Our goal is to get you off to a good start, and to help you grow your business for the long run. Because when you succeed, we succeed.

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2 At Snap-on Canada, we believe that ownership of anything less than 100% market share represents an opportunity to be more customer focused. We also believe that our dealers are Strategic Partners and a crucial link in the value chain that focuses on our customers needs and expectations. That means our objective isn t simply to get your franchise fee. We want you to be successful and grow with us over the long term. And we ll make a considerable investment in your business, with marketing programs, innovative sales planning tools and training, in order to make that happen. Our goal is to get you off to a good start, and to help you grow your business for the long run. Because when you succeed, we succeed.

3 The Snap-on Opportunity Snap-on franchise opportunity is like no other. We re the acknowledged world leader in our industry, respected for both our innovative line of quality products and our long and consistent history of business success. We also have a unique relationship with our independent, franchised dealers. Our dealers are our strategic partners, our most valuable distribution channel -- and the vital link between Snap-on and the customers who make their living using our products. It s a great relationship, with Snap-on and our dealers playing separate, but equally important roles. Snap-on provides tool, equipment and software solutions to our customers to make them more productive and profitable. We also support our dealers with high-profile marketing activities, carefully developed training programs, expert field support and much more. Snap-on dealers are entrepreneurs who work hard to grow their businesses. They re goal-oriented professionals who plan their sales activities carefully and who nurture longterm, mutually beneficial relationships with their customers. If that sounds like something you could do, Snap-on could be just the opportunity you ve been looking for.

4 An 80-year History of Success 1919 Joseph Johnson, 25, invents the interchangeable socket wrench. He and a partner found the Snap-on Wrench Company in a rented building in Milwaukee Snap-on forms its first international subsidiary: Snap-on Tools of Canada Ltd Snap-on salesmen begin writing up dream orders for tools that customers plan to buy when they can afford them. These dream orders are developed into Needs Lists an innovative sales planning tool. At the same time, Snap-on introduces time payment selling, the forerunner of today s revolving account (RA) credit program Snap-on becomes a publicly traded company Snap-on dealers are providing service to their customers on a bi-weekly or even weekly basis Snap-on passes $50 million in sales Snap-on Tools Corporation is listed on the New York Stock Exchange Snap-on passes $400 million in sales 1984 Snap-on introduces computer-assisted design (CAD) technology into its new-product development process, further reinforcing the company's leadership position in the industry The serrated jaws on the Snap-on Flank Drive Plus wrench represent the first substantive change to the open-end wrench in a century CFO magazine ranks Snap-on 18th on its list of the 100 financially strongest companies in America Snap-on acquires Sun Electric Corporation, a leader in high-end diagnostic units Snap-on passes $1 billion in sales Snap-on is the developer or exclusive distributor of five of Motor magazine s 1995 Top 20 Tools Snap-on is rated one of the top 20 franchises out of 800 listed for the fifth year in a row in Entrepreneur magazine Snap-on ranks 1st among companies involved in manufacturing as a corporate user of information technology in Information Week magazine Snap-on passes $2 billion in sales.

5 Snap-on Today Snap-on Incorporated is a highly successful publicly owned company. Snapon stock is traded on the New York Stock Exchange and the company is a member of the Standard & Poors 500. Total corporate revenues exceed $2 billion (US) annually. Snap-on does business in 100+ countries, employs over 14,000 people and has more than 4,000 dealers worldwide. Every week, Snap-on calls on automotive technicians and shops servicing 40 percent of the world's vehicle fleet. Snap-on sells more than 17,000 products, ranging from hand tools to hightech diagnostic equipment and software. The company also holds more than 1,000 active patents, with another 600+ applied for or pending. Snap-on Tools of Canada Ltd., formed in 1931, is a wholly owned subsidiary of Snap-on Incorporated. Snap-on Tools of Canada Ltd. is an ambitious, growing company dedicated to supporting its 400+ dealers and their customers. Snap-on joined the computer age way back in 1964 and leading-edge technology has played an important role in the company s growth ever since. Today, every dealer s showroom is equipped with a PC pre-loaded with Snap-on s custom dealer management software. You can transmit orders, receive information from Snap-on, and track your sales and inventory. Then there s Snap-on s advanced e-commerce system, which means customers have access to Snap-on products 24 hours a day, seven days a week. Your customer can order via the web site, we ll handle the delivery and you ll get credit for the sale.

6 Your Business on Wheels As a Snap-on dealer, you won t sit back and wait for your customers to come to you. Snap-on provides you with an assigned list of customers. You ll call on your assigned accounts, which will include auto dealerships, independent garages, marinas and other businesses where professionals use tools. You ll go to your customers and you ll take your well merchandised Showroom on Wheels with you. You ll get to know your customers well. Because the more you know about how they work and what their needs are, the more effectively you ll be able to sell to them. You ll set aggressive sales goals for yourself, and work out action plans that will help you achieve them. Your store will be stocked with an extensive array of products and equipped with a display area designed to stimulate impulse purchases. It will also include a mobile office, equipped with a state-of-the-art PC, pre-loaded with Snap-on s custom-developed software to help you manage your business. And features Interac and credit card payment systems, to make it easy for your customers to do business with you.

7 Products At the time of printing this brochure, Snap-on product line consisted of 17,000 items, including Snap-on branded products and approved products from other manufacturers. Quality hand tools, power tools, tool storage units, shop equipment, automotive diagnostic solutions and software: as a Snap-on dealer, you ll sell them all. No matter what kind of challenge a technician comes up against, there s a Snap-on solution. It s also important to note that the Snap-on product line is constantly evolving. As vehicles change, so do the needs of the technicians who work on them. Snap-on s R&D department creates approximately 300 new solutions every year to keep our customers and our dealers on the cutting edge of the industry. Training Training at Snap-on is an ongoing process, not a one-time only event. It starts as soon as you become a Snap-on dealer, with an intensive Introductory Training program. You ll learn about your new business, with special attention to: Sales techniques Product features, benefits and competitive advantages Credit program management Merchandising and display techniques Record keeping Policies and procedures Dealer computer sales system Once you ve completed your Introductory Training, your District Sales Manager will accompany you on sales calls, coach you on various activities and act as your personal business consultant.

8 Marketing Support As a Snap-on dealer, you ll enjoy the support of a multi-million dollar international marketing program all at no charge to you. Here are some of the tools we ll use to promote your business: Advertising in national trade publications Newsletters to customers Electronic and print catalogues Incentive travel Sponsorships of high-profile professional racing teams Impactful displays at industry trade shows Customer loyalty programs Snap-on will also help you find the extra motivation you need to perform at the highest level. Our sales contests and dealer incentive programs will give you the chance to win discounts on purchases, trips, even cash. In addition, you ll have the opportunity to attend regional and national sales conferences where you ll attend seminars, learn about new products and share ideas with other Snap-on dealers.

9 Sales Support When you become a Snap-on dealer, we ll kick-start your business by providing you with a list of existing Snap-on customers in your area. You ll also enjoy the full support of Snap-on s experienced, professional field management organization. Your district sales manager will help you plan your sales activities. He/she will work with you to: Analyze your business Develop realistic monthly sales targets Identify the needs of technicians and shop owners in your area And determine how you can use the available financing tools to your best advantage. In addition, Snap-on s Tech Systems Program of specially trained staff will be at your disposal. These experts support dealers during the sales process by explaining and demonstrating complex equipment. They can also provide training to customers who purchase these units. Snap-on pioneered customer credit back in 1935, with the introduction of time payment plan. Today, extending credit is still an important part of a dealer s business to help build goodwill and long-term relationships. Snap-on offers the revolving account (RA) system, in which credit is provided by the dealer and customers provide payments against their accounts at regular intervals. This helps you establish ongoing relationships with customers and is an important sales planning tool, since the dealer knows when a customer is about to pay off one purchase and can afford to make another. For big-ticket items, or for customer accounts that are too large for RA financing, dealers can free up their cash flow by offering their customers financing through Snap-on Credit. Snap-on Credit offers: Competitive financing rates Extended credit accounts Equipment leases Open accounts Snap-on Credit also offers financing for some of your initial investment at competitive rates with a required minimum down payment.

10 Expansion Opportunities When you invest in a franchise, it s important to know that your business has the potential for substantial growth. A Snap-on franchise definitely has that potential. First and foremost, Snap-on is a company with a bright future and ambitious plans. Sales are forecast to grow rapidly in the years ahead, both globally and right here in Canada. Just as important, Snap-on encourages you to think big about your business. With additional Showrooms on Wheels, you can reach all your customers and provide the kind of service they expect-increasing your profitability. Bottom line: with Snap-on, your business can be as big as you want to make it.

11 Snap-on Advantages Snap-on certainly isn t the only franchise opportunity out there. But compared to the rest, Snap-on has some important advantages that make it a very desirable choice. Consider the following: Low initial franchise fee Low, fixed monthly fee Superior profit potential Comprehensive line of professional-quality products Proven business systems Excellent brand recognition Available financing Protected customer list Ongoing training programs No additional fees for advertising Opportunities for franchise expansion Transferability No royalty fee Customer credit assistance programs Snap-on and You As you might expect from everything you ve read so far, Snap-on has high expectations of its dealers. And frankly, not every applicant has what it takes to qualify to be a Snap-on dealer. Here s a list of the qualifications we re looking for. To become a Snap-on dealer, you must be able to demonstrate: Energy, integrity and honesty Powerful motivation to succeed and grow your business Strong commitment to customer satisfaction Ability to build strong, mutually beneficial customer relationships Willingness to commit to growing your business full time Minimum net worth of $30,000 If you believe you ve got what it takes to be a franchised Snap-on dealer, the application form is enclosed with this package. We encourage you to complete and submit it. And we look forward to welcoming you to the Snap-on family.

12 Franchise Opportunity Put Your Future in Motion. Canadian Division Office 2325 Skymark Avenue Mississauga, Ontario L4W 5A Fax: