RhodaniDossier for franchise-holder

Rhodani

Origins and development of the company 3Current company´s locations 5Business model 6Focus of feasibility 9Profile of the Franchise-Holder 10KNOW HOW (Management and Marketing) 11Economic data 13

Rhodani Index2

RhodaniRhodani

Origins and development of the company...The founder of the company, Raúl Soria, opened his first store Rhodani in 1996 in the city of Burgos. The first business reflected the ideas and tastes of his owner, a good fond of fishing. For several years, the bases of what nowadays makes up the concept of Rhodani (strengthening of business relationships with the main suppliers of the industry, improvement in the store´s design, introduction of products) were progressively being settled.

In 1998 the company started the sale of its products by catalogue. After great efforts, the knowledge of this referred resource becomes an added value for the company, an excellent penetration tool in its target markets and an image designer for its target audience.

From 2001 onwards with the opening of Valladolid´s store, the company begins to get acquainted with the necessary management techniques to monitor and assist a distant point of sale. The information system was, and even is today, a masterpiece in coordinating the required logistics for the proper development of the business.

In 2002, the company introduced to the market BAETIS, its own brand spe-cialized in coarse fishing. During the last years, the company has striven in the search of the best suppliers worldwide in order to provide Rhodani the best raw materials for its own brand, having succeeded in positioning the brand as a benchmark and as one of the leaders in the industry on some product range (flies, assembly feathers etc…)

Rhodani Origins and development of the company 3

Valladolid

Burgos

Rhodani

RhodaniRhodaniThe next step in the business performance of the chain store occurred in 2004 with the opening of its first point of sale located next to the sea, namely in Gijón. The company decides to move his head office to this astu-rian locality in order to increase its offer and be able to dispose of speciali-zed workers acquainted with the different types of fishing in Saltwater.

In 2005, the company decided to take a step ahead by establishing the franchise Rhodani . In this first stage, its goal is to achieve a moderate growth so as to prove the proper functioning of all its departments, that is to say; purchase, logistics and franchise-holder service.

During the period 2006-2009 the company expanded its network up to eight points of sale, six of them being franchise-holder and all of them endowed with a management system that have allowed all its members to confront the current economic conditions in the most competitive manner.

In this new stage, the company opened new nine points of sale in 2011 six of them wholly owned stores, one of them as a pilot store in other country, with other idiom, with other target audience... Once the goals, belonging to the previous three years period, of:

-Obtaining an optimal management system.-Having proved its functioning among the different stores.-Selecting and building up a suitable and experienced team to deal with a new and scheduled expansion plan.

Have been achieved.

Origins and development of the company4

GijónCentral

SantanderCoruña

Soria

Torrelavega

Fene

Valladolid

Villalba

Oviedo

Dax,France

Avilés

Pontevedra

Barakaldo

San Sebastian

Burgos

Segovia

Cedeira

Rhodani Rhodani

RhodaniRhodaniApart from the network of stores, the company has made great efforts in four business areas considered strategic by the Managing Director:

Rhodani´s catalogue: With more than 35.000 copies published in 2011 and an offer of 40.000 diffe-rent codes, this communication and diffusion tool has proved itself to be one of most reliable props through which the company has progressively settled and extended its growth in recent years. Used by the franchise-holder as an effecti-ve marketing tool, Rhodani´s catalogue has become an excellent way to report on the annual novelties to our customers and to introduce to the market the widest and most competitive range of products for sport fishing in all its diversity.

www.rhodani.com:Pioneers in Spain regarding online sales, Rhodani has begun the design and development of this consultation and sales tool in 1999. From that moment onwards, it has been translated into two languages and it usually receives more than 500.000 visits every year. Our Website has become a vital recruiter and an element that has strengthened our business over the last years. The company could not remain uninvolved to this new commercial and communi-cation channel brought about by Internet and on account of this, the company designed a Website that offers all the information about our product range and the network of stores.

www.pescameet.com:Web designed by Rhodani so that all the Spanish-speaking anglers from all types of modalities could gather and build up their own Blogs, upload pictures and videos, share their fishing knowledge and find the latest innovations in the industry.

Facebook y Twitter:We will publish throughout the social networks all kinds of news, innovations and offers that are in connection with the fishery world.

Rhodani Current company´s locations 5

Rhodani

Rhodani

Rhodani

Customers and target audienceThe target audience: the angler´s collective in all its modalities, not only Fresh Water but also Salt Water. The wide range and variety of products in our stores are differential values with regard to our competence. We offer the most innovative products of the best and most renowned brands at competitive prices.

Customer orientation: Our franchise-holder will progressively be adapting his stock to the needs of his local market having into account the existing demand in his own town. A reference and a specialized fishing store for the most technical anglers who have a wider knowledge of fishing, being prescribers at the same time of our products for all kind of anglers.

Location environmentThe company only excludes commercial areas within the downtown due to their high costs of leasing and lack of parking. The main requirements of a business premises to become a Rhodani´s store are:

-Four square meters of building façade.-Good state of preservation-Easy access for vehicles and parking facilities around (many customers look for Rhodani´s stores when they go fishing out of the region or province they live in)

Concerning the size of the built up area where a Rhodani´s store can be placed, the company has business models at it disposal that could be well-established in built up areas which have a commercial sphere of influence from 30.000 inhabitants onwards.

Rhodani Business model6

Rhodani

Rhodani Rhodani

RhodaniCommercial offerRhodani has a wide product range both in Fresh and Salt Water. It includes the most prestigious brands of the industry both at a National and Interna-tional level.

National: Iridium, X-Cat, Shimano, Abu García, Mitchell, Berkley, Daiwa, Palms, Tenryu, Virux, Cinnetic, Kali, Vercelli, Yuki, Okuma, Tubertini, Tika, Maver, Grauvell, Linea Effe, Maria, Veret, Asari, Sufix, Sebille, Varivas, Lucky Craft, Asso, Teklon, Seaguar, Sasame, Rapala, Storm, Saltiga, Duo, Evia, Wiliamsom-Lures, Tackle House, Ima, Yokozuma, Take, Yamashita, Yo-Zuri, Mepps, Simms, Starlite, C&F, Tiemco, Gamakatsu, Kamasan, Hart, Gutterman, Think Fish, Seland, Everest, Sekotia, Tutor, Tikal, Fishus. Import: Colmic, Stroft, Asso, Maxima, Power-Jig, DTD, Tasmanian-Devil, Marukyu, Stonfo, Fondería Roma, Devaux, T-Extreme, Pacific Bay, Dyna King, Wapsi, Fulling-Mills, Dragon-Tackle, Loon.

Import in exclusiveness: Hardy, Greys, Chub, Jenzi, Ecogear, DTD, Meiho, Versus, Marukyu, Petitjean, Big Carp.

Alongside these brands, we design, manufacture and distribute in exclusi-veness the brand BAETIS which belongs to Rhodani´s group. Our group holds important supply agreements with the main manufacturers and wholesalers of the industry, conditions that are passed on to our franchise-holder according to the business model they choose and the assortment of inventory they must maintain.

Rhodani Business model 7

*

*

*

Rhodani

Rhodani

Main characteristics of our commercial offer: Competitiveness in prices based on purchases strategically planned by our head office which allow to transfer to the final customer those competi-tive prices and a prompt service. Variety and a wide range of products that make up one of the strategic and differential values of our chain store with regard to the competence Great profit margins for our franchise-holder External service of novelties Purchases without a minimum quantity to be required

The initial offer of the store will be set up by the head office, relying on our knowledgement of the business. This commercial offer will differ on the basis of location of the business units since there are obvious differences between the inland market and the one which is on coastal zones.

Sea: all modalities of SaltwaterFresh water: all modalities of FreshwaterNorthern coast: Saltwater and Freshwater

Company structureThe Rhodani stores are presented as a business which allows the franchise-holder an alternative formula for self-employment, consequently the engagement of staff is in principle excluded. All the franchise Rhodani operate under this formula although the engagement of some employee could be considered in stores located in big cities or in shopping areas.

Rhodani Business model8

*

*

***

Rhodani Rhodani

Rhodani Rhodani

ADVANTAGES of our stores for the CUSTOMERS Wide commercial offer: we dispose of a wide range of products for sport fishing both in Fresh and Saltwater. Competitive prices. BAETIS products: with the best value product on the market. Commercial offer available all over Spain, France and Portugal: possibili-ty of effecting purchase orders through our Website, fax or telephone. They are handed over in twenty four hours and have fifteen days money back guarantee. Professional and personal service with the customer Gifts for purchases and opportunities

ADVANTAGES for our FRANCHISE-HOLDER A single supplier has all the benefits of a single order. Proven and highly successful business. Smaller investment in initial inventory. Assistance in the selection of the location for the point of sale. Central supply: thanks to it, our franchise-holder will have access to products otherwise they could not get them due to the minimum quantities required to be bought by the main distributors. Highly competitive profit margins. Catalogue of products. Corporative Website. Information system with more than 70.000 references to check the mana-gement and the personalized purchase orders. Renowned commercial name within the industry of sport fishing. Highly attractive and extensive range of products both for Freshwater and Saltwater. Individualized training. Full set of operating manuals of the franchise. Continuous assistence during all the contract period of the franchise. Own brand BAETIS: highly quality products, competitive prices, and an extraordinary margin for our franchise-holder.

Rhodani Focus on feasibility 9

*****

****

**

****

*

***

**

Rhodani

Rhodani

Profile of the Franchise-HolderMain characteristics:

Angler of either modality (Freshwater either in river or reservoir, Saltwater either from coast or from boat-) that can quickly get acquainted with the wide range of the products that are offered. The more modalities are com-manded by the angler, the quicker will be his initial training.

Willingness to devote himself to the attention of his business and to take the leadership in spreading our brand in the assigned city by undertaking a business of proven success

Commercial profile, proactive in the management of his business unit, capable of advising and providing solutions to the customer.

Financial capacity to carry out the necessary investments and to obtain by doing this, a proper functioning of the franchisee unit.

Customer service: one of Rhodani´s distinguishing features is the commitment to service on the part of its staff; therefore our franchise-holders must give the best service and the greatest possible attention to their customers.

Rhodani Profile of the Franchise-Holder10

*

*

*

*

*

Rhodani Rhodani

Rhodani Rhodani

KNOW HOW (Management and Marketing)

Rhodani has acquired a knowledge of management and marketing (KNOW HOW) that has become one of the main keys to its success and that will be transmitted to its franchise-holders throughout training by means of a full set of Operating Manuals.

Technical Catalogue of Product Range Operating Manual of Purchases Operating Manual of Control Operating Manual of Procedures Operating Manual of Human Resources Operating Manual of System Software

Training Rhodani has designed training courses for its franchise-holders that can be divided into two stages: theoretical and practical.

The theoretical training will deal with: The industry of sport fishing. General approach to the situation and market prospects. Corporate image differentiating us from the rest of competitors. Software system. Trading hours and daily working hours. The store. Fitting out and equipment. Commercial offer: product range and brands. Customer service.

The practical training will deal with:The practical training aims to apply in a realistic way the knowledge that has been acquired during the first stage of theoretical training. All the training both theoretical and practical will take place in the franchise head-quarters placed in Gijón.

Rhodani 11

******

*

******

Rhodani

Rhodani

Finally, the technical staff of our head office will remain in the store of the franchise-holder during the first sessions of functioning, with the purpose of assisting and clarifying him any doubt that may arise.

AssistanceIt will take place for the whole validity period of the franchise becoming essential for the business at the onset of its activity.

Assistance at the opening Assistance in locating the most adequate site. Fitting out and equipping project. Supervision of suitability works. Supply of equipment and materials. Direct assistance at the beginning of the activity.

Continuous assistance Continuous training for the franchise-holder: new products, short fishing courses for customers, etc… Periodical visits of assistance. Yearly catalogue of the franchise products.

Rhodani KNOW HOW (Management and Marketing)12

*****

*

**

Rhodani Rhodani

Rhodani

Rhodani Economic data 13

The investment will vary depending upon the size of the premises, taking as reference an investment of 30.000 € for the unit with the most reduced dimensions. In addition to the furniture, this figure includes the installa-tions, the interior renovation of the premises, the entry fee to the franchi-se and the initial inventory.

Request information for your particular case and we will be pleased to attend and facilitate you a customized study about the model of business in which you may consider to invest.

Rhodani

RhodaniRhodan

i

Tel.: +00 34 985 17 47 17

Fax: +00 34 985 17 47 18

asturias@rhodani.com

www.rhodani.com

rhodanicentral

@RhodaniPesca

SPAIN

Avenida de Portugal, 21

33207 Gijón (Asturias)

Rhodani