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AT JEPPA DUO WE PROVIDE OUR CUSTOMERS WITH DELICIOUS MEALS AT AFFORDABLE PRICES AND WE DO NOT COMPRAMISE ON THE QUALITY OF OUR PRODUCT IT’S AFFORDABLY TASTY

WE PROVIDE COMBO MEALS THAT WILL KEEP FAMILIES COMING BACK FOR MORE…

 AN AFFORDABLE CONCEPT  STYLISH DÉCOR  MOUTH WATERING MENU  A HOME AWAY FROM HOME

WHY JEPPA DUO WOULD MAKE PERFECT TENANTS?  MODERN DESIGN STORES  QUALITY FOOD WILL ENSURE THAT CUSTOMERS RETURN  EXCELLENT SERVICE  SYSTEMS MONITORED REGULARLY  CLEANLINESS IS OUR PRIORITY  REGULAR STORE CHECKS BY HEAD OFFICE

WHY FRANCHISEES PREFER JEPPA DUO?  Exceptional Net profit to Sales ratios. Conservatively expressed in the 20 percent bracket once the operation is running at optimal efficiency  A product offering that far surpasses competitor offerings in the market place, yet the financial margins are protected to 42% or more  A high visibility site location which offers a substantial profit opportunity. A return on investment that far exceeds market average  Affordably priced menu for a clientele that will keep coming back regularly In summation, an exceptional business opportunity with a stable and consistent profit structure

Human Resources Structure Mohamed Loonat - Franchise Development and Director Salim Casem - Operations Manager and Director Sulaiman Casem - Operations Manager and Director To operate a successful Jeppa Duo store no more than 80 sqm of space is required to accommodate the shop fitting and equipment.

Legal structure - A franchise agreement is in place - A lease agreement has to be signed. - A company has been established to provide the vehicle for revenues received. This business plan has been developed with the clear agreement and understanding that the trading entity through which Jeppa Duo will trade, will adopt and ratify the legal agreement in accordance with the business, labours and tax laws of the Republic of South Africa.

Intellectual property description The ORIGINATING FRANCHISORS (Mohamed Loonat, Salim Casem and Sulaiman Casem) are the sole beneficial owner’s of the Jeppa Duo intellectual property, operating systems, procedures and know-how and recipes which are used by the FRANCHISEES in conducting the BUSINESS as proprietors and operators of “Jeppa Duo Franchise Outlets” The trademarks are the registered Trade Marks namely the trade name as well as any other names, slogans and marks that may hereafter be developed or adopted by the FRANCHISOR as distinctive reminder of a, “Jeppa Duo”, the ownership of and rights are understood, and the use of which are reserved by the ORIGINATING FRANCHISOR, whether registered as such or not, and for the purposes of this business plan, acknowledgement is given to the fact that these trademarks and so on remain the property of the Jeppa Duo organisation and not that of the proprietors of the business for which this business plan was developed. Further to this, the copyrights, operating manuals, the trade dress, trade marks and trade secrets, all form part of the term Intellectual Property. Location Jeppa Duo is looking to locate stores in high traffic areas across the country of South Africa, and the organizations major expansion drive is developing sites in most major centres.

The marketing 1) Local area marketing which is store specific and is geared to the local community. This will take advantage of high profile local events such as sporting events, cultural events, local school & university events, local farmers co- operatives etc. This will initially use local press advertising and leaflet distribution. 2) Group marketing which mainly utilises annual promotions designed to create on going visibility of the brand and to maintain top of mind awareness. 3) We counter competitor activity, by monitoring pricing and promotions and adapting our marketing strategy accordingly. Finally : We aim to focus our marketing efforts continually on customer base expansion and growth in order to increase profits and sustain our competitive advantage.

Set up Costs An 80 sqm store will cost around R (ex VAT) to set up a turn key operation, subject to the viewing of the site by our Jeppa Duo team. This set up cost includes Training of your staff, shop fitting, Equipment, etc. A complete turn key operation is provided to the franchisee which ensures that he is ready to trade at full capacity from day one. Royalties The royalties is fixed at R3500 ex Vat on a monthly basis, with a yearly escalation of 10%. Other franchises usually charge around 8% of turnover. This royalty formula allows Jeppa Duo’s franchisees to save around R9000 a month based on a R turn over.

Additional costs 1.Legal fees payable to the Jeppa Duo lawyerR Business application to trade (done by franchisee) +-R Staff uniforms +-R Staff costs during training +-R Opening stock +-R SANHA application (if applicable) +-R Note: The above figures are only a guideline for your perusal. True figures will depend on factors like the amount of staff you require, etc.

JEPPA DUO SET UP COSTS (80 sqm) Joining Fee Point of Sale Shop fitting Building and wet works Signage Equipment Electrics Plumbing Total The above set up costs is exclusive of VAT. Note: The above set up costs is subject to the viewing of the site

Cash flow statement for JEPPA DUO Projected sales and profits Budget 1Budget 2Budget 3 Month Sales Cost of Sales (55%) Gross Profit (45%) Expenses Accounting Fees Advertising Fee (2%) Bank Charges Cleaning and Hygiene Electricity and Water Insurance Rental Repairs and Maintenance Management Fee Salaries and wages Stationery Telephone Net Profit

Projected Sales Chart

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