Frequently asked questions

No, we have franchised and company owned restaurants in place. To ensure that we can continue maximizing the growth opportunity for Kauai, we see franchising as the most effective way of expanding. We will continue to own some of our restaurants, to ensure we keep a finger on the pulse of the key aspects of operations.

Kauai has done extensive demographic research in the country to determine where the gaps are for new restaurants. Finding the right area is key, but what's also important is the right location in that area or mall. We will generally do this for the franchisee as well as the lease discussions with the landlords. Any franchisee who believes they have the right site or experience, will potentially then work alongside our development department to evaluate and where viable, close a deal.

If you are passionate about health and what KAUAI stands for, then you’re part way to being the right profile. What is equally as important is your ability to work hard in the service industry. This means working with people, from customers to employees, as well as motivating and getting the best out of your team. Most franchisees new to the business will comment that they have never worked as hard as in the first 6 to 12 months of starting their new business. If you find restaurant work rewarding and enjoy working with people these are good signs. We do have a filtering process to assess this. Having the right amount of capital is vital and we cannot consider applicants without the necessary capital backing.

Yes, we sign an agreement with your shelf company which must be registered for VAT. We require that all member / shareholders in that company sign the franchise agreement and we do not allow silent partners to be directors or shareholders of this company.

Yes, Kauai will set up and fit the entire restaurant as well as train staff and the franchisee. As part of the working capital budget franchisees must be aware that staff salaries will need to be paid before opening (between R20 000 and R30 000).

Yes, we have a standard franchise agreement and we advise that every franchisee gets legal guidance in order to understand this agreement from day one. The agreement must be accepted, as is, in order to ensure that all franchisees are guided and the brand is protected against potential non performing franchisees. The agreement is typically a 5 year agreement with a 5 year renewal included and is typically in line with the lease agreement.

We have dedicated training staff and restaurants for training of all employees and franchisees. The training is extensive from running the restaurant to running the business matters of the restaurant. The program runs over 8 weeks and must be passed in order to proceed to becoming a franchisee. During this time there is no salary for a franchisee and this must be budgeted for when considering buying a franchise.

Please refer to the previous tab - becoming a franchisee

New stores - estimated

Retail store:

Set up costs of approximately R2 200 000 (capital costs of setting a store up), excluding VAT

plus

Franchise fee R110 000 excluding VAT per store

plus

Working capital

  • Staff costs during training estimated R30 000, depending on travel requirements.
  • Rent deposit R50 000 (can vary)
  • Legal fees if any R3500 (can vary)
  • R3100 franchise application fee – R2850 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:

R500 000 to R800 000 set up costs (excluding VAT)

R55 000 (excluding VAT)

  • Staff costs during training estimated R12 000, depending on travel requirements.
  • Rent deposit R10 000 (can vary)
  • Legal fees if any R3500 (can vary)
  • R3100 franchise application fee – R2850 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. This must be clearly highlighed on your application form.

 

If you prove yourself to be a team member, uphold excellent operational standards, have developed your managers around you as well as not been in any kind of breach of your agreement, we will be keen to develop your future with us. All of these standards are measured via a franchisee scorecard and this helps ascertain where the gaps in the business are and how we can work together to improve them. This will mean if you are doing well on the scorecard that as new or existing stores become available close to where you are based, you will be our first choice to be the franchisee.

There is no guarantee from us that your new venture will work as well as elsewhere in the group, however full returns on investment depending on the store, (based on rental, other variable costs and your ability to run the business), can be achieved between two to five years. This includes a salary that franchisees may choose to pay themselves while working in the business.

We have carefully chosen the group suppliers based on quality, reliability and price. In order to maintain brand standards and consistent product, franchisees are required to buy from approved suppliers. Should you feel that we should be sourcing from elsewhere, you will be able to discuss this with us and if approved the Kauai group may then buy from them.

We will always have refresher training programs available for your staff which you and your staff can attend at a cost price. Our field support people are highly experienced and have most likely run one of the company owned stores themselves. Detail is vital in our business and our regular field service visits include discussions around audits, mystery shoppers and scorecard reviews will assist you in identifying where you can improve to optimise your business.

You will be charged 6% of your net sales for the use of the brand and on-going field support. There is also a 4% marketing fee that goes to a separate fund to generate marketing and other brand building programs. Currently Kauai is the biggest single contributor to this fund as all its retail stores also pay 4% to this fund. The Kauai In Motion model has only a 1.5% contribution to the fund.

When we look for international operators, we look for a group with experience in retail, sufficient capital to grow a brand, access to real estate and procurement infrastructure.
We need to understand your ability to manage a multi store business, Human Resources, and not just a passion for health, but also the restaurant industry.
We do not tend to look at individuals due to the work involved in launching a brand and the potential learning curves this presents.

To open in a new country takes a lot of work and understanding of the interested market.
International franchise fees are determined on the size of the market.

Running a Kauai@School involves being a hands-on operator during school terms and sharing the vision of a healthy canteen.
School canteens are closed over school holidays and public holidays.
The school model educates and creates awareness of healthy eating and provides a menu that is in line with our values at Kauai.