Inception Cost

Franchisee Setup Cost

Super Area in Sq. Ft 360

Loading % 20%
Minimum Carpet Area in Sq. Ft 300

SUMMARY

A Infrastructure Cost 830,000

B Equipment 280,000
C Business Promotion & Others 1,650,000
D Franchisee Fees 450,000
Setup Cost 3,210,000

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

C Business Promotion & Others

Initial Stock Required 1,500,000
Launch & Preopening Marketing Cost 150,000
Sub Total (C) 1,650,000

D Franchisee Fee 450,000

Sub Total (D) 450,000

Total Project Cost (A)+(B)+(C)+(D) 3,210,000

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

Cost per Sq.ft.

2,000 **Includes Furniture

80,000 1

75,000 1

5,000

3 months *may vary from area to area

 Designations Month 1 Month 2 Month 3 Month 4 Month 5
Outlet Manager - 1 1 1 1 1
Cashier/Manager 15,000 1 1 1 1 1
Counter/Sales Boys 14,000 2 2 2 2 2
Helper 10,000 1 1 1 1 1
Guard 10,000 - - - - -
Sub-Total 5 5 5 5 5
Payout 53,000 53,000 53,000 53,000 53,000
Annual appraisal Factor 10%
Actual Payout 53,000 53,000 53,000 53,000 53,000
Revenue Projections Assumptions M1

Product Sales
Average Daily Customers walkin 125
Conversion% 25%
Average Daily Conversion 31
Monthly Customer Conversion 930

Total Sales of Sales Mix %

Electronics 25% 233
Accessories 20% 186
Lifestyle 25% 233
Others 30% 279

Average Spending per Customer 1,425

Total Revenue/Customer 1,325,250

Products Sales Mix % Price

Electronics 25% 2,000
Accessories 20% 1,500
Lifestyle 25% 1,600
Others 30% 750

Weighted Average Price 1,425

Weighted Average Margin 32%

Total Revenue Year 1

Total Revenue from Product Sales 21,161,250
Total Revenue Generated 21,161,250
 M2 M3 M4 M5 M6 M7 M8

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

240 255 270 285 300 315 330

192 204 216 228 240 252 264
240 255 270 285 300 315 330
288 306 324 342 360 378 396

1,368,000 1,453,500 1,539,000 1,624,500 1,710,000 1,795,500 1,881,000

Margin
32%
32%
32%
32%

Year 2 Year 3 Year 4 Year 5 YoY Growth %

25,393,500 29,202,525 32,706,828 35,323,374 Year 2 Year 3
25,393,500 29,202,525 32,706,828 35,323,374 20% 15%
 M9 M 10 M 11 M 12

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

345 360 383 398

276 288 306 318
345 360 383 398
414 432 459 477

1,966,500 2,052,000 2,180,250 2,265,750

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%

Total Cost of Operations

EBITDA

Franchisor Project Cost

ROI
Cumulative ROI (%)

Payback
INCOME PROJECTIONS
Year 1 Year 2 Year 3 Year 4 Year 5

21,161,250 25,393,500 29,202,525 32,706,828 35,323,374

21,161,250 25,393,500 29,202,525 32,706,828 35,323,374
1,763,000 2,116,000 2,434,000 2,726,000 2,944,000

67% 67% 66% 66% 66%

14,178,038 17,013,645 19,273,667 21,586,506 23,313,427
14,178,000 17,014,000 19,274,000 21,587,000 23,313,000

6,983,000 8,380,000 9,929,000 11,120,000 12,010,000

636,000 700,000 770,000 847,000 931,000

2,592,000 2,721,600 2,857,680 3,000,564 3,150,592 5%

12% 11% 10% 9% 9%

300,000 315,000 330,750 347,288 364,652 5%

24,000 26,400 29,040 31,944 35,138 10%
253,935 304,722 350,430 392,482 423,880 75%
20,000 20,000 20,000 20,000
423,225 507,870 584,051 654,137 706,467

423,225 507,870 584,051 654,137 706,467

211,613 253,935 292,025 327,068 353,234

4,864,000 5,357,000 5,818,000 6,275,000 6,691,000

2,119,000 3,023,000 4,111,000 4,845,000 5,319,000

3,210,000

66% 94% 128% 151% 166%

66% 160% 288% 439% 605%
1.00 0.36 - - -

1 Year 4 Months 1 4
 Sales Value Margin
- 32%
20,000,000 33%
27,000,000 34%

**Increase in rentals after every year

**Increase in rate
**Increase in rate
** % of Customers paying by card
 Inception Cost

Franchisee Setup Cost

Super Area in Sq. Ft 900

Loading % 20%
Minimum Carpet Area in Sq. Ft 750

SUMMARY

A Infrastructure Cost 2,390,000

B Equipment 570,000
C Business Promotion & Others 4,000,000
D Franchisee Fees 450,000
Setup Cost 7,410,000

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

C Business Promotion & Others

Initial Stock Required 3,750,000
Launch & Preopening Marketing Cost 250,000
Sub Total (C) 4,000,000

D Franchisee Fee 450,000

Sub Total (D) 450,000

Total Project Cost (A)+(B)+(C)+(D) 7,410,000

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

Cost per Sq.ft.

2,600 **Includes Furniture

80,000 3

75,000 2

5,000

3 months *may vary from area to area

 Designations Month 1 Month 2 Month 3 Month 4 Month 5
Outlet Manager 40,000 1 1 1 1 1
Cashier/Manager 15,000 2 2 2 2 2
Counter/Sales Boys 14,000 2 2 2 2 2
Helper 10,000 1 1 1 1 1
Guard 12,000 1 1 1 1 1
Sub-Total 7 7 7 7 7
Payout 120,000 120,000 120,000 120,000 120,000
Annual appraisal Factor 10%
Actual Payout 120,000 120,000 120,000 120,000 120,000
Revenue Projections Assumptions M1

Product Sales
Average Daily Customers walkin 200
Conversion% 25%
Average Daily Conversion 50
Monthly Customer Conversion 1,500

Total Sales of Sales Mix %

Electronics 25% 375
Accessories 30% 450
Lifestyle 20% 300
Others 25% 375

Average Spending per Customer 2,038

Total Revenue/Customer 3,056,250

Products Sales Mix % Price

Electronics 25% 4,000
Accessories 30% 1,500
Lifestyle 20% 2,000
Others 25% 750

Weighted Average Price 2,038

Weighted Average Margin 32%

Total Revenue Year 1

Total Revenue from Product Sales 45,721,500
Total Revenue Generated 45,721,500
 M2 M3 M4 M5 M6 M7 M8

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

390 405 420 435 450 473 488

468 486 504 522 540 567 585
312 324 336 348 360 378 390
390 405 420 435 450 473 488

3,178,500 3,300,750 3,423,000 3,545,250 3,667,500 3,850,875 3,973,125

Margin
32%
32%
32%
32%

Year 2 Year 3 Year 4 Year 5 YoY Growth %

54,865,800 63,095,670 70,667,150 76,320,522 Year 2 Year 3
54,865,800 63,095,670 70,667,150 76,320,522 20% 15%
 M9 M 10 M 11 M 12

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

510 533 555 578

612 639 666 693
408 426 444 462
510 533 555 578

4,156,500 4,339,875 4,523,250 4,706,625

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%

Total Cost of Operations

EBITDA

Franchisor Project Cost

ROI
Cumulative ROI (%)

Payback
INCOME PROJECTIONS
Year 1 Year 2 Year 3 Year 4 Year 5

45,721,500 54,865,800 63,095,670 70,667,150 76,320,522

45,721,500 54,865,800 63,095,670 70,667,150 76,320,522
3,810,000 4,572,000 5,258,000 5,889,000 6,360,000

66% 66% 66% 66% 66%

30,176,190 36,211,428 41,643,142 46,640,319 50,371,545
30,176,000 36,211,000 41,643,000 46,640,000 50,372,000

15,546,000 18,655,000 21,453,000 24,027,000 25,949,000

1,440,000 1,584,000 1,742,000 1,917,000 2,108,000

5,400,000 5,670,000 5,953,500 6,251,175 6,563,734 5%

12% 10% 9% 9% 9%

600,000 630,000 661,500 694,575 729,304 5%

24,000 26,400 29,040 31,944 35,138 10%
548,658 658,390 757,148 848,006 915,846 75%
40,000 40,000 40,000 40,000
1,143,038 1,371,645 1,577,392 1,766,679 1,908,013

914,430 1,097,316 1,261,913 1,413,343 1,526,410

914,430 1,097,316 1,261,913 1,413,343 1,526,410

10,985,000 12,175,000 13,284,000 14,376,000 15,353,000

4,561,000 6,480,000 8,169,000 9,651,000 10,596,000

7,410,000

62% 87% 110% 130% 143%

62% 149% 259% 389% 532%
1.00 0.44 - - -

1 Year 5 Months 1 5
 Sales Value Margin
- 32%
35,000,000 33%
45,000,000 34%

**Increase in rentals after every year

**Increase in rate
**Increase in rate
** % of Customers paying by card
 Revenue Sheet(Quarterly)

Revenue/Qtr 4,146,750 4,873,500 5,643,000 6,498,000

Q1 Q2 Q3 Q4
Roll out 1 2 4 4

Q1 4,146,750 4,873,500 5,643,000 6,498,000

Q2 8,293,500 9,747,000 11,286,000
Q3 16,587,000 19,494,000
Q4 16,587,000
Q5
Q6
Q7
Q8
Q9
Q10
Q11
Q12
Q13
Q14
Q15
Q16
Q17
Q18
Q19
Q20
4,146,750 13,167,000 31,977,000 53,865,000
103,155,750

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 -

6,348,375 6,348,375 6,348,375 6,348,375 7,300,631 7,300,631 7,300,631

12,996,000 12,696,750 12,696,750 12,696,750 12,696,750 14,601,263 14,601,263
22,572,000 25,992,000 25,393,500 25,393,500 25,393,500 25,393,500 29,202,525
19,494,000 22,572,000 25,992,000 25,393,500 25,393,500 25,393,500 25,393,500
8,293,500 9,747,000 11,286,000 12,996,000 12,696,750 12,696,750 12,696,750
4,146,750 4,873,500 5,643,000 6,498,000 6,348,375 6,348,375
8,293,500 9,747,000 11,286,000 12,996,000 12,696,750
8,293,500 9,747,000 11,286,000 12,996,000
8,293,500 9,747,000 11,286,000
4,146,750 4,873,500
-

69,703,875 81,502,875 94,883,625 106,511,625 119,305,631 129,909,769 137,395,294

352,602,000

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

Q12 Q13 Q14 Q15 Q16 Q17 Q18

- - - - - - -

7,300,631 8,176,707 8,176,707 8,176,707 8,176,707 8,830,844 8,830,844

14,601,263 14,601,263 16,353,414 16,353,414 16,353,414 16,353,414 17,661,687
29,202,525 29,202,525 29,202,525 32,706,828 32,706,828 32,706,828 32,706,828
29,202,525 29,202,525 29,202,525 29,202,525 32,706,828 32,706,828 32,706,828
12,696,750 14,601,263 14,601,263 14,601,263 14,601,263 16,353,414 16,353,414
6,348,375 6,348,375 7,300,631 7,300,631 7,300,631 7,300,631 8,176,707
12,696,750 12,696,750 12,696,750 14,601,263 14,601,263 14,601,263 14,601,263
12,696,750 12,696,750 12,696,750 12,696,750 14,601,263 14,601,263 14,601,263
12,996,000 12,696,750 12,696,750 12,696,750 12,696,750 14,601,263 14,601,263
5,643,000 6,498,000 6,348,375 6,348,375 6,348,375 6,348,375 7,300,631
- - - - - - -
- - - - - - -
- - - - - -
- - - - -
- - - -
- - -
- -
-

143,384,569 146,720,907 149,275,690 154,684,505 160,093,321 164,404,121 167,540,726

529,995,263 610,774,423
 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)

Expenses/Qtr 4,760,500 4,760,500 4,760,500

Q1 Q2 Q3
Roll out 1 2 4

Q1 4,760,500 4,760,500 4,760,500

Q2 9,521,000 9,521,000
Q3 19,042,000
Q4
Q5
Q6
Q7
Q8
Q9
Q10
Q11
Q12
Q13
Q14
Q15
Q16
Q17
Q18
Q19
Q20
4,760,500 14,281,500 33,323,500

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

4,760,500 5,592,750 5,592,750 5,592,750 5,592,750 6,273,000 6,273,000

9,521,000 9,521,000 11,185,500 11,185,500 11,185,500 11,185,500 12,546,000
19,042,000 19,042,000 19,042,000 22,371,000 22,371,000 22,371,000 22,371,000
19,042,000 19,042,000 19,042,000 19,042,000 22,371,000 22,371,000 22,371,000
9,521,000 9,521,000 9,521,000 9,521,000 11,185,500 11,185,500
4,760,500 4,760,500 4,760,500 4,760,500 5,592,750
9,521,000 9,521,000 9,521,000 9,521,000
9,521,000 9,521,000 9,521,000
9,521,000 9,521,000
4,760,500

52,365,500 62,718,750 69,143,750 81,993,750 94,843,750 106,709,500 113,662,750

104,731,000 308,700,000

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

Q11 Q12 Q13 Q14 Q15 Q16 Q17

- - - - - - -

6,273,000 6,273,000 6,965,500 6,965,500 6,965,500 6,965,500 7,501,000

12,546,000 12,546,000 12,546,000 13,931,000 13,931,000 13,931,000 13,931,000
25,092,000 25,092,000 25,092,000 25,092,000 27,862,000 27,862,000 27,862,000
22,371,000 25,092,000 25,092,000 25,092,000 25,092,000 27,862,000 27,862,000
11,185,500 11,185,500 12,546,000 12,546,000 12,546,000 12,546,000 13,931,000
5,592,750 5,592,750 5,592,750 6,273,000 6,273,000 6,273,000 6,273,000
11,185,500 11,185,500 11,185,500 11,185,500 12,546,000 12,546,000 12,546,000
9,521,000 11,185,500 11,185,500 11,185,500 11,185,500 12,546,000 12,546,000
9,521,000 9,521,000 11,185,500 11,185,500 11,185,500 11,185,500 12,546,000
4,760,500 4,760,500 4,760,500 5,592,750 5,592,750 5,592,750 5,592,750
- - - - - - -
- - - - - -
- - - - -
- - - -
- - -
- -
-

118,048,250 122,433,750 126,151,250 129,048,750 133,179,250 137,309,750 140,590,750

460,854,250 525,689,000
 7,501,000 7,501,000 7,501,000

Q18 Q19 Q20

- - -

7,501,000 7,501,000 7,501,000

15,002,000 15,002,000 15,002,000
27,862,000 30,004,000 30,004,000
27,862,000 27,862,000 30,004,000
13,931,000 13,931,000 13,931,000
6,965,500 6,965,500 6,965,500
12,546,000 13,931,000 13,931,000
12,546,000 12,546,000 13,931,000
12,546,000 12,546,000 12,546,000
6,273,000 6,273,000 6,273,000
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- -
-
143,034,500 146,561,500 150,088,500
580,275,250
 Revenue Sheet(Quarterly)

Revenue/Qtr 9,535,500 10,635,750 11,980,500 13,569,750

Q1 Q2 Q3 Q4
Roll out 1 1 1 2

Q1 9,535,500 10,635,750 11,980,500 13,569,750

Q2 9,535,500 10,635,750 11,980,500
Q3 9,535,500 10,635,750
Q4 19,071,000
Q5
Q6
Q7
Q8
Q9
Q10
Q11
Q12
Q13
Q14
Q15
Q16
Q17
Q18
Q19
Q20
9,535,500 20,171,250 32,151,750 55,257,000
117,115,500

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 - - -

13,716,450 13,716,450 13,716,450 13,716,450 15,773,918 15,773,918 15,773,918

13,569,750 13,716,450 13,716,450 13,716,450 13,716,450 15,773,918 15,773,918
11,980,500 13,569,750 13,716,450 13,716,450 13,716,450 13,716,450 15,773,918
21,271,500 23,961,000 27,139,500 27,432,900 27,432,900 27,432,900 27,432,900
9,535,500 10,635,750 11,980,500 13,569,750 13,716,450 13,716,450 13,716,450
19,071,000 21,271,500 23,961,000 27,139,500 27,432,900 27,432,900
- - - - -
9,535,500 10,635,750 11,980,500 13,569,750
- - -
- -
-

70,073,700 94,670,400 101,540,850 115,648,500 122,131,418 125,827,035 129,473,753

381,933,450

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

Q12 Q13 Q14 Q15 Q16 Q17 Q18

- - - - - - -

15,773,918 17,666,788 17,666,788 17,666,788 17,666,788 19,080,131 19,080,131

15,773,918 15,773,918 17,666,788 17,666,788 17,666,788 17,666,788 19,080,131
15,773,918 15,773,918 15,773,918 17,666,788 17,666,788 17,666,788 17,666,788
31,547,835 31,547,835 31,547,835 31,547,835 35,333,575 35,333,575 35,333,575
13,716,450 15,773,918 15,773,918 15,773,918 15,773,918 17,666,788 17,666,788
27,432,900 27,432,900 31,547,835 31,547,835 31,547,835 31,547,835 35,333,575
- - - - - - -
13,716,450 13,716,450 13,716,450 13,716,450 15,773,918 15,773,918 15,773,918
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - -
- - - - -
- - - -
- - -
- -
-

133,735,388 137,685,725 143,693,530 145,586,400 151,429,608 154,735,821 159,934,904

511,167,593 578,395,264
 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)

Expenses/Qtr 10,290,250 10,290,250 10,290,250

Q1 Q2 Q3
Roll out 1 1 1

Q1 10,290,250 10,290,250 10,290,250

Q2 10,290,250 10,290,250
Q3 10,290,250
Q4
Q5
Q6
Q7
Q8
Q9
Q10
Q11
Q12
Q13
Q14
Q15
Q16
Q17
Q18
Q19
Q20
10,290,250 20,580,500 30,870,750

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 - -

10,290,250 12,096,500 12,096,500 12,096,500 12,096,500 13,731,750 13,731,750

10,290,250 10,290,250 12,096,500 12,096,500 12,096,500 12,096,500 13,731,750
10,290,250 10,290,250 10,290,250 12,096,500 12,096,500 12,096,500 12,096,500
20,580,500 20,580,500 20,580,500 20,580,500 24,193,000 24,193,000 24,193,000
10,290,250 10,290,250 10,290,250 10,290,250 12,096,500 12,096,500
20,580,500 20,580,500 20,580,500 20,580,500 24,193,000
- - - -
10,290,250 10,290,250 10,290,250
- -
-

51,451,250 63,547,750 85,934,500 87,740,750 101,643,500 105,085,000 110,332,750

113,192,750 338,866,500

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

Q11 Q12 Q13 Q14 Q15 Q16 Q17

- - - - - - -

13,731,750 13,731,750 15,254,000 15,254,000 15,254,000 15,254,000 16,431,250

13,731,750 13,731,750 13,731,750 15,254,000 15,254,000 15,254,000 15,254,000
13,731,750 13,731,750 13,731,750 13,731,750 15,254,000 15,254,000 15,254,000
24,193,000 27,463,500 27,463,500 27,463,500 27,463,500 30,508,000 30,508,000
12,096,500 12,096,500 13,731,750 13,731,750 13,731,750 13,731,750 15,254,000
24,193,000 24,193,000 24,193,000 27,463,500 27,463,500 27,463,500 27,463,500
- - - - - - -
10,290,250 12,096,500 12,096,500 12,096,500 12,096,500 13,731,750 13,731,750
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - -
- - - - -
- - - -
- - -
- -
-

111,968,000 117,044,750 120,202,250 124,995,000 126,517,250 131,197,000 133,896,500

444,430,500 502,911,500
 16,431,250 16,431,250 16,431,250

Q18 Q19 Q20

- - -

16,431,250 16,431,250 16,431,250

16,431,250 16,431,250 16,431,250
15,254,000 16,431,250 16,431,250
30,508,000 30,508,000 32,862,500
15,254,000 15,254,000 15,254,000
30,508,000 30,508,000 30,508,000
- - -
13,731,750 13,731,750 15,254,000
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- -
-
138,118,250 139,295,500 143,172,250
554,482,500
Master Franchisee Inception cost

Franchise set up cost Year 0

ELEMENTS
Area (SqFt) 500
Centre Furnishing / Improvement etc. Cost PSF
Leasehold Improvement 400,000 800 **Includes Furniture
Signage (Int/ext.) 25,000
Desktop / Laptops 125,000 5 25,000
AC 30,000 1 30,000
Printer Scanner Photocopier 10,000
Misc. Items 40,000
Total capital investment (A) 630,000

Other expenditures
Govt (permissions & Licenses) 10,000
Total Other Expenditures (B) 10,000

Master Franchisee Fees (C) 6,750,000

Total Capital Investment Required by Master Franchisee 7,390,000

**Includes Furniture
HR Structure

Designations Month 1 Month 2

Office Manager - 1 1
Franchisee Manager/BD 25,000 1 1
Receptionist/Admin 25,000 1 1
Audit Manager 40,000 - -
Office Boys 9,000 1 1
Sub-Total 4 4
Payout 59,000 59,000
Annual appraisal Factor 10%
Actual Payout 59,000 59,000
Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1
- - - - - - - - -
1 1 1 1 1 1 1 1 1
4 4 4 4 4 4 4 4 4
59,000 59,000 59,000 59,000 59,000 59,000 59,000 59,000 59,000

59,000 59,000 59,000 59,000 59,000 59,000 59,000 59,000 59,000

Month 12 Year 1 Year 2 Year 3 Year 4 Year 5
1 1 1 1 1 1
1 1 1 1 1 1
1 1 1 1 1 1
- - - 1 1 1
1 1 1 1 1 1
4 4 4 5 5 5
59,000 708,000 708,000 1,188,000 1,188,000 1,188,000
1 1.1 1.2 1.3 1.5
59,000 708,000 779,000 1,437,000 1,581,000 1,739,000
Roll Out - Master Franchisee

Master Franchise Workings

Own Centre
WK Life
WK Life+

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

Year 3 Year 4 Year 5 Total Franchise Fee

14.3% 0.0% 0.0% 100%
964,286 - - 6,750,000
Master Franchisee Income projections

Particulars Year 1
Gross Revenue from WK Life
Unit Franchise 2
Total / cumulative 2

Gross Revenue from Own Centre 6,983,000

Y1 13,966,000
Y2
Y3
Y4
Y5
Sub total 13,966,000

Particulars Year 1
Gross Revenue from WK Life+
Unit Franchise 2
Total / cumulative 2

Gross Revenue from Own Centre 15,546,000

Y1 31,092,000
Y2
Y3
Y4
Y5
Sub total 31,092,000

Particulars Year 1
Margin Retained from WK Life
Unit Franchise 9
Total / cumulative 9

Margin Retained 2.5%

Total Margin Retained 825,246
Sub total 825,246

Particulars Year 1
Margin Retained from WK Life+
Unit Franchise 3
Total / cumulative 3

Margin Retained 2.5%

Total Margin Retained 936,924
Sub total 936,924

Franchise Fee From Sub Franchise Centre

Franchisee Fee Earnings
Total franchisee Fee Earned from Sub Franchisee 5,400,000
Total Franchisee Fees Earned by Master Franchisee 5,400,000

Total Revenue Generated by Master Franchisee 52,220,170

WK Life Own Centre OPEX

Unit Franchise 2
Total / cumulative 2

Total Expenses from Own Centre 4,864,000

Y1 9,728,000
Y2
Y3
Y4
Y5
Sub total 9,728,000

WK Life+ Own Centre OPEX

Unit Franchise 2
Total / cumulative 2

Total Expenses from Own Centre 10,985,000

Y1 21,970,000
Y2
Y3
Y4
Y5
Sub total 21,970,000

Master Franchisee Office OPEX

Franchisee Fees Paid to Brand (Sub Franchise) 3,535,714
Rental expenses 240,000
Electricity charges 180,000
Employee cost 708,000
Broadband & Communication Cost 24,000
Sub Franchisee Acquisition Cost 1,200,000
Marketing Fees 250,000
Misc. (Accountant/ Legal/ Cleaning / Software Renewal) 250,000
Total Expenses 6,390,000
Total Expenses for Master Franchisee 38,088,000

Earning Before Interest, Tax, Depreciation & Amortization (EBITDA) 14,130,000

Profit margin 27%

PBT 14,130,000

Master Franchisee Setup Cost 7,390,000

Master Franchisee setup cost for its own (WK Life Format) 5,520,000
Master Franchisee setup cost for its own (WK Life+ Format) 13,920,000
Cumulative Setup Cost for Master Franchisee 26,800,000

ROI (%) 53%

Cumulative ROI (%) 53%
Payback Calculation 1.00
Payback 1 Year 6 Months
 Year 2 Year 3 Year 4 Year 5
venue from WK Life
- - - -
2 2 2 2

8,380,000 9,929,000 11,120,000 12,010,000

16,760,000 19,858,000 22,240,000 24,020,000
- - - -
- - -
- -
-
16,760,000 19,858,000 22,240,000 24,020,000

Year 2 Year 3 Year 4 Year 5

enue from WK Life+
- - - -
2 2 2 2

18,655,000 21,453,000 24,027,000 25,949,000

37,310,000 42,906,000 48,054,000 51,898,000
- - - -
- - -
- -
-
37,310,000 42,906,000 48,054,000 51,898,000

Year 2 Year 3 Year 4 Year 5

tained from WK Life
7 3 - -
16 19 19 19

2,820,816 4,239,962 4,886,195 5,441,059

2,820,816 4,239,962 4,886,195 5,441,059

Year 2 Year 3 Year 4 Year 5

ained from WK Life+
4 - - -
7 7 7 7
 3,055,468 4,089,341 4,627,162 5,136,694
3,055,468 4,089,341 4,627,162 5,136,694

rom Sub Franchise Centre

4,950,000 1,350,000 - -
4,950,000 1,350,000 - -

64,896,284 72,443,303 79,807,357 86,495,753

Own Centre OPEX

- - - -
2 2 2 2

5,357,000 5,818,000 6,275,000 6,691,000

10,714,000 11,636,000 12,550,000 13,382,000
- - - -
- - -
- -
-
10,714,000 11,636,000 12,550,000 13,382,000

Own Centre OPEX

- - - -
2 2 2 2

12,175,000 13,284,000 14,376,000 15,353,000

24,350,000 26,568,000 28,752,000 30,706,000
- - - -
- - -
- -
-
24,350,000 26,568,000 28,752,000 30,706,000

nchisee Office OPEX

2,250,000 964,286 - -
264,000 290,400 319,440 351,384 40
198,000 217,800 239,580 263,538 15,000
779,000 1,437,000 1,581,000 1,739,000
25,200 26,460 27,783 29,172 2000
1,100,000 300,000 - - 100,000
275,000 302,500 332,750 366,025 10%
262,500 275,625 289,406 303,877 5.0%
5,150,000 3,810,000 2,790,000 3,050,000
40,214,000 42,014,000 44,092,000 47,138,000

24,680,000 30,430,000 35,720,000 39,360,000

38% 42% 45% 46%

24,680,000 30,430,000 35,720,000 39,360,000

- - - -
- - - -
- - - -
26,800,000 26,800,000 26,800,000 26,800,000

92% 114% 133% 147%

145% 258% 392% 539%
0.51 - - -
1 1 6
 10%
10%

5%
* Cost Per Sub Franchise Acquisition
Roll out

Roll out

Total Number of stores

Own Small Stores
Own Large Stores
Sub Franchised Small Stores
Sub Franchised Large Stores

Total Master Franchise Fees Paid

Own Franchisee Fees

Franchisee Fees colleected from Sub Franchisee

Franchisee Fees paid to the Brand

Franchisee Fees retained

Benefits of getting Master Franchisee

Particulars

Gross Revenue from WK Life

Gross Revenue from WK Life+
Margin Retained from WK Life
Margin Retained from WK Life+
Franchise Fee From Sub Franchise Centre

Total Revenue Generated

WK Life Own Centre OPEX

WK Life+ Own Centre OPEX
Master Franchisee Office OPEX
Total Expenses

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

Year 1 Year 2 Year 3

Own Store 13,966,000 16,760,000 19,858,000

Own Store 31,092,000 37,310,000 42,906,000
825,246 2,820,816 4,239,962
936,924 3,055,468 4,089,341
1st Yr and 2nd Yr 5,400,000 4,950,000 1,350,000

52,220,170 64,896,284 72,443,303

9,728,000 10,714,000 11,636,000

21,970,000 24,350,000 26,568,000
6,390,000 5,150,000 3,810,000
 38,088,000 40,214,000 42,014,000

14,130,000 24,680,000 30,430,000

1 Year 6 Months
 WK Life
Q5 Q6 Q7 Q8
2 1 2 2

WK Life+
Q5 Q6 Q7 Q8
1 2 1

hiseFees of 6,750,000 includes, 18 lakhs of Franchise Fee

e franchise had to give for 4 own franchises, so for the
anchise you are paying 4,950,000 extra and in return you
ke 5,850,000, so you would be making a profit of 900000
on that extra 4,950,000.

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
- - - -

Q13 Q14 Q15 Q16

- - - -
Q17 Q18 Q19 Q20
- - - -

Q17 Q18 Q19 Q20

- - - -