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A BIT OF HISTORY

The concept of vinyl welding and repairs has been around long before our business began however it was not widely known in Australia until the mid 80's. The Vinyl Doctor began in Brisbane in 1985 as a one person operation by Darryl Binch who still works in the business today and is the Queensland Master Franchisor and company owner. Work in those early days was rather simple. A few basic tools, a small ad in the Yellow Pages and a Toyota Hilux saw the beginning of The Vinyl Doctor. Repairs were mostly in the form of cracked dashboards, car door trims, consoles and the odd piece of furniture. Over the next few years the work grew fast and before long, Darryl found it difficult to cover the whole of Brisbane. So the first franchise was granted to his brother Jeff who took over the Northern Suburbs while Darryl continued to operates in the Southern suburbs. In the early 90's and after a few more franchisees came on board in Brisbane, the decision was made to incorporate leather care into the business. Leather was becoming increasingly popular in homes as affordable furniture, and the technology was improving with regards to caring and recolouring leather. So the Vinyl Doctor added another arrow to its quiver and was branded as The Leather and Vinyl Doctor. As soon as leather became part of our service there was no turning back and the demand for our service has continued to outstrip what we have been able to supply. The Leather Doctor and Vinyl Doctor has grown as well with franchisees now covering Briasbane, Ipswich, the Sunshine and Gold Coasts, Northern NSW and the Central NSW Coast, Sydney, Perth, Melbourne and Albury/Wodonga. We are continually looking for the right people to add to our growing team and help us service the massive leather care market.

Franchise Costs: Franchise costs vary, depending on the location and current customer base. Prices are available upon request to our Master Franchisors. Each franchisee supplies their own vehicle. Leasing costs on a new Mercedes Vito are approximately $500 per month. Ongoing Fees Information on monthly franchise fees are available upon request to our Master Franchisors. These funds allow continual improvement and promotion of the Leather Doctor brand, both in individual territories and nationally. Areas We have found that a successful franchise requires a population of 60,000 (approx 25,000 dwellings) with a mix of residential and commercial customers. This large area allows Franchisees to either sell off portions of their area or employ/contract others as the work grows. Most franchisees are now contracting at least one person to assist with the work they get from their area. We feel that it is important to provide our franchisees with the opportunity to grow their business and not simply buy themselves a job. By following the marketing program provided, each franchisee is able to take on additional vans to work for them in their territory and thus, increasing income and free up time. Advertising Each franchisee receives initial and ongoing support with their marketing and advertising programs.

Training The training involves hands-on practice both away from and with customers. All areas of running The Leather Doctor business are covered in the training including: · company history · an in depth understanding of leather, vinyl and our other products. · repairs to leather & vinyl · recolouring leather & vinyl · cleaning and conditioning leather goods · dealing with and finding new customers · managing accounts and bookwork · advertising strategies · selling products · completing the necessary reports · managing the daily schedule and inventories

Once training is completed, new franchisees receive constant assistance both by phone and in person to ensure that the business grows steadily and the workmanship remains first class. Income Each area is different when it comes to the type of work that is performed. Some areas do mostly vinyl repair work, while others do mostly furniture work. Each area has its mix of industries that make up the customer base. On average a franchisee will net between $6,000 to $10,000 each month if the system is followed correctly.

Customers Work can come from just about anywhere. If something has leather or vinyl, then a potential customer is there. The Leather Doctor currently has a regular customer base with many leading furniture, automotive and marine retailers and manufacturers including:

Harvey Norman Guests Super Amart Natuzzi Noble House Niccoletti ACME Pegar Moran

Volvo Trucks Western Star Mack Zupps Mercedes Benz

Sunrunner Marine Searay Blackwatch

This is just a start. Each area has its own regular customers, and added to this is the private residential market that requires repairs to the leather furniture, car interiors, boats, caravans etc. The types of repairs can be anything from a minor scratch to a major cut or rip. Most repairs are done on-site and you are paid straight away. Some repairs and larger jobs, such as recolouring a leather lounge, must be done at the Franchisees workplace. In most cases this is a rented workspace. Many franchisees rent a factory of about 100 square metres with 2-3 neighbouring franchisees sharing the cost. Product Sales Product sales are another way of earning income. The Leather Doctor has a range of care products that are available for sale, either by wholesale to furniture, auto and marine retailers or by retail direct to your private customers. The product range to date includes: · Leather Lounge Maxi Pack · Marine Leather Care Kit · Auto Leather Care Pack · Ink Remover · Tinted Conditioning Creams · Leather Fragrance · Vinyl Cleaner · Suede protector

These products are another great source of income and have healthy profit margins. Many leading furniture retailers are currently stocking these products. Franchisees order the packaging and bulk ingredients direct from head office and make up the products as needed. Attractive display stands are also available to each franchisee.

We hope this information has helped you learn a little more about The Leather Doctor franchise and if it would be the right business for you. If you would like more detailed information or would like to speak with us about starting a franchise in your area, please contact one of our Master Franchisors today. We look forward to hearing from you. Master Franchisors for VIC ­ SA ­ WA ­ NT ­ TAS Dean Reid: 0438 844 238 Darren Prior: 0403 030 022 Master Franchisor for QLD Darryl Binch: 0418 870 785 Master Franchisor for NSW ­ ACT Ivan Cornale: 0418 981 452

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