FRANCHISE INFORMATION PACK 2021 - Lekker vegan

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FRANCHISE INFORMATION PACK 2021 - Lekker vegan
2021
FRANCHISE
INFORMATION
PACK

Lekker         vegan
   Gourmet Junk Food
FRANCHISE INFORMATION PACK 2021 - Lekker vegan
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

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FRANCHISE INFORMATION PACK 2021 - Lekker vegan
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.

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FRANCHISE INFORMATION PACK 2021 - Lekker vegan
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.

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FRANCHISE INFORMATION PACK 2021 - Lekker vegan
MENU ITEMS
& SELLING PRICES

 Average Food Cost ranges between 25-28%
 Sales Prices Subject to Change.and include VAT

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FRANCHISE INFORMATION PACK 2021 - Lekker vegan
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

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FRANCHISE INFORMATION PACK 2021 - Lekker vegan
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)

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FRANCHISE INFORMATION PACK 2021 - Lekker vegan
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.

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FRANCHISE INFORMATION PACK 2021 - Lekker vegan
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.

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FRANCHISE INFORMATION PACK 2021 - Lekker vegan
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!

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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

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