HSS Hire - Keeping Businesses Working

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International Partnerships in Excellence

• What is HSS and what is a Hire Shop?
• What do we offer with a Hire Shop licence?
• What do we look for in our partners?
• The HSS commitment to franchising
• What happens next?

What is HSS and what is a Hire Shop?

HSS Hire is one of the UK's largest tool and equipment hire chain servicing the construction, industrial and domestic "do-it-yourself" (DIY) markets. The company has grown since 1957 and now has more than 250 branches through the UK, and a rapidly developing international network of licenced outlets.

In 1991, as part of a programme of continuing expansion, the company began to develop its licencing activities, initially in Europe. This franchising programme has as its core the uniquely successful system that has brought the company market leadership in the UK.

The Hire Shop philosophy is to offer to its customers the widest possible range of hand tools and small electrical and mechanical plant items, together with standards of quality of both equipment and service that are unmatched anywhere.

The exceptional Hire Shop reputation has been gained through many years' adherence to this philosophy. It is a proud reputation which HSS guards very closely indeed.

In potential partners, HSS Hire looks for people and organisations who wish to commit themselves to sharing these high quality standards. Only by doing so, can they enjoy the considerable returns that flow from the single-minded pursuit of excellence in the tool hire market.

What do we offer with a Hire Shop licence?

HSS Hire seeks licencees who are prepared to establish a network of Hire Shops on either a regional or a national basis, over a 10 year time scale. They would be investing in a business with an expectation of a return on capital investment exceeding 30% approximately 3 years after formation. (Based on HSS Hire experience in the UK).

Franchisees would be granted the sole rights in a given territory to:-

• The Hire Shop name.
• The HSS Hire operating and management systems (including all computerised functions).
• The benefit of international purchasing power from HSS Hire.
• The support of proven marketing and promotional skills from HSS Hire.
• The HSS Hire training and continuous business development programmes.
• 10-year renewable contracts.

What do we look for in our partners?

Potential Partners will be either companies or individuals with first; sufficient financial substance to fund or guarantee the funding of the agreed development programme and secondly, who can convince HSS Hire of their commitment and ability to achieve or exceed our quality standards.

Our potential partners will also be required personally to be involved directly in the development of the business, so this opportunity should in no way be viewed as a simple "hands-off" investment.

Prospective licencees will be expected to demonstrate their understanding of the tool hire business by producing, at an early stage of the discussions, an outline business plan setting out their views on:-

• Locations and timing of a Hire Shop opening programme;
• The approach to, and rates of, market penetration to be achieved; and
• A reasonably comprehensive financial plan for the first 5 years.

Understanding the market potential

HSS Hire are looking, above all, for partners who can prove their clear understanding of their market's current and future potential demand patterns and who can provide a rationale for satisfying those demands.

Clearly, they will also demonstrate the required range of expected management skills, including financial, legal and personnel expertise appropriate to a multi-location capital-intensive business.

The HSS Hire commitment to franchising

We believe that franchising our business is fundamentally all about the establishment of a partnership in which both parties are mutually obliged to support each other to the utmost of their ability. In this way, not only is optimum success ensured for the partnership, but maximum customer satisfaction is also guaranteed.

HSS Hire is totally committed to the objectives of optimum mutual success and maximum customer satisfaction and expects nothing less from its partners.

We view franchising arrangements as long term and key to our own core strategy, and they are as vital to us as our own wholly owned organic expansion programme. Our franchisee partnerships, therefore, are an integral part of our international development strategy and will always be respected as such.

What happens next?

If you would like to learn more about both HSS Hire and our franchising arrangements we would be pleased to invite you to visit our shops and Group Office in London.

During your visit we will also discuss with you the subsequent phases of market evaluation, feasibility study and contract negotiation in order that you have a clear picture of the steps and timescale involved in becoming an HSS Hire partner. We will also outline the licence fee structure and the exclusivity deposit arrangement.