Franchise and Business Opportunity
Franchise and Business opportunity in South Africa
- Brief History of 2nd Take Fashion Franchise Group
- 2nd Take Franchise and Business Opportunity
- Requirement of future 2nd Take Franchisees
- What 2nd Take provides as Franchisor
- The Application process
- Franchise cost
- 6.1 Funding
- 6.2 Set up costs
- 6.3 Joining fee and ongoing franchise fees
For more information on our low cost Franchise options, to request our 2nd Take Franchise Disclosure Document or to apply for a low cost Franchise, please contact us via e-mail email@example.com or call us on 021 434 5878.
1. 2nd Take’s History
2nd Take is a high-end second hand clothing consignment store, specializing in international brands from Armani to Zara. We opened our doors in June 2010 and offer exclusive international labels at a fraction of the retail price.
2nd Take is a member of the Franchise Association of South Africa, FASA and the Cape Chamber of Commerce. It has been an excellent experience for 2nd Take to work with FASA, to ensure that our Franchise offering is 100% aligned with best practices and legal requirements.
2nd Take has boutique stores in the Western Cape, as well as a convenient online store. Many of our labels are not available for purchase in South Africa and we also source specific items for our customers. We offer second-hand designer clothing for women, men and kids and our 2nd Take Kids Division offers second-hand kids and baby equipment, toys and books.
2nd Take clearly differentiates itself from other clothing stores. 2nd Take has a clever and unique location and stock strategy, focusing on a mix between high and low income areas.
Most fashion retailers are reporting below inflation or even negative growth, but 2nd Take had solid growth over the previous years. The reason for this is fairly obvious: 2nd Take is based on a real win-win business concept.
- Our suppliers win, as they get money back for the items they previously bought
- Our customers win, as they get amazing, authentic designer wear at a fraction of the retail prices
- We offer a boutique style shopping experience
- Various Charities benefit, as we support them with monthly clothing donations
- The environment wins, as we reduce the human footprint a little – Fashion pollutes like everything else
Currently our brand has no comparable competitor in our business field and we fill the market gap fully.
For 2nd Take, Franchising is a very important and successful business strategy to grow our second-hand retail stores. There are many chain stores attesting to this in Europe and the United States. However, we are the first company to make this exciting and rewarding Franchise business model available in South Africa.
Our expertise, experience, good image, creativity and support, combined with the willingness, dedication and corporate ambition of the Franchisee are vital in the success of establishing a 2nd Take franchise.
Please give 2nd Take’s franchise opportunity careful consideration to establish your suitability for our low cost franchise.
3. Franchisee requirements
- Business Skills, integrity and professionalism
- An entrepreneurial spirit and the desire to bring this Franchise to success
- Excellent interpersonal and leadership skills as well as financial management skills
- The willingness to devote full time and your best efforts to the day to day operation of the 2nd Take store as a hands-on premises franchisee
- A passion for fashion and people, as well as a positive outlook to drive the growth of your 2nd Take store as well as the growth of the 2nd Take brand
- The willingness to complete the 2nd Take training, which can last between 2 to 4 weeks
- Excellent employment record
- The ability to meet the financial requirements
4. What you will gain from 2nd Take
Being a 2nd Take franchise owner, offers many advantages, from training and support, to the opportunity to own a potentially thriving and successful Franchise business and to actively benefit from the power of our 2nd Take brand.
- A chance to have your own business and the rewards that come with it
- As a 2nd Take Franchise owner, you are in business “for yourself, but not by yourself”
- The enjoyment that comes from working with great fashion brands and people
- A business with low start-up costs, a proven business concept and good brand recognition throughout South Africa
- A Business where your suppliers become your customers and your customers become your suppliers
- A recession proof business, especially in economically tough times, customers and suppliers alike come to us in increasing numbers
- 85% of 2nd Take customers become repeat customers
- The tools and support, that will help make your 2nd Take store a success
- A business geared for growth; we recorded average turnover growth per year of over 18% since 2013.
- 2nd Take’s ongoing and unlimited support in the areas of operations, training, advertising, marketing, purchasing and equipment
- Personal satisfaction as an individual owner and member of the 2nd Take organization
2nd Take’s philosophy includes an open exchange of ideas between 2nd Take and its Franchisees. Our business relationships are built on trust, mutual respect and partnership.
5. The Application process
Submitting an application to 2nd Take is the first step in the application process and does not obligate the potential Franchise owner or 2nd Take in any way.
- A non-refundable administration fee of R1 500 is payable upon submission of your application form. This fee will be used for general administration costs, as well as for obtaining the necessary financial, personal, employment and criminal background checks. Should more background checks be required the cost thereof will be borne by you.
- Your application will be reviewed and you will be notified via e-mail of the review result
- Should you meet our initial requirements, you will be interviewed by the General Manager
- Should your application be approved, you will be offered a franchise for a specific 2nd Take store/s
- You are required to sign a non-disclosure agreement and to complete full time training of up to 4 weeks
- You must be prepared to carry all the applicable costs, including flights and accommodation. You will need to be financially self-sustainable for the duration of the training.
- Should you not be able to complete the training successfully and are found incapable of meeting the job requirements during the training, 2nd Take, in its sole and absolute discretion reserves the right to terminate the franchise agreement.
- 5% of the paid franchise fee will be retained by 2nd Take, should the Franchise Agreement be terminated, or if you fail to complete the training to 2nd Take’s standard satisfaction.
All costs associated with the completion of the application are solely for your account.
6. Franchise costs
The costs of a Franchise can vary and can only be determined once an individual Franchise is offered. Influencing factors are: size of the store, landlord contribution, location, equipment, signage and security.
- 2nd Take offers a Conventional Franchise format only, where the Franchisee must pay 100% of the total cost of a 2nd Take store from personal resources.
- You will need 50% of the purchase price in unencumbered, non borrowed cash. These funds can be in the form of cash, shares or immovable property (at 80% of the valuation, less outstanding debt), but cannot include movable property or insurance funds.
- Absentee Investors are not allowed.
These 50% of investment funds are before any other borrowings or financing and can come from the following sources:
- Free, unencumbered cash
- Tangible securities
o Registration of a second mortgage bond over the unbonded portion of fixed property
o Fixed deposits
o Surrender value of RAs, life policies ceded
o 50% of the value of equities or unit trusts ceded
Other business interests must be disclosed and detailed and are discouraged.
6.2 Initial store set up costs
Depending on the region you will need to open your 2nd Take store within 3 months of signing the Franchise Agreement. The store set up costs are in the region of R160 000, excluding training and operational costs. These costs depend on the condition of the site and the landlord’s contribution.
6.3 Joining fee and ongoing franchise fees
The Franchise joining fee is R70 000 per store.
Franchise Royalty fee: 5% of monthly gross revenue, with a minimum of R3500 payable per month
Marketing fee: 2% of monthly gross revenue, with a minimum of R1000 payable per month
To successfully operate a 2nd Take store and Franchise, requires total commitment and lots of hard work. You will need to show determination and staying power and sacrifice lots of your personal time and concentrate exclusively on the challenge of running a 2nd Take store.
2nd Take is the largest consignment second-hand clothing retailer group in South Africa with boutique shops in Cape Town and Pretoria, as well as a convenient online store. 2nd Take stocks exclusive designer brands and high street labels, often not available for purchase anywhere else in South Africa.
For more information on our low cost Franchise Options, to request our 2nd Take Franchise Disclosure Document or to apply for one of our low cost Franchises, please contact us via e-mail firstname.lastname@example.org or call us on 021 434 5878.