your business may suit the Backcare & Seating co-brand model.

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Rapid Our RAPID (Retail Ancillary Product Information Display) System is a modular display system selling some of our exclusive product lines. Each display unit takes one square metre of floor space and enables you to bring some of our key product lines to your customers. You can introduce up to 3 of these Rapid units into your existing business. The Rapid program is a dealer relationship which can be a great way of stepping towards a franchise partnership.


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SWEEDEN

FINLAND

NORWAY DENMARK IRELAND FRANCE

UK

BELGIUM

GERMANY

CANADA

USA

Today we have franchised and licensed operations via associated companies in the North America, Europe and Asia with products selling in 15 countries worldwide.

JAPAN

HONG KONG

CHINA

SINGAPORE

AUSTRALIA NEW ZEALAND

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OUR STORY As of March 2005, data from the National Marketing Institute in the USA showed that the industry has enjoyed a healthy annual growth rate since 2001. Three social factors suggest that this business trend will also continue here in Australia: ■

People are spending more time engaged in sedentary activities such as working at a computer or driving a vehicle and the authorities are aware of the health and safety effects.

As the Baby Boomer generation ages, its members are taking a proactive approach to their health to achieve greater comfort and less stress in their lives.

People are becoming increasingly committed to a healthier lifestyle and awareness of good ergonomics.

All three cases present a strong need now – and in the future – for the products we offer at Backcare & Seating. To meet this growing demand, we're targeting the addition of new locations to our national store network. As all of our stores are franchised, we offer an outstanding opportunity for qualified entrepreneurs who share our vision and want to reap the rewards. The strategy for our success has always been clear: take a wide-open market, utilise a sound business model, and apply extraordinary dedication to serving our clients who seek relief and prevention of back and neck pain. Melbourne, Victoria is where it all began. A physiotherapist and visionary established a unique specialty retail store with products geared towards health and posture. He soon realised the need to develop better seating solutions, especially as customers spent more time sitting at work and home. This led to the development of a range of world class leading ergonomic products. Over the past 12 years these products have generated an enviable reputation for quality and performance globally. In early 2007, Backcare & Seating, Australia's largest speciality retailer of comfort, wellness and ergonomic products moved to the next leg in its development. Through the existing licensed network an aggressive expansion program saw a comprehensive redesign of the retail business and product offering.

Back pain affects some 80% of people in the Western world. A recent Australian Bureau of Statistics National Health Survey found that 38% of expenditure on physiotherapy, chiropractic and therapeutic massage therapy was for back pain. The same survey also found that $866 million of Australia’s national health system expenditure was spent on back pain.

Perhaps what is most astounding about our business is not how much we've grown in just over 18 years, but just how much growth potential still remains.

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OUR PROMISE Teamwork

Transparency

We encourage strong involvement from franchisees across our business.

We develop supportive franchise partnerships through honest business practices.

Dedication

We're improving our clients' quality of life every day. At Backcare & Seating, when we say comfort is our business, we mean the comfort of our clients – and our franchisees. We want you to feel comfortable with your decision to join the Backcare & Seating team. It's this philosophy that has allowed us to grow and maintain a unique and highlyregarded position in a multi-billion dollar industry. We've also received an overwhelmingly positive response from the healthcare community and have formed strategic partnerships with many medical professionals.

We're 100% committed to creating growth opportunities for all franchisees through unparalleled support and education.

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WHY US Our Commitment

Market Position

Market Segments

We are committed to opening successful stores and cultivating the growth of all franchisees. This is evident in our high quality training programs, aggressive marketing and merchandising techniques, and reliable support team of experts.

For nearly two decades, Backcare & Seating has been an industry leader. We're the nation's largest specialty retailer of ergonomic products. We are the only franchised retail business of our kind in the $7 billion health and wellness Industry.

Our spread of market segments allows you to focus your business toward your natural strengths or have a diversified approach.

Our clients are people who understand the benefits of healthy living and preventative care. They're loyal to our brand and look to us for integrity, care and quality.

Our track record is our international network of suppliers and manufacturers of our exclusive and patented products established over 12 years.

Physiotherapists, Chiropractors & Osteopaths

We develop and provide the highest quality products for comfort and stress/pain relief across several exclusive lines. We offer products in five lifestyle categories: Office, Sleep, Comfort Seating, Support and Accessories.

In addition, our industry is expected to grow substantially over the next 30 years. With more Australians than ever taking a pro-active approach to their health, Backcare & Seating is in a strategic position to capitalise on these trends.

Health Care Referrals Medical Practitioners & Specialists

Ergonomist & Occupational Therapists Rehabilitation Providers Corporate Occupational Health & Safety Purchasing & Specifiers Architects & Designers

According to experts, Australia's 5.4 million Baby Boomers comprise more than half of the consumer market... and they want to Feel Better, Work Better, and Live Better. We provide clients a perfect solution to do just that.

Age

% of Total Population

0–17

24%

18–25

10.7%

26–42

24%

43–64

28%

65–79

9.6%

80+

3.7%

3.7% 9.6% 24%

Baby Boomers 28% 10.7%

24%

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Our success is a result of our priorities. We are deeply committed to the success of our franchisees to be able to provide our valued clientele the finest products to address their needs.

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PRODUCTS One of the best aspects of becoming a franchisee is that Backcare & Seating provides the finest, most exclusive ergonomic products on the market. Many of our products are produced in our factories around the world and are not available through any other retail source or via the web. 70–80 per cent of your sales can be expected to be generated through this product range.

Our involvement in the wider Backcare Technologies group provides us access to ongoing product development and a channel to develop exclusive retail partnerships with other leading producers from around the globe. There is no doubt about the quality and care you provide your clients. It is this commitment to quality products that have made Backcare & Seating the brand that consumers trust.

Since 2001, our Backcare & Seating Co-Branded Store has provided a real point of difference from our competitors due to the exclusivity of the key product range. Tim Cohen, Brighton VIC

Having our own proprietary and patented products provides you with unique positioning and enables you to avoid utilising cut price retail tactics.

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THERE FOR YOU Initial Education

Starting Off

New franchisees spend three weeks training at the headquarters of Backcare & Seating in Melbourne, Victoria. We schedule 4 training sessions per year. Ideally, new franchisees attend two to four months before their targeted store opening. Prior to opening your store, our team will support your pre-opening plan then assist you in store during the key opening week.

Could we be a great company without providing great support? Backcare & Seating is Australia's largest specialty retailer of ergonomic and comfort products – and we want to stay that way. Support of our franchisees is essential to achieving our goals. And over the past 18 years, we've developed a system that is proven to create consistent results.

The first two weeks of education concentrates on in-depth product knowledge, spinal anatomy, client relations and sales. Our curriculum of hands on training and interaction is enhanced with field trips to vendor facilities and various local stores.

Location Assistance

The final phase of education focuses on the keys to running a successful operation. The senior staff of Backcare & Seating franchising lead sessions on the following vital topics: ■

Business planning

Financial management

Human resources

Using the Intranet

Marketing, advertising, and public relations

Merchandising & initial inventory requirements

New product development

How does one go about finding the right location for a store? Our development team has identified the most appropriate areas to open your store. We then help you through the process of locating and negotiating your location with the assistance of our professional real estate partner.

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At Backcare & Seating, we don't just give our new franchisees a manual and our best wishes. Our comprehensive training represents the level of commitment we make to our valued franchise owners and provides you with the basis to become a leader in our field so you can provide your customers with an informed and knowledgeable assessment of their needs.

On-Site Training

Merchandise Support

Mentor Program

We send a member of our Operations Team on a one-week on-site training visit to help you and your store perform as effectively as possible starting on the day you open. Your Operations Representative will come for the first five days of your soft opening, and then again for your grand opening. We will assist in the setup, merchandising and staff training of your store. Your Operations Representative will provide ongoing consultation and support on ways to build your business.

Our Merchandising Team will guide you in developing initial inventory, one of the most daunting tasks for franchisees. We will provide you with on-site training and guidance in Visual Merchandising to make your store the polished retail environment you deserve.

We know the value in having a mentor. That's why you will be assigned an experienced franchisee to be your mentor, as geographically close to your location as possible. With a knowledgeable peer nearby, you will see the extraordinary benefits a close ally can offer. Before your own store opens, we ask that you spend four days working with your mentor in his or her store. You will receive hands-on training in human resources, operations, inventory management, pointof-sale system, marketing, merchandising, finance, and accounting.

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Great franchise support doesn't stop with start-up support. It continues with ongoing support that you can count on when you need it most, and enhances our ethos of constant improvement in what we do and how we do it.

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DELIVERING FOR YOU Continuous, At-the-Ready Support

Franchise Support System

Your mentor and Operations Representative are always just a phone call or e-mail away. Whenever you have a question or need advice, our experienced corporate team is at your service.

Our Franchise Support System Intranet provides access to our corporate staff and network of store owners.

Company Engagement

Advertising & Marketing

We organise regional meetings, refresher training, conventions, and several franchise committees to engage franchise owners with decision-making in all aspects of our business.

Enjoy the benefits of an advertising and marketing program that includes: ■

High-end consumer catalogues and brochures

Customer relationship management system

Brand Awareness

Constant contact marketing program

Local area marketing tools

Point of sale materials

National brand awareness campaigns

Backcare & Seating continues to gain visibility in the broad consumer market. We have enjoyed 18 years of exposure within the corporate and referral markets. Together with our advertising and marketing program in place, we are poised to expand exponentially.

Store Catalogue

Newsletter

Website

Vehicle Livery

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Product Information Sheets


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OVERVIEW Investment Overview

Expenditure

Estimated Amount

The Backcare & Seating franchise program is designed to give entrepreneurs the opportunity to benefit from an established brand in a growing industry. We are seeking people who are committed to building a successful business with the following capital requirements:

Initial Franchise Fee

$40,000 plus GST

Real Property, Lease, Payments and Improvement

$50,000 to $70,000

Equipment, Fixtures, Supplies

$31,000 to $39,000

Inventory

$70,000 to $80,000

Training Related Expenses

$2,000 to $7,500

Grand Opening Expenses

$7,000 to $10,000

Insurance

$3,000 to $5,000

Signs

$12,000 to $16,000

Computer Hardware, Software

$15,000 to $18,000

Miscellaneous Costs

N/A

3 Months Additional Funds

$10,000 to $30,000

Estimated Total

$240,000 to $295,000

This is a guide to the investment required. In some cases it maybe substantially more or less depending on the site and the time to build your business to profitability.

Bringing the brand positioning into the store through the strategic placement of the graphic program and lifestyle imagery creates an inviting atmosphere across the age demographic.

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NEXT STEP Backcare & Seating Franchise, what’s the difference?

Inquiry Form Interested? If what you have seen and read appeals to you, please fill in the Franchise Enquiry Form on our website (www.backcare.com.au) or enclosed form within the franchising kit and we will contact you with more information. Alternatively call us on 1300 768 700.

Having our own products that are class leaders provides you with unique positioning and enables you to avoid cut price retail tactics.

Our global network means we are always at the forefront of market movements and product development, keeping your business at the cutting edge of market opportunities.

Our target market opportunities are broad and we are positioned as a necessary product which means we are well equipped to weather any economic down turns.

Store Locations Our preferred store location maps have been developed through understanding the key demographic drivers of the Backcare and Seating business.

Victoria ■

New South Wales

Queensland

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Our systems are effective and we constantly look at how we can improve, which helps us all grow. We are in the business of helping people. We do this 5 days per week from 9.00am – 5.30pm and a few hours on a Saturday. No long hours. Just a sense of reward and an enjoyable lifestyle.


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With baby boomers now having larger disposable incomes in retirement, comfort and ergonomic health are primary factors in the selection of products for their daily use.

A Backcare Technologies Company franchise@backcare.com.au Telephone 1300 768 700 www.backcare.com.au

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