FRANCHISING BUSINESS PLAN

PREPARED BY: GROUP 1

Jennifer De la Cruz Jennifer Gangan

Leilani Carino Elaine Legaspi

Mary Anne Marino Katherine

Franchise Details:

Franchise Fee: 250,000.00 Php + 12% VAT

Royalty Fee: None
Advertising Fee: 2%
Franchise Renewal: 5 Years
Minimum Floor Area: 15 Sqm
Cash Bond: 600,000.00 Php

Franchise application procedure:

Interested parties should submit a Letter of Intent to CIS Bayad Center, Inc. (CBCI) with
attached Location Map of proposed site and the letter should be addressed to Ms. Aida
C. Yuvienco, VP and Head Sales, Marketing, and Business Development. The letter
should include the complete address of the proposed sites as well as all the complete
contact details of the applicant.

Contact Details:

CIS Bayad Center Incorporated

Business Solutions Center, Meralco Complex
Ortigas Ave., Pasig City

Landline and Contact Persons:

(632) 1622-5567 (Ms. Phoebe Vargas)
(632) 1622-5520 (Ms. Bung Roa)
Telefax: (02) 9142160
Email: inquiry@cis.com.ph and povargas@cis.com.ph

HISTORY OF THE COMPANY:

CIS Bayad Center, Inc.

The BAYAD CENTER is the country's pioneer and leader in the over-the-counter
multiple bills payment collection business.

With over 10 years of serving the Filipino, Bayad Center continues to define and set the
standards in the industry with its increasing number of biller partners and fast-growing
network of payment centers, and introduction of innovative service lines.

BAYAD CENTER: Blazing the Trail in the Industry

The CIS Bayad Center business model is the first of its kind in the Philippines:
concurrently providing a dependable payment collection solution to its corporate
partners, creating business opportunities for its franchisees, and offering the public a
reliable and convenient bills payment collection service. As a pioneer, Bayad Center
has defined and set the standards of the Outsourced Payment Collection Industry.

The BAYAD CENTER was originally known as the Payment Collection Service, a
division of Corporate Information Solutions, Inc. (CIS) established in May 1997. From
three Lopez corporations (MERALCO, BayanTel, and Sky Cable), more and more
companies from different industries have partnered with the BAYAD CENTER. By
October 2000, the BAYAD CENTER has hit the one million-transaction mark.
Eventually, the BAYAD CENTER has evolved from being a profitable division of CIS to
becoming the core business of the Corporation in 2005.

In 2006, The BAYAD CENTER has spun-off from CIS to become the CIS BAYAD
CENTER, INC (CBCI). A year later, as part of its mission to be present in every possible
neighborhood in the country, CBCI transitioned into a franchising organization.

In March 25, 2008, CBCI was awarded the “Investor in People” (IiP) certification by the
People Management Association of the Philippines and the UK-based IiP Quality
Centre. This coveted global recognition honors CBCI as a company that nurtures the
development of its employees side by side with its own corporate growth.

BAYAD CENTER is now the leading brand in the over-the-counter multiple bills
payment collection business. It proudly provides the public a worry-free payment
collection service for organizations in the following sectors: utilities, government service,
telecommunications, cable TV, Internet, insurance & pre-need, healthcare,
transportation, electronic wallet, credit card, real estate, financial services, arts and
entertainment, columbary, memorial park, charity donations, among others.

The BAYAD CENTER is not resting on its laurels. At present, the BAYAD CENTER
network is composed of around 900 collection centers in the Philippines and, soon,
hundreds more overseas.

I. INTRODUCTION

Ever had the problem of having to pay multiple bills in their respective
payment centers that is totally out of the way from each other? Well you
are not alone. Thousands upon Hundreds of thousands of people pay their
bills daily. What better way to help them with their inconvenience by
having a single place where they can pay all their bills at the same time.
Thus, the Bayad Center was born. Bayad Centers are very convenient
one stop shops that cater to everyone. It does not matter if your household
belongs to the A, B, C or D segment of the society. The richest and the
poorest among us have at least some bills to pay. Bayad Centers earn a
percentage of money for each bill paid, and I assume it’s safe to say that
with the right location, you will never run out of customers. Bayad Center
is also a wholly owned subsidiary of MERALCO and is looking for BAYAD
CENTER Entrepreneurs who has the right attitude to join their franchise.

We chose this type of franchising business BAYAD CENTER because we

see it as a recognized player and a market leader in the global outsourced
payment collection industry and we have major reasons why we prioritize
BAYAD CENTER to start a franchising business:
 1) Most recognized brand in the business today.

2) Trusted by our country’s best and biggest organizations.

3) Award winning

4) Member of Meralco Group and Companies.

5) Easy to manage and less human resource capital needed.

II. PRODUCTS AND SERVICES

Bayad Center started as the over-the-counter (OTC) bills payment collection

arm of the Manila Electric Co. (Meralco) 12 years ago, and has since become
the market leader in third-party bills payment collection, with clients that
include PLDT, Globe Telecoms, Smart, Digitel, SSS, Manulife, Sunlife, Bayan
Communications, Sky Cable, RCBC Bankard, UNICEF, SuperFerry and Cebu
Pacific, internet bills in all networks.

At Bayad Center franchised branches, all its new services are available: bills
payment, mobile loading, money remittance using the cellphone and the
internet via Bayad Direct; remittance payout at our branches situated near
residential areas; and eventually, electronic gift cards that can be used to pay
bills, load mobile phones and internet cards, as well as do merchant
purchases.

Bayad Center "Your One-Stop Payment Shop" is the payment collection

service of Bayad Center. It is a cost-effective method of handling and
automating payment collections for various utilities, telecommunications and
insurance companies. Backed by Corporate Information Solutions, Inc. (CIS),
the pioneer in Information Technology in the Philippines, Bayad Center "Your
One-Stop Payment Shop" utilizes highly efficient and fully automated software
and hardware systems. Bayad Center "Your One-Stop Payment Shop"
uses compact point-of-sales terminals manned by well-trained accredited
third party collection agents accepting cash and cheque payments.

The service is offered to consumers free of charge. Bayad Center "Your One-
Stop Payment Shop" also partners with third party agents whose
establishments have longer operating hours to accommodate Bill Payers of
different habits and lifestyles.
 There are 26 companies that are subscribed to the BAYAD CENTER service.
These include companies providing electric and water utilities,
telecommunications, insurance, cable television, Internet services, financial
services and charitable organizations:

Meralco Homecable Grepalife

PLDT Pilipino Cable Manulife
Manila Water Skycable Manuplan
Maynilad Edsamail Philamlife
BayantelInfocom Platinum Plans
Digitel Skyinternet Unicef
Nextel CAP Education & Pension World Vision
Smart Extraordinary Dev’t. Corp. Bankard
Cablelink First Lepanto Taisho Insurance Pilte, PT&T
SSS (selected area)

III. LOCATION

Our location as we analyzed by research and studies it we choose a place

where there is a High foot and vehicular Traffic, proximity to partners bank,
visible to costumers, In a commercial Area, presence of at least 10,000
households, not within proximity to an existing BAYAD CENTER franchise
site not beside at the meralco business offices.

We are located here: Cor Oranbo drive, Kapitolyo, Pasig City

Besides Banco de oro

IV. BRANCH LAYOUT

 • FLOOR ARE TILES MADE OF TILE

• 10 SQM WITH AND 5SQM LENGTH AREA OF THE OFFICE.

• COUNTER SIZE IS 3 METERS LONG AND HALF METER WIDE.

• FULLY PAINTED

• WITH BENCHES INSIDE FOR THE COSTUMER COMFORT.

• 2 COMPUTERS MACHINES FOR TRANSACTION USED

• FULLY AIR-CONDITIONED

• 2 COMFORT CHAIRS FOR THE TELLER USED

The accredited Third Party Agent will only make a minimal investment and
this investment would include the following:

• Surety Bond and Cash Bond, or Bank Assignment, the amount of

which will be based on the result of financial evaluation.
• Renovation of the service area of Bayad Center to ensure
adherence to the "standard look" of all Bayad Centers
• Phone line
• Personal Computer – Pentium III, 800 MB Hard Disk or higher with
pre-installed Windows 95B or 98
 • Monitor, Keyboard, Mouse, CDROM
• Bar Code Scanner – must be laser type barcode scanner and not
CCD type.
• Printer
• Fax Machine
• Modem – 28.8 kbps baud rate with built-in speaker
• Uninterrupted Power Supply
• Automatic Voltage Regulator – 500 watts capacity
• Internet or LAN access device (56K modem or 10/100 MBPS NIC,
or both)
•

V. MARKETING STRATEGY

a) Promotional Activities

• Fliers

• Poster

• Province magazines Ads

• Raffle draws given to those who have reach the amount of 3,000
bill costs.

b) Target markets

• All households near to our location

• All business organization besides our vicinity

• All business store, shops nearest us.

VI. FINANCING NEEDS

 Start-up Expenses Amount
Franchise Fee: 250,000.00
12% VAT 30,000
Advertising Fee: 2%(300,000) 6,000
Grand Opening 28,000
Advance rent: 2months 16,000
Salaries and Wages 18,898
Payroll Taxes 5,650
Insurance 4,720
Telephone Line 1,740
Utilities 2,800
Office Supplies 560
Equipment 77,000
Office renovation expenses 18,000
Accounting/Legal Documents 14,600
Travel 2,450
Total Start-up Expense P476,418

Start-up Funding Plan Amount

Investment P476,418
Cash Bond: P600,000
Total Capital P1,076,418

Year 1 Year 2 Year 3 Year 4 Year 5

Revenues 1,976,000 2,074,800 2,178,540 2,287,467 2,401,840
Payment Sales 1,213,659 1,274,342 1,338,059 1,404,962 1,475,210
Gross Profit 762,341 800,458 840,481 882,505 926,630
Accounting 6,000 6,300 6,615 6,946 7,293
Advertising &
Promotion 15,000 12,360 12,731 13,113 13,506
Compensation
& Benefits 46,643 54,042 61,663 69,513 77,598
Insurance 2000 2,050 2,103 2,158 2,216
 Lease -
Facilities 96,000 96,000 96,000 96,000 96,000
Legal &
accounting 3,500 3,500 3,500 3,500 3,500
Licenses &
Fees 7500 7510 7520 7531 7541
Maintenance 3600 3612 3624 3637 3649
Miscellaneous 1,800 1,836 1,873 1,910 1,948
Office supplies 2,700 2,754 2,809 2,865 2,923
Telephone 1,800 1,836 1,873 1,910 1,948
Utilities 4,200 4,410 4,631 4,862 5,105
Total
Operating Exp. 190,743 191,451 205,176 213,945 228,098
EBIDTA 571,598- 609007- 635,305- 668560-
Depreciation 4,916 4,916 4,916 4,916 698532-4,916
Operating Profit 566,682 604,091 630,389 663644 693616
Interest
Expense 73,199 70,274 79,059 78,524 77,639
Earnings Before
Taxes 4933,483 543,817 551,330 585,120 615,977
Income Taxes 17,873 30,431 41,738 53,724 66,429

INCREASE IN NUMBERS OF BILLERS INCREASE OF NUMBERS TRANSACTIONS

INCREASE OF BAYAD
CENTER BRANCHES

We operate
in a highly

, as a result,
are able to
enhance
its service
levels, streamline operations, improve cost-saving measures, develop strengths,
slice costs, pump-up profits, and ultimately return greater value to its
stakeholders.