Annexure 1

Inception cost

Franchise set up cost (INR)

ELEMENTS
Area (Sqft) Carpet 440
Civil work 500000 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 2340000

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 12,000 1 1 1 1 1
Team members 9,000 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% 144,000 158,000 174,000 191,000 210,000
Team members 10% 216,000 238,000 262,000 288,000 317,000

- - - - - -

ANNUAL HR COST 360,000 396,000 436,000 479,000 527,000

AVERAGE MONTHLY COST 30,000 33,000 36,000 40,000 44,000
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
4,800,000 6,000,000 7,500,000 9,375,000 11,718,750
monthly avg 400,000 500,000 625,000 781,250 976,563 25%
Growth rates
Annexure 4

income A class

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

Total Revenue 4,800,000 6,000,000 7,500,000 9,375,000 11,718,750

Cost of Operations
Royalty to Franchisor 288,000 360,000 450,000 562,500 703,125
COGS
food cost 1,344,000 1,680,000 2,100,000 2,625,000 3,281,250

Employee Cost 360,000 396,000 436,000 479,000 527,000

Utilities
Rent+ CAM + service tax 360,000 360,000 360,000 414,000 414,000

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% 96,000 120,000 150,000 187,500 234,375

Total Cost of Operations 2,874,000 3,424,000 4,054,800 4,882,980 5,836,428

% of Gross Receipts 60% 57% 54% 52% 50%
Earning Before Interest, Tax, Depreciation & Amortization
1,926,000 2,576,000 3,445,200 4,492,020 5,882,322
(EBITDA)
Depreciation - - - - -
PBT 1,926,000 2,576,000 3,445,200 4,492,020 5,882,322
gross margin (%) 40% 43% 46% 48% 50%
Profit Margin (%) 40% 43% 46% 48% 50%
Project Cost 2,340,000
ROI 82.31% 110.09% 147.23% 191.97% 251.38%

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 288,000 360,000 450,000 562,500 703,125
Y1 288,000 360,000 450,000 562,500 703,125
Y2 288,000 360,000 450,000 562,500
Y3 288,000 360,000 450,000
Y4 288,000 360,000
Y5 288,000
Total receipts 288,000 648,000 1,098,000 1,660,500 2,363,625
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 288,000 648,000 1,098,000 1,660,500 2,363,625
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 2,874,000 3,424,000 4,054,800 4,882,980 5,836,428
Y1 2,874,000 3,424,000 4,054,800 4,882,980 5,836,428
Y2 2,874,000 3,424,000 4,054,800 4,882,980
Y3 2,874,000 3,424,000 4,054,800
Y4 2,874,000 3,424,000
Y5 2,874,000
Total cost of operating own outlets 2,874,000 6,298,000 10,352,800 15,235,780 21,072,208
Royalty transferred to Franchisor 144,000 324,000 549,000 830,000 1,182,000
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