1.

FORECASTING SALES

Sales Volume ($) year 2014

1. Highlands Coffee 515000
2. Rita Võ Coffee 455000
3. Hot & Cold 444000
Average Level 471333
Gross Sales 0 471333
Annual Sales Forecast
Year 0 Year 1
471333

Initial Investment Capital: 250000

2. FORECASTED INCOME STATEMENT:

Year Year 0 Year 1

Gross Sales 471333
VAT 47133.3
Net Sales 424200
Cost of Goods Sold 199845
Inventory Beginning 23567
New Purchase 202673
Inventory Ending 26395
Gross Margin 224355
Expenses
Wages and benefits 93927
Transportation Cost 5995
Royalties 47133
Rental Payment 3000
Adverstising/Marketing 11783
Depreciation 10000
Property insurane 1000
Social and Health Insurance 14089
Other Operating costs 24509
Total Expenses 211438
EBIT (Earning Before Interest and Tax) 12917
Interest Payment 11250
Income Tax 3229
Net Income -1562
3. FORECASTED CASH-FLOW STATEMENT

Year Year 0 Year 1

Cash Inflow
Gross Sales 0 471333
Account Receivable 0 47133
Total Cash Inflow 0 424200
Cash Outflow
Initial Capital Invetsment 250000
Cost of Good Sold 199845
Expenses
Wages and benefits 93927
Transportation Cost 5995
Royalties 47133
Franchise Fee 10
Rental Payment 3000
Adverstising/Marketing 11783
Property insurane 1000
Social and Health Insurance 14089
Other Operating costs 24509
Interest Payment 11250
Income Tax 3229
Principal Payment
Total Cash Outflow 250010.00 415762.32
Net Cash Flow -250010 8438

4. FRANCHISE PROJECT APPRAISAL:

NPV ($15,593.06)

IRR 11%

THE BREAK-EVEN POINT

Fix cost each year. 289157
Price per unit. 3
Variable cost per unit. 2
Break-even volumn (unit) needed for covering fix cost. 289157

**With the specific informations below:

New purchase takes 43% of gross sale
Inventory of the end of each year is equal 5.6% of gross sale
Wages and benefit take 47% of cost of good sold
Annual interest payment takes 15% of Innitial investment multiplied with debt ration of 0.3
Transportation/tralvelling cost is 3% of cost of good sold
Royalty is 10% of gross sale
Property insurance expense is fixed at 1000USD/year
Location leasing fees is fixed at 10USD/m2
Advertising expense takes 2.5% of gross sale
Social and Health insurance expense for staff take 15% of wages and benefits
Annual depreciation is fixed at 4% of innitial investment capital
Other operating cost is 5.2% of gross sales
VAT : 10%
Income tax: 25%
Annual principle payment is fixed at 20% of initial investment multiplied with 0.3from the second year
Total Liabilities: 28% of initial Capital Invetsment
 Growth rate Expected efficiency
0.3 90%
0.22 90%
0.2 90%
0.24 90%
0.24

Year 2 Year 3 Year 4 Year 5 Year 6

579740 713080 877089 1078819 1326947

Year 2 Year 3 Year 4 Year 5 Year 6

579740 713080 877089 1078819 1326947
57974.0 71308.0 87708.9 107881.9 132694.7
521766 641772 789380 970937 1194253
245810 302346 371886 457419 562626
28987 35654 43854 53941 66347
249288 306624 377148 463892 570587
32465 39932 49117 60414 74309
275956 339426 417494 513518 631627

115531 142103 174786 214987 264434

7374 9070 11157 13723 16879
57974 71308 87709 107882 132695
3000 3000 3000 3000 3000
14494 17827 21927 26970 33174
10000 10000 10000 10000 10000
1000 1000 1000 1000 1000
17330 21315 26218 32248 39665
30146 37080 45609 56099 69001
256848 312704 381405 465909 569848
19108 26723 36089 47609 61779
11250 11250 11250 11250 11250
4777 6681 9022 11902 15445
3081 8792 15817 24457 35084
Year 2 Year 3 Year 4 Year 5 Year 6

579740 713080 877089 1078819 1326947

57974 71308 87709 107882 132695
521766 641772 789380 970937 1194253

245810 302346 371886 457419 562626

115531 142103 174786 214987 264434

7374 9070 11157 13723 16879
57974 71308 87709 107882 132695

3000 3000 3000 3000 3000

14494 17827 21927 26970 33174
1000 1000 1000 1000 1000
17330 21315 26218 32248 39665
30146 37080 45609 56099 69001
11250 11250 11250 11250 11250
4777 6681 9022 11902 15445
15000 15000 15000 15000 15000
523685.16 637980.24 778563.20 951480.23 1164168.19
-1919 3792 10817 19457 30084

354743 435414 534639 656686 806803

3 3.5 4 4 4
2 2 2 2.5 2.5
354743 290276 267319 437790 537869
the second year
Year 7 Year 8 Year 9 Year 10 Year 11 Year 12
1632145 2007539 2469273 3037205 3735763 4594988

Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

1632145 2007539 2469273 3037205 3735763 4594988
163214.5 200753.9 246927.3 303720.5 373576.3 459498.8
1468931 1806785 2222345 2733485 3362186 4135489
692030 851196 1046972 1287775 1583963 1948275
81607 100377 123464 151860 186788 229749
701822 863242 1061787 1305998 1606378 1975845
91400 112422 138279 170084 209203 257319
776901 955588 1175374 1445710 1778223 2187214

325254 400062 492077 605254 744463 915689

20761 25536 31409 38633 47519 58448
163215 200754 246927 303721 373576 459499
3000 3000 3000 3000 3000 3000
40804 50188 61732 75930 93394 114875
10000 10000 10000 10000 10000 10000
1000 1000 1000 1000 1000 1000
48788 60009 73811 90788 111669 137353
84872 104392 128402 157935 194260 238939
697693 854942 1048359 1286261 1578881 1938804
79209 100647 127015 159449 199342 248411
11250 11250 11250 11250 11250 11250
19802 25162 31754 39862 49835 62103
48156 64235 84011 108337 138256 175058
Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

1632145 2007539 2469273 3037205 3735763 4594988

163215 200754 246927 303721 373576 459499
1468931 1806785 2222345 2733485 3362186 4135489

692030 851196 1046972 1287775 1583963 1948275

325254 400062 492077 605254 744463 915689

20761 25536 31409 38633 47519 58448
163215 200754 246927 303721 373576 459499

3000 3000 3000 3000 3000 3000

40804 50188 61732 75930 93394 114875
1000 1000 1000 1000 1000 1000
48788 60009 73811 90788 111669 137353
84872 104392 128402 157935 194260 238939
11250 11250 11250 11250 11250 11250
19802 25162 31754 39862 49835 62103
15000 15000 15000 15000 15000 15000
1425774.37 1747549.97 2143333.97 2630148.28 3228929.89 3965431.26
43156 59235 79011 103337 133256 170058

991448 1218561 1497910 1841509 2264136 2783968

4 4 4.5 4.5 5 5
2.5 2.5 2.5 2.5 2.5 2.5
660965 812374 748955 920755 905655 1113587