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Business Plan for Pizza Restaurant Franchise

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Business Plan for Pizza Restaurant Franchise Powered By Docstoc
					Business Plan for Pizza
Restaurant Franchise
This Business Plan for a Pizza Restaurant Franchise allows entrepreneurs or business
owners to create a comprehensive and professional business plan. This template form
allows a business to outline the company's objectives and detail both current company
information as well as any past performance. Companies should include a complete
market analysis in their plan to help showcase why their business strategy will be
effective in the market. Future company plans, including production targets,
management strategy, and financial forecasting, should be used to demonstrate and
confirm that the company's short-term and long-term objective can and will be met. This
model plan can be customized to best fit the unique needs of any entrepreneur or owner
that is seeking to create a strong business plan.
                                [Company Name]
                                        PIZZA




                          [Name] & [Name] -Owners




                                        [Address]
                                    [City, State ZIP]
                                    XXX-XXX-XXXX T
                                    XXX-XXX-XXXX C
                                  [Email Address] e-mail




                                 BUSINESS PLAN




© Copyright 2012 Docstoc Inc.                              1
                                Confidentiality Agreement
The undersigned reader acknowledges that the information provided by [Company Name] in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of [Company Name].

It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader may cause serious harm or damage to [Company
Name].

Upon request, this document is to be immediately returned to [Company Name].




___________________
Signature




___________________
Name (typed or printed)




___________________
Date




                   This is a business plan. It does not imply an offering of securities.




© Copyright 2012 Docstoc Inc.                                                          2
                                                               Table of Contents



1.0 Executive Summary .....................................................................................................................1
    Chart: Highlights ...........................................................................................................................2
  1.1 Objectives ....................................................................................................................................2
  1.2 Mission...........................................................................................................................................3
  1.3 Keys to Success .........................................................................................................................3
2.0 Company Summary......................................................................................................................3
  2.1 Company Ownership................................................................................................................3
  2.2 Start-up Summary....................................................................................................................4
    Table: Start-up ..............................................................................................................................4
    Chart: Start-up ..............................................................................................................................5
3.0 Products ............................................................................................................................................5
4.0 Market Analysis Summary.........................................................................................................6
  4.1 Market Segmentation ..............................................................................................................6
    Table: Market Analysis................................................................................................................6
    Chart: Market Analysis (Pie).....................................................................................................6
  4.2 Target Market Segment Strategy .......................................................................................7
  4.3 Industry Analysis.......................................................................................................................7
    4.3.1 Competition and Buying Patterns ...............................................................................7
5.0 Strategy and Implementation Summary .............................................................................8
  5.1 SWOT Analysis ...........................................................................................................................8
    5.1.1 Strengths..............................................................................................................................8
    5.1.2 Weaknesses.........................................................................................................................8
    5.1.3 Opportunities ......................................................................................................................8
    5.1.4 Threats ..................................................................................................................................8
  5.2 Competitive Edge ......................................................................................................................9
  5.3 Marketing Strategy...................................................................................................................9
  5.4 Sales Strategy ..........................................................................................................................10
    5.4.1 Sales Forecast ..................................................................................................................10
      Table: Sales Forecast ............................................................................................................10
      Chart: Sales by Year..............................................................................................................11
  5.5 Milestones ..................................................................................................................................11
    Table: Milestones ........................................................................................................................11
    Chart: Milestones ........................................................................................................................12
6.0 Management Summary ............................................................................................................12
  6.1 Personnel Plan ..........................................................................................................................12
    Table: Personnel..........................................................................................................................12
7.0 Financial Plan ................................................................................................................................13
  7.1 Start-up Funding .....................................................................................................................13
    Table: Start-up Funding ...........................................................................................................13
  7.2 Important Assumptions ........................................................................................................13
  7.3 Break-even Analysis ..............................................................................................................14
    Table: Break-even Analysis ....................................................................................................14
    Chart: Break-even Analysis ....................................................................................................14
  7.4 Projected Profit and Loss .....................................................................................................14

                                                                                                                                                Page 1
                                                             Table of Contents



    Table: Profit and Loss................................................................................................................15
    Chart: Profit Yearly.....................................................................................................................16
    Chart: Gross Margin Yearly.....................................................................................................16
  7.5 Projected Cash Flow...............................................................................................................17
    Table: Cash Flow .........................................................................................................................17
    Chart: Cash ...................................................................................................................................18
  7.6 Projected Balance Sheet ......................................................................................................19
    Table: Balance Sheet.................................................................................................................19
  7.7 Business Ratios ........................................................................................................................19
    Table: Ratios .................................................................................................................................20
Table: Sales Forecast ..........................................................................................................................1
Table: Personnel....................................................................................................................................2
Table: Profit and Loss..........................................................................................................................3
Table: Cash Flow ...................................................................................................................................4
Table: Balance Sheet...........................................................................................................................5




                                                                                                                                           Page 2
                                      [Company Name]


1.0 Executive Summary

  [Company Name] is a start-up company that has obtained a franchise license to operate an
  PIZZA franchise in Jackson, OH. [Name] is a new player in the restaurant industry. The
  restaurant is in a comfortable, familiar, small town that has a strong need for additional dining
  options. Bolstered by the need for more choices in family-oriented dining experiences,
  combined with the option for home-delivery, the restaurant is positioned to take advantage of
  the market need and serve the families in Jackson and the surrounding area. The company also
  has the added security of a well-known regional franchise to aid it in its pursuit of success.




  [Name] plans to utilize grant funding in the amount of $599,999 to complete the renovation
  and initial expansion of its shop. The owners plan to purchase two new hybrid delivery vehicles,
  replace outdated equipment, add new employees and begin an intensified advertising
  campaign.




      BUSINESS PLAN                                                                  Page 1
                                        [Company Name]


   Chart: Highlights


                                   Highlights

    $600,000


    $500,000


    $400,000                                                                          Sales

                                                                                      Gross Margin
    $300,000
                                                                                      Net Profit
    $200,000


    $100,000


           $0
                      Year 1               Year 2              Year 3



1.1 Objectives

   The objective was to lease a site at 446 East Main Street. We will need to remodel the interior
   according to the Franchisor's design. We plan to duplicate and massage the successful formula
   used by the Franchisor. We will use our own personal strategies and skills to create our own
   success in our PIZZA venue. We plan to train our crew to ensure outstanding results in quality
   food and customer service. Our objectives are as follows:

   Be the first PIZZA in the Jackson area

   Provide the highest quality product, duplicating the Franchisor's successful pizzerias

   Give top-notch service in a quick and efficient manner

   Keep our menu unique with a variety of fresh PIZZA offerings

   Maintain the competitive, fast-casual dining at a mid-range price point

   Use marketing strategies to build volume quickly

   First year sales over $400,000 with a 15+% growth yearly

   Maintain and expand an outstanding reputation as being the best neighborhood pizzeria




       BUSINESS PLAN                                                                    Page 2
                                            [Company Name]


1.2 Mission

   PIZZA exists for the purpose of generating sales and profit. Because we are a service business,
   we will also exist to serve our customers. These two reasons for our existence are inextricable.
   If one aspect does not exist, the other will cease to exist.

   We will always offer a fresh product and a welcoming environment

   We will remain cheerful, courteous, well trained, and focused on pleasing our guests

   We will strive to become the first destination of choice for those in our community

   Our staff will be offered a workplace where they can prosper and grow in a dignified, fun, and
   rewarding manner

   We will give special delivery status and contribute to our community hospitals and nursing
   homes

1.3 Keys to Success

   Our policy of being operating managing members is to make sure we pass by every table to
   greet, visit with, or at least send a smile to our guests.

      We   will   visit any table or answer to any phone call that has feedback, positive or negative
      We   will   use every means available to satisfy our customers
      We   will   be committed to the success and happiness of our staff
      We   will   be committed to providing quality food and beverages at all times
      We   will   consistently follow the franchisor's proven methods

2.0 Company Summary

   PIZZA shops are makers of, "Chicago style deep-dish PIZZA ". They offer a comfortable,
   friendly ambience, with a new "Modern Pizzeria" design. The menu features PIZZA s with
   toppings from chicken to peanut butter and Jelly, nachos, hamburgers, sub sandwiches, and
   fresh tossed salads. The PIZZA dough is made fresh everyday on site. Food ingredients are
   the finest available.

2.1 Company Ownership

   We are a LLC, limited liability company, with two managing owners holding an equal share
   (50%) and interest in the franchise.

   [Name] and [Name]: General Managing Owners - Hands-on management of all daily
   restaurant and company operations




       BUSINESS PLAN                                                                      Page 3
                                      [Company Name]


2.2 Start-up Summary

   Our start-up costs cover the renovation of the occupied store space, a 12-month lease, and
   expenses associated with opening our first location. The start-up costs are to be financed by
   direct owner investment and grant investment. The assumptions are shown in the following
   table and illustration.

Table: Start-up



   Start-up


   Requirements


   Start-up Expenses
   Legal                                                                               $0
   Stationery etc.                                                                     $0
   Insurance                                                                           $0
   Rent                                                                            $14,400
   Computer                                                                            $0
   Other                                                                             $600
   Total Start-up Expenses                                                         $15,000


   Start-up Assets
   Cash Required                                                                    $8,000
   Other Current Assets                                                            $12,000
   Long-term Assets                                                               $135,000
   Total Assets                                                                   $155,000


   Total Requirements                                                             $170,000




       BUSINESS PLAN                                                              Page 4
                                       [Company Name]


   Chart: Start-up


                                                Start-up

    $600,000


    $500,000


    $400,000


    $300,000


    $200,000


    $100,000


          $0
                   Expenses            Assets          Investment           Loans



3.0 Products

   PIZZA shops are comfortable and inviting. We are a fast-casual operation with dine in, take-
   out, and delivery. The real power and energy of the pizzeria will come from the attentive and
   courteous service provided by our managers and staff. Our fresh menu will be prepared by our
   motivated kitchen team and carefully orchestrated to provide the best service to our customers
   who are our priority.




   Our menu will include several sizes of PIZZA s with various combinations of toppings. Our
   specialty will be Chicago-style deep-dish PIZZA ; the toppings will include everything from
   barbeque chicken to the rare peanut butter and jelly. The freshly made dough will use 4oz. of
   oil as opposed to the normal 20oz per batch used by the competition.

4.0 Market Analysis Summary

   Our primary target market is people who desire a comfortable, family-oriented environment for
   dine-in PIZZA . Our secondary target market also desires a delivery service for PIZZA , or a
   takeout approach. There is overlap of these segments. Jackson and its surrounding
   communities are a growing middle-class area with nearly 15,000 residents.

4.1 Market Segmentation

   Those residents of neighboring communities of Jackson are included in the Market
   Segmentation. Only those residents of Jackson are included in the delivery, as the delivery
   radius is limited to a 8 miles. An estimated 50+ percentage of Jackson residents live within this
   8-mile radius.


      BUSINESS PLAN                                                                   Page 5
                                      [Company Name]


Table: Market Analysis



   Market Analysis
                                      Year 1     Year 2     Year 3     Year 4    Year 5
   Potential Customers     Growth                                                               CAGR
   Dine-In or Take-Out        3%      12,000     12,300     12,608    12,923     13,246         2.50%
   Delivery                   2%       8,000      8,160      8,323     8,489      8,659         2.00%
   Total                   2.30%      20,000     20,460     20,931    21,412     21,905         2.30%




   Chart: Market Analysis (Pie)


                         Market Analysis (Pie)




                                                                            Dine-In or Take-Out

                                                                            Delivery




4.2 Target Market Segment Strategy

   We haven't ruled any one group or class out in our target market area. Just about everyone
   eats PIZZA . Most residents in this area have busy schedules, and find value in exceptional and
   timely service, as well as mouth watering, delightful food. We believe most everyone will
   appreciate our value based menu and family atmosphere. We have a strong commitment to
   community involvement including sponsorship for school/group teams.

   We strongly believe we will overcome any competition in our area. The local competition
   includes PIZZA Hut and Little Caesars, but they have no competition for our concepts, ideals,
   fresh products, and welcoming service.




       BUSINESS PLAN                                                                   Page 6
                                        [Company Name]


4.3 Industry Analysis

   PIZZA Statistics:

   Represent 17% of all restaurants

   Americans eat approximately 100 acres of PIZZA a day

   PIZZA is a $32+ billion per year industry with continuing overall restaurant growth

   Accounts for 10% of all food service sales

   93% of Americans eat PIZZA at least once a month

   67% of Americans order PIZZA for a casual evening with friends

   Children between 3-11 prefer PIZZA over all other food groups

4.3.1 Competition and Buying Patterns

   PIZZA shops are competitive in the mid price point, fast casual dining market. Quality, Variety
   and Quick is the goal of [Company Name]. The customers are provided with the highest quality
   product. Store design also provides a warm and friendly environment for all.




       BUSINESS PLAN                                                                 Page 7
                                        [Company Name]


5.0 Strategy and Implementation Summary

          Emphasize service: We will differentiate ourselves with SERVICE! We will establish our
           business offering as a clear and viable alternative for our target market. Build a
           relationship-oriented business
          Build long-term relationships with customers, not single-visit deals. Become their
           restaurant and destination of choice. Make them understand the value of the relationship
          Focus on target markets: We need to focus our offerings on specific population groups
           as the key market segment we should own. We do not want to compete for the buyers
           who go to "fast food" or "take and bake" types of restaurants. We definitely want to be
           able to sell to smart, quality conscious customers.
          Utilize the various skills of our Managing Owners and learn through the extensive
           training program provided by the Franchisor.

5.1 SWOT Analysis

   The following SWOT analysis captures the key strengths and weaknesses within the company,
   and describes the opportunities and threats facing [Name], LLC.

5.1.1 Strengths

      Strong relationships with suppliers that offer credit arrangements, flexibility, and response
       to special product requirements
      Excellent and stable staff, offering personalized customer service.
      Great retail space that offers a positive and attractive, inviting atmosphere
      Great variety and product presentation
      High customer loyalty among repeat customers

5.1.2 Weaknesses

      Access to additional operating capital
      Challenges of the start-up phase in business

5.1.3 Opportunities

      Growing market with a significant percentage of our target market still not knowing we
       exist.
      Strategic alliances offering sources for referrals and joint marketing activities to extend our
       reach
      Increasing sales opportunities beyond our "25-mile" target area including several smaller
       communities that have produced a faithful following of customers

5.1.4 Threats

      The downturn in the economy has impacted store sales--stock market predictors correlate
       with store sales
      Continued price pressure due to competition or the weakening market reducing contribution
       margins




       BUSINESS PLAN                                                                   Page 8
                                        [Company Name]


5.2 Competitive Edge

   Clearly, our competitive edge will be our customer service experience and management
   approach. Our smiling, unassuming, and good-natured approach to all of our customers will be
   evident, and highly appreciated.

   We will constantly monitor our product to ensure quality food and beverages at all times. Our
   recipes are delicious, made fresh daily, and our dough is only 12-hours old at the most, our
   competitors can keep theirs for 48-hours. In addition, the toppings at [Name] are unheard of in
   other Jackson County pizzerias.

5.3 Marketing Strategy

   We will continue our marketing during the remodeling phase. Our main factor in success is
   simply that a person can enjoy a good PIZZA , fast service, and friendly familiar faces.

   We will all be involved in Sales and Marketing. We will gather information about the
   neighborhoods, use our POS System to track top sellers and gather a customer base for
   marketing offers.

   Kids school tours

   Gift Certificate Program

   Phone book advertisement

   Coupons

   Door hangers

   Sporting events for schools and group events

   Eye catching signage

   Excellent service and high quality food

   Word of mouth




       BUSINESS PLAN                                                                Page 9
                                       [Company Name]


5.4 Sales Strategy

   The marketing strategy discussed previously in this business plan will generate the desired
   sales.

   We require our staff to have a thorough and comprehensive understanding of the menus,
   ingredients and methods of preparation of all of our foods. We train our staff to always describe
   and recommend items, even to regular customers, and to always up-sell. The key to our
   employee's success in up selling is the realization that it usually brings in better tips because
   the checks are higher.

   We will emphasize service to differentiate ourselves. We will establish our business offerings as
   a clear and viable alternative for our target market, from the scores of "slow delivery", "frozen
   dough", and "your average" PIZZA chains.

   We will build long-term relationships with our customers, becoming their destination of choice
   for delivery, take out, and dine in. We will sell ourselves as the best neighborhood and
   community pizzeria.

5.4.1 Sales Forecast

   These illustrations and tables show our present sales forecast.

   We are convinced that our business will increase with time. We have a strong management
   team who will be on property daily to monitor daily operations. We will constantly watch food
   quality, customer service, and costs.

Table: Sales Forecast



   Sales Forecast
                                                           Year 1           Year 2             Year 3
   Sales
   Dine-In & Take-Out                                    $294,800         $350,812          $420,624
   Delivery                                              $145,200         $172,788          $207,173
   Total Sales                                           $440,000         $523,600          $627,796

   Direct Cost of Sales                                    Year 1           Year 2             Year 3
   Dine-In & Take-Out                                         $0               $0                 $0
   Delivery                                                   $0               $0                 $0
   Subtotal Direct Cost of Sales                              $0               $0                 $0




      BUSINESS PLAN                                                                  Page 10
                                         [Company Name]


   Chart: Sales by Year


                               Sales by Year


     $600,000


     $500,000


     $400,000                                                                Dine-In & Take-Out

     $300,000
                                                                             Delivery


     $200,000


     $100,000


           $0
                      Year 1          Year 2           Year 3



5.5 Milestones

   The accompanying table shows specific milestones, with dates and budgets. The milestones
   represented in this plan are those that we have determined to be the most important.

Table: Milestones



   Milestones

   Milestone                    Start Date      End Date            Budget   Manager        Department
   Receive Grant Funding        2/16/2011      2/16/2011        ($599,999)
   Start Ad Campaign            2/16/2011      2/16/2012           $15,000
   Remodel                      2/16/2011      3/16/2011           $40,000
   Purchase Equipment           2/16/2011       3/2/2010          $135,000
   (2) Hybrid Delivery Cars     2/16/2011      2/28/2011           $40,000
   Pre-pay Lease                2/16/2010      2/16/2012           $14,400
   Totals                                                       ($355,599)




      BUSINESS PLAN                                                                     Page 11
                                          [Company Name]


   Chart: Milestones


                                                Milestones

        Receive Grant Funding

                                   Start Ad Campaign

                      Remodel

                                  Purchase Equipment

       (2) Hybrid Delivery Cars

                                       Pre-pay Lease


                                                       Q2
                                                            Q3
                                                                 Q4
                                                                  Q1 `11
                                                                           Q2
                                                                                 Q3
                                                                                      Q4




6.0 Management Summary

   We are a small company owned and operated by [Name] and [Name], two brothers, as an LLC.
   Management style reflects the participation of the owners. The company respects its community
   of co-workers and treats all workers well.

6.1 Personnel Plan

   As the personnel plan shows, [Name] expects to make the necessary investments in staff to
   facilitate consistent operations and growth.

Table: Personnel



   Personnel Plan
                                                               Year 1             Year 2           Year 3
   Assistant Manager                                           $1,560            $18,720          $19,282
   Kitchen & Prep Staff                                      $105,120           $105,120         $108,274
   Drivers                                                    $32,412            $42,048          $43,309
   Waitresses (-ers)                                          $32,190            $41,760          $43,013
   Total People                                                    19                 19               19

   Total Payroll                                             $171,282           $207,648         $213,877




      BUSINESS PLAN                                                                        Page 12
                                           [Company Name]


7.0 Financial Plan

   The following subtopics highlight the financial plan for [Company Name].

7.1 Start-up Funding

   [Name], LLC start-up costs are detailed below, in the Start-up Table. The following table shows
   how these start-up costs will be funded by owner and grant capital.

Table: Start-up Funding



               Start-up Funding
               Start-up Expenses to Fund                                   $15,000
               Start-up Assets to Fund                                    $155,000
               Total Funding Required                                     $170,000

               Assets
               Non-cash Assets from Start-up                              $147,000
               Cash Requirements from Start-up                              $8,000
               Additional Cash Raised                                     $429,999
               Cash Balance on Starting Date                              $437,999
               Total Assets                                               $584,999


               Liabilities and Capital

               Liabilities
               Current Borrowing                                               $0
               Long-term Liabilities                                           $0
               Other Current Liabilities (interest-free)                       $0
               Total Liabilities                                               $0

               Capital

               Planned Investment
               Owner                                                            $0
               Investor                                                   $599,999
               Additional Investment Requirement                                $0
               Total Planned Investment                                   $599,999

               Loss at Start-up (Start-up Expenses)                      ($15,000)
               Total Capital                                             $584,999


               Total Capital and Liabilities                              $584,999

               Total Funding                                              $599,999



7.2 Important Assumptions

   Important assumptions for this plan are found in the following table. These assumptions largely
   determine the financial plan and require that we secure additional financing.

      BUSINESS PLAN                                                                  Page 13
                                                  [Company Name]


7.3 Break-even Analysis

   The Break-even Analysis chart and table show that if the costs stay at the current, or relatively
   stable, level [Name] will be able to make an increased profit by the first year. The break-even
   point is $22,165 per month.

Table: Break-even Analysis



   Break-even Analysis


   Monthly Revenue Break-even                                                                      $22,165

   Assumptions:
   Average Percent Variable Cost                                                                         0%
   Estimated Monthly Fixed Cost                                                                    $22,165




   Chart: Break-even Analysis


                                           Break-even Analysis
     $20,000

     $15,000

     $10,000

      $5,000

          $0

     ($5,000)

    ($10,000)

    ($15,000)

    ($20,000)

                $0            $8,000          $16,000       $24,000       $32,000       $40,000
                     $4,000            $12,000       $20,000       $28,000       $36,000       $44,000



7.4 Projected Profit and Loss

   As the profit and loss table shows, [Company Name] expects to continue its steady growth
   in profitability over the next three years of operations.




      BUSINESS PLAN                                                                                       Page 14
                                      [Company Name]


Table: Profit and Loss



   Pro Forma Profit and Loss
                                                Year 1     Year 2       Year 3
   Sales                                      $440,000   $523,600    $627,796
   Direct Cost of Sales                            $0         $0              $0
   Other Costs of Sales                            $0         $0              $0
   Total Cost of Sales                             $0         $0              $0


   Gross Margin                               $440,000   $523,600    $627,796
   Gross Margin %                             100.00%    100.00%      100.00%




   Expenses
   Payroll                                    $171,282   $207,648    $213,877
   Marketing/Promotion                         $15,000    $15,000     $15,000
   Depreciation                                    $0         $0              $0
   Rent                                        $13,200        $0      $14,400
   Utilities                                   $19,200    $19,200     $19,200
   Insurance                                    $3,000     $3,000      $3,000
   Payroll Taxes                               $25,692    $31,147     $32,082
   Other                                       $18,600    $18,600     $18,600


   Total Operating Expenses                   $265,974   $294,595    $316,159


   Profit Before Interest and Taxes           $174,026   $229,005    $311,637
   EBITDA                                     $174,026   $229,005    $311,637
    Interest Expense                               $0         $0              $0
    Taxes Incurred                             $52,208    $68,701     $93,491


   Net Profit                                 $121,818   $160,303    $218,146
   Net Profit/Sales                            27.69%     30.62%       34.75%




       BUSINESS PLAN                                                Page 15
                              [Company Name]


Chart: Profit Yearly


                                Profit Yearly



 $210,000

 $180,000

 $150,000

 $120,000

  $90,000

  $60,000

  $30,000

      $0
                  Year 1            Year 2         Year 3




Chart: Gross Margin Yearly


                             Gross Margin Yearly



 $600,000


 $500,000


 $400,000


 $300,000


 $200,000


 $100,000


      $0
                  Year 1            Year 2         Year 3




   BUSINESS PLAN                                            Page 16
                                           [Company Name]


7.5 Projected Cash Flow

   The financial outlook is positive as the company rolls out and meets its milestones. After
   financing, cash flow will be negative for year one only. By year two, [Name], LLC expects to be
   cash flow positive.

Table: Cash Flow



   Pro Forma Cash Flow
                                                            Year 1         Year 2             Year 3
   Cash Received

   Cash from Operations
   Cash Sales                                           $440,000         $523,600         $627,796
   Subtotal Cash from Operations                        $440,000         $523,600         $627,796

   Additional Cash Received
   Sales Tax, VAT, HST/GST Received                           $0               $0               $0
   New Current Borrowing                                      $0               $0               $0
   New Other Liabilities (interest-free)                      $0               $0               $0
   New Long-term Liabilities                                  $0               $0               $0
   Sales of Other Current Assets                              $0               $0               $0
   Sales of Long-term Assets                                  $0               $0               $0
   New Investment Received                                    $0               $0               $0
   Subtotal Cash Received                               $440,000         $523,600         $627,796

   Expenditures                                             Year 1         Year 2             Year 3

   Expenditures from Operations
   Cash Spending                                        $318,182         $363,297         $409,650
   Subtotal Spent on Operations                         $318,182         $363,297         $409,650

   Additional Cash Spent
   Sales Tax, VAT, HST/GST Paid Out                           $0               $0               $0
   Principal Repayment of Current Borrowing                   $0               $0               $0
   Other Liabilities Principal Repayment                      $0               $0               $0
   Long-term Liabilities Principal Repayment                  $0               $0               $0
   Purchase Other Current Assets                        $140,000               $0               $0
   Purchase Long-term Assets                             $80,000               $0               $0
   Dividends                                                  $0               $0               $0
   Subtotal Cash Spent                                  $538,182         $363,297         $409,650

   Net Cash Flow                                        ($98,182)        $160,303         $218,146
   Cash Balance                                         $339,817         $500,120         $718,266




      BUSINESS PLAN                                                                 Page 17
                                                                          [Company Name]


Chart: Cash



                                                      Cash
  $600,000

  $500,000

  $400,000

  $300,000
                                                                                                                                         Net Cash Flow
  $200,000
                                                                                                                                         Cash Balance
  $100,000

        $0

 ($100,000)

 ($200,000)
              Month 1

                        Month 2

                                  Month 3

                                            Month 4

                                                      Month 5

                                                                Month 6

                                                                          Month 7

                                                                                    Month 8

                                                                                              Month 9

                                                                                                        Month 10

                                                                                                                   Month 11

                                                                                                                              Month 12




   BUSINESS PLAN                                                                                                                                         Page 18
                                      [Company Name]


7.6 Projected Balance Sheet

   [Company Name] projected company balance sheet follows.

Table: Balance Sheet



   Pro Forma Balance Sheet
                                                       Year 1           Year 2           Year 3
   Assets

   Current Assets
   Cash                                             $339,817          $500,120         $718,266
   Other Current Assets                             $152,000          $152,000         $152,000
   Total Current Assets                             $491,817          $652,120         $870,266

   Long-term Assets
   Long-term Assets                                 $215,000          $215,000        $215,000
   Accumulated Depreciation                               $0                $0               $0
   Total Long-term Assets                           $215,000          $215,000        $215,000
   Total Assets                                     $706,817          $867,120       $1,085,266

   Liabilities and Capital                             Year 1           Year 2           Year 3

   Current Liabilities
   Current Borrowing                                      $0               $0               $0
   Other Current Liabilities                              $0               $0               $0
   Subtotal Current Liabilities                           $0               $0               $0

   Long-term Liabilities                                  $0               $0               $0
   Total Liabilities                                      $0               $0               $0

   Paid-in Capital                                  $599,999          $599,999        $599,999
   Retained Earnings                                ($15,000)         $106,818        $267,121
   Earnings                                         $121,818          $160,303        $218,146
   Total Capital                                    $706,817          $867,120       $1,085,266
   Total Liabilities and Capital                    $706,817          $867,120       $1,085,266

   Net Worth                                        $706,817          $867,120       $1,085,266



7.7 Business Ratios

   The Company's projected business ratios are provided in the following table. The final column,
   Industry Profile, shows ratios for the "PIZZA Restaurant Industry", as determined by the
   Standard Industry Classification 5812; Full-Service Restaurants with annual sales of $500,000
   to $999,000.




      BUSINESS PLAN                                                               Page 19
                                        [Company Name]


Table: Ratios



   Ratio Analysis
                                              Year 1       Year 2     Year 3    Industry Profile
   Sales Growth                                 n/a.      19.00%     19.90%              1.65%

   Percent of Total Assets
   Other Current Assets                      21.50%       17.53%     14.01%            43.25%
   Total Current Assets                      69.58%       75.21%     80.19%            53.12%
   Long-term Assets                          30.42%       24.79%     19.81%            46.88%
   Total Assets                             100.00%      100.00%    100.00%           100.00%

   Current Liabilities                        0.00%        0.00%      0.00%              25.40%
   Long-term Liabilities                      0.00%        0.00%      0.00%              73.91%
   Total Liabilities                          0.00%        0.00%      0.00%              99.31%
   Net Worth                                100.00%      100.00%    100.00%               0.69%

   Percent of Sales
   Sales                                    100.00%      100.00%    100.00%           100.00%
   Gross Margin                             100.00%      100.00%    100.00%            58.06%
   Selling, General & Administrative         72.31%       69.38%     65.25%            23.02%
   Expenses
   Advertising Expenses                       3.41%        2.86%      2.39%              1.74%
   Profit Before Interest and Taxes          39.55%       43.74%     49.64%              6.52%

   Main Ratios
   Current                                      0.00         0.00       0.00              1.25
   Quick                                        0.00         0.00       0.00              1.00
   Total Debt to Total Assets                 0.00%        0.00%      0.00%            99.31%
   Pre-tax Return on Net Worth               24.62%       26.41%     28.72%          4325.25%
   Pre-tax Return on Assets                  24.62%       26.41%     28.72%            29.65%

   Additional Ratios                          Year 1       Year 2     Year 3
   Net Profit Margin                         27.69%       30.62%     34.75%                 n/a
   Return on Equity                          17.23%       18.49%     20.10%                 n/a

   Activity Ratios
   Accounts Payable Turnover                   13.97        12.17      12.17                n/a
   Total Asset Turnover                         0.62         0.60       0.58                n/a

   Debt Ratios
   Debt to Net Worth                            0.00         0.00       0.00                n/a
   Current Liabilities to Liabilities           0.00         0.00       0.00                n/a

   Liquidity Ratios
   Net Working Capital                      $491,817     $652,120   $870,266                n/a
   Interest Coverage                            0.00         0.00       0.00                n/a

   Additional Ratios
   Assets to Sales                              1.61         1.66       1.73                n/a
   Current Debt/Total Assets                     0%           0%         0%                 n/a
   Acid Test                                    0.00         0.00       0.00                n/a
   Sales/Net Worth                              0.62         0.60       0.58                n/a
   Dividend Payout                              0.00         0.00       0.00                n/a


       BUSINESS PLAN                                                           Page 20
                                Appendix

Table: Sales Forecast



Sales Forecast


                                             Year 1     Year 2        Year 3


Sales



Dine-In & Take-Out                         $294,800   $350,812      $420,624


Delivery                                   $145,200   $172,788      $207,173


Total Sales                                $440,000   $523,600      $627,796




Direct Cost of Sales                         Year 1     Year 2        Year 3


Dine-In & Take-Out                              $0         $0             $0


Delivery                                        $0         $0             $0


Subtotal Direct Cost of Sales                   $0         $0             $0




           BUSINESS PLAN                                         Page 1
                          Appendix

Table: Personnel



Personnel Plan



                                       Year 1     Year 2      Year 3



Assistant Manager                      $1,560    $18,720     $19,282



Kitchen & Prep Staff                 $105,120   $105,120    $108,274


Drivers                               $32,412    $42,048     $43,309


Waitresses (-ers)                     $32,190    $41,760     $43,013



Total People                              19         19             19




Total Payroll                        $171,282   $207,648    $213,877




          BUSINESS PLAN                                    Page 2
                                   Appendix

Table: Profit and Loss



Pro Forma Profit and Loss

                                          Year 1     Year 2      Year 3

Sales                                   $440,000   $523,600    $627,796

Direct Cost of Sales                          $0        $0             $0
Other Costs of Sales                          $0        $0             $0
Total Cost of Sales                           $0        $0             $0



Gross Margin                            $440,000   $523,600    $627,796
Gross Margin %                          100.00%    100.00%     100.00%




Expenses

Payroll                                 $171,282   $207,648    $213,877
Marketing/Promotion                      $15,000    $15,000     $15,000
Depreciation                                  $0        $0             $0
Rent                                     $13,200        $0      $14,400

Utilities                                $19,200    $19,200     $19,200
Insurance                                 $3,000     $3,000      $3,000
Payroll Taxes                            $25,692    $31,147     $32,082

Other                                    $18,600    $18,600     $18,600


Total Operating Expenses                $265,974   $294,595    $316,159


Profit Before Interest and Taxes        $174,026   $229,005    $311,637

EBITDA                                  $174,026   $229,005    $311,637
 Interest Expense                             $0        $0             $0
 Taxes Incurred                          $52,208    $68,701     $93,491



Net Profit                              $121,818   $160,303    $218,146
Net Profit/Sales                         27.69%     30.62%      34.75%




            BUSINESS PLAN                                     Page 3
                                            Appendix

Table: Cash Flow



Pro Forma Cash Flow
                                                         Year 1      Year 2      Year 3
Cash Received


Cash from Operations
Cash Sales                                             $440,000    $523,600    $627,796
Subtotal Cash from Operations                          $440,000    $523,600    $627,796


Additional Cash Received
Sales Tax, VAT, HST/GST Received                             $0         $0             $0
New Current Borrowing                                        $0         $0             $0
New Other Liabilities (interest-free)                        $0         $0             $0
New Long-term Liabilities                                    $0         $0             $0
Sales of Other Current Assets                                $0         $0             $0
Sales of Long-term Assets                                    $0         $0             $0
New Investment Received                                      $0         $0             $0
Subtotal Cash Received                                 $440,000    $523,600    $627,796


Expenditures                                             Year 1      Year 2      Year 3


Expenditures from Operations
Cash Spending                                          $318,182    $363,297    $409,650
Subtotal Spent on Operations                           $318,182    $363,297    $409,650


Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out                             $0         $0             $0
Principal Repayment of Current Borrowing                     $0         $0             $0
Other Liabilities Principal Repayment                        $0         $0             $0
Long-term Liabilities Principal Repayment                    $0         $0             $0
Purchase Other Current Assets                          $140,000         $0             $0
Purchase Long-term Assets                               $80,000          $0          $0
Dividends                                                    $0          $0          $0
Subtotal Cash Spent                                    $538,182    $363,297    $409,650


Net Cash Flow                                          ($98,182)   $160,303    $218,146
Cash Balance                                           $339,817    $500,120    $718,266




        BUSINESS PLAN                                                         Page 4
                                Appendix

Table: Balance Sheet



Pro Forma Balance Sheet
                                           Year 1     Year 2       Year 3
Assets


Current Assets
Cash                                  $339,817      $500,120    $718,266
Other Current Assets                  $152,000      $152,000    $152,000
Total Current Assets                  $491,817      $652,120    $870,266


Long-term Assets
Long-term Assets                      $215,000      $215,000    $215,000
Accumulated Depreciation                    $0            $0          $0
Total Long-term Assets                $215,000      $215,000    $215,000
Total Assets                          $706,817      $867,120   $1,085,266


Liabilities and Capital                    Year 1     Year 2       Year 3


Current Liabilities
Current Borrowing                             $0         $0             $0
Other Current Liabilities                     $0         $0             $0
Subtotal Current Liabilities                  $0         $0             $0


Long-term Liabilities                         $0         $0             $0
Total Liabilities                             $0         $0             $0


Paid-in Capital                       $599,999      $599,999    $599,999
Retained Earnings                     ($15,000)     $106,818    $267,121
Earnings                              $121,818      $160,303    $218,146
Total Capital                         $706,817      $867,120   $1,085,266
Total Liabilities and Capital         $706,817      $867,120   $1,085,266


Net Worth                             $706,817      $867,120   $1,085,266




         BUSINESS PLAN                                         Page 5
                                                               Appendix

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BUSINESS PLAN                                                                                                                     Page 6
                                                               Appendix


				
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Description: This Business Plan for a Pizza Restaurant Franchise allows entrepreneurs or business owners to create a comprehensive and professional business plan. This template form allows a business to outline the company's objectives and detail both current company information as well as any past performance. Companies should include a complete market analysis in their plan to help showcase why their business strategy will be effective in the market. Future company plans, including production targets, management strategy, and financial forecasting, should be used to demonstrate and confirm that the company's short-term and long-term objective can and will be met. This model plan can be customized to best fit the unique needs of any entrepreneur or owner that is seeking to create a strong business plan.