Published on January 30, 2014

Fountain Tire strengthens Ontario presence

EDMONTON, Alberta (Jan. 30, 2014) — Fountain Tire is converting eight Royal Tire affiliated dealership locations in northern Ontario to the Fountain Tire banner to help support growth of the Fountain Tire brand across Canada.

The conversion affects Royal Tire's consumer and commercial tire locations in Sault Ste. Marie, Sudbury, Timmins, Marathon, Huntsville, New Liskeard and Wawa, Ontario, Fountain said. With these conversions, Fountain Tire will have 163 branded locations in six provinces, predominantly in western Canada.

Fountain Tire and Royal Tire formed a 50/50 partnership in July 2012 as part of a strategy to expand Fountain's presence in eastern Canada.

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The expansion of our brand and business model into northern Ontario is a tremendous opportunity for growth and shared learning," said Fountain Tire Vice President of Marketing Nelson Tonn.

"The collaborative partnership we have forged with Royal Tire associates is a perfect fit in terms of our shared values of local ownership and concern for the well-being and success of our customers, associates and community."

In all, Fountain Tire has 12 locations in Ontario.

At the same time, Fountain Tire is transitioning the Royal Tire stores to its shared ownership structure, which allows store managers who demonstrate superior service the opportunity to obtain a 50-percent stake in their operation.

"We share Fountain Tire's belief that managers who own equity in their location are more highly motivated to surpass customer expectations," said Phil Shaw, director of operations, Fountain Tire, and one of Royal Tire equity partners who formed the partnership with Fountain in 2012.

"This entrepreneurial approach is good news for customers in that it allows us to attract the best and brightest people and create the conditions in which customer experience can flourish."

Gary Foley, director of corporate sales for Fountain and the other equity partner in the 2012 deal, said, "The signs are changing, but our commitment to exceptional customer service remains the same, as does our management staff and service technicians.

"Customers will deal with the same team they have come to know and trust. The 'Royal Treatment' our clients have come to trust has not changed."

Since its founding in 1983, Royal Tire has served the tire and automotive service needs of consumers and commercial tire accounts in the trucking, logging and mining sectors.

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