Scope of business

BUSINESS DEFINITION: FRANCHISED REAL TIME DIGITAL COMMUNICATIONS NETWORK

BUSINESS COMPONENTS:

  1. Franchisor (1D-NET)
  2. Franchisees (50 regions = phase 1 located countrywide)
  3. Technology (media player with squeezeback , scheduling & billing system , remote site management system, led screens)
  4. Screen Venues (restaurants, pubs, taverns, hotels, nightclubs, retail stores, banks, supermarkets, schools, shopping centres, tertiary institutions, sports clubs)
  5. Local Advertisers (local businesses , clubs , schools etc in the franchised regions)
  6. National Advertisers (corporate clients for national advertising slots)
  7. Sponsors (local and national sponsors of SMS driven competitions)
  8. Rental Company (media players and led screens rented to venues via the franchisees)



FRANCHISOR:

1D-NET (Pty) Limited (1D-net) will contain all the intellectual property , trademarks , technology , business systems , franchise contracts , exclusive supply contracts and rental company joint venture agreement.
1D-net will prepare specifically designed franchise documentation making up the 1D-net Franchise Package comprising (but not limited to):

1D-net will enter into franchise contracts with 50 franchisees (phase 1) for 50 individually demarcated and defined geographic areas.

1D-net will procure and select individual or corporate franchisees using specifically prepared selection criteria for each designated area.

1D-net will train each franchisee and key staff on all elements of the 1D-net business system and provide each franchisee with ongoing support and national marketing and advertising assistance.
1D-net will develop and implement a customized real-time scheduling, billing and screen monitoring system allowing coded access for franchisees to their individual area/region.

1D-net will procure, bill and schedule all national and local advertising and collect and distribute all revenue. The revenue which is shared between Franchisor, Franchisee and Venue will be automatically split and totaled monthly by the system.

1D-net will procure sponsors for SMS driven national and regional competitions and design and implement the digital advertising campaigns.

1D-net will establish a rental finance entity via a joint venture with an established finance company for the purposes of procuring 1D-net media players and LED screens and renting them to the venue owners.
1D-net will establish a national call centre for the purpose of procuring follow up advertising from all the local advertisers in the franchise regions. The call centre will process orders, facilitate advertising design and manage billing, payment and scheduling.

FRANCHISEES:
50 franchisees will be sourced for 50 pre-defined and demarcated geographic areas throughout South Africa. The franchisees will be selected using predetermined criteria and after undergoing a series of screening processes. Franchise contracts will be entered into granting each franchisee the right of use of the 1D-net corporate identity and business system in their demarcated area. Each franchisee will retain the major share of their local advertising revenue and will get a proportionate share of the national/corporate advertising revenue.

Each franchisee and their staff will undergo training and will be required to implement the 1D-net blueprint in their area. This blueprint will include signage, branding (vehicles, clothing, brochures etc.) support infrastructure, sales and administration. The franchisee would deploy sales staff to sign-up as many retail and hospitality venues on to the 1D-net digital network as possible by either including their existing TV screens with a 1D-net media player or renting them new screens and media players. Each venue will be incentivized with a share of the advertising and SMS revenue and the use of the screens for their own automatically aired ads.

The franchisees would also market the advertising packages on the 1D-net network to local businesses and community and canvas for ongoing business while building their footprint on the network. The network will be advertised nationally by the franchisor using advertising levies contributed by the franchisees and matched by the franchisor.

The franchisees will be provided coded access to the 1D-net remote scheduling and monitoring system for their area which would enable them to reserve advertising slots and monitor screen operation.
The franchisees would be required to provide collateral for the purchase and rental of the media players and screens to the venue owners. The venue owners would also be required to sign surety for the purchase of the equipment and would be subject to the normal credit vetting process. All interaction with the venues would be via the franchisee and he would be required to follow up on early warning notices from the digital monitoring system to troubleshoot problems with equipment. The franchisee would be responsible for all documentation including the signature of a landlord’s waiver.