Taste the Island

On the beautiful, garden island of Kauai, three friends sat under a papaya tree watching the surf. As they feasted on the fresh fruits that grew so abundantly around them, a dream was born. One day they would share this tastier, healthier way of life with the world.

You are here:
Kauai » Join The Family » Becoming a Franchisee

Becoming a Kauai Franchisee

The Process

The steps to follow in becoming a Kauai Franchisee are:

Application and approval

Restaurant / Site Selection

Signing of Franchisee Agreement

Training

Operational Support (ongoing)

Application and Approval

Application form

A valid application consists of completing the application form in full and submitting it to Kauai. The steps are as follows:

  • Please download an application form here
  • Please complete all - Application, Assets & Liabilities, Income & Expenses and Confidentiality;
  • Submit your application, attaching the completed application file, signed Declaration and Confidentiality to: franchising@kauai.co.za

Please note that no financial information can be given out without the submission of a completed application and confidentiality letter.

Interview

Once a valid application is submitted and received by Kauai, a Kauai team member will be in contact to set-up a meeting to discuss your application, the process and answer any questions. This all forms part of the evaluation process.

Disclosure Document

Kauai will share with you a copy of our Disclosure Document that will contain detailed information on the brand, the company and restaurant financials.

Working Assessment

Next is a 1 day working assessment that will be arranged for mutually convenient day and time at one of our Kauai restaurants. This not only gives us an opportunity to observe you in the Kauai environment, but also gives you exposure to the Kauai restaurant.

EE Test

Each franchisee applicant undergoes an EE test, this is an industry aptitude test. This test provides a good indication whether an applicant is suitable to function within a franchised environment such as Kauai. The cost is paid for by each applicant.

Approval

Once all the steps above have been completed will the assessment process culminate in a final decision as to whether you have been approved as a Kauai Franchisee or not. The final decision will be communicated to you in writing. Kauai's decision is final and no correspondence will be entered into regarding reasons for rejections. Kauai reserves the right to assess applicants based on its standard criteria, as may be amended from time to time

Restaurant Selection

Kauai can offer you an existing restaurant (if available) or a new restaurant opening.

Existing restaurants

If any restaurants are available for sale, details will be shared. Existing restaurant cost will depend on sales volume and profitability and is done on a restaurant by restaurant basis.

New restaurant openings

Our Real Estate team evaluates all potential sites and only upon full and final approval of the site, may the process of opening a new restaurant be commenced. Key drivers in evaluating and approving a site are surrounding demographics, the catchment area, traffic/feet concentration and visibility. It is important to note that, while every effort is made to ensure that the site will be right to operate a restaurant, no guarantees or warranties can be given by Kauai in this regard. We have an experienced Restaurant Development team that will see a new project through from blue print to final completion on a turnkey basis. Included in the turnkey process are the following services:

  • Selection / evaluation of sites
  • Assistance with Lease Negotiations
  • Drawings
  • Interior Design
  • Project Management

Business case – New restaurant

It is imperative that a proper business plan is prepared for the restaurant. This is also required for a finance application to a financial institution. It is the Franchisee’s responsibility to finalise this and Kauai will assist in sharing all relevant information, including a standardised tool. This document contains all relevant information such as a site/area feasibility study, projected income statement, balance sheet and projected cashflows.

Fees

Franchise Joining Fee: R110,000 (excl VAT)
This fee includes:

  • The right to use and operate the Kauai name and systems;
  • Initial Franchisee and staff training;
  • Assistance with site selection and evaluation;
  • Initial legal costs incurred in conclusion of the Franchise Agreement;
  • Assistance with Lease negotiations; and
  • Initial pre-opening/launch assistance.

Monthly Fees (ongoing):

Franchise Fee (Royalty): 6% of Sales (excl VAT)
Marketing Levy 4% of Sales (excl VAT)

New Restaurant Set-up Costs

Estimated Set up cost is R1,100,000 (excl VAT), excluding initial working capital. This may vary according to size and location. Working capital of +-R100,000 is required. This is to cover staff wages / costs during training, Rent deposit and legal fees (if any).

CRITICAL:

  • Minimum unencumbered cash required by franchisee (i.e. available cash before borrowed funds) is 35%. Based on the average investment, this equates to R455,000. To this must be added the Franchise Joining Fee of R110,000 (Excl VAT). Total unencumbered cash required is therefore R565,000.
  • The relevant VAT component of the Set-up costs must be claimed back by the Franchisee from SARS in due course - approximately R190,000. This would either need to be funded by the Franchisee over and above the cash outlined above, or funded by an alternate financier on a "bridging" basis pending payment by SARS.

Franchisee Training

Kauai provides extensive training through theoretical classes and practical on the job training. The training incorporates all elements from running the restaurant to running the business matters of the restaurant. The program is completed over a 8 week period. The franchisee is responsible for all costs while training and no salary is paid by Kauai during this time. This training is usually structured on a "6-days-a-week" basis and will cover the following:

  • General Restaurant Management;
  • Restaurant Administration;
  • Personnel Management and Training;
  • Customer Care;
  • Safety and Security;
  • Marketing;
  • Restaurant Maintenance;
  • Cleaning and Hygiene;
  • Industrial Relations;
  • Product Preparation and Presentation;
  • Raw Material Management, and
  • General Business and Financial Management.

The training provided is extensive and sufficiently comprehensive to ensure that a new franchisee is familiar with every aspect of the business prior to opening or running a restaurant. Throughout the training period, the franchisee will be assessed and monitored for progress. Any shortfalls/inadequacies will be addressed on an on-going basis.

Only once the franchisee has been certified as fully competent in all areas will they be permitted to commence operation of their own restaurant.

It is critical to note that the training of Franchisees is not negotiable and it is imperative that all applicants remain mindful of this critical element at all times throughout the Application Process and their overall decision to proceed.