Financial Model For Brands
Financial Model For Brands
Financial Model For Brands
SUMMARY
A Infrastructure Cost
Complete Interiors, Fittings & Display Shelves 600,000
Loose Art work 50,000
Air Conditioner 80,000
Signage Cost 100,000
Sub Total (A) 830,000
B Equipment
POS(Hardware + Software) 75,000
RFID System 60,000
CCTV 25,000
Aircutter 20,000
UPS 75,000
Misc. 25,000
Sub Total (B) 280,000
Provisions
Lease Deposit for 3 months* 648,000
Working Capital Requirements (In Months) 3
HR 159,000
Rental 648,000
Electricity & Gas 75,000
Total Working Capital Required 882,000
* All Amount is in INR
80,000 1
75,000 1
5,000
Product Sales
Average Daily Customers walkin 125
Conversion% 25%
Average Daily Conversion 31
Monthly Customer Conversion 930
Total Sales
128 131 135 138 141 145 149
26% 26% 27% 28% 28% 29% 30%
33 34 36 38 40 42 44
960 1,020 1,080 1,140 1,200 1,260 1,320
Margin
32%
32%
32%
32%
MoM Growth
152 156 160 164 2.5%
30% 31% 32% 33% 2.5%
46 49 51 54
1,380 1,440 1,530 1,590
YoY Growth %
Year 4 Year 5
12% 8%
Income Projections
INCOME PROJECTIONS
Key Assumptions
Revenue Sources
Total Revenue from Product Sales
Total Revenue from Services
Average Monthly Revenue
EXPENSES
COGS%
COGS
Cost of Services & Products
Gross Income
HR Cost
Employee cost
Rentals
Rent Cost (per sq.ft.) 600
Rent as % of Revenue
Utility Expenses
Electricity 25,000
Communication & Broadband Expenses 2,000
Bank Charges for Credit Card Payment Facility 1.6%
Software Renewal 20,000
Misc. & Maintenance 2.0%
Marketing Fund
Expenses towards Local Marketing 2.00%
Expenses towards Central Marketing 1.00%
EBITDA
ROI
Cumulative ROI (%)
Payback
INCOME PROJECTIONS
Year 1 Year 2 Year 3 Year 4 Year 5
3,210,000
1 Year 4 Months 1 4
Sales Value Margin
- 32%
20,000,000 33%
27,000,000 34%
**Increase in rate
**Increase in rate
** % of Customers paying by card
Inception Cost
SUMMARY
A Infrastructure Cost
Complete Interiors, Fittings & Display Shelves 1,950,000
Loose Art work 100,000
Air Conditioner 240,000
Signage Cost 100,000
Sub Total (A) 2,390,000
B Equipment
POS(Hardware + Software) 150,000
LED Wall 120,000
RFID System 60,000
CCTV 50,000
Aircutter 50,000
UPS 100,000
Misc. 40,000
Sub Total (B) 570,000
Provisions
Lease Deposit for 3 months* 1,350,000
Working Capital Requirements (In Months) 3
HR 360,000
Rental 1,350,000
Electricity & Gas 150,000
Total Working Capital Required 1,860,000
* All Amount is in INR
80,000 3
75,000 2
5,000
Product Sales
Average Daily Customers walkin 200
Conversion% 25%
Average Daily Conversion 50
Monthly Customer Conversion 1,500
Total Sales
204 208 212 216 221 225 230
26% 26% 27% 27% 28% 28% 29%
52 54 56 59 61 63 66
1,560 1,620 1,680 1,740 1,800 1,890 1,950
Margin
32%
32%
32%
32%
MoM Growth
234 239 244 249 2.0%
29% 30% 30% 31% 2.0%
69 71 74 77
2,040 2,130 2,220 2,310
YoY Growth %
Year 4 Year 5
12% 8%
Income Projections
INCOME PROJECTIONS
Key Assumptions
Revenue Sources
Total Revenue from Product Sales
Total Revenue from Services
Average Monthly Revenue
EXPENSES
COGS %
COGS
Cost of Services & Products
Gross Income
HR Cost
Employee cost
Rentals
Rent Cost (per sq.ft.) 500
Rent as % of Revenue
Utility Expenses
Electricity 50,000
Communication & Broadband Expenses 2,000
Bank Charges for Credit Card Payment Facility 1.6%
Software Renewal 40,000
Misc. & Maintenance 2.5%
Marketing Fund
Expenses towards Local Marketing 2.00%
Expenses towards Central Marketing 2.00%
EBITDA
ROI
Cumulative ROI (%)
Payback
INCOME PROJECTIONS
Year 1 Year 2 Year 3 Year 4 Year 5
7,410,000
1 Year 5 Months 1 5
Sales Value Margin
- 32%
35,000,000 33%
45,000,000 34%
**Increase in rate
**Increase in rate
** % of Customers paying by card
Revenue Sheet(Quarterly)
Q1 Q2 Q3 Q4
Roll out 1 2 4 4
Total Revenue
Year 1 Year 2 Year 3 Year 4
103,155,750 352,602,000 529,995,263 610,774,423
6,348,375 6,348,375 6,348,375 6,348,375 7,300,631 7,300,631 7,300,631
Q5 Q6 Q7 Q8 Q9 Q10 Q11
2 1 2 2 2 1 -
Year 5
680,132,394
7,300,631 8,176,707 8,176,707 8,176,707 8,176,707 8,830,844 8,830,844
Q19 Q20
- -
8,830,844 8,830,844
17,661,687 17,661,687
35,323,374 35,323,374
32,706,828 35,323,374
16,353,414 16,353,414
8,176,707 8,176,707
16,353,414 16,353,414
14,601,263 16,353,414
14,601,263 14,601,263
7,300,631 7,300,631
- -
- -
- -
- -
- -
- -
- -
- -
- -
-
171,909,424 176,278,122
680,132,394
Expenses Sheet(Quarterly)
Q1 Q2 Q3
Roll out 1 2 4
Total Expenses
Year 1 Year 2 Year 3
104,731,000 308,700,000 460,854,250
4,760,500 5,592,750 5,592,750 5,592,750 5,592,750 6,273,000 6,273,000
Q4 Q5 Q6 Q7 Q8 Q9 Q10
4 2 1 2 2 2 1
al Expenses
Year 4 Year 5
525,689,000 580,275,250
6,273,000 6,273,000 6,965,500 6,965,500 6,965,500 6,965,500 7,501,000
Q1 Q2 Q3 Q4
Roll out 1 1 1 2
Total Revenue
Year 1 Year 2 Year 3 Year 4
117,115,500 381,933,450 511,167,593 578,395,264
13,716,450 13,716,450 13,716,450 13,716,450 15,773,918 15,773,918 15,773,918
Q5 Q6 Q7 Q8 Q9 Q10 Q11
1 2 - 1 - - -
Year 5
642,086,776
15,773,918 17,666,788 17,666,788 17,666,788 17,666,788 19,080,131 19,080,131
Q19 Q20
- -
19,080,131 19,080,131
19,080,131 19,080,131
19,080,131 19,080,131
35,333,575 38,160,261
17,666,788 17,666,788
35,333,575 35,333,575
- -
15,773,918 17,666,788
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
-
161,348,247 166,067,803
642,086,776
Expenses Sheet(Quarterly)
Q1 Q2 Q3
Roll out 1 1 1
Total Expenses
Year 1 Year 2 Year 3
113,192,750 338,866,500 444,430,500
10,290,250 12,096,500 12,096,500 12,096,500 12,096,500 13,731,750 13,731,750
Q4 Q5 Q6 Q7 Q8 Q9 Q10
2 1 2 - 1 - -
al Expenses
Year 4 Year 5
502,911,500 554,482,500
13,731,750 13,731,750 15,254,000 15,254,000 15,254,000 15,254,000 16,431,250
Other expenditures
Govt (permissions & Licenses) 10,000
Total Other Expenditures (B) 10,000
Sub - Franchise
WK Life
WK Life+
Franchisee Fee Collected by Master Franchisee
Franchisee F
Franchise fee of Own Centers
Franchisee Fee of Sub Franchise Centre's
Gross Franchise Fee Payable
Discounts on Franchise Fee
Own Franchisee
Sub Franchisee
Net Franchise Fee Payable by Master Franchise
Time Line (Years)
Franchise fee % Payable to Brand
Franchise Fee Payable to Brand
Year 0 Year 1 Year 2
Franchisee Fee Per Outlet
450,000 2 -
450,000 2 -
1,800,000 -
450,000 9 7
450,000 3 4
5,400,000 4,950,000
Franchisee Fees Workings
1,800,000
11,700,000
13,500,000
Net Franchisee Fee Payable Discounts % to M.F Brand Share %
900,000 50% 50%
5,850,000 50% 50%
6,750,000
Year 0(at the time of signing the agreement) Year 1 Year 2
0% 52.4% 33.3%
- 3,535,714 2,250,000
Year 3 Year 4 Year 5 Total
- - - 2
- - - 2
- - - 1,800,000
3 - - 19
- - - 7
1,350,000 - - 11,700,000
Particulars Year 1
Gross Revenue from WK Life
Unit Franchise 2
Total / cumulative 2
Particulars Year 1
Gross Revenue from WK Life+
Unit Franchise 2
Total / cumulative 2
Particulars Year 1
Margin Retained from WK Life
Unit Franchise 9
Total / cumulative 9
Particulars Year 1
Margin Retained from WK Life+
Unit Franchise 3
Total / cumulative 3
PBT 14,130,000
4,950,000 1,350,000 - -
4,950,000 1,350,000 - -
- - - -
- - - -
- - - -
26,800,000 26,800,000 26,800,000 26,800,000
5%
* Cost Per Sub Franchise Acquisition
Roll out
Roll out
Particulars
EBITDA
Payback Period
Q1 Q2 Q3 Q4
1 2 4 4
Q1 Q2 Q3 Q4
1 1 1 2
30
2
2
19
7
The FranchiseFees of 6,750,000 includes, 18 la
which the franchise had to give for 4 own fr
6,750,000 Master Franchise you are paying 4,950,000 ex
would make 5,850,000, so you would be maki
on that extra 4,950,000.
1,800,000
11,700,000
5,850,000
5,850,000
900,000
1 Year 6 Months
WK Life
Q5 Q6 Q7 Q8
2 1 2 2
WK Life+
Q5 Q6 Q7 Q8
1 2 1
Year 4 Year 5
22,240,000
48,054,000 51,898,000
4,886,195 5,441,059
4,627,162 5,136,694
- -
79,807,357 62,475,753
12,550,000 13,382,000
28,752,000 30,706,000
2,790,000 3,050,000
44,092,000 47,138,000
35,720,000 15,340,000
WK Life
Q9 Q10 Q11 Q12
2 1 - -
WK Life+
Q9 Q10 Q11 Q12
- - - -
Q13 Q14 Q15 Q16
- - - -
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