FRANCHISING

In order to extend the abroad development of MACHKA, as an international brand, our company grants Franchise license to investors who envisages to reach MACHKA standarts. You can find below basic Franchise terms and conditions established through our experiences and knowledges acquired over the years. As long as your investment planning satisfies MACHKA standards and below terms and conditions we will be contacting you promptly. Once the store location and your investment planning is approved by ourcompany further Franchise conditions shall be negotiated mutually.

Basic FranchiseTerms and Conditions

• MACHKA store should operate minumum of 120 square meter total area.

• MACHKA store will be established in the busiest Shopping Center and/or the commercial street of the relevant city.

• The architectural fitout project will be prepared by our company, and will be performed by a contractor authorized by our company or by the Franchisee under the supervision of our company. In any case, the expenses shall be paid by the Franchisee.

• The Franchisee is obliged to order from new collection 4 times a year.

• Orders should be given from existing collection, no special collection will be produced for the Franchisee.

• Purchase price shall be determined mutually on the basis of trade tariffs of the relevant country.

• Payment shall be made by letter of credit.

• MACHKA store's window shall be dressed for each season opening time (2 times a year) by the Franchisee at its own cost under the supervision of our company.

• The marketing budget of the Franchisee shall be determined mutually on the basis of the business plan to be established by the Franchisee.

• Franchise fee shall be determined mutually on the basis of equity.

• Franchise lisence shall be granted exclusively for the first two years. The exclusivity right shall be revised with respect to the Franchisee's performance at the end of two years period.