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Roi Franchise Business - Excel

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Roi Franchise Business document sample

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									Franchise financial projections
                                                                                                  Business Centre
Startup costs of a Maths Ace Franchise (estimated costs)                                           Rural       CBD
Franchise Fee (Includes training costs and programmes)                                               R30,000    R40,000
Business establishing costs                                                                          R63,000    R63,000
    Furniture and equipment (including printer)                                         R20,000
    Computers - networked (12 workstations)                                             R36,000
    Computers - Server                                                                   R7,000
Working capital and launch expenses:                                                                 R18,000    R18,000
    Initial Stock (stationery)                                                           R2,000
    Rent deposit                                                                         R4,000
    Signage                                                                              R4,000
    Advertising launch                                                                   R1,000
    Travelling and accommodation during training                                         R3,000
First months rent (payable in advance)                                                   R4,000
General start up costs                                                                                R4,000     R4,000
TOTAL Costs                                                                                         R115,000   R125,000

Management Services Fee 17%
National Advertising Fee 1.5%
Payable on the Franchise Agreement becoming effective:
Franchise Fee of R30 000 to R40 000 based on the nature of the area
All pricing VAT incl. and are estimates. Final costs will vary on configuration, etc.
Scenario 1 - Owner managed
Projected Revenue based on % of seats booked                                          Costs
                                                                                      Accounting             R500
No of pc's                                              12                            Bank charges           R300
No of hrs /wk                                           25        300                 Internet               R300
Hrs month                                             1200                            Rental                R4,000
Cost/hr                                                R75       R100                 Tutor                     R0 (No cost here as owner is Tutor also)
                                                                                      Salesperson           R6,000 (this can be less if owner involved)
Rev/month                                           R90,000   R120,000 100% Booking   Electricity            R800
Nett Income                                         R59,100    R84,000                Stationery             R600
                                                                                      Insurance              R750
Rev/month                                           R72,000    R96,000 80% Booking    Telephone             R1,000
Nett Income                                         R44,160    R64,080                Advertise             R1,350 (at 1.5% this is an average cost)
                                                                                      Royalties            R15,300      R20,400 at 17% of 100% booking
Rev/month                                           R54,000    R72,000 60% Booking                         R12,240      R16,320 at 17% of 80% booking
Nett Income                                         R29,220    R44,160                                      R9,180      R12,240 at 17% of 60% booking
                                                                                                            R7,650      R10,200 at 17% of 50% booking
Rev/month                                           R45,000    R60,000 50% Booking    Total Monthly Cost   R30,900      R36,000 100% booking
Nett Income                                         R21,750    R34,200                                     R27,840      R31,920 80% booking
                                                                                                           R24,780      R27,840 60% booking
                                                                                                           R23,250      R25,800 50% booking



Scenario 2 - Hire tutor to manage learning centre
Projected Revenue based on % of seats booked                                          Costs
                                                                                      Accounting             R500
No of pc's                                              12                            Bank charges           R300
No of hrs /wk                                           25        300                 Internet               R300
Hrs month                                             1200                            Rental                R4,000
Cost/hr                                                R75       R100                 Tutor                 R6,000 (at R60 per hour for 100hrs/mth)
                                                                                      Salesperson           R6,000 (this can be less if owner involved)
Rev/month                                           R90,000   R120,000 100% Booking   Electricity            R800
Nett Income                                         R53,050    R77,950                Stationery             R600
                                                                                      Insurance              R800
Rev/month                                           R72,000    R96,000 80% Booking    Telephone             R1,000
Nett Income                                         R38,110    R58,030                Advertise             R1,350 (at 1.5% this is an average cost)
                                                                                      Royalties            R15,300      R20,400 at 17% of 100% booking
Rev/month                                           R54,000    R72,000 60% Booking                         R12,240      R16,320 at 17% of 80% booking
Nett Income                                         R23,170    R38,110                                      R9,180      R12,240 at 17% of 60% booking
                                                                                                            R7,650      R10,200 at 17% of 50% booking
Rev/month                                           R45,000    R60,000 50% Booking    Total Monthly Cost   R36,950      R42,050 100% booking
Nett Income                                         R15,700    R28,150                                     R33,890      R37,970 80% booking
                                                                                                           R30,830      R33,890 60% booking
                                                                                                           R29,300      R31,850 50% booking
                                                                                                                     Accumulated
                                                                                        % Booking       Net Profit    Net Profit     Total Capital (fixed)
                                                                       Month 1            50%           R28,150        R28,150            R125,000
                                                                       Month 2            50%           R28,150        R56,300            R125,000
                                                                       Month 3            50%           R28,150        R84,450            R125,000
                                                                       Month 4            60%           R38,110       R122,560            R125,000
                                                                       Month 5            60%           R38,110       R160,670            R125,000           Breakeven by Month 5
                                                                       Month 6            80%           R58,030       R218,700            R125,000
                                                                       Month 7            80%           R58,030       R276,730            R125,000
                                                                       Month 8            80%           R58,030       R334,760            R125,000
                                                                       Month 9            80%           R58,030       R392,790            R125,000
                                                                       Month 10           80%           R58,030       R450,820            R125,000
                                                                       Month 11 (Nov)     50%           R28,150       R478,970            R125,000
                                                                       Month 12 (Dec)      0%              R0         R478,970            R125,000

                                                                          R600,000




                                                                          R500,000



Notes:
                                                                          R400,000

1) These projections are based on hiring a tutor. Higher profits are
achievable if owner managed.
2) In a typical year, November is normally the slowest because of         R300,000
examinations.
3) Most outlets would be closed for December although this is                                                                                                              Accumulated Net Profit
totally at the discretion of the franchisee.                                                                                                                               Total Capital (fixed)
4) Even at these conservative projections, breakeven is easily            R200,000
realised within 6 months. A very high ROI in the first year of
operation.
                                                                          R100,000




                                                                               R0
                                                                                     Month Month Month Month Month Month Month Month Month Month Month Month
                                                                                       1     2     3     4     5     6     7     8     9    10    11    12
                                                                                                                                                 (Nov) (Dec)
                                                                   Business Centre
Startup costs of a Maths Ace Franchise
(estimated costs)                                                  Rural       CBD
Franchise Fee (Includes training costs and programmes)               R30,000    R40,000
Business establishing costs                                          R63,000    R63,000
  Furniture and equipment (including printer)            R20,000
  Computers - networked (12 workstations)                R36,000
  Computers - Server                                      R7,000
Working capital and launch expenses:                                 R18,000    R18,000
  Initial Stock (stationery)                              R2,000
  Rent deposit                                            R4,000
  Signage                                                 R4,000
  Advertising launch                                      R1,000
  Travelling and accommodation during training            R3,000
First months rent (payable in advance)                    R4,000
General start up costs                                                R4,000     R4,000
TOTAL Costs                                                         R115,000   R125,000
   School
Rural      CBD
 R30,000    R40,000


 R36,000    R36,000
  R7,000     R7,000

  R2,000     R2,000
  R1,500     R1,500
  R4,000     R4,000
  R1,000     R1,000
  R3,000     R3,000
  R1,500     R1,500
  R4,000     R4,000
 R90,000   R100,000

								
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