History

From these humble beginning to its present success, ZAGU has proven that is not a
passing fad, 85% of our current stores have been occupying the same leased space for more
than three years. ZAGU foods can be found in malls, supermarkets and roadside location. Behind
the success of every ZAGU store is our professional management team and dedicated employees
committed to putting the customer first and achieving excellence in everything.
Mission
To provide the best quality, most innovative and reasonably priced products in the
beverage industry
Products Offered

Outlets
It took several months of experimentation, product sampling and planning before the
first ZAGU store was launched in April of 1999. ZAGU was pioneered by a young enterprising
lady with a degree in Food Science from the University of British Columbia in Vancouver,
Canada.
 To this date, Zagu has blended millions of pearl shakes, a pretty good number for
something that was widely predicted as a passing fad. Now, ZAGU has grown from tiny kiosk to
current network of over 446 outlets nationwide. Zagu has also gained recognition locally
through awards such as the National Consumers Quality Awards.

Zagu Franchise
The Zagu Franchise was the creation of an enterprising woman who got a degree in
Food Science from the University of British Columbia in Vancouver, Canada in April 1999. Its
first authorized franchise was awarded in October of 1999 in Manila, Philippines. Since then,
Zagu has grown into more than 400 stores located throughout the Philippines.
Their main product is a variety of mixed shakes with tapioca pearls. Customers can
choose from this list of available flavors – café latte, hazelnut cappuccino, mocha, jamocha
almond, pearl milk tea, melon, strawberry, watermelon, pineapple, black forest, buko pandan,
crème brulee, ube vanilla, chocolate, cookies and cream, choco crumble, choco caramel, halo-
halo, natural dalandan, natural mango, and natural four season. They also have an option to
add these additional add-ons – pearls, crystals, choco bits, rice crispies, corn kernels and red
mongo beans.
ZAGU the leader in the pearl shake business, is looking for dynamic entrepreneurs to be
part of this dynamic business.
ZAGU introduces the “Pearl Drink” to the Philippine market. The drink’s uniqueness and
the variety of flavors it offers broaden its appeal to the customers and keeps them interested.
Taste and flavor is the essential component, keeping customers coming back for more.
ZAGU considers AUTHORIZED DEALERS as partners and we welcome your ideas. On the
other hand, ZAGU views you as an internal customer, whom we serve so both of us can
succeed.
ZAGU is determined to help foreign Authorized Dealers, just like their local partners, to
meet and exceed their expectations. ZAGU Authorized Dealers make a significant commitment
both in financial and in personal resources to their business. We match their commitment with
our own. We are committed to customizing the perfect combination of marketing and support
to meet our partners’ individual needs. We even own and operate 80 outlets as part of our
promise to “walk in your shoes” and continue to learn and know the business first hand.
Food Cart Franchise Fee
The Zagu Franchise is actually termed the Zagu Dealership Package in their website and
investing in this package will cost between P450 000 to P600 000.
 Zagu Food Cart
Food Cart Franchise Inclusions
 No franchise fee and no royalty fee
 Authorized to carry the Zagu trademark and logo
 Specially discounted price for purchases
 Continued marketing support through event participation, sponsorship and other
marketing approach
 High profile national preference
 No defined territory
 Participation in events
 Zagu standard uniforms
 Service crew training
 Assistance with site selection
 Customized operational system
Steps to Become a Zagu Authorized Dealer
 Completion of initial questionnaire form
 Initial interview
 Initial recommendation
 Payment of initial deposit
 Completion and submission of application form and requirements
 Application interview
 Final interview
  Post approval meeting
 Submission of proposed location requirements
 Initial ocular inspection / approval of proposed location
 Final ocular inspection and approval of construction
 Completion of operating requirements
 Payment of ad investment package / signing of agreement
 Construction / fabrication (cart, kiosk, stall and roadside)
 Service crew training
 Pick-up of investment package
 Store opening
 Submission of 1st week’s gross sales

Zagu Contact Details

Website: www.zagushakes.com
Email: sales@zagushakes.com
Telephone Nos. Truck Lines
(632) 687- 4432, 687- 4430, (632) 687- 4404, 687-0140

For Dealership, Authorized Dealer Department

Mobile Nos.: 0918-888-9248, 0917- 809-8043, 0923-456-3586
Address: #52 West Capitol Drive, Bo. Kapitolyo Pasig City, Philippines

What’s in it for an Authorized Dealer

 Instant Market
 Additional Source of Income
 Use of ZAGU Trademark and Logo
 Proprietary Recipes, Ingredients and Procedures
 High Profile National Presence
 Discount on Purchases
 Ongoing Training and Operational Support
 Marketing and Advertising Support
 Exclusive Product Distribution
 Contemporary Design and Decor Package
 Assistance with Site Selection
 Customized Operational System
 Continuous Research and Development
Frequently Asked Question
What exactly does Zagu look for in a partner?
ZAGU looks for dynamic people who are willing to do business with ZAGU – People who
are
 Dedicated
 Hard Working
 Competent
 Customer Oriented
Do I need any experience to become a Zagu authorized dealer?
Our family of Authorized Dealers is from all walks of life. They range from housewife to
bank executive, student to retiree, some of whom have no prior experience in the food and
beverage business. We seek those with willingness to work as a team and desire to succeed
long term as our prime candidates.
What process is involve in the application?
It starts with completion of the Initial Questionnaire Form then followed by interviews,
meetings, payment of cash bond, filling up of application form, submission of requirements,
payment of package, signing of agreement and lastly training. (Kindly refer to Flowchart).
Note – It will take approximately 15 - 30 days from the date of submission of Initial
Questionnaire Form for the result of the Initial Evaluation.
How much is the investment to become a Zagu authorized dealer?
The approximate investment package is between P450,000 – P600,000 and business is
already fully operational.
What are the types of Zagu stores?
Two (2) types of stores namely:
Indoor Outdoor
Stall Roadside Stall
Kiosk Roadside Kiosk
Standard Cart
How much is the royalty fee?
No royalty fee.
What other expenses will I incur?
Initial Investment will highly depend on the expenses for the following:

I. Investment Package with Zagu (Inclusive of the following)

1. Operational expense
2. Cart Construction Cost
3. Equipment Package
4. Initial Inventory (Good for 1 week)
5. Crew Uniform
6. Signage
7. Insurance
8. Service Crew Training

II .Start-up Capital (Not included in the Investment Package)

9. Security Deposit
10. Advance Rental
11. Construction Bond
12. Government Permits (Business Permits, Mayor’s Permit, etc.)
13. BIR
14. Salary

Will the Zagu provide the location for us?

Authorized Dealers must look for their own location. ZAGU will only assist in the
evaluation (Ocular Inspection) of the proposed location. We do not encourage our Authorized
Dealer Applicants to reserve a location when they are still in the process of application.
Reservation of a location is the sole risk of the Authorized Dealer and Zagu will not be liable in
any way.
Are the service crew included in the package?
No. The applicant will hire and provide its own service crew. Training will be conducted
by ZAGU.

Can I operate more than 1 store?

Yes, ZAGU encourages multiple ownership. However, each store is treated separately.
Steps to Become an Authorized Dealer
Completion of Initial Questionnaire Form
1. Authorized Dealer (AD) Applicant must duly fill out and submit the initial
questionnaire form.

Evaluation
2. AD Applicant will be thoroughly screened and evaluated based on his/ her
accomplished Initial Questionnaire Form in order to be qualified and scheduled for the initial
interview.

Initial Interview
3. AD Applicant who qualifies in the first screening will be assessed by the initial
interviewer.

Initial Recommendation
4. After the initial interview, the applicant will be evaluated by the Initial Interviewer.
Initial interviewer will recommend if the application is approved or disapproved. Sales Account
Officer will inform the applicant of the result through mail and phone call.

Payment of Cash Bond

5. Once approved in the initial interview, AD applicant must pay Php10,000 in cash or
dated cheque as cash bond .Cash Bond is fully refundable if the Zagu Outlet will cease operation
and the Authorized Dealer Appointment Agreement is terminated.

Completion and Submission of Application Form Requirements

6. In order to proceed with his/ her application, the AD applicant must complete all
necessary requirements requested during the initial interview. Incomplete requirements will
result in the AD applicant’s application to be put on “HOLD”.

Application Interview
7. Application interview is the second interview of the AD applicant. This is the stage
wherein the applicant will be evaluated if he/she is qualified to continue his/her application, and
to assess his / her capacity to handle a business.
8. This is the last interview of the AD applicant conducted by the Working Committee.
Post Approval Meeting
9. Once application is approved, Expansion Division. will schedule the AD for a Post
Approval Meeting,and will issue a Letter of Approval.

Submission of Proposed Location Requirements/ Ocular Inspection/ Approval of

Proposed Location
10. AD must submit proposed location together with Letter of Intent (LOI), photos and
vicinity map of the said location. If proposed location is inside a mall, an endorsement letter for
the establisbment will be issued upon request by the applicant, which will be valid 30 days
from the date of issuance. An ocular visit to the proposed location will be scheduled
accordingly. Once the proposed location has been approved, a Letter of Approval will be issued.

Payment of AD Investment Package/ Signing of an Agreement

11. Standard AD Investment Package will be discussed and must be paid in full. (List of
Initial Inventory and List of Equipment and Supplies are included in the package). Payment can
be in cash or dated cheque only.
12. Authorized Dealer Agreement must be duly signed by AD. Once signed, it will be
notarized by ZFC. AD will be given a copy of the Notarized Agreement.

Construction/Fabrication (Cart, Kiosk, Stall and Roadside)

13. Cart will be fabricated by ZFC. However, construction of Zagu roadside is optional.
Construction can be handled by ZFC or AD but design & layout must be duly approved by ZFC.

Completion of Operating Requirements

14. All necessary operating requirements must be secured and submitted to ZFC prior to
start of operation.

Business Orientation
15. Prior to opening of a Zagu outlet, Authorized Dealer must attend the Business
Orientation to be scheduled by Sales Account Officer.

Service Crew Training

16. Training of service crew will be scheduled. Passing the training program is mandatory
for all service crew prior to deployment and store opening.

Final Ocular Inspection and Approval of Construction

 17. ZFC will inspect the Zagu outlet after construction for final approval. Standard
specification for construction must be strictly followed.

Pick-up of Stocks
18. Initial inventory, equipment, supplies and P.O.S materials may be picked up at the ZFC
head office.

Store Opening
19. A realistic target opening date will be set. Opening date will be highly dependent on
projected schedule of both parties.

Submission of 1 st Weeks Gross Sales

20. Expansion Division will monitor the Gross Sales of the 1st week of operation.

NOTE: For every interview, the applicant must be accompanied by their spouse if married or
business partner/s if there’s any.

How to Apply
Authorized Dealer (AD) Applicant must duly fill out and submit the initial questionnaire
form.
In order to proceed with his/ her application, the AD applicant must complete all
necessary requirements requested during the initial interview. Incomplete requirements will
result in the AD applicant’s application to be put on “HOLD”.
(Questionnaire is attached at the end of this paper)
FRANCHISING
(Zagu)

Submitted by:
Dizon, May Ann B.
BSBA-MM 4-2

Submitted to:
Professor Villote