Franchising:

• FAQ
• Application
• Existing Locations for Resale
• New Locations

FAQ:

Buck Or Two stores have been franchising since 1990. Under new management/ ownership since 2005, we are carving out our niche in the extreme value sector of the retail industry.

                 

The Franchise Support Office priority is to continue building a strong retail foundation which enables our Franchisees to operate profitable businesses. Our focus is our Franchisees.

                 

Extreme Retail (Canada) Inc. provides a turn-key operation

                 

¨       We provide a list of approved vendors with whom we have negotiated to provide our Franchisees with new and exciting merchandise on superior cost terms.

¨       Trade Shows – Once or twice a year we gather at a convention attended by all of the primary vendors. This provides an opportunity for face-to-face conversations with the vendors, allowing us see and touch all the new products and, to consult with fellow franchisees.

¨       Communications – Included in our turn-key package is a fully equipped computer system with BUCK OR TWO proprietary software designed to make day-to-day operations easier and more efficient. We offer a secure Intranet Communications system which provides franchisees across the country with up-to-the-minute product updates, merchandising solutions and, a facility for store-to-home office and store-to-store communication. Our Electronic Purchase Order System provides a proficient product ordering process.

¨       Our Real Estate department approves and secures all locations which are leased by Extreme Properties Inc.  We provide a comprehensive service including site selection, approval and lease negotiations allowing our Franchisees to focus on being superior Retailers.

                 

The franchising process includes the following steps:

                 

¨       Visiting our stores to learn about Buck or Two.

¨       Submission of your Confidential Application.

¨       Upon receipt of your Application, a review will be conducted.  In the meantime, it is up to you to conduct your due diligence.

¨       Should you meet the qualifications required, you will receive disclosure of our franchising operation.

¨       Business Plan preparation, site confirmation, incorporation of your company and securing your financing.

¨       Franchise Executive Review Committee meeting / teleconference.

¨       Execution of franchise agreements and successful completion of our in-house and in-store training program.

¨       Ownership and opening of your new store!

                 

Frequently Asked Questions

                 

Q:  How much is the franchise fee?

A:  $25,000 plus G.S.T.

                 

Q:  How much are royalty fees?

A:  Royalties are 6% of net sales and are paid monthly.

                 

Q:  What do you look for in a franchisee?

A:  A self-motivated, team player, who believes in participating and leveraging strength of a recognizable Brand.

                 

Q:  Do I have to find my own location?

A:  We have an in-house Real Estate department that will locate suitable sites.

                 

Q:  Where do I buy merchandise to stock my store?

A:  Our franchisees purchase merchandise from an approved group of vendors using a proprietary computer system.

                 

Q:  What kind of training can I expect?

A:  Our training program is a combination of both classroom and hands-on, in-store training.

                 

Q:  What kind of ongoing store support can I expect?

A:  A Mentor and the Franchise Support Office provide guidance and facilitate proven solutions for bottom line success.

                 

Q:  How secure is my personal information which I provide on the Confidential Application?

A:  Extreme Retail (Canada) Inc. complies with all legal standards in accordance with PIPEDA.

                 

Q:  How much will I have to invest?

A:  The estimated investment required for a Buck Or Two store varies depending on the square footage of the store.  Please refer to the chart below to calculate your estimated investment:

                 

                 

Financial Commitment

                 

Understanding the financial commitment is extremely important to the Franchisee/ Franchisor.  The following list briefly outlines what you need to know about our franchise opportunity.

                 

Getting Started

                 

• A Franchise Fee of $25,000 is charged at the commencement of the 5-year franchise agreement, in addition to construction costs and the inventory.
• The construction cost for a new Buck or Two, which is determined by the size of the store, could range from $120,000 - $225,000, or more.

You must secure your own financing.  Buck or Two does not provide any financing but will assist in your loan application.

                 

Financing FAQ:
Can I Include Assets Held Outside of Canada ?

Your assets must be in Canada and you must be able to provide appropriate documentation to substantiate all assets.

                 

What is my Return on Investment?

          

We cannot predict the ROI of any store as there are many variables that can affect the success of a business.  Furthermore, in some provinces, we are bound by legislative restrictions which hinder our ability to provide financial forecasts or make any form of income claim.  Accordingly, we provide no representations or projections of revenues, costs or return on investment.

                 

What is the Break-Even Point?

As noted above we make no income claims and each applicant must conduct their own due diligence. We do encourage all applicants to perform a thorough review and to seek professional assistance in this regard.

                 

Once Opened and Operating

As part of your Franchise Agreement, each store is required to pay the following fees:

• 6% Royalty fee;
• 1% National Advertising fee, this fee is currently not called for and will only become payable if we embark on a national advertising campaign.

The Royalty fee is calculated as a percentage of gross sales and payable monthly.