Annexure 1

Inception cost

Franchise set up cost (INR)

ELEMENTS
Area (Sqft) Carpet 500
Civil work 700000 to be done Locally
Ceiling / Flooring / Painting
Furniture / Fixtures / wood work / plumbing
Electrical equipments & fittings & lighting
Glass work
signage (Int / ext)
21" Conveyor Oven with Impinger technology 800000 To be Puchased by the Brand
Franchise Fee 590000
Equipments 400000 Can be puchased locally or from the brand
Chiller, deepfreeze, makeline
Kitchen equipment, utensils and small wares
Two - Wheeler
Computer and UPS
AirConditioner
POS
CCTV (4 camera set)
Software
water dispenser,telephone+Internet, EDC, staff
uniforms, etc
Licences

Launching 50000 Equivalent cost to be shared by the Brand

Total Financial Requirement for Setup 2540000

All figures in INR unless otherwise specified

* Differs from location to location. Exclusive of Rent

DRAFT REPORT FOR DISCUSSION PURPOSES ONLY

Annexure 2

Franchisee employee cost

CDR
Staff Strength Year - 1 Year - 2 Year - 3 Year - 4 Year - 5
Shift Manager 14,000 1 1 1 1 1
Team members 10,000 3 4 4 4 4

Total Number Of Employees 4 5 5 5 5

Yearly
Salary structure Increment Year - 1 Year - 2 Year - 3 Year - 4 Year - 5
Shift Manager 10% 168,000 185,000 204,000 224,000 246,000
Team members 10% 240,000 264,000 290,000 319,000 351,000

- - - - - -

ANNUAL HR COST 408,000 449,000 494,000 543,000 597,000

AVERAGE MONTHLY COST 34,000 37,000 41,000 45,000 50,000
AVERAGE MONTHLY COST 25,000 27,500 30,250 33,275 36,603
All figures in INR unless otherwise specified
Franchisee revenue model

Yearly Financials A class

Y1 Y2 Y3 Y4 Y5
6,000,000 7,200,000 8,640,000 10,368,000 12,441,600
monthly avg 500,000 600,000 720,000 864,000 1,036,800 20%
Growth rates
Annexure 4

income A class

Income projections
Year 1 Year 2 Year 3 Year 4 Year 5

Total Revenue 6,000,000 7,200,000 8,640,000 10,368,000 12,441,600

Cost of Operations
Royalty to Franchisor 360,000 432,000 518,400 622,080 746,496
COGS
food cost 1,680,000 2,016,000 2,419,200 2,903,040 3,483,648

Employee Cost 408,000 449,000 494,000 543,000 597,000

Utilities
Rent+ CAM + service tax 120,000 120,000 120,000 138,000 138,000

Electricity/water 336,000 370,000 407,000 448,000 493,000

Repair & Maintenence 30,000 72,000 79,200 87,120 95,832

misc exp/mkting 60,000 66,000 72,600 79,860 87,846

Commission Paid to Online Partner @ 20% 480,000 432,000 518,400 622,080 746,496

Total Cost of Operations 3,474,000 3,957,000 4,628,800 5,443,180 6,388,318

% of Gross Receipts 58% 55% 54% 52% 51%
Earning Before Interest, Tax, Depreciation & Amortization
2,526,000 3,243,000 4,011,200 4,924,820 6,053,282
(EBITDA)
Depreciation - - - - -
PBT 2,526,000 3,243,000 4,011,200 4,924,820 6,053,282
gross margin (%) 42% 45% 46% 48% 49%
Profit Margin (%) 42% 45% 46% 48% 49%
Project Cost 2,540,000
ROI 99.45% 127.68% 157.92% 193.89% 238.32%

DRAFT REPORT FOR DISCUSSION PURPOSES ONLY

Annexure 7

ZF income projections

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Franchise outlets
Royalty
(INR)
New franchisees 1 1 1 1 1
Total / cumulative 1 2 3 4 5
Royalty 360,000 432,000 518,400 622,080 746,496
Y1 360,000 432,000 518,400 622,080 746,496
Y2 360,000 432,000 518,400 622,080
Y3 360,000 432,000 518,400
Y4 360,000 432,000
Y5 360,000
Total receipts 360,000 792,000 1,310,400 1,932,480 2,678,976
CMF
(INR)
New franchisees 1 1 1 1 1
Total / cumulative 1 2 3 4 5
Contribution to marketing fund #REF! #REF! #REF! #REF! #REF!
Y1 #REF! #REF! #REF! #REF! #REF!
Y2 #REF! #REF! #REF! #REF!
Y3 #REF! #REF! #REF!
Y4 #REF! #REF!
Y5 #REF!
Total receipts #REF! #REF! #REF! #REF! #REF!
Total Royalty 360,000 792,000 1,310,400 1,932,480 2,678,976
Total CMF #REF! #REF! #REF! #REF! #REF!
Own outlets
New outlets 1 1 1 1 1
Total / cumulative 1 2 3 4 5
Revenue - - - - -
Y1 - - - - -
Y2 - - - -
Y3 - - -
Y4 - -
Y5 -
Total revenue from own outlets - - - - -
Total income #REF! #REF! #REF! #REF! #REF!
Cost of Operations
Own outlets
Cost of Operations 3,474,000 3,957,000 4,628,800 5,443,180 6,388,318
Y1 3,474,000 3,957,000 4,628,800 5,443,180 6,388,318
Y2 3,474,000 3,957,000 4,628,800 5,443,180
Y3 3,474,000 3,957,000 4,628,800
Y4 3,474,000 3,957,000
Y5 3,474,000
Total cost of operating own outlets 3,474,000 7,431,000 12,059,800 17,502,980 23,891,298
Royalty transferred to Franchisor 180,000 396,000 655,000 966,000 1,339,000
Employee cost 1,080,000 1,953,000 2,051,000 3,056,000 3,208,000
Rent 120,000 132,000 145,000 160,000 176,000
Marketing Overheads as a %age of CMF #REF! #REF! #REF! #REF! #REF!
Electricity 24,000 26,400 29,000 32,000 35,000
Telephone & Internet 24,000 26,400 29,000 32,000 35,000
Travelling - Local for meetings 22,000 39,000 41,000 61,000 64,000
Misc expense #REF! #REF! #REF! #REF! #REF!
Total Cost of Operations #REF! #REF! #REF! #REF! #REF!

Earning Before Interest, Tax, Depreciation & #REF! #REF! #REF! #REF! #REF!
Amortization (EBITDA)
Depreciation 48,500 48,500 48,500 48,500 48,500

DRAFT REPORT FOR DISCUSSION PURPOSES ONLY