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 aspect of operations. Our infrastructure in terms of training and field support is now in place and is ready for this growth.

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 (please see under ‘What does a KAUAI franchise ultimately cost?’ question).

Yes, we sign an agreement with your shelf company which should be registered for VAT. We require that all member / shareholders in that company sign the franchise agreement and we tend not to 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 10 year agreement aligned with the typical 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.

You will need to:

1. Application - Fill out the application and confidentiality agreement downloadable from the application form tab on this website.
2. Franchise evening - KAUAI will review, and applicants fitting the right profile will be invited to a franchise evening.
3. Working assessment - You will then have the opportunity to do a working assessment in one of our stores where we both get to know one another better.
4. Sharing information - You will now have access to our disclosure agreement and franchise agreement to review. Should we be in discussion on a particular site we will share with you some idea of potential sales. PLEASE NOTE THAT WE CANNOT GUARANTEE ANY FORECASTED FIGURES AND ANY INDICATION OF PROFITS OR SALES ARE ONLY GUIDELINES AND STORES MAY NOT PERFORM AS FORECASTED. Your financing options will also be discussed at this stage and application put into motion where appropriate.
5. E-test - You will be asked to complete a profiling test with an independent contractor who gives us your profile comparison with our ideal profile. This is an internet based test and takes about 45 minutes and you will be requested to pay the contractor the cost of R1 100 (ex VAT).
6. Interview - KAUAI will then have a one on one interview with you.
7. Sign agreements - The financial option must now be activated along with the legal documents being signed, namely: the franchise agreement, (and pay the franchise fee), lease agreement and financing documentation.
8. Training program - Your training program will be set and dates given.
9. Getting started - You will now be ready to operate!

New stores

Set up costs R1 100 000 (capital costs of setting a store up)
Franchise fee R110 000

Working capital

• Staff costs during training R30 000
• Rent deposit R50 000 (can vary)
• Legal fees if any R3500 (can vary)

Total approximate investment, R1.1 million excluding VAT. VAT is typically financed via an overdraft facility during the first 3 months of operation.

The applicant would need R600 000 in cash.

Existing stores

Existing store costs will depend on sales volume and profitability and is done on a store by store basis.
A franchise fee of R110 000 (excl. VAT)

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. This will mean 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 including QVSC (quality, value, service and cleanliness) reports 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 contributor to this fund as all its retail stores also pay 4% to this fund.

We hope that this section has helped you to understand the KAUAI franchise model. Please read all documents carefully. Our success and development is based on your success and happiness in being part of our unique growing brand.