{"id":254959,"date":"2018-07-01T13:30:40","date_gmt":"2018-07-01T11:30:40","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=254959"},"modified":"2018-06-29T16:42:06","modified_gmt":"2018-06-29T14:42:06","slug":"heres-why-kauai-wants-you-as-a-franchisee-and-how-much-it-costs-to-open-one","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/254959\/heres-why-kauai-wants-you-as-a-franchisee-and-how-much-it-costs-to-open-one\/","title":{"rendered":"Here&#8217;s why Kauai wants you as a franchisee &#8211; and how much it costs to open one"},"content":{"rendered":"<p>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.<\/p>\n<p>The healthy food chain has moved rapidly in recent years, including a redesign, a partnership with UberEats, an an &#8216;order ahead&#8217; app and loyalty and cashless payments adding a minimum of 5% additional overall sales in loyalty transactions.<\/p>\n<p>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.<\/p>\n<p><strong>What does a Kauai franchise ultimately cost?<\/strong><\/p>\n<p><strong>New stores &#8211; estimated:<\/strong><\/p>\n<ul>\n<li>Set up costs of approximately R2,000,000 (capital costs of setting a store up), excluding VAT<\/li>\n<li>Franchise fee R120,000 excluding VAT per store<\/li>\n<li>Staff costs during training estimated R30,000, depending on travel requirements.<\/li>\n<li>Rent deposit R50,000 (can vary)<\/li>\n<li>Legal fees if any R3,500 (can vary)<\/li>\n<li>R3,200 franchise application fee \u2013 R2,875 for psychometric testing, and the balance for credit checks and administration<\/li>\n<li>Uniforms and smalls are also part of working capital and can be R60,000 when you first open a store<\/li>\n<\/ul>\n<p><strong>Existing stores:<\/strong><\/p>\n<p>Existing store costs will depend on sales volume and profitability and is done on a store by store basis.<\/p>\n<p><strong>In Motion stores: estimated<br \/>\n<\/strong><\/p>\n<ul>\n<li>Set up costs of approximately R500,000 to R800,000 set up costs (excluding VAT)<\/li>\n<li>Franchise Fee R70,000 excluding VAT per store<\/li>\n<li>Staff costs during training estimated R12,000, depending on travel requirements.<\/li>\n<li>Rent deposit R10,000 (can vary)<\/li>\n<li>Legal fees if any R3,500 (can vary)<\/li>\n<li>R3,200 franchise application fee \u2013 R2,875 for psychometric testing, and the balance for credit checks and administration<\/li>\n<li>Uniforms and smalls are also part of working capital and can be R30,000 when you first open a store<\/li>\n<\/ul>\n<p>The applicant will need 50% of the total cost in unencumbered funds, Kauai said.<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/business\/250849\/14-food-franchises-that-cost-less-than-r2-million-to-open-in-south-africa\/\" target=\"_blank\" rel=\"noopener\">14 food franchises that cost less than R2 million to open in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As part of its growth plan for 2018, Kauai says it is looking for hands-on franchisees to partner with. <\/p>\n","protected":false},"author":10,"featured_media":251087,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26,13185],"class_list":["post-254959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline","tag-kauai"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/254959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=254959"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/254959\/revisions"}],"predecessor-version":[{"id":255483,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/254959\/revisions\/255483"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/251087"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=254959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=254959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=254959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}