FRANCHISE INFORMATION PACK 2021 - Lekker Vegan
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2021 FRANCHISE INFORMATION PACK
LEKKER VEGAN
FRANCHISE
Lekker Vegan offers franchise opportunities to entrepreneurs in
one of the biggest and fastest 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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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.
PERFECTING It should be understood that the practice of creating plant-
based 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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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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MENU ITEMS & SELLING PRICES Average Food Cost ranges between 25-28% Sales Prices Subject to Change. The Plant-Based Gourmet Junk Food Franchise. 4 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
MODEL
Lekker Vegan Lekker Vegan Lekker Vegan
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 +/- R165k
Rental Deposit +/- R115k
& Opening Stock
& Opening Stock
Licence R95k
Licence R195k
Cashflow tbc* Licence R145k
Cashflow tbc*
Total Excl Cashflow +/- R395k Cashflow tbc*
Total Excl Cashflow +/- R1 mil
Total Excl Cashflow +/- R800k
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 exclusive, 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
to be established during financial planning.
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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 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 R1000 R1 250
Rent R10 000 R25 000 R35 000
Consumables R1 500 R2 500 R4 000
Stock Wastage 1% 1% 1%
Management Accounts & Payroll R1 000 R2 000 R3 000
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 Spend is 7% on Nett Sales Minimum Minimum Minimum
R12 000 R12 000 R12 000
Staff Wages R30 000 R40 000 R40 000+
*Projected expenses are VAT exclusive and estimated based on on a typical Lekker Vegan Hotspot; each location's
expenses will be adjusted during the detailed financial planning phase of the project to be specific to the unique
circumstances.
ROYALTY
SCHEDULE
7,5% on Nett Sales
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NATIONAL MARKETING FUND &
LOCAL MARKETING BUDGET
2% of Nett Sales contribution PM to the national marketing fund, subject to a minimum contribution of R2 000 PM.
5% of Nett Sales are allocated to local marketing initiatives, subject to a minimum contribution of R10 000 PM.
60% of this amount is managed by Lekker Vegan Global and goes towards centralised digital and social media
spend in the Franchisee's area. 40% of this amount is spent directly by the Franchisee on Community Marketing.
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
FRANCHISE & STAFF
TRAINING PROGRAMS
> Onboarding Program for new Franchisees. (Online)
> Operational Excellence Training.
> BizHealth Program once location is operational.
> Ongoing Training Workshops.
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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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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 Gourmet Junk Food Franchise. 9 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 The Plant-Based Gourmet Junk Food Franchise. 10 The content contained in this document is copyright protected. E&OE
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