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FAQ’s about an lj’s franchise

Like our customers, the people who work for LJ’s have a singular aligning characteristic – they are Passionate about serving great food to our loyal customers, and they want only the best. Added to this are several other qualities that we look for in the people who want to work with us.

Why should I join a Franchise and not just do it myself?
Not only do we have a proven formula and a load of experience at running a successful franchise system, we also have all the recipes and products that we know customers want. We also have a brand that customers know and trust.  We also have large buying agreements with key suppliers and partners that allows our Franchisees to the best pricing for the raw ingredients that go into our meals.

How much does it cost to build a LJ’s store?
Costs can change considerably depending on the type of store required for the given area and the expected store volume. The average store in New Zealand costs circa. $225,000 to $350,000. 

What is the cost of purchasing a LJ’s franchise area and training costs?
$30,000 franchise territory fee + $6,000 training fee.

How much royalty do I expect to pay to the Franchisor?
6% of nett turnover calculated Monthly.

How much is the advertising contribution to build the sales of my store?
3% of nett turnover calculated monthly.

Can I invest in a LJ’s and run it under management?
Franchising is essentially an owner operator business format, however if an investor has a partner who is prepared to share some of the financial risk in setting up a LJ’s franchise we will consider this on a case by case basis.

What is the minimum cash unencumbered amount i must have to be considered for a franchise?
50% of the ingoing capital, however LJ’s believes finding the right person is more important than funding and will consider all applicants on a case by case basis.

How long is the training?
Minimum 4-6 weeks under the LJ’s training programme. Franchisees must be prepared to travel to Auckland for their training, if required.

What are the expected returns from owning a LJ’s franchise?
This area will be discussed through the selection process to the satisfaction of the applicant.

How long does the franchise agreement last?
We typically tie up the Franchise Agreement in to the terms of the lease with the Landlord.

Who makes a great franchisee

An affinity with food.
We like to think that our franchise holders want to make our customers and meals not only for their high turnover/financial return, but because they love food and believe in the products they are preparing. Knowledge of and a flair for food will help with your business and the development of the business as a whole. Our training systems will provide you with detailed knowledge of our food and hygiene standards and the LJ’s 'flavour'.

A hardworking and dedicated attitude.
The business, whilst a proven formula, requires the continual attention of the franchisee.

A customer service connection.
We have a loyal customer base and it is our duty to cater to their needs. Building and maintaining a strong customer service connection is a primary focus.

Organisational and management skills.
These are a necessity - for the daily running of the shop and for dealing with staff and organising rosters.

Flair and character.
Just as our shops have an in-built atmosphere, we seek people who can transmit the same good feeling to our customers. People come to LJ’s for a reason, and part of that reason should be you!

Basic accounting and financial knowledge.
To be able to run your own business, a franchisee will ideally have some understanding of financial planning and control.

Financial security.
It is assumed that at least 50% of the business will be funded by assets and cash. Borrowings are not sufficient to fund a business.