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Stroud Homes Franchisee
Information Pack
January 2014
E: franchisee@stroudhomes.com.au
W: franchise.stroudhomes.com.au
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Stroud Homes Franchisee Info Pack January 14 2014
TABLE OF CONTENTS
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Welcome to the Stroud Homes Franchise
Opportunity!
Thank you for your interest in Stroud Homes and the franchise opportunity we offer. This
franchising overview aims to provide an insight into our brand, our culture and the
opportunity for you to join the Stroud Homes Franchise Network. This overview
introduces our business and its strengths, and outlines the power of our Franchise
system.
Stroud Homes has more than 20 years of designing and building experience with a
proven track record of success and a strong reputation for exceptional service and
superior quality. This brings with it, a strong referral network and connections to the best
suppliers to help build our fantastic homes.
James Stroud, founder of Stroud Homes, has been building new homes in the Scenic
Rim area of Queensland since 2005. Stroud Homes has a widely acclaimed reputation
as an award-winning builder and is now proud to now offer a number of new Franchising
opportunities across Australia and New Zealand.
Stroud Homes Franchise
Owning a Stroud Homes Franchise is all about growing a business in a structured, best
business practice, client-friendly, fast and controlled way. Our business systems are the
best in the industry. Our highly successful business model has proven its ability to
sustain years of massive growth. An extremely efficient, cost-effective, well-organised,
full service platform for your business.
Whether you've been in business for years or thinking of making the move to go out on
your own, a Stroud Homes Franchise can take your business to the next level. We are a
truly professional building company we know the industry, the problems, the hard work
and the complex issues. You'll be dealing with experienced construction professionals
who speak your language fluently.
One of the great advantages of a franchise is that you can get immediate backup when
you need it. On all levels of your business, from contract issues, to onsite problems, it
makes doing business a lot easier and, quite frankly a whole lot less stressful.
The franchise environment is perfect for growing businesses in a highly competitive and
very demanding market. As your business grows, you can be certain that your Stroud
Homes Franchise is an investment that will continue to grow in value with it.

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Franchisees are key elements of our team. While each Franchisee retains an
independent business, we all benefit as a single strong organisation. By working together
on things like buying power Stroud Homes franchises can offer big builder prices with
small builder service.
Whether you've been in business for years or thinking of making the move to go
out on your own, A Stroud Homes Franchise can take your business to a whole
new professional and business level.
This franchise overview is designed to provide you with some information and insights
into what it is like to be a Franchisee, what we are looking for and our selection process.
A key factor in our growth and the growth of our franchisees is the care we take in
recruiting, screening, training, developing and retaining qualified franchisees together
with our unique relationship with them and the strength of the Stroud Homes system.
As you read this franchise information, you may have many questions. Please dont
hesitate to contact us to discuss this opportunity further and to gain a further insight into
the Stroud Homes Franchise opportunity.
If you see yourself becoming part of the Stroud Homes community, we would love to hear
from you.
We hope you will capture our vision and share
in our success.
James Stroud Founder of Stroud Homes

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What Makes Us Unique?

We simply cannot wait to show you!
Our team is very proud of our systems that have helped Stroud Homes achieve massive
success and dominant market shares in the new home building game.
We want to show you how weve taken the biggest problems in the industry HEAD ON
and solved them.
Marketing brings us the customers and weve got that covered. Our instantly
recognizable logo and upbeat coloring has helped us quickly build awareness around our
friendly, trusted brand personality. The simple and attractive website brings continual
marketing that can be pointed at any area we just have to turn on the switches. Tap
into years of graphic design work for marketing collateral when it is time to advertise.
No doubt youve heard the other groups going on about their marketing and not much
else. We believe this is a common mistake in the building industry an overfocus on
marketing and an underfocus on running a great business. Repeat customers and great
reputation are GOLD we get the balance right by building simple, effective systems that
will work for you.
As a carpenter, James Stroud knew how important great tools were to carpentry work.
They had to be new, sharp and accurate if he was going to enjoy his days work. Running
a great new home building business is the same we have the tools!

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The challenges of continual estimating & quoting, writing contracts and managing
workflow have put many a builder in an early grave. It doesnt have to be that way we
can show you that you have to run a business where the customers, the staff and the
boss have one thing in common theyre happy! (and the homes look fantastic.)
In dealing with our trade teams and suppliers, we could always see a simple formula
the smoother we run our business, the better the prices we will get. We focused on
developing the smoothest site operations in the industry making sure that everyone on
the site has the opportunity to do their work well. These are the systems that set Stroud
Home Franchise operations apart from the competition ones that we have ready for
your business.
Building the Foundations of Success
Successful businesses achieve success if they are built upon solid yet flexible
foundations flexible enough to change and grow as the market demands.
Stroud Homes has grown and moved with the changing times and has built a solid and
successful business system. When you open your own Stroud Homes Franchise, you
can count on a number of special ingredients that have made us what we are today.

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The Stroud Homes head office team will work with you to establish your own Stroud
Homes business, and will provide you every opportunity for success, providing you follow
the system that has created the success for us so far. Our brand and your individual
franchise is backed up every step of the way with our experience and knowledge in
operations, marketing, training, our designs, franchising and passion for building quality
homes.
We expect franchisees to operate their business efficiently and professionally, while
providing customer satisfaction, value for money and good quality homes.
If you are looking to build a business built on strong foundations, then owning a Stroud
Homes Franchise could be right for you.

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Our Mission
At Stroud Homes, our mission is to:
! Be the builder that customers want. Be to building what IKEA is to furniture,
Toyota is to cars, Disneyland is to amusement parks the clear leader in our
industry.
! Make sure every part of the Stroud Homes experience feels like home to our
customers and team.
! Create the Stroud Way Demand the best from ourselves, our subbies and our
suppliers.
! Demand the best, never settle for less, never let it rest.
! Make Stroud Homes a place we are all proud to work at.
! Become the
! most exciting,
! most fair and
! the most fun place to buy a home and work.
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Our Homes
At Stroud Homes we are proud of our growing range of well thought-out home designs.
Our range grew from an acreage specialist base to include:
! zero boundary designs and small lot solutions to suit metro developer covenant
requirements (Delphin Lend-lease, Stocklands, QM etc.)
! duplex, townhouse and unit designs
! steep land solutions (Stumped homes)
! a granny flat range
Weve grown the range, one design at a time, by carefully crafting each layout to meet a
need in the market and then spicing it with fresh thinking and styles. It doesnt take long
for your prospective customers to see the value in our designs instantly setting you
apart from the competition in your area.
We understand that buyer preferences, environmental and market conditions can rapidly
vary even in neighbouring areas. Our process of developing plans that suit your buyers
and your conditions to a T will ensure you always have the silver bullet the ideal plan
for your buyers!
Customized Plans
Part of our process involves a structured system for developing and pricing custom plans
for your customers, if and when required.
Facades
Facades Over the years we have seen the sparkle in our customers eyes when they
see a photo realistic render of a home that is right for them. It wasnt hard to see how
important great artist impressions are to the sales process so we put in the effort to
ensure our facades are impressive. Our Mountain faade has been the most
recognisable and popular faade it really has become a unique Stroud Homes look.
For practicality, we always have a Classic version of each home which represents the
best build price.
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A few of our designs

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How Franchising Works
Business Format Franchising
Franchising is the most successful class of business model in Australia, responsible for
multi-billion dollar turnover annually and the catalyst for business growth across all
sectors. It is not hard to understand how that growth occurred when you consider how
simple and efficient the franchising concept is.
There are various types of franchising, but the form adopted by Stroud Homes is
Systems Franchising or Business Format Franchising and is fundamentally the same
concept utilized in McDonalds, Gloria Jeans Coffees and KFC.
Plug into a Proven System
Business Format Franchising has been described as an agreement whereby a franchisor
develops a unique or individual manner of doing business and permits the franchisee to
use that system in a controlled fashion.
Franchising provides the opportunity for Franchisees to plug into the proven system, the
goodwill and the reputation of the franchisor. A Franchisee is an independent business
person who is given the right to use the franchisors formula, systems and know-how to
create their own success.
Sharing Resources and Experience
Franchisees are in business for themselves but not by themselves.
Franchising works because it combines the resources, commitment and initiative of the
franchisee with the franchisors proven system, management expertise and experience.
Franchising is an ongoing business relationship where the franchisor not only provides
the name and formula of the business, but also offers training and support over a range
of issues from sales and marketing to workflow management and customer service.
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Whats Involved?
If you talk to any successful franchisee, its becomes quite clear that there is a lot for you
to gain by joining a solid system.
Heres a preview of some of what is involved.
! You are looking to make a 5-year commitment.
! You expect to work hard. Stroud Homes will give you an opportunity to build and
grow a lifestyle enhancing, sustainable business, however, it will take you nothing
but hard work (especially in the first 3 -12 months).
! You are able to make a significant investment
! You are a qualified builder and/or hold the necessary licenses to operate as a
builder.
! You understand the highly volatile nature of the building industry, the challenges this
represents and the premium returns that come with meeting these challenges.
! You will commit yourself full-time to the business rather than being an absentee
investor.
! You have had a successful career or business in the building game.
! You already have goal setting habits that helped you get where you are.
! You will be prepared to do whatever it takes to build your Stroud Homes Franchise.
! You are enthusiastic about your future and take a hands-on approach to creating
success for yourself.
! You are a flexible thinker who is open to new ideas in a spirit of constant
improvement
! You aspire to become a quality builder and leader within a community of quality
builders operating under a quality name.

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Whilst the current Stroud Homes operation is successful, the start of any new business is
a risk and success is not guaranteed. The success of your Stroud Homes franchisee will
depend on many factors not the least of which will be the franchisees commitment and
ability in key areas.
As a Stroud Homes Franchisee some of the things you will be expected to do
and/or required to do:
! Complete the comprehensive training program designed to provide the knowledge
and training that will enable you operate your business and maximise its profitability.
! Respond to customers requests and enquiries in a timely manner.
! Meet the financial targets and expectations set by Stroud Homes.
! Follow the set routines for the smooth operation of the business outlined in the
Stroud Homes System for the successful management and operation of your
franchise.
! Employ, train and organise staff and sub-contractors.
! Manage your customers, their requests, the jobs, your workday and your staff.
! Organise and participate in team meetings
! Communicate regularly with the franchisor and or the franchise business manager
! Adhere to the reporting obligations set by the franchisor
! Be responsible for the ongoing marketing and development your franchise. Spend
money on local advertising
! Attend the required training and ongoing development meetings
! Make a commitment to act (even if only in some small way) on feedback, inspections
and reviews
! Enjoy what you are doing, and be committed to the overall philosophy and vision of
Stroud Homes

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The Stroud Homes System and Resources
One of the key advantages of Stroud Homes business system is in the simple operation
offered to franchisees.
When we created our systems, the goal was to lower the level of skill required in each
role in the business. The advantage to our franchisees, is that they have the ability to
operate their business smoothly whether or not they are able to secure experience staff.
They further benefit through increased profitability because lower qualified people cost
less to employ.
Stroud Homes systems are easy to implement and include guidance across all areas
including:
! Marketing, sales and quoting
! Estimating and procurement
! Workflow and sub-contractor management
! Human resources and recruitment
! Strategic development

Our business systems are documented in comprehensive franchise manuals and
documents specifically designed for Stroud Homes.

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Resources

The Stroud Homes system is made available to you via the Online Franchisee Intranet,
designed specifically for you.
Inside the Stroud Homes Intranet you will find all the tools resources and documents you
will need in all areas of business including:
! Project Management
! Sales
! Training & Screencast Videos
! Franchise operations
! HR
! Designs
! Web & IT

Basic Systems
Some of the most important systems are the least impressive. We will help you establish
an office schedule where weekly meetings and reports are timed to create good
communication within your operation.
As we grew our systems, we often started with a paper-based system and then rolled
the system over into software. These systems are available for use within your operation
as a backup and/or development tool.
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Software Systems
Our philosophy towards software has always been to buy the best because we build
houses and they build software. We dont try to build software, we just use the best
available and fine tune it for our needs. This approach gives us the flexibility to take
advantage of new software systems if they represent a benefit to our operations.
We also believe that software works for us, not the other way around. You will soon see
how these sharp tools have been optimized at Stroud Homes so that you always know
exactly what is happening in your operation.

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Learning to Run a Stroud Homes Franchise
To become a successful Franchisee, you need to take
on board everything weve learned in over 20 years of
successfully building houses. That is why our training
program is an ongoing process and not delivered in a
one off event.
Stroud Homes training begins during the recruitment
phase, where you will have an opportunity to spend a
couple of days with James Stroud, Founder of Stroud Homes. During this time you will
have the opportunity to explore the Stroud Homes opportunity, have a look inside the
system that supports the operation and success of Stroud Homes. You will have the
opportunity to spend a day in the life of a Stroud Homes franchisee.
If you are successful in our recruitment selection process, your full training will begin soon
after you sign up for your new franchise. During your training, we will support you in the
launch of your business and will assist you with getting your franchise up and running.
Stroud Homes offers ongoing training and
support to help all franchisees in both the day to
day operation and long term development of
their business. Our training will consist of a mix
of in-office, virtual and up to 20 days of onsite
training.

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The Learning Curve
In our training, you will learn all about our systems with respect to every role in a Stroud
Homes franchise. When we say every role, we mean every role because (in the
beginning) you may be wearing a few hats in your business.
Of course the support we offer doesnt end with the training. A team member from Head
Office is always on hand to give you advice and support either over the phone or right on
your computer screen. Regular franchise meetings and conference calls keep you up to
date with whats going on and in touch with the team. As a successful franchisee you will
also have the ability to influence the development of our brand.
Your Success is Our Success! Therefore, Stroud Homes will support you and mentor
you as much as we can to help you maximise your potential in your business.

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Money Matters financial investment
The following indicative costs and estimate are subject to change without notice. Actual
costs and details are outlined in our Franchise Agreement & Disclosure Document.
Term of
Franchise
5 years with an option to renew for another 5 years
Initial Costs
Franchise fee paid to Stroud Homes prior to the
commencement of the Franchise
Talk to Us today and Find Out How You May
Qualify to Pay REDUCED upfront Franchise Fees!
$60,000 plus
GST
Stamp Duty may be payable on the documentation (stamp duty laws
vary from state to state so franchisees must obtain their own legal
advice)
Documentation Fee (included in Franchise Fee)
$3000 plus
GST
Ongoing Fees
A monthly continuing franchise fee based on a percentage of the
gross sales will be payable.
This is currently set at 4%.
(3% Service Fee and 1% Marketing Fee)
Additional
Requirements
In addition to your initial setup costs, other costs may
include:
Legal and Business
Adviser/Accountant
s fee
Setup of business
entity
License, registration
and insurances
Office setup costs
Marketing collateral
Working Capital
Local Area Marketing

All other associated costs related to the set-up and ongoing running
of a Stroud Homes Franchise are outlined in detail in the Franchise
Documents.

All prices, terms and conditions are negotiable to suit individual areas
and situations.

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Do You Have What it Takes?
A strong candidate for a Stroud Homes Franchise
will understand this is not a buy your job or food
outlet sized franchise. These businesses can turn
over anywhere from 3 to 10 million per year and
bring in impressive profits profits that can change
your lifestyle. With the big money come big
challenges always volatile, the building industry
never disappoints.
As a Construction Professional looking for the next step, you will be willing to invest some
of your financial reserves and set aside some operating capital.
You recognize both the opportunity and the challenge the picture is clear and you are
ready you have what it takes.

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The Stroud Homes 8-Step Franchisee Selection Process
01 Phone Interview
Now you have reviewed our info pack, our website
and possibly experienced our business first hand. It
is time to chat with our team over the phone. This
gives us a chance to assess your suitability as a
Stroud Homes franchisee. The telephone interview
will also give you an opportunity to have your initial
questions answered.
02 First Interview
It is time to explore little more about each other
and know a bit better. You and your partner (if
applicable) will be required to attend a face-to-
face interview. In this interview, you will receive
informal yet comprehensive introduction to the
Stroud Homes franchise system.
03 Application Process
At this point weve met, approve of each other and
you wish to proceed so it is time to start the
application process. First, you will be asked to
complete the Expression of Interest (EOI) form /
Application Form. After review of your EOI and
Application, we will ask you to pay a deposit of
$3000 + GST, which will go towards the costs of
preparation of franchise and disclosure documents.
Your deposit is returned to you should your
application be deemed unsuitable or you withdraw
your application before disclosure documents are
prepared. If document work has been started, a
nominal amount is retained to cover costs.
05 Due Diligence
So far, youve been approved and spent some
time with the Stroud Homes team.
At this stage you will be issued with Disclosure
Documents that include Franchise Documents
and Franchise Code of Conduct.
You will be spending a bit of time reading and
understanding the agreements, as well as setting
up meeting time(s) with your advisors and
attending those meetings. We encourage you to
take steps as necessary to understand the
agreement it is in everyones best interest that
you do so.
04 Discovery Day
Congratulations! Your application has been
approved. Stroud Homes sees you as a suitable
franchisee and as such has approved your
application.
It is now important that you have an opportunity to
see for yourself the day-to-day operations of a
Stroud Homes franchise. You are welcome to
spend as much time as required with our team so
you can see firsthand how we operate in the Stroud
Homes business.

06 Final Interview
By now youve read the agreement, met with your
advisors and have gained a good understanding
of the agreement. You are 98% satisfied with the
agreement and intend to proceed.
This meeting provides both of us a chance to go
through our final questions and prepare for the
final stages!
We may also begin to formulate some basic plans
around your franchise launch and the requisite
tasks. Exciting!
07 Execution of Agreements
In this stage, the agreement is fine-tuned and
prepared for signing. Our respective solicitors
complete much of the work. Depending on time
constraints, this may take up to 3 weeks to prepare.
Once the agreements are prepared, they can be
sent to you, to your solicitor or to our office for
execution (signing).
08 Training
Welcome to the Team! You are now proud owner
of your Stroud Homes franchise.
It is time to start your formal training. Initially, we
would expect you to spend about 2 weeks in the
Stroud Homes franchise prototype office where
you will be alternating between
1. working side by side with the team and
2. completing the training material.
After this, we move to on-site training where we
incorporate up to 20 days of on-site training into
the typical franchise setup activities over the first 3
months.

LAUNCH!
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The Launch
When you have reached this point, the fun really starts. We can begin to focus on
producing net profits for you and your family by:
You will be launching your franchise anywhere from 30 to 60 days after execution of
agreements. It is extremely important to be prepared to put a large amount of effort into
the period between final agreement and launch. You are in a race against time to get
your franchise set up to the point where:
! you are open for business
! your franchise starts to produce gross
profits to cover your overheads
! producing net profits for you and your
family by:
! building market share
! building a great trade and
supplier base
! building a great local reputation
! building a great team
! building great homes

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Your Next Step
To continue your journey with Stroud Homes, your next step will be to attend a phone
meeting with our Franchise Consultant - Gavin Mann
Please call Gavin Mann on 0447 300 401.

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