franchising

Welcome to The Vitamin Shop I’m delighted that you have decided to find out more about our franchise opportunity. This brochure has been developed to give you an insight into who we are and what we do. After you have read this brochure you should also have a look at our website www.vitamin-shop.co.uk which will give you a lot more information about the products that we provide and a list of our current shops. The Vitamin Shop in the UK is part of an international group that is based in Poland called Trec International. Trec is the market leader in Poland with product sales accounting for over 60% of the market. The Trec and Vitamin Shop business philosophy is to offer quality products at an affordable price backed up by great customer service. It is a very simple but very effective business formula that resulted in us opening over 20 shops in the first two years when we launched the business into the UK. If you are interested in exploring this opportunity in more detail then please complete and return the franchise questionnaire contained at the back of this brochure. On receipt of your questionnaire, we will contact you to arrange an initial meeting to discuss the business and franchise opportunity in greater detail. This is designed to enable you to find out more about this business opportunity and meet the people involved. We will then provide you with all of the information that you need to find out if this is the right business for you. We will also make our own decision to determine if you are right for this business and if we can work effectively together. Taking on a franchise is a mutual assessment process – we have to be right for you and you have to be right for our business. Running a The Vitamin Shop business is often great fun, but it is also demanding and requires a lot of hard work and sometimes long hours. We need franchisees who are fully committed to the successful development of The Vitamin Shop in their local area. I can promise you that if we decide to work together, you will have my total commitment to making your franchise a success. Good luck and best wishes for the future. Robert Rzezniczak UK MANAGING DIRECTOR THE VITAMIN SHOP Business Background The Vitamin Shop is a London based retailer that specialises in the sale of vitamins and other dietary supplements. The company works closely with a company called Trec. Trec is a Polish company that is a specialist manufacturer of these products. The Vitamin Shop Ltd (TVS) holds the exclusive rights to retail the Trec and Vitamin Shop products in the UK and Europe. Trec are the market leaders in Poland with their product sales accounting for about 60% of the total market. The Vitamin Shop was established in the UK in April 2007 and opened the first retail outlet in February 2008 in Crouch End, London. By the end of 2009 there were over twenty Vitamin Shops trading in the UK. The Vitamin Shop retail model in the UK is replicating the business model that has been developed in Poland and is running very successfully on the Polish market. The directors of Trec International are committed to and involved in the strategic development of the company in the UK, whilst Robert Rzezniczak, Managing Director, is responsible for the operational development and day-to-day running of the UK business. Who are our customers? The Vitamin Shop operates in a market that has traditionally been very niche with a limited number of customers. However, this has changed in the last 10 years and health foods, vitamins and supplements are now part of the wider market. Vitamins and supplements are becoming more and more popular due to their perceived benefits. Most people simply don’t have the time or the inclination to have a diet which is well balanced and full of the necessary nutrients. Therefore, supplements and vitamins are considered a suitable alternative. Even with this wider variation within the vitamin/supplement market, the Vitamin Shop is still mainly targeting regular users who buy the products on an ongoing basis. One-off sales form a small percentage of the customer base, whereas regular customers form the mainstay. The Vitamin Shop has a distinct customer profile both within the UK and Poland with the following characteristics: • Primarily aged between 20-40 year old • Overwhelmingly men (up to 70%) • Health conscious and careful about what they consume • Tend to exercise on a regular basis and may be members of a gym •Are avid consumers of vitamins and supplements in addition to their normal health conscious diets • Tend to read and understand issues regarding () health a lot more than the average individual •Will use vitamins and supplements over a long term (rather than as a one-off purchase) It should be noted that although the average customer has the above profile, there is more and more people buying vitamins and supplements () as an answer for a particular problem. For example, for a medical condition (on the advice of a doctor) or where they feel they need the occasional supplement due to lifestyle issues. Our business philosophy The Vitamin Shop retail concept provides a wide range of quality health, nutrition and associated products to our customers. Our business model is based upon quality products, customer service and value for money. Customers can visit a Vitamin Shop retail outlet and get great advice related to their own individual needs and requirements. Your business will be successful if you ensure that your customers are looked after and feel valued. If you and your staff give them great service then they will return time and time again. What do we need from our franchisees? We are totally committed to building and maintaining a highly professional and successful Vitamin Shop retail network. We expect our franchisees to be 100% committed and we will match that attitude with our own commitment. We consider every single one of our franchisees to be of a fundamental importance to our long term plans. As a franchisee, you can be assured that we will dedicate ourselves wholeheartedly to the task of helping you make a success of it. Our business relationship with you needs to be based on cooperation, understanding and trust. There must be a mutual belief that we are both fully committed to making this business successful. Whilst we will do everything in our power to help and support you, the business is yours and we cannot run it for you or take responsibility for it. The success of your business depends on your own enthusiasm and hard work. You will only succeed if you share our passion for this business and give it the commitment that it needs. The Vitamin Shop Franchise Package The Vitamin Shop retail franchise system has been designed as a complete “turn-key” operation to provide you with all of the help and support that you need to help get your business off to a good start. The first twelve months of any businesses are crucial, and our comprehensive franchise support services include: • Pre-opening support to assist in establishing your business, including assistance with identifying and acquiring suitable premises • Assistance with the production of a business plan and raising finance, if required • Assistance with the design and creation of your Vitamin Shop retail outlet • Access to our dedicated team of shop designers and fitters • Use of our The Vitamin Shop corporate identity and brand • Protected franchise area • An in-depth induction training programme at one of our existing shops • On-site support during the first week of trading • Comprehensive local business marketing launch • Marketing and promotional plan in line with your business plan, shop location and local area • Business operating manual (containing details of our operating systems, marketing, administration, etc) • Assistance with recruiting and training staff • Ongoing advice and support to help you run the business effectively • Shop visits • Point of display retail/merchandising materials • Product training Ongoing business development and support We don’t just get your shop up and running and then leave you to it. Our success is dependent upon your success and we will be there to provide you with help and support on an ongoing basis. This includes: • Product training • Product promotions • Ongoing marketing advice • Provision of point of sale materials • Business planning support How do we make our money? The Vitamin Shop Ltd is the main supplier of products to all of our shops and holds the UK and European license to wholesale the Trec and Vitamin Shop product ranges. Like many other franchised retail operations (Body Shop, Benetton etc.) we make our income and profit from sale of products to our franchisees and through our own company owned shops. We keep in touch with the UK market through retail sales via our own shops and the company Website, however the bulk of our sales comes from the wholesaling arm. The success of our business is dependent upon the success of our franchisees. We have a real financial incentive to help you develop your sales and maximise the business opportunity in your local area. We need to help you make money so that we can profit as well – it’s as simple as that. Could you be a Vitamin Shop franchisee? The Vitamin Shop is dedicated to providing high quality service to our customers. In order to succeed, you must have high personal standards and share our commitment to providing a quality service to your customers. You don’t need to have retail experience or any previous involvement in the health industry. However, you do need to have excellent communication skills and share our passion for great customer service. You also need to be organised, self motivated and have a determination to succeed. Our brand name is our reputation and irrespective of whether a customer is spending £1 or £100, we always aim to provide a first class experience. You will be responsible for the day-to-day running of the business, recruiting and training staff, dealing with customers, local marketing and promotional activity and of course solving any problems that you encounter. There is also an accounts and administration role which you will need to deal with effectively to ensure that the business is run smoothly. Return On Investment The initial costs for this investment can be found within the “Financial Information” insert located at the back on this brochure. This provides details of everything you will need in order to establish your Vitamin Shop retail outlet. As part of the recruitment process, we will help and support you whilst developing your business plan, and this can be used by you as an aid to raise finance if required. We have also developed detailed financial models based upon our own experiences and we will happily share these with you once we have had an initial meeting to discuss your suitability. We have three different financial models based upon the size of the unit and the type of location. We can discuss which model would best suit you and your area at the meeting. Financial Support may be provided from the franchise units of major clearing banks. However, you must be aware this is subject to status and a business plan, which therefore indicates finance is not guaranteed. Franchise Territory Each The Vitamin Shop Franchisee gets a defined territory which is protected. This is a very important factor contributing to the success of your business and will be discussed at an appropriate stage. The next step We are delighted that you have made the conscious decision to take charge of your future and are seriously considering a The Vitamin Shop Franchise; however a brochure can only provide limited information. If you believe that you have what it takes to succeed in our business and would like to find out more about this fantastic opportunity, please complete and return the questionnaire. We will then review the information provided and continue onto the next stage within the process – Inviting you to an initial meeting. We will also answer any questions you may have. If you have anything that you would like to discuss prior to this, please do not hesitate to contact us by telephone or e-mail. We look forward to hearing from you. Robert and The Vitamin Shop Team