A co-share partnership has been struck between a local tire retailer and an Edmonton-based one. Royal Tire has entered into a 50/50 partnership with Fountain Tire, one of Canada’s leading tire and automotive service retailers. The deal was completed as part of Fountain’s drive to expand beyond its base in Western Canada. Royal Tire was a perfect partner as they have an already successful consumer base. Royal Tire also has offices in areas like Sudbury, Sault Ste Marie, New Liskeard and Wawa.
The partnership is based on shared values and a belief in the power of local ownership to spur excellence in personalized service. An interesting facet is that Royal Tire is adopting Fountain Tire's highly successful shared ownership structure. Store managers who have proven they can offer superior service will be offered a 50/50 equity stake in their operation. For its part, Fountain Tire views the partnership as a key component of its strategic plan to expand into new markets from its base in Western Canada. The tire retailer believes the Northern Ontario market offers strong growth potential.