Zagu, a well-loved Filipino brand known for its refreshing gulaman shakes and sago pearls, offers exciting franchising opportunities across the Philippines. This comprehensive guide will equip you with the knowledge and cost estimates to navigate the process.
Step 1: Understanding the Opportunity and Costs
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Brand Immersion: Dive into Zagu’s world! Explore their website and social media pages to understand their brand identity, target market, and product offerings. Familiarize yourself with their commitment to quality and customer service. Zagushakes.com
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Cost Considerations: Franchising requires investment. Here’s a breakdown of the main cost categories:
- Franchise Fee: Zagu offers a “Dealership” program instead of a traditional franchise. This grants you the right to operate a Zagu outlet for a specific period. While exact figures aren’t publicly available, expect the Dealership fee to range from PHP 700,000 to PHP 900,000 depending on the type of store operation (cart, kiosk, stall, or roadside).
- Cart, Equipment, and Supplies: This includes the Zagu cart or kiosk (depending on your chosen format), signage, utensils, shakers, initial stocks of gulaman, sago pearls, and other ingredients, and packaging materials. Budget PHP 100,000 to PHP 150,000 for this category.
- Location and Setup: Secure a location that meets Zagu’s space requirements (details available upon request). Renovation or rental costs, permits, and utilities will factor into this category. Budget can vary significantly depending on location. A conservative estimate is PHP 50,000 to PHP 150,000.
- Inventory and Working Capital: This covers additional stocks of ingredients, packaging materials, and other operational needs. Expect around PHP 20,000 to PHP 50,000.
Step 2: Application and Approval Process
- Dealership Inquiry: Express your interest by filling out the online Dealership inquiry form on Zagu’s website or contacting their hotline: (+632) 8-727-8888
- Initial Contact: Zagu will contact you to discuss your qualifications, goals, and proposed location.
- Site Evaluation: They will assess your proposed location for suitability based on foot traffic and regulations.
- Dealership Agreement and Payment: If your application and site are approved, a formal Dealership Agreement will be presented, outlining terms, fees, product sourcing, and operating procedures. Sign the agreement and settle the initial Dealership fee (typically 50% down payment).
Step 3: Pre-Opening Preparations
- Store Preparation and Construction: Secure a location that meets Zagu’s requirements. Prepare the space based on their design and branding guidelines.
- Training and Orientation: Zagu provides comprehensive training for you and your staff on product preparation, proper handling procedures, customer service, and store operations. This training equips you to deliver the Zagu experience effectively.
Step 4: Grand Opening and Beyond
- Grand Opening Support: Zagu will assist with your grand opening by providing promotional materials and marketing suggestions.
- Ongoing Support: As a Zagu Authorized Dealer, you’ll receive continuous support through operations manuals, marketing tools, product updates, and assistance from their team.
Beyond the Costs: Additional Considerations
- Return on Investment (ROI): While specific figures aren’t available, research suggests the average ROI for a similar beverage franchise can take 12 to 18 months. Remember, this is an estimate, and your success depends on various factors like location, management, and marketing efforts.
- Financing Options: Explore financing options if needed. Zagu doesn’t offer in-house financing, so consult banks or lending institutions.
Important Resources
- Zagu Dealership Page: Zagushakes.com/dealership.php
- Contact Zagu: Call their hotline (+632) 8-727-8888 or visit their website for an inquiry form.
By following this guide, conducting thorough research, and understanding the potential costs involved, you can make an informed decision about becoming a Zagu Authorized Dealer. Remember, a passion for refreshing beverages, a strong work ethic, and commitment to Zagu’s brand standards are key ingredients for your franchising success!
