Business Plan READYFORPRINT

Executive Summary
The HAREJAP CHURROS SHOP is a franchise food business. The operation of the
HAREJAP was started on February 14, 2014. In the contemporary world, people
nowadays is quite busy and they it looks like they are always haunting by time, they are
always in the rush and sometimes they are not able to eat in the morning especially the
students. The opportunity to offer a kind of breakfast food to those people who always on
the rush seize by the owners of the HAREJAP which is all a BS Entrepreneurship
graduates from Central Luzon State University.
The first physical store of the business is established in downtown of San Jose,
Nueva Ecija. The first physical store of the business is designed as a mini café where you
can seat and eat your breakfast or snack peacefully. The business ensures the ambiance of
the store is calm, peaceful, clean and aesthetics which is pleasurable to the eyes of the
customers.
The opportunity to grow and to be successful business in downtown of San Jose is

high because there’s a lot of establishment there already and there is also schools which
is located in the area so the business have the opportunity to cater the students which is
one of the primary target market of the business. The HAREJAP CHURROS SHOP is
offer different variety of churros. Which is one of the best alternative food for breakfast.
Now after, five years in the operation, the HAREJAP CHURROS SHOP have now
five kiosk franchise unit and another branch store in the different nearby areas. The
business has been growing throughout the years in the operations. Until to the present, the
HAREJAP is devoted in giving the best quality of churros products to its customers and
still striving to capture another market and customers in different areas in the region.
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Mission
The HAREJAP exist with the purpose of generating sales, profits and giving excellent
service to our customers and clientele.
Vision
HAREJAP envision to be one of the top leading franchise business in the region and
in the country. To be one of the successful and fastest servicing business enterprise, and
to be the pioneer of success in the micro entrepreneurship in the country.The business
envision also to contribute to the growing economy of the country.
Core values
P- assion
I- nnovation
E- xcellence
C- onsistency
E- ngage
The HAREJAP is a business enterprise where being passionate in giving services

to its customers and clientele is practiced. Introducing innovation of products with
excellence is always in the first line and prevailing the consistency in all the engagements
of the business is maintained.
Goals
 To be one of the leading franchise business in the region.

 To gain more investors and franchisee in nearby areas
 To sustain and rump up the productivity in the business
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A. Company name
The name HAREJAP is derived from the first letter of our names, which is Hydrick,
Annie, Russell, Eva, Jamaica, Arjay and Princess. We have decided to put the first letter
of our name to form a name of our business as a courtesy to each of us since we share the
equal effort, investment, ideas and ownership. We have come to the idea of having a café
business because first we think of what is the trend and what is lit especially for the
teenagers who have the biggest market share in the entrepreneurial market. We all know
that café is one the places that often used for meet ups and past time activity of many
people nowadays.
B. Type of the Business
The type of business is partnership. The partnership type of business is compose of

two or more people who agreed to put a business together with equal share of
investments, profits and losses of the business. Since the business was establish by five
person, they have an agreement who will be the manager of the store.
C. Company Description
The first physical store of HAREJAP was located at Mabini Extension Cabanatuan
City, Nueva Ecija. The HAREJAP offers a variety of churros wherein the customers can
come and have some meal for the morning. Some of the variety of churros offered by the
HAREJAP is flavoured as cinnamon, graham and oreo churros with different kinds of
beverages that is perfectly fit to the churros.
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D. Key Personnel for Franchisor
Table 1. Key Personnel for Franchisor

PERSONNEL FUNCTION QUALIFICATION
Finance  Collecting, interpreting and  FP&A,
Manager reviewing financial investment
information. banking,
 Predicting the future financial business
trends. administration,
 Reporting to management and or management
providing advice how the consulting
company and future business experience.
decisions might be impacted.  Bachelor's
 Producing financial reports degree in
related to budgets, account finance or
payables, account accounting.
receivables, expenses etc.  Strong Excel
 Reviewing, monitoring and skills.
managing the budgets.  Excellent
 Developing strategies that ability to
work to minimize financial problem solve
risk. along with solid
 Analyze the market trends analytical
and competitors. skills,
understanding
of business
process and
systems
optimization.
 Comfortable
interacting with
all levels of
management in
multiple areas.
 Strong
knowledge of
financial
reporting.
 Ability to
review data and
make relevant
management
decisions.
 Strong financial
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system and
business
administration
understanding.
Human  Implementing and revising a  Bachelor’s
Resource business’s compensation degree in
Manager program human
 Creating and revising the job resources
descriptions. management or
 Conducting the annual salary equivalent.
survey.  Experience in
 Developing, analyzing, and human
updating the business’s salary resources or
budget. related field.
 Developing, analyzing and  Ability to build
updating the business’s and maintain
evaluation program. positive
 Developing, revising, and relationships
recommending personnel with
policies and procedures. colleagues.
 Maintaining and revising the  Experience in

business’s handbook on educating and
policies and procedures. coaching staff.
 Recommending new policies,  Experience in

approaches, and procedures. conflict
resolution,
disciplinary
processes and
workplace
investigations.
 Experience in
following and
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maintaining
workplace
privacy.
 Ability to give
presentations.
 Knowledge of
relevant health
and safety laws.
 Experience
using
computers for a
variety of tasks.
 Competency in
Microsoft
applications
including
Word, Excel,
and Outlook.
Operations  Provide inspired leadership  Bachelor’s

Manager for the organization. degree in
 Make important policy, operations
planning, and strategy management or
decisions. related field.
 Develop, implement and  Experience in
review operational policies management,
and procedures operations, and
. leadership.
 Assist HR with recruiting  Understanding
when necessary. of general
 Help promote a company finance and
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culture. budgeting,
 Oversee budgeting, reporting, including profit
planning, and auditing.. and loss,
 Ensure all legal and balance sheet
regulatory documents are and cash-flow
filed and monitor compliance management.
with laws and regulations.  Ability to build
 Identify and address consensus and
problems and opportunities relationships
for the business. among
 Support worker managers,
communication with the partners, and
management team. employees.
 Ensure safe and efficient  Excellent

operations. communication
skills.
 Solid
understanding
of financial
management.
Marketing  Manage the marketing  Bachelor

Manager resources of a product or degree or
business. master degree
 Researches, determines, in marketing,
examines, and assesses business
demand for a product or administration,
service.  Experience
 They aim to increase sales by with creating a
developing promotional marketing
campaigns and strategies. campaign,
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 Establishing and maintaining marketing
a product’s brand. strategy, and
 Supervise the different stages marketing plan.
of all marketing efforts, from  Experience
logos and package design to with online
advertising campaigns and marketing,
pricing strategies, including including social
media outlet selection media, and
 Monitor every activity related content
to brand awareness marketing.
 Understanding
of public
relations.
 Advanced
communication
skills.
 Ability to
quickly adapt to
change.
Bookkeeper  Recording transactions such  Associate's
as income and outgoings, and degree in
posting them to various accounting or
accounts. business
 Processing the payments. administration.
 Conduct thedaily banking Excellent
activities. knowledge of
 Producingvariousfinancialrep general
orts accounting
 Reconciling reports to third- principles.
party records such as bank  High school

statements.
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diploma.
 Knowledge of
bookkeeping
software.
 At least two
years
bookkeeping
experience,
preferably
within a
business-
services
environment.
 Excellent
communication
skills, both
verbal and
written.
 Attention to
detail and
accuracy of
work.
 Experience
with accounting
software such
as Xero,
Quickbooks, or
MYOB.
 Able to
prepare, review
and understand
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a financial
statement.
Trainor  Conduct job evaluation  Bachelor’s
survey. Degree in
 Delivering and overseeing the business, HR,
training of individuals or finance or
groups of employees. related field.
 Compile and presents  Impressive
information. communication
 Implementing, advising and , presentation,
monitoring appraisal and
schemes. interpersonal
 Supervising and monitoring skills.
progress made via training  A minimum of
programs or schemes. 3-5 years of
 Ensuring employees receive proven
statutory required training. experience in a
 Designing and assessing teaching
training programs. position.

 Solid
knowledge of
the latest
corporate
training
techniques.
 Excellent time
management
and
organizational
skills.
Head Cook  Involved in staffing of the  Proven
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kitchen. experience as
 Developing menu offerings. head cook
 Forecasting supply needs and  Exceptional
estimating costs. proven ability
 Making sure the restaurant of kitchen
meets all regulations, management
including sanitary and safety  Ability in
guidelines. dividing
 Duty to continued efficiency responsibilities
of the kitchen and production and monitoring
of consistent, quality food. progress
 Outstanding
communication
and leadership
skills
 Up-to-date with
culinary trends
and optimized
kitchen
processes
 Good
understanding
of useful
computer
programs (MS
Office,
restaurant
management
software, POS)
 Credentials in
health and
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safety training
 Degree in
Culinary
science or
related
certificate
Advertising &  Ensuring high levels of  Bachelor’s
Sales customer satisfaction through degree
Promotion excellent sales service. including
Assistant  Maintaining outstanding store studies in
condition and visual business,
merchandising standards. economics,
 Assist with the sales process marketing and
by maintaining a fully computer
stocked store. science
 Maintain a fully stocked  Five years’
store. professional
 Ascertain customers’ needs experience in
and wants. marketing role
 Recommend and display  Dynamic,

items that match customer creative
needs. personality
 Welcome and greet eager to build
customers. connections
 Manage point-of-sale and expand
processes. horizons
 Keep up to date with product  Aptitude for
information. developing and
 Accurately describe product implementing
features and benefits. business

strategies
 Follow all company policies
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and procedure.  Familiarity
 Perform day-to-day tasks that with desktop
ensure the smooth operations publishing
of the agency. software and
 Complete basic office duties video and web
such as photocopying, filing, development
and faxing as well as software
answering telephones,
scheduling appointments, and
communicating with clients.
 Advertising assistants also
use a variety of software to
conduct research, prepare
presentations, and construct
media campaigns.
Security Guard  Patrol commercial premises  High school

to prevent and detect signs of diploma/GED.
intrusion and ensure security  Registered as a
of doors, windows, and gates. Security
 Monitor and authorize Officer.
entrance and departure of  Outstanding
employees, visitors, and other surveillance
persons to guard against theft and observation
and maintain security of skills.
premises.  Excellent
 Write reports of daily communication
activities and irregularities, skills.
such as equipment or  Ability to
property damage, theft, exercise good
presence of unauthorized
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persons, or unusual judgment.
occurrences.  Strong
 Call police or fire reporting skills.
departments in cases of  Working
emergency, such as fire or knowledge of
presence of unauthorized public safety,
persons. security
 Circulate among visitors, operations, and
patrons, and employees to procedures.
preserve order and protect  Knowledge of
property. state laws and
 Warn persons of rule regulations.
infractions or violations, and  Trained in First
apprehend or evict violators Aid and self-
from premises, using force defense.
when necessary.
 Operate detecting devices to
screen individuals and
prevent passage of prohibited
articles into restricted areas.
 Escort or drive motor vehicle
to transport individuals to
specified locations and to
provide personal protection.
 Inspect and adjust security
systems, equipment, and
machinery to ensure
operational use and to detect
evidence of tampering.
Helper  High school
diploma or
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rinsing garbage cans. GED.
 Removing soiled plates and  Proven
flatware, the wash them experience
thoroughly. helping in
 Help prepare cook station. kitchen
 Ensuring the availability of settings.
clean dishes.  A food
 Clean the appliances and handler's
machines used in the kitchen. license.
 Help the head cook with what  The ability to
he/she need. stand for
extended
periods of time.
 The ability to
safely use
kitchen
equipment and
appliances.
 Sound
knowledge of
food safety
standards and
procedures.
 Strong
communication
skills.
 Excellent
organizational
skills.
Driver  Loading, transporting, and  A valid driver's
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delivering products to license.
franchisee in a safe, timely  1 year driving
manner. experience.
 Reviewing orders before and  Extensive
after delivery to ensure that knowledge of
orders are complete. the operating
 Adhering to assigned routes area.
and following time schedules.  Physical
 Abiding by all transportation strength and
laws and maintaining a safe ability to lift
driving record. objects
 Preparing reports and other  Excellent
documents relating to organizational
deliveries. and time
management
skills.
 Exceptional
interpersonal
skills.
 Good verbal
communication
.
 Proficiency
using GPS
devices
Delivery  Assisting with Navigation  High school

Helper and Routes diploma or
 Assisting with loading and GED.
unloading items from  Proven
vehicles. experience
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 Providing excellent customer working in
service, answering questions, warehousing,
and handling complaints from manufacturing,
franchisee. or production.
 Preparing reports and other  Proven
documents relating to customer
deliveries. service
 Accepting payments for experience is
delivered items. preferred.
 Reviewing orders before and  The ability to
after delivery to ensure that work in a fast-
orders are complete. paced
environment.
 The ability to
work flexible
hours.
 The ability to
lift heavy
objects.
 Excellent
communication
skills.
 Strong work
ethic.
Janitor  Clean building floors by  Ability to
sweeping, mopping, manage your
scrubbing, or vacuuming time efficiently.
them.  Work well
 Gather and empty trash. when
 Follow procedures for the use supervisors are
of chemical cleaners and
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power equipment, in order to not present.
prevent damage to floors and  Ability to lift at
fixtures. least 25
 Monitor building security and pounds.
safety by performing such  Handle basic
tasks as locking doors after maintenance,
operating hours and checking building
electrical appliance use to repairs,
ensure that hazards are not cleaning and
created. other janitorial
 Notify managers concerning work.
the need for major repairs or  Basic math
additions to building skills.
operating systems.  Able to work
 Requisition supplies and safely with a
equipment needed for variety of
cleaning and maintenance cleaning
duties. supplies.
 High school
diploma.

E. Key Personnel for Franchisee
Table 2. Key Personnel for Franchisee

Personnel Function Qualification
Cashier/Food  Receive payment by cash or  2 years experience
Server credit cards. in the field or
 Issue receipts, refunds, related area
credits, or change due to  High School
customers. Diploma or
 Count money in cash drawers equivalent.
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at the beginning of shifts to  Customer service or
ensure that amounts are Cashier experience.
correct and that there is  Ability to handle
adequate change. transactions
 Greet customers that entering accurately and
the establishments. responsibly.
 Maintain clean and orderly  High level of
checkout areas. energy with strong
 Must identify the prices of customer service
goods and tabulate bills using skills.
cash registers.  Basic math and
 Compute and record totals of computer skills.
transactions  Ability to stand,
walk, lift heavy
items, and work
with other team
members in a fast-
paced environment
to provide excellent
service.
 Attention to detail.
 Helpful, courteous
approach to
resolving
complaints.
Cook  Developing menu offerings.  High school
 Forecasting supply needs and diploma or
estimating costs. equivalent
 Making sure the kiosk meets preferred.
all regulations, including  Prior experience in
sanitary and safety guidelines. related food and
beverage service
and food
preparation
positions.
 Thorough
experience with hot
and cold food
preparation.
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 Good working
knowledge of
accepted sanitation
standards and
health codes.
 Ability to use
slicers, mixers,
grinders, food
processors, etc.
 Able to handle
work in a fast-
paced environment.
Dishwasher  Taking out the trash and  High School

rinsing garbage cans. Diploma or
 Removing soiled plates and equivalent.
flatware, the wash them  Minimal work
thoroughly. experience.
 Help prepare cook station.  Strong problem
 Ensuring the availability of solving and
clean dishes. communication
 Clean the appliances and skills.
machines used in the kitchen.  Exceptional time
 Supporting other restaurant management skills.
staff members by assisting  Ability to stand or
with other tasks, as needed. walk for 8-hour
shifts and lift at
least 20 pounds.
 Willingness to
comply with all
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food safety
procedures.
F. Start-up Schedule and Competition

 The start up scheduled of the business was on February 14, 2014.
 The store is open from Monday to Saturday from 9 am to 5 pm.
 CLT, Infinitea, and other Coffee Shops
G. Fund Requested
The source of funds of the business will came from the investments of the owners
of the business which will be the capital of the business.
H. Funds use Statements
In buying all the required equipments and machineries for the operation of the
business the accumulated funds will be used. Accumulated funds will also be used in
purchasing supplies needed, the construction of the kiosk and salary for the employee.
I. Fund Repayment
The HAREJAP target time to return all the investment in the business is within
five years of the operation of the business.
II. Marketing
A. Major Marketing Objectives

 To have a competitive market share in the chosen area after 1-2 years of running
the business.
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 To increase the sales and profit of the business after a year of starting operations
and maintain the continuous improvement and compounding in sales and profit of
the business in its operating period.
 To expand and have a multiple franchise unit in different cities and municipalities
nearby the area of mother franchise business in 4-5 years of the business
operation.
B. Major Marketing Goals

 To be one of the top and successful franchise business in the country.
 To established a lusty brand awareness and recognition to the customer.
 To be a competitive franchise business which can be flexible in terms of
the changes in the environment and market demand and maintain its
competitiveness throughout the business operation in the area and other
area.
 To improve and develop new products to launch and be flexible in the old
and new target market customer throughout the business operating period.
 To improve and strengthen the relationship between the franchisee.
 To attract more prospective franchisee of the HAREJAP
 To continuously maintain the brand management of the business.
 To incessant established the business image in the industry.
C. Market Plan and Pricing Strategy
Target Market
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The target market chosen by the HAREJAP is the residents of the Science
City of Muñoz, Nueva Ecija. The location of the business operation was chosen
because of different aspects. First because of its demographic profile, according to
the official website of the Government of Science City of Munoz, as of 2018 the
City ofMuñoz have only 89,167 population, to small compare to the different
nearby cities and municipalities such as the San Jose City, Talavera and
Cabanatuan City which have a huge population. The business chose to start in
small demographic area so the business may not be overwhelmed and pressured
by the huge market and can perform competitively.
Next is the number of business establishments and competitors.

HAREJAP look how the competition between the different competitors works and
finds out that there’s a lot of small business there offered similar products such as
milkteas, burgers, fries and pastries and mostly caters students. Thus, the
HAREJAP sees the opportunity to offered new kind of food which is not already
in the market. In this case, the HAREJAP can possess a market share between
students and other customer. The next reason is the opportunity to cater a huge
market of students since the Muñoz National High School is located in there and
the biggest university in the region is just only five minutes or less away in the
area. This gives the business the idea of gaining a competitive market share.
Pricing Strategy
The HAREJAP, uses three pricing strategies, the premium price strategy,
bundle price strategy and cost-plus-pricing strategy. The cost-plus-pricing
strategy is the usual pricing strategy of the business wherein the price of the
product is based on the cost of the raw materials being used and the cost of
production, then we will add a mark-up percentage to get the cost-plus-price. The
cost-plus strategy was chosen by the business, because it would be both beneficial
for the business and the customer. Here are some reason, of choosing the cost-
plus-pricing strategy.
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In the cost-plus-pricing, if the cost are sufficiently stable for long period
there is a price stability which is both cheaper and administratively and less
irritating to the both business and customers. The cost-plus method offers a
guarantee against loss-making, by the business. In the cost-plus-pricing strategy if
the business finds out that the cost are rising, it can take appropriate steps by
variations in output and price. And lastly, when the business unable to forecast the
demand for its product, the cost plus method can be used.
The premium price strategy is also applicable in the business since the
business also offers some premium products. The goal why the business chose to
use also the premium price strategy is not only because the business offers
premium products but also to create a perception that the products of HAREJAP
have a higher value than the competing products. the premium pricing strategy
has the advantage of producing higher profit margins, creating tougher barriers to
entry for competitors, and increasing the brand’s value for all the company’s
products.
Another is the bundle pricing strategy, since mostly today customers are
really conscious to the products they bought. Customers today are looking for
products where they can spend less, but have more. In other words customers are
rooting for buy one take one promos and such. To cater this kind of customers
needs the business develop such bundle products to offer. The benefits of having a
bundle products, is there’ll be a positive associations develop with the brand
because customers saved time and money. It makes easier to find complementary
products, creates competitive prices without reducing average order value. And
last, this gives the business the opportunity to enter a new market with a proven
offer.
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D. Franchisee Recruitment Plan and Flow Chart
25
Figure 1. Franchisee Recruitment Plan and Flow Chart
The first thing to be accomplished in recruiting plan is to attract the prospective

and potential franchisees that have the capacity and potential to run the franchise
business. The next step is the submission of the application. The franchisee applicants
must need to submit and comply all the necessary documents that is required in business
operations. This includes all the personal background information of the franchisee
applicants. The third step is the qualifying process. In this step the franchisor must
determine and ensure all the qualification requirements in franchising the business meets
by the franchisee applicants. Here where the applicants undergo a pre-evaluation to make
sure that he/she qualified in franchising the business. once the franchise applicants passed
in the qualification requirements, he/she then proceed to the next step which is the
interview.
E. Franchisee Application Form
FRANCHISE APPLICANTS PERSONAL PARTICULARS

Date of Application:
Full Name:
Home Address:
Mobile Numbers: Home Tel Number:
Date of Birth: Email Address:
Nationality: Business Phone:
City: Sex:
Province:
Language (Fluent in):
Spouse’s Full Name:
Name of Children:
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EDUCATIONAL QUALIFICATIONS
Schooling Completed:
Degree:
Name of College/University or postgraduate school:
CURRENT BUSINESS EXPERIENCE
Occupational Field:
Company Name:
Positions:
Dates:
Describe any training in sales, management and retail:
Figure 2. Franchise applicants personal particulars
PREVIOUS BUSINESS EXPERIENCE

Occupational Field:
Company Name:
Positions:
Dates:
Describe any training in sales, management and retail:
References
Name :
Address:
Phone Number:
Relationship:
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Years known:
References
Name :
Address:
Phone Number:
Relationship:
Years known:
References
Name :
Address:
Phone Number:
Relationship:
Years known:
Figure 3. Previous business experience
After the submission of the franchisee application, the franchisee will undergo to
the qualification process, then applicants who are suitable for the work will be processed
to the screening process. Right after, the applicants passed the screening he will proceed
to the preliminary interview. The interview would be about the primary knowledge or
basic information he knows about the franchising business, experience, why do the
franchisee wants to have a franchise or engage in the business. If then, the applicants
passed the needed requirements, he will take seminars- meetings with the existing
franchisees. The franchisee will be attend seminars which will provide helpful knowledge
and information which the franchisee needs in the process of operating the business.
Different kinds of seminars are lined up for the franchisee to build and developed the
strong entrepreneurial spirit inside of him and makes him focused on the goal and
objectives of the business as well as his objectives and goals as a franchisee. Inspirational
talks, tips, tactics, managerial seminars, decision making seminars, and techniques which
can help the franchisee to have the idea how to handle and run the franchisee business
and makes it successfully.
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After, all the seminars for the franchisee to be able to be familiarized in the
operation of the franchisee business, the franchisee will then be involved in the operation
of the business as an observant. The franchisee will observe in the store and will evaluate
the operation of the business. As a franchisee, he needs to know how the operation of the
business goes in the day, and how can he handle it. Then after, the applicant franchisee
will be undergo to the second interview with the franchisor and panels. And then, if the
applicants franchisee passed the second interview he then, proceed to the 1 month
training to learn and more familiarized to the operation of the business. The right after, to
complete the flow chart of the recruitment process, the handover of the franchisee
business to the franchisee will be done.
F. Franchisee Prospectus
Figure 4. Franchisee Prospectus
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Figure 5. Franchisee Prospectus
G. Marketing Mix
Product
Figure 6. Product
30
Churros, a Spanish and Mexican pastry resembling a doughnut and cruller and
made from deep fried unsweetened dough and sprinkled with sugar. We all know
many people love chorus because Filipinos love sweet especially in snack. To have a
little innovation, we develop some flavours of it and make a drink that suits to its
sweet taste which is coffee.
Price
The business computed by sum of all cost in production and then divided by the
units produced in the production to get the cost per unit then divided by the cost per
serving to get the mark up.
Place
The main store of the business is located at Mabini Extension Cabanatuan City,
Nueva Ecija, nearby at Wesleyan University of the Philippines. The potential of the
place to foster a small business like the HAREJAP is high since there’s a lot of
students there and potential customers.
Promotion
The HAREJAP uses different avenue of promotions, such as social media
promotions, print ads such as banners, flyers and posters. The business also uses some
kind of promos to attract the prospective customers.
H. Franchisee Sales And Advertising

The franchisee can use print ads to promote the products including flyers and
tarpaulins along sidewalk and stores. Using different types of advertising including
internet advertising, social media and public relations can be a great help to access high
number of market and to increase customer awareness.
31
I. Franchisee Location And Criteria Selection
Harejap choose a location that best suit to our type of product by considering its
target market. Students and residents along the area can easily find our establishment
because.
 The site is accessible to target students demographics

 The site is located for convenient of our target market
 The site is located along the road
J. Grand Opening Plan
HAREJAP is a food that was made by the franchisor. The franchisee

established and started their operation on January 20, 2020. This date of the franchisee’s
grand opening was announced using social media for customers to see it quickly. The
franchisee also made fliers to be given to the students and people here at CLSU campus.
Aside from that, the franchisee also contacted their friends that’ll help the franchisee
spread this date to others so that many prospective customers will arrive here at the grand
opening of the franchisee.
The franchisee also would like to start their grand opening at 10:00 in the morning
here at CLSU campus. In the pre-opening, the franchisee and their subordinates were the
ones who actively did the preparation and the franchisee is also the one that’ll facilitate
the main event in order for the event to be successful.
Setting up the facility is one of the most important parts in the grand opening of
the business. The franchisee must prepare and be ready for weeks before the grand
opening. So as the staffs, crews, and people involved in the business must also be ready.
In the pre-opening, the franchise itself and its subordinates were the ones who actively
did the preparation and they are also the ones who facilitates the main event in order for
the event to be successful.
Also in training the health and safety of the staff, awareness and understanding is
important so that in can avoid into creating some hazards that can cause ruckus to the
32
crowd in the main event of the grand opening. And before starting up a business, a legal
document, and a license is required for the franchisee to run its operation smoothly.
And if a franchisee plans on making your own grand opening, the franchisee must
set their own goals like gather prospective customer in the area that’ll be where the grand
opening will occur.
Customer Advertising Plan
HAREJAP advertising includes:
 Fliers – advertising posters are a common print promotional technique used by

small business. Giving them a piece of paper is not that of a big deal because it’s
not that heavy to carry nor that big to carry.
 Social Media – in this type of advertising, you can easily attract prospective
customer for anyone in this era uses mobile gadgets to be inin the trend.
 Word of Mouth – oral recommendation by a satisfied customer to the prospective
customers are good for it is considered one of the best and effective form of
promotion and advertising your product.
33
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III. Management
A. Headquarters
1. Organizational Structure
Figure 7. Organizational Chart of the Franchisor
It consists of the organizational chart of the franchisor’s headquarter which

handles the full operation of their franchisee. This personnel are the one who makes the
business works and to have an efficient and effective operations. Each manager has
superiority to their people that they manage.
Franchisor/General Manager - owns the business, trademarks and products but gives
the right to the franchisee to run the business in return for an agreed-upon fee.
Finance Manager
A Finance Manager distributes the financial resources of a company, is

responsible for the budget planning, and supports the executive management team by
offering insights and financial advice that will allow them to make the best business
decisions for the company.
34
Duties and Responsibilities:
 Collecting, interpreting and reviewing financial information.

 Predicting the future financial trends.
 Reporting to management and providing advice how the company and
future business decisions might be impacted.
 Producing financial reports related to budgets, account payables, account
receivables, expenses etc.
 Reviewing, monitoring and managing the budgets.
 Developing strategies that work to minimize financial risk.
 Analyze the market trends and competitors.
Bookkeeper
A bookkeeper is an accounting professional primarily responsible for maintaining

qqqqqqqqqqqqqqqqqqqqaa detailed record of purchases, sales, and other financial
transactions.
 Recording transactions such as income and outgoings, and posting them to

various accounts.
 Processing the payments.
 Conduct the daily banking activities.
 Producing various financial reports
 Reconciling reports to third-party records such as bank statements.
Human Resource Manager
Human resource managers are responsible for ensuring that the overall
administration, coordination, and evaluation of human resources plans and
programs are realized.
 Implementing and revising a business’s compensation program
35
 Creating and revising the job descriptions.
 Conducting the annual salary survey.
 Developing, analyzing, and updating the business’s salary budget.
 Developing, analyzing and updating the business’s evaluation program.
 Developing, revising, and recommending personnel policies and
procedures.
 Maintaining and revising the business’s handbook on policies and
procedures.
 Recommending new policies, approaches, and procedures.
Training and Development Officer
Training and development officers are responsible for identifying staff training
and development needs, and for planning, organizing and overseeing appropriate
training.
 Conduct job evaluationsurvey.

 Delivering and overseeing the training of individuals or groups of
employees.
 Compile and presentsinformation.
 Implementing, advising and monitoring appraisal schemes.
 Supervising and monitoring progress made via training programs or
schemes.
 Ensuring employees receive statutory required training.
 Designing and assessing training programs.
Operations Manager
Manage overall operations and is responsible for the effective and successful
management of labor, productivity, quality control and safety measures as
established and set for the business.
Duties and Responsibilities
36
 Provide inspired leadership for the organization.
 Make important policy, planning, and strategy decisions.
 Develop, implement and review operational policies and procedures.
 Assist HR with recruiting when necessary.
 Help promote a company culture.
 Oversee budgeting, reporting, planning, and auditing.
 Ensure all legal and regulatory documents are filed and monitor
compliance with laws and regulations.
 Identify and address problems and opportunities for the business.
 Support worker communication with the management team.
 Ensure safe and efficient operations.
Head Cook
A highly skilled professional cook who oversees the operations of a restaurant or

dining facility. They are responsible for the food that comes out of a kitchen, from
conception to execution.
 Involved in staffing of the kitchen.

 Developing menu offerings.
 Forecasting supply needs and estimating costs.
 Making sure the restaurant meets all regulations, including sanitary and
safety guidelines.
 Duty to continued efficiency of the kitchen and production of consistent,
quality food.
Helper
It cleans and restocks dinnerware, utensils, and glassware and helpsthe head cook
in making the product.
37
 Taking out the trash and rinsing garbage cans.
 Removing soiled plates and flatware, the wash them thoroughly.
 Help prepare cook station.
 Ensuring the availability of clean dishes.
 Clean the appliances and machines used in the kitchen.
 Help the head cook with what he/she need.
Marketing Manager
The manager in the marketing department who controls all the promotional and
market research/study for the activity of the company. They also focus on making sure
consumers know about their products or services.
 Manage the marketing resources of a product or business.

 Researches, determines, examines, and assesses demand for a product or
service.
 They aim to increase sales by developing promotional campaigns and
strategies.
 Establishing and maintaining a product’s brand.
 Supervise the different stages of all marketing efforts, from logos and
package design to advertising campaigns and pricing strategies, including
media outlet selection
 Monitor every activity related to brand awareness
Advertising & Sales Assistant
Sales assistants work for retail companies and are responsible for liaising with
customers in order to ensure a transaction goes smoothly. It also a entry-level employee
at an advertising agency or media company who is responsible for providing
administrative support to staff members.
38
 Ensuring high levels of customer satisfaction through excellent sales
service.
 Maintaining outstanding store condition and visual merchandising
standards.
 Assist with the sales process by maintaining a fully stocked store.
 Maintain a fully stocked store.
 Ascertain customers’ needs and wants.
 Recommend and display items that match customer needs.
 Welcome and greet customers.
 Manage point-of-sale processes.
 Keep up to date with product information.
 Accurately describe product features and benefits.
 Follow all company policies and procedure.
 Perform day-to-day tasks that ensure the smooth operations of the agency.
 Complete basic office duties such as photocopying, filing, and faxing as
well as answering telephones, scheduling appointments, and
communicating with clients.
 Advertising assistants also use a variety of software to conduct research,
prepare presentations, and construct media campaigns.
Driver
The Driver will pick up and drop offthe products while adhering to assigned
routes and time schedules.
 Loading, transporting, and delivering products to franchisee in a safe,

timely manner.
 Reviewing orders before and after delivery to ensure that orders are
complete.
 Adhering to assigned routes and following time schedules.
39
 Abiding by all transportation laws and maintaining a safe driving record.
 Preparing reports and other documents relating to deliveries.
Driver Helper
A driver helper works with drivers to deliver products to the franchisee. Driver
helpers are responsible for all tasks with the exception of driving, such as loading and
unloading the truck, interacting with customers, and filling out paperwork to record
deliveries.
 Assisting with Navigation and Routes

 Assisting with loading and unloading items from vehicles.
 Providing excellent customer service, answering questions, and handling
complaints from franchisee.
 Preparing reports and other documents relating to deliveries.
 Accepting payments for delivered items.
 Reviewing orders before and after delivery to ensure that orders are
complete.
Security Guard
Prevent risks and deter crime, watch out for looming danger, and report any crime
they may encounter.
 Patrol commercial premises to prevent and detect signs of intrusion and

ensure security of doors, windows, and gates.
 Monitor and authorize entrance and departure of employees, visitors, and
other persons to guard against theft and maintain security of premises.
 Write reports of daily activities and irregularities, such as equipment or
property damage, theft, presence of unauthorized persons, or unusual
occurrences.
40
 Call police or fire departments in cases of emergency, such as fire or
presence of unauthorized persons.
 Circulate among visitors, patrons, and employees to preserve order and
protect property.
 Warn persons of rule infractions or violations, and apprehend or evict
violators from premises, using force when necessary.
 Operate detecting devices to screen individuals and prevent passage of
prohibited articles into restricted areas.
 Escort or drive motor vehicle to transport individuals to specified locations
and to provide personal protection.
 Inspect and adjust security systems, equipment, and machinery to ensure
operational use and to detect evidence of tampering.
Janitor
Keep building in clean and orderly condition. Performheavy cleaning duties, such
as cleaning floors, shampooing rugs, washing walls and glass, and removing rubbish.
Duties may include tending furnace and boiler, performing routine maintenance
activities, notifying management of need for repairs, and cleaning snow or debris from
sidewalk.
 Clean building floors by sweeping, mopping, scrubbing, or vacuuming

them.
 Gather and empty trash.
 Follow procedures for the use of chemical cleaners and power equipment,
in order to prevent damage to floors and fixtures.
 Monitor building security and safety by performing such tasks as locking
doors after operating hours and checking electrical appliance use to ensure
that hazards are not created.
 Notify managers concerning the need for major repairs or additions to
building operating systems.
41
 Requisition supplies and equipment needed for cleaning and maintenance
duties.
2. Policies and Procedure
 Employees must wear proper uniform.
 Must wear their name plate.
 Employees must be punctual.
 Employees must be approachable.
 Employees must have proper hygiene.
 Must maintain the cleanliness in the work area.
 Employees must work 8 hours a day and 6 times a week.
 Employees have a vacation and sick leave with maximum of 15 days.
 Payroll is every 15 days.
 Employees must pass all the exam and interviews before being hired.
3. Personnel (Wage and Salary)
The monthly salary of each employee is based on the minimum wage of Region
III. Based on the Department of Labor and Employment (DOLE), this is the minimum
wage for the non-agriculture business with 10 or more employees. Each employee has 1
day-off every week as their rest day. The monthly salaries are based on their job position.
The computation is multiplied by 26 days.
Table 3. Personnel (Wage and Salary)

Personnel Monthly Salary
Finance Manager ₱13,000
Human Resource Manager ₱11,700
Operations Manager ₱11,700
Marketing Manager ₱11,700
Bookkeeper ₱10,920
Trainor ₱10,920
Head Cook ₱10,920
42
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Security Guard
Helper
Driver
Delivery Helper
Janitor
B. Franchisee
1. Organizational Structure
₱10,400
₱10,400
₱9,360
₱9,360
₱9,360
₱9,360
Figure 8. Organizational Chart of the Franchisee
It consists of the organizational chart of the franchisee which handles the full
operation of their franchise business. This personnel are the one who makes the daily
operation of the business.
Franchisee/Owner–is someone who buys a business that is part of a chain,

using the same name, trademark, product and services.
43
Cashier/Food Server
The employee who handles the financial transactions of the business. In most
situations, a cashier works directly at a cash register, ringing up the customer's
purchases and collecting their payment.
 Receive payment by cash or credit cards.

 Issue receipts, refunds, credits, or change due to customers.
 Count money in cash drawers at the beginning of shifts to ensure that
amounts are correct and that there is adequate change.
 Greet customers that entering the establishments.
 Maintain clean and orderly checkout areas.
 Must identify the prices of goods and tabulate bills using cash
registers.
 Compute and record totals of transactions
Cook
A highly skilled professional cook who oversees the operations of a

restaurant or dining facility. They are responsible for the food that comes
out of a kitchen, from conception to execution.
 Developing menu offerings.

 Forecasting supply needs and estimating costs.
 Making sure the kiosk meets all regulations, including sanitary and
safety guidelines.
Dishwasher
44
It clean and restock dinnerware, utensils, and glassware and assist other
restaurant staff members by handling other cleaning and prep tasks.
 Taking out the trash and rinsing garbage cans.

 Removing soiled plates and flatware, the wash them thoroughly.
 Help prepare cook station.
 Ensuring the availability of clean dishes.
 Clean the appliances and machines used in the kitchen.
 Supporting other restaurant staff members by assisting with other
tasks, as needed.
2. Policies and Procedure

 Employees must wear proper uniform.
 Must wear their name plate.
 Employees must be punctual.
 Employees must be approachable.
 Employees must have proper hygiene.
 Must maintain the cleanliness in the work area.
 Employees must work 8 hours a day and 6 times a week.
 Payroll is every 15 days.
 Employees must pass all the exam and interviews before being hired.
 Must maintain the reputation of the franchisee business.
3. Personnel (Wages and Salaries)

The minimum wage is based on the minimum wage of Region III. Based on
the Department of Labor and Employment (DOLE), this is the minimum wage
for the non-agriculture business with less than 10 employees. Every employee
has 1 day-off every week as their rest day. The monthly salary is based on the
job position. The computation is multiplied by 26 days.
45
Table 4. Personnel (Wages and Salaries)
Personnel Monthly Salary

Cashier/Food Servers ₱10,218
Cook ₱10,660
Dishwasher ₱10,218
46
C. PERT CHART
START
Franchise Plan
PHASE I
RESEARCH AND ANALYSIS
Industry Analysis Market Analysis Kiosk/Management

15 days 15 days Analysis
15 days
General Overview Market Overview Layout

Survey of Industry Target Market Management Structure
Statistical Averages Sales Analysis Personnel Requirements
Finance Analysis Legal Analysis Franchisor Profit

15 days 15 days Structure
15 days
Projected Capital requirements Trademarks Recruitment

Book keeping structure Antitrust Expenses
Capital Resources Licenses Income
Legal Structure Home Office
PHASE II
ORGANIZATIONAL DECVELOPMENT
Market Plan Kiosk design Location Business

15 days and Layout Selection Plan
15 days 15 days 20 days
47
Pricing suggestion Building plans Location criteria Management
Advertising program Layout design Site layout Accounting system
Disclosure EngineeringOperationsCommunity dataTraining
Product description Inventory control
Promotion releases
DocumentsDécor requirements
Manual ManualLegal suggestions
15 days 15 days 15 days
Government Operations Franchisee employees

Regulation
Franchisee Folder
Franchising Agreement
PHASE III
MARKETING TO FRANCHISE
Prospective Franchisee Training

Franchise Advertisement Franchise
Presentation 15 days Salesperson
15 days 15 days
Disclosure Document Sales Brochure Training program

Financial indicators Advertising flyers Field Training
Public relations Mail package Headquarters training
PHASE IV
FRANCHISE SELECTION
Franchise Franchise
Application Interview and
Completion Approval
15 days 15 days
Gather data Document evaluation

Location evaluation Financial approval
Financial review Character evaluation
Territory assignment Contract signed
48
PHASE V
BUILDING AND TRAINING
Kiosk
Development
30 days
Lease Negotiations and

approval
Franchisee Employee Ordering of

Training Training Supplies and
20 days 15 days Material
15 days
On-site training Hiring and training Stocking supplies for

Training manuals employees operation
Operating manuals Wage scales Purchasing
Control system specifications
PHASE VI
STARTUP AND FEEDBACK
Grand Opening Customer

Follow-up
7 days Advertising
Continuous
7 days
Promotion advertising Opening promotions Control and feedback

Grand opening Awareness/image Continual review of
campaign building operations
49
Actual operations begin
IV. FINANCIAL ASPECT
1. Start-up or Turn Key Cost
Utilities Expenses (2018-2022)
1000000
900000
800000
Amount (Php)
700000
600000
500000
400000
300000
200000
100000
0
1 2 3 4 5
Year
Graph 1. Utilities Expenses
50
Supplies Expenses (2018-2022)
1000000
900000
800000
700000
Amount (Php)
600000
500000
400000
300000
200000
100000
0
1 2 3 4 5
Year
Graph 2. Supplies Expenses
Avertising Expenses (2018-2022)

1000000
900000
800000
700000
Amount (Php)
600000
500000
400000
300000
200000
100000
0
1 2 3 4 5
Year
Graph 3. Advertising Expenses
51
Purchases (2018-2022)
1000000
900000
800000
700000
Amount (Php)
600000
500000
400000
300000
200000
100000
0
1 2 3 4 5
Year
Graph 4. Purchases Expenses
Turnkey Costs
Supplies Expense
Utilities Expense
Advertising expense
Purchases
Graph 5. Turnkey Cost
Sales Forecasting
The forecast is based on the following assumptions:
a. The employee works for regular 8-hour operation of the business.

b. The HAREJAP has a P50 per unit selling price of the product.
52
c. The daily customers of HAREJAP are expected to be 100 persons, the business is
expected to operate for 360 days per year.
d. The increase in revenue is 6 percent annually.
e. Salaries expense will remain constant for the next 5 years.
f. Depreciation is computed on straight line basis. The equipment and kiosk has 5-
years useful life and no salvage value.
g. Utilities expense will increase by 3% per annum.
h. Store supplies will increase by 3% and 90% will be use per annum.
i. The royalty expense is 3% of the gross revenue annually.
j. Monthly rental costs P10,000.
Table 5. Machineries Used by the HAREJAP

Name Consumptions PURPOSE Quantity Price Supplier
(kWh)
Kitchen
Freezer a refrigerated 2 Php.17,
compartment, 098.00
cabinet, for
preserving food at
very low
temperatures.
Churros A churros 2 Php.

Machine machine is a 12,000.00
machine that used
to produced a
form churros.
Mixer a machine or Php.
device for mixing 20,000.00
things, especially
an electrical
appliance for
mixing foods.
Coffee an electric Php. 13,

Maker machine for 527.00
53
brewing coffee.
Cash combines a secure Php. 27,

register cash box, 763.00
advanced adding
machine, and
receipt printer into
one operating
unit. Many
connect to credit
card terminals and
barcode scanners.
Electric A type of kitchen Php.

Deep Fryer utensil that can be 1,500.00
used to heat
cooking oils so
foods can be
completely
covered in hot oil
to be fry cooked.
Other Machines
Name Consumptions Purpose Quantity Price Supplier
Cash combines a secure Php. 27,
register cash box, advanced 763.00
adding machine,
and receipt printer
into one operating
unit. Many connect
to credit card
terminals and
barcode scanners.
Table 6. Equipments to be used by the HAREJAP

Kitchen
Name Consumption Purpose Price Quantity Supplier
Measuring is a kitchen utensil
Cup used primarily to
measure the volume
of liquid or bulk
solid cooking
ingredients such as
flour and sugar
54
Measuring used to measure an
Spoon amount of an
ingredient, either
liquid or dry, when
cooking.They are
available in many
sizes, including the
teaspoon and
tablespoon.
Mixing is a deep bowl that 500

Bowl is particularly well
suited for mixing
ingredients together
Tong a type of tool used 220
to grip and lift
objects instead of
holding them
directly with hands.
Pastry Bag is an often cone- or 100

triangular-shaped,
hand-held bag
made from cloth,
paper, or plastic
that is used to pipe
semi-solid foods by
pressing them
through a narrow
opening at one end.
Tray a sheet of metal 430

with low sides,
used for baking
food .
Parchment cellulose-based 17
Paper papers that have
been treated or
coated to make
them non-stick.
They are used in
baking as a
disposable non-
stick surface.
55
Franchisor Financial Position
Harejap - Franchisor
Projected Statement of Financial Position
As of December 31, 2018 - 2022
2020 2021 2022 2023 2024

Assets
Current Assets
2257101.0 3184177.7 4578962.6
Cash 1480703 1712700.2 8 36 62
Inventory 126403.2 152947.87 175890.05 201891.19 194320.27
217140.76 223654.99 230364.64
Store Supplies 204676 210816.28 84 15 12
Total Current 1811782. 2076464.3 2650131.8 3609723.9 5003647.5
Assets 2 5 98 17 73
Non-current
Assets
Land 1000000 1000000 1000000 1000000 1000000
Building 597600 597600 597600 597600 597600
Less:
Accumulated
Depreciation 29880 59760 89640 119520 149400
Machineries and
Equipment 99600 99600 99600 99600 99600
56
Less:
Accumulated
Depreciation 19920 39840 59760 79680 99600
Furnitures and
Fixtures 1000 1000 1000 1000 1000
Less:
Accumulated
Depreciation 200 400 600 800 1000
Total Non-
current Assets 1648200 1598200 1548200 1498200 1448200
3459982. 3674664.3 4198331.8 5107923.9 6451847.5
Total Assets 2 5 98 17 73
Liabilities
Current
Liabilities 0 0 0 0 0
Equity
3459982. 3674664.3 4198331.9 5107923.9 6451847.5
Harejap, Capital 2 52 01 17 75
Total Liabilities 3459982. 3674664.3 4198331.9 5107923.9 6451847.5
& Equity 2 52 01 17 75
HAREJAP
Balance Sheet
Year 1
ASSETS
Current Assets
₱
Cash 1,572,848.00
Supplies 24,000.00
Total Current ₱
Assets: 1,596,848.00
Non-Current Assets
Equipment 50,000.00
Accumulated
Depreciation-
Equipment 10,000.00 40,000.00
Kiosk 120,000.00
57
Accumulated
Depreciation-Kiosk 24,000.00 96,000.00
Franchise 96,000.00 96,000.00

Total Non-Current
Assets 232,000.00
₱
Total Assets 1,828,848.00
LIABILITIES
Current Liabilities
Accounts Payable 0
Total Current ₱
Liabilities: -
Non-Current
Liabilities
Total Non-Current
Liabilities: 0
Total Liabilities -
EQUITY
HAREJAP, Capital
End of the Year 1,828,848.00
Total Liabilities and
Equity 1,828,848.00
Balance Sheet
Year 2
ASSETS
Current Assets
₱
Cash 2,574,376.00
Supplies 24,000.00
₱
Total Current Assets: 2,598,376.00
Non-Current Assets
Equipment 50,000.00
Accumulated Depreciation-
Equipment 20,000.00 30,000.00
58
Kiosk 120,000.00
Accumulated Depreciation-Kiosk 48,000.00 72,000.00
Franchise 72,000.00 72,000.00
Total Non-Current Assets 174,000.00

₱
LIABILITIES
Current Liabilities
Accounts Payable 0
₱
Total Current Liabilities: -
Non-Current Liabilities
Total Non-Current Liabilities: 0
Total Liabilities -
EQUITY
HAREJAP, Capital End of the Year 2,772,376.00
Total Liabilities and Equity 2,772,376.00
Balance Sheet
Year 3
ASSETS
Current Assets
₱
Cash 3,676,567.60
Supplies 24,000.00
₱
Non-Current Assets
Equipment 50,000.00
Equipment 30,000.00 20,000.00
59
Kiosk 120,000.00
Franchise 48,000.00 48,000.00

₱
LIABILITIES
Current Liabilities
Accounts Payable 0
₱
Total Liabilities -
EQUITY
HAREJAP, Capital End of the
Year 3,816,567.20
Balance Sheet
Year 4
ASSETS
Current Assets
₱
Cash 4,885,772.86
Supplies 24,000.00
₱
Non-Current Assets
Equipment 50,000.00
Equipment 40,000.00 10,000.00
60
Kiosk 120,000.00
Franchise 24,000.00 24,000.00

₱
LIABILITIES
Current Liabilities
Accounts Payable 0
₱
Total Liabilities -
EQUITY
Year 4,967,772.86
Balance Sheet
Year 5
ASSETS
Current Assets
Cash ₱ 6,208,734.67
Supplies 24,000.00
Total Current
Assets: ₱ 6,232,734.67
Non-Current Assets
Equipment 50,000.00
Accumulated
Depreciation-
Equipment 50,000.00 -
Kiosk 120,000.00
Accumulated 120,000.00
61
Depreciation-Kiosk -
Franchise - -
Total Non-Current
Assets -
Total Assets ₱ 6,232,734.67
LIABILITIES
Current Liabilities
Accounts Payable 0
Total Current
Liabilities: ₱ -
Non-Current
Liabilities
Total Non-Current
Liabilities: 0
Total Liabilities -
EQUITY
HAREJAP, Capital
End of the Year 6,232,734.67
Equity 6,232,734.67
HAREJAP
Projected Statement of Cash flow
For the Years Ended December 31, 2018-2022
2020 2021 2022 2023 2024

Cash Inflows
Cash, ₱ ₱ ₱ ₱ ₱
Beginning - 1,480,703.000 1,712,700.200 2,257,101.080 3,184,177.736
Initial ₱ ₱ ₱ ₱ ₱
Investment 3,400,000.000 - - - -
₱ ₱ ₱ ₱ ₱
Sales 1,609,399.000 1,931,278.800 2,317,534.560 2,781,041.472 3,337,249.766
₱ ₱ ₱ ₱ ₱
Royalty 54,000.000 57,240.000 60,674.400 64,314.860 68,173.760
Total Cash ₱ ₱ ₱ ₱ ₱
62
Inflows 5,063,399.000 3,469,221.800 4,090,909.160 5,102,457.412 6,589,601.262
Less: Cash
Outflows
Purchase of ₱ ₱ ₱ ₱ ₱
Fixed Assets 1,698,200.000 - - - -
Purchase of ₱ ₱ ₱ ₱ ₱
Merchandise 632,016.000 695,217.600 764,739.360 841,213.296 925,334.626
₱ ₱ ₱ ₱ ₱
Salaries 792,480.000 792,480.000 792,480.000 792,480.000 792,480.000
Payment of ₱ ₱ ₱ ₱ ₱
Supplies 400,000.000 207,324.000 213,543.720 219,950.030 226,548.534
Utilities 50,000.000 51,500.000 53,045.000 54,636.350 56,275.441
Advertisements 10,000.000 10,000.000 10,000.000 10,000.000 10,000.000
Total Cash ₱ ₱ ₱ ₱ ₱
Outflows 3,582,696.000 1,756,521.600 1,833,808.080 1,918,279.676 2,010,638.600
Cash Balance, ₱ ₱ ₱ ₱ ₱
Ending 1,480,703.000 1,712,700.200 2,257,101.080 3,184,177.736 4,578,962.662
HAREJAP
Statement of Changes in Owner's Equity
For the Years Ended December 31, 2018-2022
2020 2021 2022 2023 2024
Harejap,
Capital, ₱ 3,459,982.2
January 1 3,400,000.00 0 3,674,664.35 4,198,331.90 5,107,923.92
Investments
during the
year - - - -
Net Income
for the year 59,982.20 214,682.15 523,667.55 909,592.02 1,343,923.66
Total 59,982.20 214,682.15 523,667.55 909,592.02 1,343,923.66

Less:
Withdrawals
Net Increase
in Owner's
Equity 59,982.20 214,682.15 523,667.55 909,592.02 1,343,923.66
Harejap, 3,459,982.20 3,674,664.3 4,198,331.90 5,107,923.92 6,451,847.57
Capital, 5
December
63
31
Franchisee Financial Position
HAREJAP
Income Statement
Year 2020
₱
Revenue 1,800,000.00
₱
1,800,000.00
Operating Expenses:
₱
Marketing Expense 20,000.00
Advertising Expense 10,000.00
Salaries Expense 373,152.00

Depreciation Expense-
Equipment 10,000.00
Depreciation Expense-Kiosk 24,000.00
Utilities Expense 120,000.00

Royalties Expense
64
54,000.00
Amortization of Franchise 24,000.00
Supplies Expense 216,000.00
Rent Expense 120,000.00

₱
Total Operating Expenses 971,152.00
₱
Net Income Before Taxes 828,848.00
HAREJAP
Income Statement
Year 2021
Revenue ₱ 1,908,000.00
₱ 1,908,000.00
Operating Expenses:
Depreciation Expense-Equipment 10,000.00
Royalties Expense 57,240.00

65
Total Operating Expenses ₱ 964,472.00
Net Income Before Taxes ₱ 943,528.00
HAREJAP
Income Statement
Year 2022
Revenue ₱ 2,022,480.00
₱ 2,022,480.00
Operating Expenses:

66
Net Income Before Taxes ₱ 1,044,191.20
HAREJAP
Income Statement
Year 2023
Revenue ₱ 2,143,828.80
₱ 2,143,828.80
Operating Expenses:

67
HAREJAP
Income Statement
Year 2024
Revenue ₱ 2,272,458.53
₱ 2,272,458.53
Operating Expenses:

68
Total Operating Expenses ₱ 1,007,496.72
HAREJAP
Statement of Changes in Equity
Year 2020
HAREJAP, Capital at the Beginning of the Year ₱ 1,000,000.00

Add:
Total ₱ 1,828,848.00
Less:
Withdrawals 0
HAREJAP, Capital at the End of the Year ₱ 1,828,848.00
HAREJAP
69
Year 2021
HAREJAP, Capital at the Beginning of the Year 1,828,848.00

Add:
Total ₱ 2,772,376.00
Less:
Withdrawals 0
HAREJAP
Year 2022
Add:
Net Income Before Taxes 1,044,191.20
Total ₱ 3,816,567.20
Less:
Withdrawals 0
HAREJAP
70
Year 2023
Add:
Total ₱ 4,967,772.86
Less:
Withdrawals 0
HAREJAP
Year 2024

Add:
Total ₱ 6,232,734.67
Less:
Withdrawals 0
71
HAREJAP
Balance Sheet
Year 2020
ASSETS
Current Assets
₱
Cash 1,572,848.00
Supplies 24,000.00
₱
Non-Current Assets
Equipment 50,000.00
Accumulated
Depreciation-Equipment 10,000.00 40,000.00
Kiosk 120,000.00
Accumulated
Depreciation-Kiosk 24,000.00 96,000.00
Franchise 96,000.00 96,000.00

Total Non-Current
Assets 232,000.00
Total Assets ₱
72
1,828,848.00
LIABILITIES
Current Liabilities
Accounts Payable 0
₱
Total Non-Current
Liabilities: 0
Total Liabilities -
EQUITY
HAREJAP, Capital End of
the Year 1,828,848.00
Equity 1,828,848.00
HAREJAP
Balance Sheet
Year 2021
ASSETS
Current Assets
₱
Cash 2,574,376.00
Supplies 24,000.00
₱
Non-Current Assets
Equipment 50,000.00
Equipment 20,000.00 30,000.00
Kiosk 120,000.00
Franchise 72,000.00 72,000.00
73
₱
LIABILITIES
Current Liabilities
Accounts Payable 0
₱
Total Liabilities -
EQUITY
Year 2,772,376.00
HAREJAP
Balance Sheet
Year 2022
ASSETS
Current Assets
₱
Cash 3,676,567.60
Supplies 24,000.00
₱
Non-Current Assets
Equipment 50,000.00
Equipment 30,000.00 20,000.00
Kiosk 120,000.00
74
Franchise 48,000.00 48,000.00

₱
LIABILITIES
Current Liabilities
Accounts Payable 0
₱
Total Liabilities -
EQUITY
Year 3,816,567.20
HAREJAP
Balance Sheet
Year 2023
ASSETS
Current Assets
₱
Cash 4,885,772.86
Supplies 24,000.00
₱
Non-Current Assets
75
Equipment 50,000.00
Equipment 40,000.00 10,000.00
Kiosk 120,000.00
Franchise 24,000.00 24,000.00

₱
LIABILITIES
Current Liabilities
Accounts Payable 0
₱
Total Liabilities -
EQUITY
Year 4,967,772.86
HAREJAP
Balance Sheet
Year 2024
ASSETS
Current Assets
76
₱
Cash 6,208,734.67
Supplies 24,000.00
₱
Non-Current Assets
Equipment 50,000.00
Equipment 50,000.00 -
Kiosk 120,000.00
Accumulated Depreciation-Kiosk 120,000.00 -
Franchise - -
Total Non-Current Assets -

₱
LIABILITIES
Current Liabilities
Accounts Payable 0
₱
Total Liabilities -
EQUITY
Year 6,232,734.67
77
HAREJAP
Statement of Cash flows
Year 2020
Cash Inflows
HAREJAP Investment ₱ 1,000,000.00
Revenue 1,800,000.00
Total Cash Inflows ₱ 2,800,000.00
Cash Outflows
Franchise ₱ 120,000.00
Acquisition of Equipment 50,000.00
Acquisition of Kiosk 120,000.00
Supplies 240,000.00
Marketing Expense (Opening) 20,000.00
Total Cash Outflows ₱ 1,227,152.00
Net Cashflows ₱ 1,572,848.00
HAREJAP
Statement of Cash Flows
Year 2021
Cash Inflows
Cash received from customers 1,908,000.00
Cash Outflows
Purchase of supplies 222,480.00
Cash paid for advertising 10,000.00
Cash paid for utilities 123,600.00
Cash paid to employees 373,152.00
Cash paid for royalties 57,240.00
Cash paid for rent 120,000.00
Total Cash Outflows ₱ 906,472.00
Cash beginning ₱ 1,572,848.00
Ending Cash Balance ₱ 2,574,376.00
HAREJAP
78
Year 2022
Cash Inflows
Cash Outflows
Cash Beginning ₱ 2,574,376.00
HAREJAP
Year 2023
Cash Inflows
Cash Outflows
Cash Balance ₱ 3,676,567.60
HAREJAP
79
Year 2024
Cash Inflows
Cash Outflows
Cash beginning ₱ 4,885,772.86
Financial YEAR YEAR YEAR YEAR YEAR Industry Interpretations

Ratios 1 2 3 4 5 Average
80
Liquidity
Ratios:
The entity does not have any
Current current liabilities.
Ratio N/A N/A N/A N/A N/A N/A
Quick/Acid current liabilities.
Test Ratio N/A N/A N/A N/A N/A N/A
current liabilities.
Cash Ratio N/A N/A N/A N/A N/A N/A
Activity
Ratios:
The entity does not have
Inventory merchandise inventory.
Turnover N/A N/A N/A N/A N/A N/A
The entity does not have
Average Age merchandise inventory.
of Inventory N/A N/A N/A N/A N/A N/A
The entity increases its sales per
Average day and for the past operations it
Sales per 4931.5 5227.4 5541.0 5873.5 6225.9 averages a 5,559.87 sales per day.
Day 1 0 4 0 1 5559.87
The entity's average daily purchase
amount to 735 per day during its
five years of operation and it is a
Average good indicator that the entity is
Purchases 1123.2 doing well.
per Day 9 609.53 627.82 646.65 666.05 734.67
Debt Ratio N/A N/A N/A N/A N/A N/A The entity does not have any current liab
The entity does not have cost of
Gross Profit goods sold.
Margin N/A N/A N/A N/A N/A N/A
The entity's operating profit margin
is enough to meet costs incurred for
Operating the five year period. An average of
Profit 51% of sales remains after cost
Margin 0.46 0.49 0.52 0.54 0.56 0.51 were deducted.
The entity earns an average of 30
pesos in every peso of asset, this is
a good indication of the
Return on effectiveness of their management.
Asset 0.45 0.34 0.27 0.23 0.20 0.30
81
82
V. LEGAL ASPECT
A. Business Structure
HAREJAP is an unincorporated business held by single owner that has a limited

liability status and since it is owned by one business owner, it has minimum legal
restriction and personally liable for all debts and action of the company. HAREJAP as a
result they are placing the assets at risk, and they could seize to satisfy a business debt or
a legal claimed filled against the HAREJAP.
Figure 9. Business Structure
83
B. Contracts, License, Trademarks
This agreement entered into this business by the franchisee of

HAREJAP Company is to establish the relationship between the two parties with regard
to the franchisee owning and operating a franchise of the company.
This agreement is entered into (DATE). In cooperation of two parties agree to the
following conditions:
Section 1: The Agreement
1.1. The franchisee has the right to use the mark and licensed method in connection
with establishment and operation of a HAREJAP franchise. The franchisor grants a
chosen location to the franchisee at Muñoz. This location is not currently set up to be
a franchise of the company.
1.2. This agreement between the franchisee and the company begins on the day of the
signing of this contract, and last until 5 years, it is renewable after the term. As part of
this agreement, franchisee will have the name of the franchise and only products
authorized by HAREJAP can only be used by the franchisee.
1.3. The franchisee will only have exclusive territory and it will not allow to open
another franchised unit within the same area where the same unit of franchise is
operating.
Section 2. Payment
The franchisee is required to pay for the royalty fee based on the revenue. This is
where the HAREJAP company grants the franchisee the right to own and operate this
franchise.
Section 3. Franchisee Responsibilities
The franchisee must follow the rules and regulation of his franchisor.
Franchisee mu8st communicate to her franchisor.
84
The franchisee is also responsible for managing their business and ensuring its
growth.
Section 4. Company Responsibilities
The company must provide support to their franchisee.
The company also have to provide the needs of their franchisee.
And the company will also support the operation of his franchisee to develop and
monitor the business system.
Section 5. Advertising
The company must provide advertising budget for promoting the franchised
business on the local and national levels.
Section 6. Rights
The trademark and any copyright belonging to the business will remain as the
property of the owners. Franchisee has the right to use the trademarks and copyright for
the purposes of advertising and promotion.
Section 7. Selling or Transferring of Franchise
The company must need to have customers and/or prospective customers. But the
condition depends on the contract on how, and when to sell the unit. Franchisee may also
sell or transfer the franchise with the consent of the HAREJAP company.
Section 8. Renewal and Termination
This franchise agreement is up for renewal on (DATE). Both parties must agree to
renew the contract and the new contract will be drafted and signed by both parties. But if
the franchisees request to terminate the agreement, it is free for the franchisees part to do
85
so. Also the company has the right to withdraw the franchisee’s rights from the franchise
at any time if Franchisee fails to comply with the company standards.
Section 9. Severability and Jurisdiction
Invalidity of one or more provisions of the agreement shall not affect any other
provision of this agreement. The franchise such as the company has a right to collect
certain tolls or a tax.
Franchise Agreement
Franchising agreement are generally prepared and written by attorneys who seek
to maximize the franchisor’s position. Almost without exception the written agreement
will place the franchisor in the economic and legal position.
 The write agreement generally maximizes the franchisor’s right which will also
maximize the franchisee’s rights under the state contract law or the uniform
commercial code.
 The franchisor grants the franchisee the rights to use the franchisor’s system and
proprietary makes to operate a franchised business.
 The agreement may be limited to a particular location and also restrict the
franchisor from locating another business nearby.
 The agreement should specify the franchise fee that may include a fixed initial fee
as well as monthly royalty payment.
 Franchisee should understand the term of agreement and provisions for renewing
the agreement as well as any restrictions on transferring the franchise.
 An attorney need to be knowledgeable about franchising and the needs of a small
business can provide great assistance in the negotiating process.
 An accountant experienced in franchising can point out financial obligations of
the franchise that will be taken by signing the agreement.
86
Franchisee-Franchisor Conditions
Franchisor
 The franchisor must train the franchisee to run the business according to its
standard.
 The franchisor will generally assist the franchisee during the start-up period.
 And the franchisor will also provide ongoing support and assistance to the
franchisee.
Franchisee
 The franchisee will buy the product from the franchisor.

 The franchisee must pay the franchisor an initial franchise fee.
 The franchisee will provide all the capital required for opening the business and
assume full financial and operational responsibility for running the business.
C. Types and Cost of Insurance
General Liability Insurance: Every business, even if home-based, needs to have

liability insurance. The policy provides both defense and damages if you, your employees
or your products or services cause or are alleged to have caused Bodily Injury or Property
Damage to a third party.
Property Insurance: If you own your building or have business personal

property, including office equipment, computers, inventory or tools you should consider
purchasing a policy that will protect you if you have a fire, vandalism, theft, smoke
damage etc. You may also want to consider business interruption/loss of earning
insurance as part of the policy to protect your earnings if the business is unable to
operate. For a premium of 1,200 pesos, your property can be insured for 1,000,000 pesos.
87
Business owner’s policy (BOP): A business owner policy packages all required
coverage a business owner would need. Often, BOP’s will include business interruption
insurance, property insurance, vehicle coverage, and crime insurance . Based on your
company’s specific needs, you can alter what is included in a BOP. Typically, a business
owner will save money by choosing a BOP because the bundle of services often costs
less than the total cost of all the individual coverage’s.
Commercial Auto Insurance: Commercial auto insurance protects a company’s

vehicles. You can protect vehicles that carry employees, products or equipment. With
commercial auto insurance you can insure your work cars, SUVs, vans and trucks from
damage and collisions.
Worker’s Compensation: Worker’s compensation provides insurance to

employees who are injured on the job. This type of insurance provides wage replacement
and medical benefits to those who are injured while working. In exchange for these
benefits, the employee gives up his rights to sue his employer for the incident. As a
business owner, it is very important to have worker’s compensation insurance because it
protects yourself and your company from legal complications. State laws will vary, but
all require you to have workers compensation if you have W2 employees. W-2 is paid
through their employer's payroll and has their payroll taxes withheld throughout the year.
Penalties for non-compliance can be very stiff.
Professional Liability Insurance: this type of insurance is also known as Errors and
Omissions Insurance. The policy provides defense and damages for failure to or
improperly rendering professional services. Your general liability policy does not provide
this protection, so it is important to understand the difference. Professional liability
insurance is applicable for any professional firm including lawyers, accountants,
consultants, notaries, real estate agents, insurance agents, hair salons and technology
providers to name a few.. PROMOTED
Directors and Officers Insurance: this type of insurance protects the directors
and officers of a company against their actions that affect the profitability or operations
88
of the company. If a director or officer of your company, as a direct result of their actions
on the job, finds him or herself in a legal situation, this type of insurance can cover costs
or damages lost as a result of a lawsuit.
Data Breach: If the business stores sensitive or non-public information about

employees or clients on their computers, servers or in paper files they are responsible for
protecting that information. If a breach occurs either electronically or from a paper file a
Data Breach policy will provide protection against the loss.
D. Disclosure Documents
The disclosure document for licensing and offer of franchise for HAREJAP
Company that specializes in a single system of creating own that can be ate by any
person. It can be a good companion while eating even you are single or with group of
friends.
Provision for Termination
A franchise agreement is a contract between the franchisor and the franchisee.

You should read it carefully and make a note of the termination clause, which species
when, how, and by whom the agreement may be terminated. It should also contain
language governing what each party can and cannot do after termination. Some
agreements are quite complex, and you would be well-advised to consult with a business
attorney before signing it. State law may apply as well. Most prevent termination except
for “good cause” which is denned by each state. Without a material breach of contract or
other problem, most franchises terminate at the expiration of the contract, or if the
franchisee declines to renew the franchise option if either is specied.
Termination Clause In A Franchise Agreement

Typically a termination clause contains statements for either party to do the
following:
89
Suspend performance under the agreement when there is a “material breach” of contract
by the other party.
Terminate the agreement when a material breach has occurred and not been
resolved within a reasonable time after a demand for resolution has been made.
A material breach occurs when a party does not comply with a provision of the
contract which then dismantles the value of the contract or deprives one of the parties of
the benet of it.
A franchisor can terminate the agreement if a franchisee:

 Is convicted of a crime
 Loses a necessary license or lease
 Fails to pay royalties
 Fails to correct defaults after notice
 Goes bankrupt or becomes insolvent
 Fails to follow franchisor requirements regarding location and appearance
 Fails to comply with required business operations
 Operational Defaults – where a franchisee fails to meet standards and comply
with terms of the franchise agreement or operations manual.
 Competing with the Franchise System – where a franchisee obtains an interest in
a competing franchise system or otherwise competes with a franchisor’s franchise
system in violation of the franchise agreement’s terms.
 Unapproved Transfer– where a franchisee transfers its rights in the franchise or in
the franchisee entity to another party without approval from the franchisor.
 Performance and/or Quota Defaults – where a franchisee fails to meet quotas or
performance standards.
 Failure to Devote Best Efforts – where a franchisee fails to devote substantial
full-time efforts to the franchise.
 Violation of Law – where a franchisee violates local, state or federal law.
 Repeated Defaults – where a franchisee has committed a prescribed number of
defaults within a defined time period.
90
 Material Misrepresentation – where a franchisee made a material
misrepresentation or omitted a material fact in the information furnished to the
franchisor in connection with its decision to enter into an agreement with the
franchisee
 Adverse Impact on Goodwill of the Brand - where the franchisee’s conduct casts
the brand in an unfavorable light.
A franchisee can terminate the agreement if a franchisor:

 Fails to provide training and support as stipulated in the contract
 Commits fraud or misrepresents the potential prots
 Fails to protect the franchisee’s business opportunity or territory
 Goes bankrupt or becomes insolvent
Completion of the Contract

A contract is essentially terminated once the obligations outlined in the contract
are completed. Parties should keep documentation showing that they fulfilled their
contract duties. Documentation is helpful if the other party tries to later dispute the
fulfillment of your contract obligations. A court of law will require proof of contract
fulfillment if a dispute occurs.
There are no specific laws governing franchising in the Philippines. Franchise agreements
are regulated by the applicable provisions of the:
 Intellectual Property Code (IPC).
 Civil Code.
 Corporation Code.
 Relevant special laws.
IPC
Sections 87 and 88 of the IPC list prohibited and mandatory provisions of
technology transfer agreements, including franchise agreements. Failure to conform to
91
these provisions (that is, the inclusion of prohibited provisions or the exclusion of
mandatory provisions in a franchise agreement) will render the agreement unenforceable.
Sections 87 and 88 of the IPC are intended to prevent unfair competition and trade. The
prohibited provisions are deemed prima facie to have an adverse effect on competition
and trade.
Civil Code
The Civil Code contains the general law on contracts and human relations.
Franchise agreements are considered to be ordinary contracts. Therefore, franchise
agreements are subject to the general provisions of the Civil Code governing obligations
and contracts. For example, when offering a franchise, a franchisor must observe honesty
and good faith. Additionally, offers are only deemed accepted if they are accepted
unconditionally. Contracts between a franchisor and franchisee are also subject to the
rules on interpretation of contracts.
Actions for remedies for breach, damages or recovery relating to franchise agreements
are treated as regular civil actions.
Corporation Code
The Corporation Code sets out the requirements for registering a business in the
Philippines. Before it can conduct trade or business in the Philippines, a foreign
corporation must apply to the Securities and Exchange Commission (SEC) for a licence
to transact business in the Philippines.
92
VI. Appendicess
A. Headquarter’s Layout
Figure 10. Headquarters Layout
B. Kiosk Layout
Figure 11. Kiosk Layout
93
94

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Executive Summary

The opportunity to grow and to be successful business in downtown of San Jose is

The HAREJAP is a business enterprise where being passionate in giving services

 To be one of the leading franchise business in the region.

B. Type of the Business

The type of business is partnership. The partnership type of business is compose of

Table 1. Key Personnel for Franchisor

 Maintaining and revising the  Experience in

 Recommending new policies,  Experience in

Operations  Provide inspired leadership  Bachelor’s

 Ensure safe and efficient  Excellent

Marketing  Manage the marketing  Bachelor

 Reconciling reports to third- principles.

party records such as bank  High school

 Designing and assessing teaching

training programs. position.

 Recommend and display  Dynamic,

 Welcome and greet eager to build

 Manage point-of-sale and expand

 Keep up to date with product  Aptitude for

information. developing and

 Accurately describe product implementing

features and benefits. business

Security Guard  Patrol commercial premises  High school

Driver  Loading, transporting, and  A valid driver's

Delivery  Assisting with Navigation  High school

E. Key Personnel for Franchisee

Table 2. Key Personnel for Franchisee

Dishwasher  Taking out the trash and  High School

F. Start-up Schedule and Competition

H. Funds use Statements

A. Major Marketing Objectives

B. Major Marketing Goals

C. Market Plan and Pricing Strategy

Next is the number of business establishments and competitors.

The first thing to be accomplished in recruiting plan is to attract the prospective

E. Franchisee Application Form

FRANCHISE APPLICANTS PERSONAL PARTICULARS

CURRENT BUSINESS EXPERIENCE

Describe any training in sales, management and retail:

Figure 2. Franchise applicants personal particulars

PREVIOUS BUSINESS EXPERIENCE

Figure 4. Franchisee Prospectus

H. Franchisee Sales And Advertising

 The site is accessible to target students demographics

J. Grand Opening Plan

HAREJAP is a food that was made by the franchisor. The franchisee

Customer Advertising Plan

HAREJAP advertising includes:

 Fliers – advertising posters are a common print promotional technique used by

Figure 7. Organizational Chart of the Franchisor

It consists of the organizational chart of the franchisor’s headquarter which

A Finance Manager distributes the financial resources of a company, is

 Collecting, interpreting and reviewing financial information.

A bookkeeper is an accounting professional primarily responsible for maintaining

Duties and Responsibilities:

 Recording transactions such as income and outgoings, and posting them to

Human Resource Manager

Duties and Responsibilities:

 Implementing and revising a business’s compensation program

Training and Development Officer

 Conduct job evaluationsurvey.

Duties and Responsibilities