Fashion brand seeking factory outlet franchisees in South Africa

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Project summary

Objective
I have a franchise to offer
Short description

ERKE is excited to offer to the South African market a unique opportunity to participate as a franchisee with this exciting value brand.

Project details

An ERKE factory outlet must be positioned outside shopping centre, main road or busy transport node. It sells previous season unsold stock from ERKE premium ‎stores and stock specifically bought for ERKE factory outlets at lower prices from ERKE International that could arise from over-production or cancelled orders. These goods are sold at 50% of the normal suggested retail prices.

It must be approximately 50 - 100 sqm. The store set-up costs for a turnkey operation (excl. stock) range from R 330,000 (50sqm) to R 460,000 (100sqm).

In order to fully stock the store with a comprehensive range of apparel, footwear and accessories you will be required to invest from ‎R 300,000 (50 sqm) to R 600,000 (100 sqm).

The ERKE Factory outlets operate on a 50% mark-up on cost which equates to a 33.33% Gross Profit margin.

Trading densities typically range from R 2000 - R 3000 per square Metre and the expected break-even point is approximately 12 months.‎

Secured sites:

We have secured ERKE premium store sites in Klerksdorp (Matlosana Mall), Baywest Mall (Port Elizabeth) and Eikestad Mall (Stellenbosch) and we are actively seeking qualified franchisees.

Key facts about this project

Region / country
South Africa
Sectors
Clothing and footwear
Products / Services
Clothing accessories and Shoes
Do you provide training and support?
Yes
Is this suitable for home workers?
No
Exclusive agreement available?
No
Is there any financing assistance offered?
No
Will you provide any advertising and promotional support
Yes
Minimum investment required
$ 27,000 - $ 55,000
Describe the franchise opportunity on offer
An ERKE factory outlet must be positioned outside shopping centre, main road or busy transport node. It sells previous season unsold stock from ERKE premium ‎stores and stock specifically bought for ERKE factory outlets at lower prices from ERKE International that could arise from over-production or cancelled orders. These goods are sold at 50% of the normal suggested retail prices. It must be approximately 50 - 100 sqm. The store set-up costs for a turnkey operation (excl. stock) range from R 330,000 (50sqm) to R 460,000 (100sqm). In order to fully stock the store with a comprehensive range of apparel, footwear and accessories you will be required to invest from ‎R 300,000 (50 sqm) to R 600,000 (100 sqm). The ERKE Factory outlets operate on a 50% mark-up on cost which equates to a 33.33% Gross Profit margin. Trading densities typically range from R 2000 - R 3000 per square Metre and the expected break-even point is approximately 12 months.‎

What I am looking for in an ideal partner

Can provide trade references
Preferable

About the company

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ERKE

Established in 2000, ERKE is a leading international brand in sports and casual wear. The company now offers franchise opportunities across sub-Saharan Africa.

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