ZAGU FOODS CORPORATION

AUTHORIZED DEALER DEPARTMENT

52 WEST CAPITOL DRIVE, BO. KAPITOLYO, PASIG CITY, PHILIPPINES, 1603
Tel No.: 687-4430 loc.113 or 150, Fax No.: 634-6918

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ZAGU, the leader in the pearl shake industry in the Philippines, is looking for aspiring entrepreneurs

in the country to be part of its dynamic business.

ZAGU introduced the Pearl Shake to the Philippine market. The drink’s uniqueness and the variety

of flavors it offers broadens its appeal to customers and keep them interested. Taste and flavor are the
essential components, keeping customers coming back for more.

ZAGU is one of the revolutionary food companies in the Philippines. To satisfy customers’ need for

high quality beverages, ZAGU offers fresh made-to-order preparation, winning customers’

confidence as their drinks are being prepared right before their very eyes.

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 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 operational support to meet our partners’ individual needs. We
even own and operate 90 outlets as part of our promise to “walk in your shoes” and continue to learn
and know the business first hand.

Official Website : www.zagushakes.com

E-mail Address : newaccounts@zagushakes.com
addivision@zagushakes.com
Fax No. : (02) 634-6918
Designation : AD Department
MISSION STATEMENT:

1. To provide the best quality, and most innovative and reasonably priced products in the Beverage
industry.

2. To be the leader in our industry, by a well-planned expansion through retail outlets and wide
product distribution.

3. To continuously generate awareness, interest and desire for our products resulting in
frequent/repeat purchases.

4. To establish ZAGU as a highly regarded international brand name.

ZAGU’S COMMITMENT TO EXCELLENCE:

ZAGU is dedicated in performing the highest level of C H A P S

C - Cleanliness

H - Hospitality

A - Accuracy

P - Product Quality

S - Speed

And in our commitment, ZAGU proudly claims that we have:

• Customer Focus

• Competence

• Hard Work

• Teamwork

• Belief in People

• Integrity

• Dedication
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 Décor Package
• Assistance with Site Selection
• Customized Operational System
• Continuous Research and Development

A. Instant Market

An Authorized Dealer directly serves the end consumers and so it captures the market right
there and then.

B. Additional Source of Income

Becoming an Authorized Dealer can supplement, if not totally replace present income. The
owner may appoint an Authorized Representative if he/she cannot directly manage the daily
operations of the store while attending to his/her other means of acquiring income.

C. Use of ZAGU Trademark and Logo

ZAGU brand and logo will distinguish the outlet from the competition.

D. Proprietary Recipes, Ingredients and Procedures

ZAGU will share with its Authorized Dealer customer-tested and customer approved recipes,
as well as enhancements on food preparation, trends in customer service and store
management.

E. High Profile National Presence

ZAGU outlets are situated strategically in prime locations and people have recognized its
superior quality beverages.

F. Discount on Purchases

Authorized Dealers can purchase products and supplies at special prices.

G. Ongoing Training and Operational Support
ZAGU Authorized Dealer and their service crew will be trained with the day to day operation,
drink preparation, point of sale system, inventory and other “must know” areas. ZAGU
provides continuous support services to ensure that quality products and services are
achieved and maintained. Any enhancement in the operation and new developmental
programs will also be shared.

H. Marketing and Advertising Support

ZAGU will provide a variety of advertising and marketing materials that will help promote
the company and increase patronage.

I. Exclusive Product Distribution

Authorized Dealer will exclusively sell proven quality products identified by the brand
“ZAGU”.

J. Contemporary Design and Décor Package

ZAGU's design is simple using very minimal colors that give phenomenal impact to
customers. Its carts, counters and kiosks are in modular pieces giving flexibility and adequate
space thereby allowing ease of preparation and operation.

K. Assistance with Site Selection

ZAGU Authorized Dealership can be situated in locations anywhere – shopping malls, PUV
Terminals, school campuses and along the roadside. ZAGU will assist its Authorized Dealers
in evaluating locations, developing and approval of architectural plans including the layout
and décor specifications.

L. Customized Operational System

ZAGU has devised a standard, unique and uniform system for establishment, and an
operations manual which details the entire system with guidelines and procedures to operate
your ZAGU outlet effectively.

M. Continuous Research and Development

ZAGU continuously monitors, innovates and improves its products in its commitment to
provide its customers with the highest quality beverages.

FREQUENTLY ASKED QUESTIONS:

Q. When was ZAGU established?

A. The innovative drink was conceptualized and was turned into reality by a young enterprising lady
with a degree in Food Science from the University of British Columbia in Vancouver, Canada in
April of 1999, with its first Authorized Dealership awarded in October 1999 in Manila, Philippines.
Q. How many ZAGU outlets are there?

A. ZAGU has more than 300 stores strategically located throughout the Philippines.

Q. What exactly does ZAGU look for in a partner?

A. ZAGU looks for dynamic people who are willing to do business with ZAGU – People who are:
• Dedicated
• Hard Working
• Competent
• Customer Oriented

Q. Do I need any experience to become a ZAGU Authorized Dealer?

A. 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.

Q. What process is involved in the application?

A. 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 45 - 60 days from the date of submission of Initial Questionnaire Form
for the result of the Initial Evaluation.

Q. How much is the investment to become a ZAGU Authorized Dealer?

A. The approximate investment package is between P370, 000 – P450, 000 depending on the type
of store operation. With the Investment Package, store is fully operational.

Q. What are the types of ZAGU stores?

A. Two (2) types of stores namely:

1. Indoor
• Stall
• Kiosk
• Standard Cart

2. Outdoor
• Roadside Stall
• Roadside Kiosk

Q. How much is the royalty fee?

A. No Royalty fee.
Q. What other expenses will I incur?

A. 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/ Stall (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

Q. Will ZAGU provide the location for us?

A. 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.

Q. Are service crew included in the package?

A. No. The applicant will hire and provide its own service crew. Training will be conducted by
ZAGU.

Q. Can I operate more than one store?

A. Yes, ZAGU encourages Multiple ZAGU Outlet ownership. However, each store is treated

separately.

*** Thank You! ***