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Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
Hlc franchise business plan (for franchisee)
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Hlc franchise business plan (for franchisee)

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  • 1. Franchise Business Plan Submitted by:
  • 2. Happy Learning Centre Franchise Business Plan Page 1 Contents EXECUTIVE SUMMARY .................................................................................................................... 3 OVERALL BUSINESS SYSTEM ........................................................................................................... 5 Center Set-up Phase.................................................................................................................... 5 Ongoing Revenue Generation Source......................................................................................... 5 Operational Expenses ................................................................................................................. 5 Marketing Expenses .................................................................................................................... 6 IMPLICATION FOR FRANCHISEE OFFERING .................................................................................... 7 FRANCHISEE PROFILE FOR HAPPY LEARNING CENTRE ................................................................... 8 FRANCHISING STRATEGY FOR HAPPY LEARNING CENTRE .............................................................. 9 FRANCHISE TERMS ...................................................................................................................... 9 FRANCHISE AGREEMENT ............................................................................................................ 9 REVENUE AND EXPENSES SHARING .......................................................................................... 10 FRANCHISOR-FRANCHISEE RELATIONSHIP ................................................................................... 11 UNIT FRANCHISEE’S OBLIGATIONS ........................................................................................... 11 FRANCHISOR OBLIGATIONS ...................................................................................................... 11 FRANCHISE SUPPORT MECHANISM .............................................................................................. 12 PRE-OPENING FRANCHISE SUPPORT .................................................................................... 12 POST OPENING FRANCHISE SUPPORT .................................................................................. 12 MARKETING PROGRAMS .............................................................................................................. 13 LOCAL ADVERTISING ............................................................................................................. 13 COOPERATIVE ADVERTISING ................................................................................................ 13 SUPPORT PROGRAMS ................................................................................................................... 14 INITIAL INVESTMENT..................................................................................................................... 15 ESTIMATED INVESTMENT & PROJECTIONS: HOME BASED .......................................................... 16 KEY HIGHLIGHTS ........................................................................................................................ 16 UNIT FRANCHISEE INCOME STATEMENT ...................................................................................... 17
  • 3. Happy Learning Centre Franchise Business Plan Page 2 ESTIMATED INVESTMENT & PROJECTIONS: STAND-ALONE FRANCHISE ...................................... 18 KEY HIGHLIGHTS ........................................................................................................................ 18 UNIT FRANCHISEE INCOME STATEMENT ...................................................................................... 19 DISCLAIMER................................................................................................................................... 20
  • 4. Happy Learning Centre Franchise Business Plan Page 3 EXECUTIVE SUMMARY The following business plan is prepared by Franchise India Consultants for the Client Business Entity ‘Happy Learning Education Trust’. The following are the highlights of the franchise business plan. The Company: Happy Learning Center is a home based K12 and higher study tutorial institute. It helps children to increase the mental strength by several innovative ways. It is the most highly rated tutorials were people come from 15 km distance to study. Every teacher can teach 4 kids per batch for 1.5 hours and 0.5 hours is for Meditation and Goal Visualization and Food break, i.e. 2 hours per batch timing. Happy Learning Center is now looking at expanding its operations in India and is keen on opening franchise units. The financial projections of the franchise units have been observed in the present report. Franchisee Profiling  High ability means less amount of value addition required in current set of skills/facility to run the franchise  Experience in Education & Training Industry  Sound Financial Bandwidth  Property at the Desired Location  Supervisory Involvement in the Daily Operations  Giving franchise to a franchisee with the investment appetite and right property is important with low rentals. Franchise Fee:    Unit Franchise Fee for a home based format is INR 1 lakhs (Excluding Service Tax) and for standalone unit franchise fee is INR 1.5 lakhs (Excluding Service Tax). Franchising is also preferred individuals with experience in teaching and education training. Entrepreneurs meeting with the investment and space prerequisite. Roll-out:  Major cities Pan-India starting from Maharashtra and Central India
  • 5. Happy Learning Centre Franchise Business Plan Page 4  Business required very minimum area under home based and required 500 sq. ft. for standalone unit franchise for individual to start the franchise. Financial Details: Unit Franchise: Home based business Initial Investment: INR 2 - 3 lakhs approximately  Royalty of 15% of gross sales paid on a monthly basis  Include total of 1.5% central marketing fund contribution, wherein 1.5% would be contributed towards local marketing Unit Franchise: Standalone franchise format Initial Investment: INR 7 - 8 lakhs approximately  Royalty of 15% of gross sales paid on a monthly basis  Include total of 1.5% central marketing fund contribution, wherein 1.5% would be contributed towards local marketing
  • 6. Page 5 Happy Learning Centre Franchise Business Plan OVERALL BUSINESS SYSTEM Center Set-up Phase Unit Franchise    Launch & Pre-Opening Marketing Expenses Software & Licensing cost Training (Lodging & Boarding) Franchisor Ongoing Revenue Generation Source Unit Franchise will have following ongoing revenue sources:  Tuition fee collection through enrollment of students Operational Expenses The Unit Franchisee will bear the following operational expenses on a monthly basis:              Employee Cost Referral to Faculty Incentives to Full time Faculty Commission to Part Time Faculty Royalty to Franchisor Rent Electricity Cost of refreshments/gifts Communication Expenses (Tel + Internet) Printing & Stationery Quality Monitoring Charges Misc Expenses Marketing Expenses o Local marketing Overheads o Contribution to central marketing fund
  • 7. Happy Learning Centre Franchise Business Plan Page 6 Marketing Expenses The Franchisee will contribute to the Local and Central Marketing. The Franchisee will spend a 3% of gross sales towards marketing on Monthly basis, out of which 1.5% will be on Local Marketing against which franchisee will be producing the bill and 1.5% of gross sales will be contributed towards central marketing.
  • 8. Happy Learning Centre Franchise Business Plan Page 7 IMPLICATION FOR FRANCHISEE OFFERING Higher Returns Higher returns in short run will be an attractive proposition against the initial investment risk. Longevity Longevity of the business is important for a franchisee to put in such investment. It is advisable to have the term of franchise agreement for a longer period which will bring stability in the business and franchisee will also focus on long term goals. Training Program The staff at franchisee Center needs to be adequately trained by a team of professionals from ‘Happy Learning Centre’ about all the micro and macro aspects of the operations. Investment Disbursement Being a strong concept in franchising & strong regional presence, the credibility attached to ‘Happy Learning Centre’ brand which is substantially good will attracts the investors. As per the market size; expected sales; a marketing strategy will be framed, which will excite the franchisee to outlay the investment.
  • 9. Happy Learning Centre Franchise Business Plan Page 8 FRANCHISEE PROFILE FOR HAPPY LEARNING CENTRE On the basis of the business concept and format and ratings on the above criteria, following characteristics are recommended for a franchisee of ‘Happy Learning Centre’:       Investment capacity - Entrepreneurs meeting with the investment and space prerequisite. Ability to run the business - Franchisees with commitment to efficient service & longterm association. Experience in education and training industry - Individuals with a teaching and training background are ideal. Ability to manage faculty - Conversant with the training, daily administration and staff management Network strength- An expansive local network. Passion for education- Should be excited about imparting education. Although there may be a number of viable franchisee profiles, Management believes that it should try to attract franchisees that meet the following competency criteria:           Believes in people and capable of motivating team. High personal standards: discipline, excellence, honesty, integrity, etc. Able to meet initial investment requirements. Speed of response and ready to service any time. Aggressive and Action oriented. Strives for excellence. Quick to learn and very quick to implement new learning. Process/Systems oriented. Knows how to manage productivity. Knows how to make profit and where to focus to get it.
  • 10. Happy Learning Centre Franchise Business Plan Page 9 FRANCHISING STRATEGY FOR HAPPY LEARNING CENTRE FRANCHISE TERMS  Non-Exclusive area rights according to agreement  Initial unit franchise Fee for a Stand-alone format of 500 sq. ft. is INR 1, 50,000 (Excluding Service Tax) and INR 1, 00,000 (Excluding Service Tax) for home based.  Initial setting up of the franchise owned center will be coordinated and assisted by Franchisor.  Franchisor will provide initial training to the respective staff.  Franchisor will provide assistance in running the center  Franchisee will monitor/supervise the business on regular basis by keeping a check on local team and smooth coordination with the Franchisor.  Business will be run under the brand name of ‘Happy Learning Centre’  Sourcing of manpower will be entire responsibility of the franchisee. However Franchisor will assist in recruitment and selection. The charges will be applicable in the entire process.  All employees shall be on rolls of the Franchisee and their salaries shall be payable by the franchisee FRANCHISE AGREEMENT  The franchise agreement of ‘Happy Learning Centre’ will include the UNIT franchisees across the complete roll out plan. A property of minimum 500 sq. ft. area will be required for a stand-alone format.  The agreement term is suggested to be of at least 3+3 years with an option for further renewal, subject to mutual agreement of both the parties.  Royalty fee will be paid to the franchisor by franchisee on gross sale, which is 15%
  • 11. Happy Learning Centre Franchise Business Plan Page 10 REVENUE AND EXPENSES SHARING  Unit Franchise Fee: INR 100,000, as per area required, and for rights & obligation of opening one home based and INR 150,000 stand-alone center (Excluding Service Tax)  Local Marketing Expenses: Local marketing expenses will be a monthly contribution of a percentage of sales borne by the franchisee, which will be 1.5% of gross sales.  Central Marketing Fund: Franchise will contribute 1.5% of gross sales towards central marketing fund which will be paid on a monthly basis.  Royalty Fee: Franchisee will give 15% of gross sale to franchiser as royalty fees.
  • 12. Happy Learning Centre Franchise Business Plan Page 11 FRANCHISOR-FRANCHISEE RELATIONSHIP UNIT FRANCHISEE’S OBLIGATIONS  Franchise set up cost investment.  Payment of initial unit franchise Fee for a Stand-alone format of 500 sq. ft. is INR 1, 50,000 (Excluding Service Tax) and INR 1, 00,000 (Excluding Service Tax) for home based.  Center site selection.  Franchisee will work as a core investor who will be providing the property at an appropriate location and will do the Initial Investment  Quality Control  Overall supervisory control including feedback, quality control, timely sales reporting FRANCHISOR OBLIGATIONS         Site Approval. Fit-outs of the center. Providing the equipment needed at the center for Business Operations Proper maintenance of books and accounts. Training programs on a regular basis for Franchisee staff. Creation and installation of Marketing material, POS etc. All national level promotional activities and events. Providing printed material like Brochures, Pamphlets and Flex Banners on cost basis Franchisee will operate and manage the business to make sure that the successful business formulae and systems get implemented at the franchisee end to run it on profit. Franchisor will take care of quality of teaching to be delivered at franchisee end by property audit & training.
  • 13. Happy Learning Centre Franchise Business Plan Page 12 FRANCHISE SUPPORT MECHANISM ‘Happy Learning Centre’ will manage the business to make sure that the successful business formulae and systems get implemented at the franchisee end to run it on profit. PRE-OPENING FRANCHISE SUPPORT      Comprehensive turn-key assistance from set-up to start operations. Layout and design; architectural support. Pre-opening purchasing assistance. Assistance in organizing of launch promo. The process starts with the location and identification of a suitable site that meets our stringent criteria (the location, exposure, and access of a ‘Happy Learning Centre’ center). The company can help in providing following assistance to its franchisees during the period:  Locating a suitable site for the center.  Negotiation of suitable terms and organizing for lease.  Organizing of all necessary regulatory approvals. POST OPENING FRANCHISE SUPPORT  Advertising & local promotion  Operational Management: Daily operations and Administrative advices  Frequent official visits, advices on local promotions programs etc.  Marketing Ideas structured to suit a location.  PR support: Regular PR coverage at national, regional as well as town level. Centralized Brand Building through all media - Print, Outdoor, Web, Retail, and Electronic.
  • 14. Happy Learning Centre Franchise Business Plan Page 13 MARKETING PROGRAMS LOCAL ADVERTISING The Franchisor will provide local promotional support in association with Franchisee to spread awareness in the given geography, which will be on a cost basis. COOPERATIVE ADVERTISING If two or more franchisees are established in a common market, the Franchisor will adjust the manner in which local advertising money spent to make combined advertising expenditures more effective. In this situation, the Franchisor may require all or part of the local advertising expenditures to be used as cooperative advertising in that individual market.
  • 15. Happy Learning Centre Franchise Business Plan Page 14 SUPPORT PROGRAMS The Franchisor will incorporate a formalized mechanism for ensuring smooth and structured operations among franchisees that will be monitored and implemented by franchise development manager. In addition to management of Franchise center, members of the Franchisor organization will provide the services listed below. The Franchisor must assign a specific person to cover each of these support areas (one person can be assigned to more than one task). The Franchisor has the responsibility to assign a person/people to each task during the development of the franchise program.  Operational Management -- The Franchisor will assist in the Franchise center operations, including unit operations and maintenance, efficient student training and administrative procedures.  Accounting/Audit/Legal -- Reporting directly to administration, this department is responsible for the financial and legal oversight of franchisees.  Internal Support -- The functional areas of franchisee communications, and research and development are typically included in such a department.  Overall Program Oversight -- The Franchisor will provide the overall coordination and planning for the system.
  • 16. Happy Learning Centre Franchise Business Plan Page 15 INITIAL INVESTMENT Management has provided Franchise India with financial information for an average ‘Happy Learning Centre’ unit. It represents the range of the initial investment for a new franchise and is a required item in the Disclosure Document. It shows the potential franchise buyer what it will cost to open the business. The range represents the potential variations in rental and other expenses in each area. The expense items are pre-opening start-up expenses and do not represent any ongoing expenses unless identified otherwise. These results are based on the following assumptions:  Real Estate/Rent: The franchisee will typically be required to pay three to nine (can vary based on location) months' rent as a security deposit.  Centre Furnishing/Improvement: Although some of these items may be leased, the estimate represents the actual purchase price.  Equipment and Misc Items: The range of costs represents the cost involved in purchase against all equipment’s for the franchisee center.  Marketing: Initial marketing expense in the neighborhood area and in the city will be conducted and an initial launch of the franchise center will be conducted by the franchisee.
  • 17. Happy Learning Centre Franchise Business Plan Page 16 ESTIMATED INVESTMENT & PROJECTIONS: HOME BASED Franchise set up cost ELEMENTS Centre Furnishing / Improvement etc. Signage (Int/ext) Sub-Total Equipments & misc items Laptops Projector Printer/Scanner/Fax CCTV Sound System Communication equipments & Internet Connection Misc (display boards, stationery etc.) Sub-Total Total capital investment Launch & Pre-Opening Marketing Expenses Software & Licensing cost Training (Lodging & Boarding) Total Financial Requirement for Setup Franchise Fee Service Tax (12.36%) TOTAL PROJECT COST INR. 15,000 15,000 40,000 25,000 5,000 70,000 85,000 20,000 10,000 15,000 130,000 100,000 12,360 242,000 KEY HIGHLIGHTS    Minimum initial Investment: Approximately around INR 2-3 lakhs for an center (Including Franchisee Fee) Average ROI of Ist year for minimum investment: Around 375% - 425% Pay Back Period: 0.3 years
  • 18. Page 17 Happy Learning Centre Franchise Business Plan UNIT FRANCHISEE INCOME STATEMENT Year 1 Year 2 Year 3 Year 4 Year 5 3,233,320 3,880,000 4,656,000 5,587,000 6,704,000 162,000 194,000 233,000 279,000 335,000 161,666 970,000 485,000 30,000 162,000 36,000 24,000 115,000 36,000 194,000 1,164,000 582,000 30,000 194,000 36,000 24,000 138,000 36,000 232,800 1,397,000 698,000 30,000 233,000 36,000 24,000 166,000 36,000 279,350 1,676,000 838,000 30,000 279,000 36,000 24,000 199,000 36,000 335,200 2,011,000 1,006,000 30,000 335,000 36,000 24,000 239,000 36,000 48,000 48,000 2,278,000 70% 955,320 8,500 947,000 29% 242,000 391% 0.3 58,000 58,000 2,708,000 70% 1,172,000 8,500 1,164,000 30% 70,000 70,000 3,226,000 69% 1,430,000 8,500 1,422,000 31% 84,000 84,000 3,844,000 69% 1,743,000 8,500 1,735,000 31% 101,000 101,000 4,589,000 68% 2,115,000 8,500 2,107,000 31% 481% 588% 717% 871% Income projections Franchisee's revenue Expenses Cost of Educational Kit Delivered Cost of Operations Employee Cost Referral Commission to Faculty Incentives to Full time Faculty Commission to Part Time Faculty Royalty to Franchisor Electricity Cost of refreshments/gifts Communication Expenses (Tel + Internet) Printing & Stationery Quality Monitoring Charges Misc Expenses Marketing Expenses Local marketing Overheads Contribution to central marketing fund Total Expenses % of Gross Receipts PBDIT Depreciation PBIT PBT Margin (%) Project Cost ROI (%) Payback
  • 19. Happy Learning Centre Franchise Business Plan Page 18 ESTIMATED INVESTMENT & PROJECTIONS: STAND-ALONE FRANCHISE Franchise set up cost ELEMENTS Total Area Centre Furnishing / Improvement etc. Furniture / Fixtures / wood work Signage (Int/ext) Sub-Total 500 INR. 250,000 25,000 275,000 Equipments & misc items Laptops Projector Printer/Scanner/Fax CCTV Sound System Communication equipments & Internet Connection LCD Misc (display boards, stationery etc.) Sub-Total 5,000 45,000 15,000 205,000 Total capital investment 480,000 Launch & Pre-Opening Marketing Expenses Software & Licensing cost Training (Lodging & Boarding) Total Financial Requirement for Setup Franchise Fee Service Tax (12.36%) TOTAL PROJECT COST 50,000 10,000 25,000 565,000 150,000 18,540 734,000 35,000 40,000 20,000 25,000 20,000 KEY HIGHLIGHTS    Minimum initial Investment: Approximately around INR 7-8 lakhs for an center (Including Franchisee Fee) Average ROI of Ist year for minimum investment: Around 50-60% Pay Back Period: 1.4 years
  • 20. Page 19 Happy Learning Centre Franchise Business Plan UNIT FRANCHISEE INCOME STATEMENT Year 1 Year 2 Year 3 Year 4 Year 5 4,093,645 4,912,000 5,894,000 7,073,000 8,488,000 205,000 246,000 295,000 354,000 424,000 642,000 204,682 307,000 511,500 614,000 480,000 30,000 205,000 36,000 24,000 142,000 36,000 902,000 245,600 368,500 614,000 737,000 480,000 30,000 246,000 36,000 24,000 170,000 36,000 990,000 294,700 442,000 737,000 884,000 480,000 30,000 295,000 36,000 24,000 204,000 36,000 1,087,000 353,650 530,500 884,000 1,061,000 480,000 30,000 354,000 36,000 24,000 245,000 36,000 1,193,000 424,400 636,500 1,061,000 1,273,000 480,000 30,000 424,000 36,000 24,000 294,000 36,000 61,000 61,000 3,559,000 87% 534,645 48,000 487,000 12% 734,000 66% 1.4 74,000 74,000 4,283,000 87% 629,000 48,000 581,000 12% 88,000 88,000 4,924,000 84% 970,000 48,000 922,000 16% 106,000 106,000 5,687,000 80% 1,386,000 48,000 1,338,000 19% 127,000 127,000 6,590,000 78% 1,898,000 48,000 1,850,000 22% 79% 126% 182% 252% Income projections Franchisee's revenue Expenses Cost of Educational Kit Delivered Cost of Operations Employee Cost Referral to Faculty Incentives to Full time Faculty Commission to Part Time Faculty Royalty to Franchisor Rent Electricity Cost of refreshments/gifts Communication Expenses (Tel + Internet) Printing & Stationery Quality Monitoring Charges Misc Expenses Marketing Expenses Local marketing Overheads Contribution to central marketing fund Total Expenses % of Gross Receipts PBDIT Depreciation PBIT PBT Margin (%) Project Cost ROI (%) Payback
  • 21. Happy Learning Centre Franchise Business Plan Page 20 DISCLAIMER This report is not to be used in conjunction with the actual sale of franchises. The profit and loss pro forma contained in this report reflects revenue and expense assumptions provided by Management. Franchise India has made no attempt to verify the accuracy of figures provided by Management, and has not verified the financial statements of any operating units upon which the assumptions are based. Sales targets for selling franchises were derived from discussions between Franchise India staff and Management, and assumptions regarding franchise development costs have been set accordingly. The text and financial pro forma contained herein are intended to be used exclusively by Management and its associates for internal discussion and planning. THE PLANS, MATERIALS, AND CONSULTING ADVICE PROVIDED HEREIN HAVE BEEN PREPARED BASED ON FRANCHISE INDIA'S EXPERIENCE AND THE INFORMATION AVAILABLE TO US. HOWEVER, BECAUSE THE SUCCESS OF A FRANCHISE PROGRAM DEPENDS UPON A VARIETY OF FACTORS OUTSIDE FRANCHISE INDIA'S CONTROL, FRANCHISE INDIA CANNOT AND DOES NOT WARRANT THE SUCCESS OF ANY SUCH PROGRAM OR ANY OF THE PROJECTIONS OR FORECASTS PROVIDED BY FRANCHISE INDIA CONTAINED HEREIN.

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