FRANCHISE INFORMATION PACK 2021 - Lekker vegan
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LEKKER VEGAN FRANCHISE Lekker Vegan offers franchise opportunities to entrepreneurs in one of the biggest and fastets growing industries within the franchising sector. The Lekker Vegan franchise model offers: > Unique Brand Offering in the Largest Franchise sector in the World. > Low Overheads. > Small Space Requirement. > Low Investment Requirement that includes Operating Cash Flow. We pride ourselves on offering our franchisees with high levels of accessible support from our team of in-house support specialists who are hands on to make sure you are getting the most out of your Lekker Vegan Franchise. Lekker Vegan initially helps franchisees set up their very own Lekker Vegan franchise. To capture huge client demand and also supplies training, systems and support to ensure ongoing success. We invite you to take a look further, I’m sure you will be impressed! CUSTOMER SEGMENT SPLIT 46-65 20% YEARS VEGAN 18-24 YEARS 45% 55% MALE FEMALE 80% 25-45 NON-VEGAN YEARS The Plant-Based Gourment Junk Food Franchise. 2 The content contained in this document is copyright protected. E&OE
HISTORY & CONCEPT Lekker Vegan is a Plant Based, gourmet, junk food franchise which started its first restaurant in the heart of Cape Town back in 2017. The founding partner, James Knaap is originally from the Netherlands where he worked as a chef at a Vegan Junk Food Bar and also ran a successful juice truck business in Amsterdam. James has been coming to SA for over 20 years before moving here to follow his dream of opening a vegan restaurant chain that is accessible to everyone, everywhere. He always wondered why there wasn’t a dedicated vegan junk food franchise that could compete with McDonald’s at scale and was therefore inspired to start his own. Lekker Vegan provides vegan alternatives to the popular junk food you already love, from hamburgers to nachos, gatsby’s, boeries, and even your favourite desserts such as ice cream. You don’t even have to be a vegan to enjoy Lekker Vegan’s gourmet junk food. It should be understood that the practice of creating plantbased PERFECTING meat is nothing new. Chinese monks developed a TASTE wheat-based meat alternative called Seitan as far back as 5,000 years and this process has been perfected over time. At Lekker Vegan, we are rediscovering these types of meat substitutes that mimic and sometimes even exceed the taste of meat. Ensuring plant-based meat is an attractive alternative is a matter of getting two details right – texture and flavour. The texture is constructed using a mixture of plant proteins which mirror animal meats like beef and chicken, while flavour is derived from mixtures of herbs, spices and sauces. Plant-based meat therefore offers one significant advantage over animal meat – you can modify it from the inside, giving you more opportunities to create unique flavours and proteins. This means it’s not only better for your own health and that of the environment but is also the more flavoursome option. The Plant-Based Gourment Junk Food Franchise. 3 The content contained in this document is copyright protected. E&OE
THE VEGAN LANDSCAPE Lekker Vegan aims to be the original Vegan Fast Food Franchise chain in South Africa and Worldwide. A number of entrepreneurs and major companies have invested in vegan meat in recent years. In 2020, nearly $1 billion was invested in the alternative protein space, according to the Good Food Institute (GFI). Vegan food sales surged by 90% in the weeks leading up to April 2020, compared to the same period last year, according to the Plant Based Foods Association (PBFA). According to Pick n Pay, the interest in vegetarian and vegan aimed products has more than doubled in the last six months of 2019, as the grocer increased its product range to include dairy-free alternatives and vegan snack foods as well as whole meals. According to the Veganuary Report 2020, over 650 new vegan products launched and over 550 new vegan options were added to restaurant menus. KFC UK sold over 1 million Vegan burgers during 2020 Veganuary. In January 2020, 1 in 3 people tried veganism -> 72% stayed Vegan -> Vegan takeout increased by 388% SA’s Meat Substitutes Market is set to become a R1 billion category by 2026 if it grows at the same global CAGR% ZAR BIL Gen Z 1,2 1,1 Frequency of Consumption Millennial South Africa Meat Substitutes Market (R BIL) of Plant-Based Meat Gen X 1,0 Baby Boomers 3,5 x 0,8 0,8 0,6 0,6 0,4 0,4 0,3 0,2 0,2 . 0,0 2019 YEAR 2026 Once a week At least once Less than once Never or more often a month a month Source: Technavio, Global Plant-Based Meat Market Forecasts (2019 - 2026) Younger shoppers, continue to increase their plant-based meat consumption. The Plant-Based Gourment Junk Food Franchise. 4 The content contained in this document is copyright protected. E&OE
MENU ITEMS & SELLING PRICES Average Food Cost ranges between 25-28% Sales Prices Subject to Change.and include VAT The Plant-Based Gourment Junk Food Franchise. 5 The content contained in this document is copyright protected. E&OE
Direct Sales Scheduled & through the On-demand Lekker Vegan Delivery. Online Shop Pick up & go. DISTRIBUTION STRATEGIES Mr D Uber Eats BUSINESS INVESTMENT REQUIRED Lekker Vegan’s franchise model provides an unique growth opportunity whereby a franchisee can start with a Lekker Vegan Hotspot and grow into the bigger opportunity as they reach critical mass in their local area. RECOMMENDED Lekker Vegan Lekker Vegan Lekker Vegan MODEL Hotspot | 30-40sqm Cafe | 80-100sqm Restaurant | 100-150sqm Kitchen Setup, +/- R250k Kitchen Equipment +/- R300k Kitchen Equipment +/- R340k Equipment & Branding Build, Furnishings +/- R240k Build, Furnishings +/- R300k Fittings & Branding Fittings & Branding Rental Deposit +/- R50k & Opening Stock Rental Deposit +/- R115k Rental Deposit +/- R165k & Opening Stock & Opening Stock Licence (excl VAT) R95k Cashflow tbc* Licence (excl VAT) R145k Licence (excl VAT) R195k Total Excl Cashflow +/- R395k Cashflow tbc* Cashflow tbc* Total Excl Cashflow +/- R800k Total Excl Cashflow +/- R1 mil Additional when liquor license is required/available: *+/- R95k Includes table service and alcohol sales. *Self service and smaller space requirement. *+/- R50k for an ice machine The investment requirements are VAT Inclusive, except non vatable items, indicative and varies depending on factors such as the venue specifications and operating costs and will be determined during the financial planning phase of the pre-operational project. Cashflow Requirement The Plant-Based Gourment Junk Food Franchise. 6 The content contained in this document is copyright protected. E&OE
The Lekker Vegan Hotspot Opportunity allows for a variety of solutions: > Foodcourts > Shop in shop - plug-in to existing business operations > Early development stage for low density areas EXPENSES BREAKDOWN Expense Lekker Vegan Lekker Vegan Lekker Vegan Hotspot Café Restaurant Water, Electricity, R10 000 R17 000 R25 000 Municipal Charges and Gas Brand Royalty Fee (excl. VAT) R3 000 R3 000 R3 000 Maintenance and Repairs R1 500 R2 500 R3 500 Cleaning Materials R2 000 R4 000 R5 000 Telephone R600 R1 000 R1 500 Insurance R450 R850 R1 000 Hygiene and Pest Control R300 R500 R750 Loose Equipment R1 000 R2 000 R3 000 Printing & Stationary R250 R500 R750 Clothing & Uniforms R500 R1 000 R1 250 Rent R10 000 R25 000 R35 000 Consumables R1 500 R2 500 R4 000 Stock Wastage 1% 1% 1% Accounting & Statutory Cost R2 500 R2 500 R2 500 Bank and Credit Card Fees R1 000 R1 500 R2 000 Software R1 000 R1 500 R2 000 Fibre / WiFi R800 R1 600 R2 000 Marketing Funds Contribution is 3% on Net Minimum Minimum Minimum Sales R6 000 R6 000 R6 000 Community Marketing R2 000 R2 000 R2 000 Staff Wages R30 000 R40 000 R40 000+ *Projected expenses are VAT Inclusive, except non vatable items and estimated based on on a typical Lekker Vegan location; each location’s expenses will be adjusted during the detailed financial planning phase of the project to be specific to the unique ROYALTY SCHEDULE 7,5% on Nett Sales (incl VAT) The Plant-Based Gourment Junk Food Franchise. 7 The content contained in this document is copyright protected. E&OE
NATIONAL MARKETING FUND & LOCAL MARKETING BUDGET 1% of Net Sales contribution PM to the national marketing fund, subject to a minimum contribution of R2 000 PM. 2% of Net Sales are allocated to local social & digital marketing initiatives, subject to a minimum contribution of R4 000 PM. This amount is managed by Lekker Vegan Global and goes towards centralised digital and social media spend in the Franchisee’s area. SYSTEMS & ONGOING SUPPORT Yoco – Card Machine Facility Xero – Accounting Software Lightspeed – POS Software & iPad / Printers Lekker Vegan – PC / Printer Online Ordering UberEATS / Mr D – Tablet / Printer Each Franchisee is provided with a dedicated Onboarding Co-ordinator and Support Specialist that is responsible for the following: > Online training and project management support > Announced and unannounced field visits > Ongoing Support > Operational Excellence Reviews SYSTEMS & ONGOING SUPPORT > Onboarding Program for new Franchisees. (Online) > Operational Excellence Training. > BizHealth Program once location is operational. > Ongoing Training Workshops. The Plant-Based Gourment Junk Food Franchise. 8 The content contained in this document is copyright protected. E&OE
HOW TO GET STARTED Contact us on franchise@lekkervegan.co.za PRELIMINARY APPLICATION TO APPROVAL 1. Request an application form and complete in full. 2. A non-refundable preliminary application fee of R5 000 (excl. VAT) is then payable by the applicant. The applicant will then receive the welcome pack that includes the disclosure document, franchise agreement & letter of approval. 3. You will then attend a franchise orientation session with our Lekker Vegan Directors for a personal interview. They will also discuss your preferred Lekker Vegan license and answer any questions you may have. 4. Once you are in receipt of our welcome pack, we encourage you to take any relevant legal and financial advice on the business opportunity that Lekker Vegan offers. Should you have any questions regarding either the documents provided, or the opportunity offered, please address these to us in writing, so that we can properly address any concerns before taking any further steps. APPROVAL TO BUSINESS PLANNING 5. A once off, non-refundable fee of R15 000 (excl. VAT) is required to start the Financial Application & Business Planning Service. Services include but are not limited to: Business Structure & Setup, Venue Selection, Marketing Plan, Financial Planning. NOTE: The application fee and the business planning fee do not form part of the Franchise Fees, do not constitute a deposit, and shall be considered as fully earned by Lekker Vegan upon receipt of payment from the applicant. The Plant-Based Gourment Junk Food Franchise. 9 The content contained in this document is copyright protected. E&OE
FINAL APPROVAL 6. Assessment of application (qualifications, financial standing, etc.) and deal making (risk assessment, security, contract, etc.) stages. 7. No less than 14 days after receipt of the welcome pack, more particularly the disclosure document and upon our mutual consent, you will enter into a Lekker Vegan Franchise Agreement with the Franchisor. Payment of the full licence fee must be made before your Onboarding Program and Project Activation commences. You will be afforded 10 business days after signature of the Franchise Agreement to exercise your rights in terms of s7(2) of the Consumer Protection Act to cancel the agreement, and upon receipt of your written notice to cancel, Lekker Vegan shall refund the license fee paid without costs or penalties. Accordingly, no training will be provided, or further steps taken by Lekker Vegan until the lapse of this period, where after, the license fee paid will be deemed to have been fully earned, and will no longer be refundable. In the event that any further steps are taken at your instance, Lekker Vegan shall be reasonably entitled to retain the portion of the initial franchise fee, as set out in the Disclosure Document, paid in respect thereof from any refund due to you upon cancellation. 8. Once a Franchise Agreement has been finalized your Onboarding Program will commence. Then you can book yourself into the Business Management, Sales, Technical and hands on training at the Lekker Vegan Headquarters in Cape Town. 9. In the background, the kitchen and site selection process will be underway and once a suitable kitchen and site has been approved, and lease signed, your Lekker Vegan Support Specialist/Field Agent will co-ordinate your construction. At this point your final payment is due. 10. Lekker Vegan will then provide an Onboarding Coordinator and Support Specialist/Field Agent to assist with pre & post operational training. 11. Your Lekker Vegan Hotspot is handed over to you for the grand opening! For more information please visit www/lekkervegan.co.za Thank you for your interest and we look forward to welcoming you to Lekker Vegan! The Plant-Based Gourment Junk Food Franchise. 10 The content contained in this document is copyright protected. E&OE
COMPANY REGISTRATION Company Registration No : 2020/117331/07 Company Registered as : Lekker Vegan Global (PTY) Ltd. Nature of Operation : Franchising and Peripheral Services National Contact Number : 076 734 7098 Website : www.lekkervegan.co.za Address : 105 Kloof Street, Gardens, Cape Town, 8001 FNB Account No : 62854440957 VAT Number : N/A Publication Date : March 2021 Lekker vegan The Plant-Based Gourment Junk Food Franchise. 11 The content contained in this document is copyright protected. E&OE
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