Here’s why Kauai wants you as a franchisee – and how much it costs to open one

  • July 26, 2018 2:19 pm
  • News

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Kauai says it is looking for hands-on franchisees to partner with as part of its growth plan for 2018, having had its best year in 22 years of trading with 25% year on year growth and 4% improvement on net profit percentage.

The healthy food chain has moved rapidly in recent years, including a redesign, a partnership with UberEats, an an ‘order ahead’ app and loyalty and cashless payments adding a minimum of 5% additional overall sales in loyalty transactions.

Kauai boasts over 150 stores nationwide,and has a partnership with 93 Virgin Active Health Clubs, with room to grow its footprint given that the gym has 142 clubs in South Africa.

What does a Kauai franchise ultimately cost?

New stores – estimated:

  • Set up costs of approximately R2,000,000 (capital costs of setting a store up), excluding VAT
  • Franchise fee R120,000 excluding VAT per store
  • Staff costs during training estimated R30,000, depending on travel requirements.
  • Rent deposit R50,000 (can vary)
  • Legal fees if any R3,500 (can vary)
  • R3,200 franchise application fee – R2,875 for psychometric testing, and the balance for credit checks and administration
  • Uniforms and smalls are also part of working capital and can be R60,000 when you first open a store

Existing stores:

Existing store costs will depend on sales volume and profitability and is done on a store by store basis.

In Motion stores: estimated

  • Set up costs of approximately R500,000 to R800,000 set up costs (excluding VAT)
  • Franchise Fee R70,000 excluding VAT per store
  • Staff costs during training estimated R12,000, depending on travel requirements.
  • Rent deposit R10,000 (can vary)
  • Legal fees if any R3,500 (can vary)
  • R3,200 franchise application fee – R2,875 for psychometric testing, and the balance for credit checks and administration
  • Uniforms and smalls are also part of working capital and can be R30,000 when you first open a store

The applicant will need 50% of the total cost in unencumbered funds, Kauai said.

Source: BusinessTech – www.businesstech.co.za

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