Franchise terms – A quick guide

A quick refresh guide to Franchise terms

Franchising

A method of business expansion, characterised by a trademark licence, payment of franchise fees and significant assistance and / or control.

A long-term cooperative relationship between two entities: a franchisor and one or more franchisees – that is based on an agreement in which the franchisor provides a licensed privilege to the franchisee to do business in a designated format. Support materials and aids are offered as part of the Franchise arrangement – in the format of guidelines, marketing collateral, business modelling and scale efficiencies.

Franchise

A privilege or right to operate a business under the Franchisor‘s name and trademark, offering specific products or services under explicit guidelines at a certain location for a declared period of time.

In the case of 2nd Take, it is the operation of a high-end second-hand clothing store, specializing in international brands at a fraction of the retail price, as contemplated in the Franchise Agreement and Operating Manual, or any other supporting documentation, or directives, including any Improvements, variations, or additions made to the Business System by the Franchisor from time-to-time; and

Franchise Agreement

The legal business contract between the Franchisor and the Franchisee, that governs the relationship between the two entities for a specified period of time. It frames the relationship in a concise manner.

Franchised Business means without limitation

The operation of a high-end second-hand clothing store, specializing in international brands at a fraction of the retail price, as contemplated in the Operating Manual, or any other supporting documentation, or directives, including any Improvements, variations, or additions made to the Business System by the Franchisor from time-to-time; and

Franchisee

A person or entity to whom the right to conduct a franchise business is granted by the franchisor or licensor.

Franchisor        

The company owning/controlling the rights to grant a franchise to potential franchisees.

2nd Take is the largest consignment second-hand clothing retailer group in South Africa with boutique shops in Cape Town, Pretoria and Bloemfontein, 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 further information on 2nd Take, please contact us on 021 434 5878 or e-mail franchise@2ndtake.co.za.

 

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