International Business Plan

1. Jennifer Lyon
Spanish River DECA Chapter
Spanish River Community High School
5100 Jog Road, Boca Raton, Florida 33496
April 24, 2016
“While the quantity and quality of China’s food supply is one of the country’s most
pressing problems, it also presents one of the biggest profit-making opportunities for
companies and investors alike.” –Forbes

2. I. EXECUTIVE SUMMARY …………………………………………………………………………….
II. ANALYSIS OF THE INTERNATIONAL BUSINESS SITUATION ………………………
A. Economic, political and legal analysis of the trading country …………
B. Trade area and cultural analysis ………………………………………………….
III. PROBLEM …………………………………………………………………………………………….
IV. CUSTOMER SEGMENTS ………………………………………………………………………..
V. UNIQUE VALUE PROPOSITION ………………………………………………………………..
VI. SOLUTION …………………………………………………………………………………………….
VII. CHANNELS ………………………………………………………………………………………….
VIII. REVENUE STREAMS …………………………………………………………………………….
A. What is the revenue model? …………………………………………………..……
B. What are the lifetime values? ……………………………………………………..
C. What is the revenue? …………………………………………………………………..
D. What is the gross margin? ……………………………………………………..……
IX. COST STRUCTURE …………………………………………………………………………………
A. What are the customer acquisition costs? ……………………………………
B. What are the distribution costs? ……………………………………………..……
C. What are the human resources costs? ………………………………………….
D. Additional costs? ……………………………………………………………………..…
X. DETAILED FINANCIALS ……………………………………………………………………………
A. Projected income statements by month ……………………………….……….
B. Projected cash flow for the first year ………………………..……………………
C. Projected cash flow by month for the first year’s operation ……………
D. Projected balance sheet, end of first year ……………….……………………
E. Projected three-year plan …………………………………………….………………
F. Planned growth of the proposed business ……………………………………
G. Proposed plan to meet capital needs …………………………………………
XI. KEY METRICS ……………………………………………………
XII. COMPETITIVE ADVANTAGE ………………………………
XIII. CONCLUSION …………………………………………………
XIV. BIBLIOGRAPHY …………………………………………….
Table of Contents
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3. 1
I. EXECUTIVE SUMMARY
Introduction
Founded in February of 2011, Burgerfi puts an innovative twist on a typical American
burger joint. Burgerfi is one of the fastest-growing restaurant chains in America, with a
178 percent increase in sales from 2013. With over 70 new locations in the past five
years, they have won the approval of millions of U.S. citizens. However, their success has
been limited to just that, for they have yet to cross international boundaries- until now.
About the company
John Rosatti opened the first Burgerfi franchise in Delray Beach, Florida as a result of his
dissatisfaction with the fast food industry. He decided to start his own company that
would completely redefine fast food by creating a burger from free-roaming cattle without
hormones, antibiotics, or any inhumane practices. The result was both natural and
delicious, and Burgerfi was born.
Target market
The Burgerfi menu caters to all markets- men and women, young and elderly, vegetarians
and meat-lovers, tourists and local residents. This is because consumers have the ability
to customize their orders however they choose.
Why China?
With over one billion residents, China is the future of the global economy. However, for a
country with so much economic power, they are drowning in pollution due to
unsustainable practices. As a developing country, they also face many issues with
producing safe and sanitary food. Because of Burgerfi’s natural practices and its ability to
create low-wage jobs, not only would this business help China, but China would also help
Burgerfi by opening it up to an entire new economy of consumers.
What makes it unique: A burger joint with a twist
When customers enter the doors, they are surrounded by a variety of recycled materials
molded into a modern restaurant. Burgerfi up-cycles Coca-Cola bottles into chairs and
transforms milk jugs and wood pallets into tables- but this is just the beginning. All of
their food supplies are kept fresh and are never frozen or reheated. In fact, Burgerfi
refuses to stock their kitchen with a single freezer, microwave, or heat lamp. It starts with
100% natural ingredients and stays that way until it is on a customer’s plate.
About China
As the most populated country on the planet, China is a vital trading nation, with the most
rapidly growing consumer market and greatest purchasing power. It is a Communist party
state led by the People’s Republic of China. This franchise will be located in the Beijing
Oriental Plaza, which is one of the largest commercial complexes in Asia.

4. 2
II. ANALYSIS OF THE INTERNATIONAL BUSINESS SITUATION
A. Economic, political and legal analysis of the trading country
1. Describe the trading country’s economic system
As the most populated country on the planet, China is a vital trading nation, with the
most rapidly growing consumer market and greatest purchasing power. The official currency
of the People’s Republic of China is the Chinese Yuan Renminibi, which is currently equal to
$0.15 of the American dollar. They have a GDP of $13.4 trillion, and their unemployment
rate of 4.1% is even lower than that of the United States.
With the largest manufacturing economy across the globe, China exports more goods
each year than any other country. Since the late 1900s, this nation has transitioned from a
centralized economic system to one with more economic freedom and private sector
businesses. As they shift from an agriculture-based market to one with more industry and
service jobs, they have gotten much more involved in international exchange through
involvement in treaties and trade organizations. They now have established free trade
agreements with several nations, including Switzerland, Australia, South Korea, and
Pakistan. Chinese consumers are anxious to invest in western markets and take advantage
of economic opportunities in developed nations, and therefore make the perfect target for
American business growth. In terms of China’s relationship with the United States, this
includes purchasing from American companies, producing and exporting American goods,
and franchising successful American businesses in their home country.
In 2014, the FDI (Foreign Direct Investment) in China was $120 billion(U.S.). Of this,
$66 billion(U.S.) came from tertiary sector businesses, which is a 7.8% increase in this
sector from the previous year. Since the 1990s, China’s government has permitted foreign
investors to manufacture and sell a wide range of goods on the domestic market, abolished

5. 3
time restrictions of joint ventures, provided some assurances against nationalization,
allowed foreign partners to become chairs of joint venture boards and allowed the
establishment of foreign owned enterprises, now the preferred form on FDI.
2. Describe the trading country’s governmental structure and stability
China is a Communist party state led by the People’s Republic of China. Their
government can be broken down into the executive, legislative, and judicial branches, as
well as the central military commission. The President of the People’s Republic, an office
that is currently held by Xi Jinping, is the Chairman of the Central Military Commission. Some
of his powers include the ability to implement laws, declare a state of emergency, issue
state honors, and grant presidential pardons.
Beijing is the capital of the People’s Republic, and it is also a central hub for culture,
tourism, and communications. It is one of China’s three municipalities that are controlled by
the national government, versus the surrounding province. Each district within the
municipality has its own mayor and multiple bureaus to handle smaller, local affairs. Beijing
is one of the country’s most industrialized cities and has played an important role in the
country’s development for hundreds of years. After being secluded from trade with the
outside world for so long, China now accounts for roughly 19% of American imports.
3. Describe laws and/or governmental agencies that affect your business
Chinese labor laws include:
• Employees of at least 10 years are entitled to protection from being dismissed
without cause
• Employers are required to contribute to employees’ social security accounts
• Targets domestic companies that do not have labor contracts
• Employees must follow work rules and environmental, health, and safety regulations

6. 4
China holds specific standards for products that are imported, and they must be sent
with a trade description and all of the proper labeling. In 2000, the United States and China
became PTNR (Permanent Normal Trade Relations), which allowed American access to
China’s market when China joined the WTO (World Trade Organization). China has the
world’s second largest economy, behind only the United States. Many world leaders describe
trade between these two countries as the century’s most important bilateral trade
relationship in the world.
B. Trade area and cultural analysis
1. Geographic and demographic information
China has a land area of over 3,600,000 square
miles and a population of more than 1.4 billion people.
Beijing is located in northeastern China and is characterized
by humid, hot summers and dry, cold winters.
The official language in China is Mandarin; with the Beijing dialect this is referred to
as Putonghua. 92% of residents are Han Chinese, with other Asian ethnicities making up the
majority of the others. There are over 50 remaining ethnic groups but the most common are
the Zhuang, Manchu, Hui, Miao, Ugur, Yi, Mongolian, Tibetan, Buyi, and Korean. Although
this country is established as atheist, some other religions include Buddhist, Taoist, Muslim,
and Christian.
2. Market segment analysis target market
The city of Beijing has over 12 million residents. The population is growing at a rate of
8.32%, with a 4.92% birth rate and a 3.40% death rate. Our target market would consist of
both male and female customers of any age. The middle class in China is defined by an
income ranging from $10,000-$60,000 and makes up of 60% of the country’s total
Figure 1

7. 5
population. Because Burgerfi’s products are more expensive than an average fast food
restaurant, we will target the middle and upper class citizens.
So far, the majority of American companies that have expanded to China have been
very successful, as these people are hungry to adapt to Western culture and be more
exposed to American products. We will follow in the footsteps of businesses such as
McDonalds and Starbucks, who have already integrated into this market.
3. Analysis of the potential location
For this Burgerfi franchise, a series of trading documents will be required. First, we would
need a Bill of Exchange/Draft. This is a demand for payment drawn by the seller on the
payee. We would also need a Commercial Invoice, which would include:
• Seller’s name and address
• Buyer’s name and address
• Issue date
• Invoice date
• Shipping marks and numbers
Figure 2: Beijing Population
Pyramid

8. 6
• Terms of sale
• Shipping information
• L/C (Letter of Credit) information
• Country of origin
• L/C number
• Merchandise description
We would also need a Consular Invoice for exchange control and balance of
payments to provide evidence that the shipment meets certain statutory or other
regulations, and Insurance Policy or Certificate because every sale should be covered by
insurance in case a complication occurs, a Certificate of Origin that must be signed and an
Inspection Certificate where an independent firm would conduct the inspection to ensure
that the merchandise conforms to the buyer’s criteria.
This franchise will be located in the Beijing Oriental Plaza, which is one of the largest
commercial complexes in Asia. This shopping complex draws attention from both locals and
tourists and consists of six individual mall centers. By placing this franchise here, we will
have access to a large group of our target market. Because it will be adjacent to a shopping
center, we will be more likely to attract people with high disposable incomes.
III. PROBLEM
Flaws in the food industry
Far too many companies are hiding behind processed meats and manufactured
foods that have negative effects on the human body. The food industry is getting further and
further away from “real” food – that is, organic, naturally-grown products with no secret
ingredients. Many restaurants use GMOs and stuff their foods with trans fats. Factory farms
have unsanitary practices and torture animals. In many cases, cattle are treated inhumanely
Figure 3: Beijing Oriental Plaza

9. 7
and forced to live in harsh conditions that lead to premature deaths. Also, the majority of
cows raised through commercialized agriculture are genetically manipulated to grow larger
and produce more milk than they should naturally. As a result, the dairy produced is of very
poor quality; in just one case in 2008 over 300,000 people became ill from consuming
tainted milk. A recent issue includes the use of ammonia-treated “pink slime” in beef, which
includes low-grade meat trimmings and beef by-products such as connective tissue.
China frequently faces global scrutiny regarding their issues with food safety. There
have been many reported cases of businesses serving expired foods and using harsh
pesticides and additives that could harm consumers. In October of 2007, the People’s
Republic of China passed new regulations on food sales, processing, and production.
However, there are still many foods produced with unhealthy amounts of preservatives and
chemicals, and meats that are manufactured in cruel and unsanitary manners.
Despite these hidden issues, China’s meat consumption is rapidly increasing.
According to Forbes, this country today is producing over triple the amount of meat that they
were in 1986. As secrets in Chinese food processing are revealed and people begin to take
note of the importance of a meat and protein-filled diet, experts predict that by 2050, this
country will import over $150 billion in meat every year. The U.S. Department of Agriculture’s
Economic Research Service released an estimated 40% predicted rise in global corn trade
due to China alone. They also predict that this country will be the world’s largest importer of
corn within less than ten years.
The current unsafe meats available and an overall shortage of essential proteins in
China force the residents to reap the negative health effects of nutrient-poor diets. Birth
defects in children in developing countries are increasing at alarming rates. One defect in
particular includes the spiking number of patients born with actual holes in their hearts.

10. 8
These are known as an Atrial Septal Defect (ASD), or a Ventricular Septal Defect. To obtain
more information on the causes and effects of congenial defects, I contacted Karin
Carrington, who is the managing director of a charity called Heart 2 Heart. She has lived in
Shanghai for twelve years and is the retired Asian Territory President of First Data Corp.
Today, she devotes her time to fundraising for this organization, which raises money to fund
surgeries which repair these defects and give the children a chance at life. Because
Carrington frequently visits the United States for fundraising opportunities, I was able to
meet her and inquire about these issues, as well as business in China as a whole.
Unequal Opportunities
Although there are significant problems with the meat produced and consumed in
China, many people do not even get to that point because they cannot afford to eat such a
“luxury.” Hundreds of millions of Chinese citizens suffer from poverty. Everywhere you go,
there is a struggling lower class looking for minimum wage jobs to sustain themselves and
their families. Poverty can be defined as the number of people living on less than one dollar
and twenty-five cents per day. By bringing a developed company to a developing area, we
can help to influence the jobs in this country as they shift from an agricultural to an
industrialized and service-based nation.
In addition to facing poverty, many people across the globe also face discrimination
based on gender, race, etc. Sometimes without even realizing it, employers and major
corporations expand the wealth gap even further by discriminating based on things such as
social class, which will only set the country back from its Communist goals of having equally
distributed wealth.

11. 9
Pollution & Waste
In today’s society, we as a population
are using up more resources than we can
replenish. As a result, natural resources are
depleted, air is polluted, and ecosystems are
destroyed. The largest culprits are the major
corporations wasting essential energy
sources and thousands of tons of paper, oil, metals, etc.
China is the most polluted country in the world, with highly concentrated particulate
matter in the air, as they do not exercise sufficient control over their emissions. Pollution
levels are measured by calculating the amount of PM2.5 in the air, which includes particles
up to 2.5 micrometers in size. Air pollution is monitored by the World Health Organization,
which classifies many Chinese cities as exceeding the maximum amount of PM2.5 that can
be present for healthy living. Some of the cities with dangerously high levels include Beijing,
Shanghai, Guangzhou, and Xi’an. This country burns roughly half of the world’s coal supply,
which emits toxic gases into the air, causing deadly air pollution, acid rain, and smog. Every
year in China, approximately 500,000 people die from air pollution. Pictured in Figure 4, a
child walks with a breathing mask to avoid suffocating on the thick air.
Over 70% of China’s energy is produced from coal, but because it is a non-renewable
natural resource, these practices are only temporary. With increasing technological
advances and a growing population, extraction of natural resources is occurring at alarming
rates. Eventually natural resources will run out and there will be nothing left for future
generations.
Figure 4

12. 10
IV. CUSTOMER SEGMENTS
Because of Burgerfi’s natural and sustainable practices, they spend much more on
ingredients than the average burger joint, and therefore appeal more to the middle class.
Their burgers, which are sold for six to seven dollars, are priced fairly as to not scare off low-
income consumers, while still making a reasonable profit. Burgerfi addresses the limits to
their market by offering “Vegefi” burgers for vegetarians, as well as juicy burgers for those
hungry meat-lovers. As a result, these franchises have been very successful in the United
States and would likely make a smooth transition to this nation.
This company appeals to people of all ages. Young people with great concern for the
environment are attracted to the company for its sustainable practices and high-quality
ingredients. We will market to this young demographic by advertising on popular social
media websites, such as Instagram, Twitter, Snapchat, and Pinterest. On the other hand, it
also appeals to middle-aged adults who grew up loving fast foods and can now indulge
without feeling guilty. We will advertise to this age group through newspaper and magazine
ads, as well as websites that adults commonly use, such as Facebook and LinkedIn.
However, Burgerfi is not limited to a young crowd. The elderly are now facing the
consequences of their emissions and have seen the smog build up in their country over
time. The bottom line is: pollution affects everyone, regardless of age, gender, or wealth.
Therefore, sustainable companies will benefit the entire population and the potential for
customers is endless.
V. UNIQUE VALUE PROPOSITION
What makes Burgerfi so popular is that it does not taste like a regular burger. It
tastes better, and it is better. Because Burgerfi cares about current issues, their customers
can be people who care about the environment, care about themselves, or simply want a

13. 11
really great burger. Consumers looking to try out similar competitors will not find the same
fresh, juicy beef and creamy custard for significantly fewer calories anywhere else. This
company is very passionate about what goes into their food and how it is prepared, which is
apparent with just one bite.
VI. SOLUTION
The food: This meat is never a mystery.
John Rosatti opened the first Burgerfi franchise in Delray Beach, Florida as a result of
his dissatisfaction with the fast food industry. With recent discoveries of unsafe products
found in many processed meats, he decided to start his own
company that would completely redefine fast food. Rosatti
created a burger from free-roaming cattle without hormones,
antibiotics, or any inhumane practices. The result was both
natural and delicious, and Burgerfi was born.
All of their food supplies are kept fresh and are never frozen or reheated. In fact,
Burgerfi refuses to stock their kitchen with a single freezer, microwave, or heat lamp. It
starts with 100% natural ingredients and stays that way until it is on a customer’s plate.
The people: Burgerfi cares.
This company makes it their mission to treat employees fairly, ensure customer
satisfaction, and give back to local communities. Whether they are customers, employees or
members of the community, everyone will be treated well by Burgerfi. Bringing this business
“While the quantity and quality of China’s food supply is one of the country’s most
pressing problems, it also presents one of the biggest profit-making opportunities for
companies and investors alike.” –Forbes
Figure 5

14. 12
to China will create low-skill jobs for those who cannot afford an education. Also, as Burgerfi
rapidly expands, they hire mostly from within and provide entrepreneurial career
opportunities for those interested. Bringing an American company here can inspire
entrepreneurs to open their own franchises, develop sustainable companies, or get a job in
the food industry.
Everywhere they go, Burgerfi gives back to the local community. In Beijing, this
company will work with and donate to local charities. When hiring, they never discriminate
based on race, gender, or any other irrelevant demographic. This company values equal
opportunity and can have an impact on this constantly changing and developing nation. They
also ensure that all customers are treated well and given exactly what they want. For
customers’ convenience, Burgerfi distributes pagers to be placed on the table of the
consumer’s choice, and then delivers their food to that exact location. They use advanced
technology to provide the best possible service and experience.
Sustainability: Is it just a coincidence that their company color is green?
With over one billion residents, China is the future of the global economy. However,
for a country with so much potential, their procedures can be very flawed. Sucking up non-
renewable resources that will then be gone forever is a function of companies concerned
with the present. Burgerfi, however, values Corporate Social Responsibility (CSR), which
states that a company makes it their obligation to handle the effects of their operations. This
can include things such as controlling the waste they produce, using less energy, and
reducing their carbon footprint.
When customers enter the doors, they are surrounded by a variety of recycled
materials molded into a modern restaurant. Everything is made of material that used to be
something else- sustainability in its purest form. Burgerfi up-cycles Coca-Cola bottles into

15. 13
chairs and transforms milk jugs and wood pallets into tables- but this is just the beginning.
They follow a recycling program to eliminate waste and take as little from the planet as
possible. In fact, they even have fans that use 66% less energy than one normally would.
Each recycled light fixture is equipped with eco-friendly LED light bulbs, and the food is
served on a recycled metal tray with cups made from recycled corn.
When creating this restaurant, Rosatti ensured that they would not waste new
materials when they could easily create a beautiful restaurant from used supplies and some
low-VOC paint. VOCs are Volatile Organic Compounds that are released into the air as paint
dries, but can be eliminated by using pigments that release fewer solvents and protect the
ozone. Since the onset of this company, they have successfully used over 160,000 milk jugs
and more than 43,000 Coke bottles that could have otherwise gone to waste.
VII. CHANNELS
The channel of distribution shows the intermediaries a product passes through until
it reaches the consumer. A typical channel of distribution starts with the producer who
manufactures the products, which are then sold to a wholesaler, who distributes products to
the retailers, who then sell to consumers. In the case of Burgerfi, their beef is sourced
directly from cattle ranches that follow the standards this company upholds. The supplies
will be ordered from Burgerfi companies in the United States and shipped to China. Because
many of the ingredients are perishable, they will need to be refrigerated throughout
transportation. Paper supplies such as the cups, napkins, and straws will be made in China,
saving money on labor and shipping of the goods.
VIII. REVENUE STREAMS
A. What is the revenue model?
Because the only existing burger restaurants in China are McDonalds, it would be

16. 14
better to model the revenue stream after a more similar company in America. McDonalds
has a different revenue model than Burgerfi, with much less expensive food and cheaper
supplies. Shake Shack is a higher-end burger company that sells hamburgers,
cheeseburgers, veggie burgers, French fries, milkshakes, etc. This company would make a
prime restaurant to model our revenue after.
B. What are the lifetime values?
Lifetime values enable a business to predict future profits that will result from
current, long-term relationships with customers. They can be calculated to make predictions
based off of the average order value and repeat purchase rate. Due to our planned
promotions and quality customer service, I predict that over 50% of customers after the first
year will be repeat customers or customers who plan to return in the future.
C. What is the revenue?
Revenue is the amount of money being earned by the business, before subtracting
expenses. Our main source of revenue will come from the sale of food products. The total
revenue for the first year of business is $491,915, or $40,993 per month.
D. What is the gross margin?
The gross profit margin is the revenue after subtracting cost of goods sold, divided by
revenue and expressed as a percentage. Because the total revenue for the first year is
$491, 915 and the cost of sold goods for the first year totals to $117,538, the gross profit
for the 2017-2018 fiscal year is $374,377. This divided by the revenue equals a 76.1%
gross profit margin.
IX. COST STRUCTURE
A. What are the customer acquisition costs?
The customer acquisition costs include the costs of advertising this new franchise to

17. 15
our target market, in order to acquire consumers. We will advertise this restaurant through
social media, giveaways, flyers, and special events. Social media websites to be used
include Facebook, Instagram, Twitter, Snapchat, and LinkedIn. All of the print media, which
includes flyers, coupons, menus, brochures, and other paper advertisements, totals to
$1,200 for the first year of operation. We will also hold a grand opening event, where the
first 40 customers will receive a free burger on us; this will total to roughly $270. Throughout
the year to ensure customer loyalty, we will give an automatic 15% discount to any customer
who turns in a receipt from a previous purchase at this location. This will create repeat
business by encouraging customers to save money by eating here, versus somewhere else.
Lastly, we will pay for monthly advertisements in the Beijing News newspaper. At $70 per
ad, this totals to $840. The total cost of promotions is $2,310(per year).
B. What are the distribution costs?
Distribution costs refer to the costs of transporting goods from the producer and
distributing them to consumers. The cost of transporting food supplies from the United
States to China totals to $20,346 per year.
C. What are the human resources costs?
Expenses associated with employees of the business or organization are referred to
as human resources costs. Human resources costs include employee wages, which total to
$107,124 each year, payroll tax for $15,240, worker’s compensation insurance for $3,612,
and health and insurance for $3,768. In total for one year of operations, the human
resources costs are $129,743.
D. Additional costs?
Additional costs will include a royalty fee of 5.5% of gross sales and an advertising
fee of 1.5% of gross sales that must be paid to the Burgerfi Company.

18. 16
X. DETAILED FINANCIALS
A. Projected income statements by month
Burgers $24,997
Beverages $8,277
Sides $4,250
Desserts $3,467
Revenue $40,992
Total Net Revenue $40,992
Meat $4,667
Packaging $1,103
Eggs & Bread $2,319
Vegetables $295
Other Supplies $1,409
Cost of Sold Goods $9,794
Employee Wages $8,927
Payroll Tax $1,270
Worker’s Comp Insurance $301
Health & Insurance $314
Labor Costs $10,811
Electric/Gas $493
Telephone & DSL $460
Utilities $954
Software & Hardware $401
Credit Card Fees $227
Contract Services $119
Loan Payments $1,582
Other Operating Costs $2,329
Cleaning Supplies $145
Promotions $192
Rent $3,947
Ovens & Cookers $607
Common Area Maintenance $858
Transportation Costs $1,695
Controllable Costs $7,445
Total Operating Expenses $31,336
Net Income Before Taxes $9,656
Figure 6: Monthly Income Statement

19. 17
B. Projected cash flow for the first year
Cash flow refers to the amount of cash moving into and out of the business. This is
used to determine a company’s liquidity, which can help predict whether the business will be
able to remain solvent.
Cash Receipts from:
Sales to Customers $491,915
Total Cash Receipts from
Operating Activities
$491,915
Cash Payments for:
Cost of Sold Goods $117,538
Labor costs $129,743
Utilities $11,459
Other Operating Costs $27,959
Controllable Costs $89,341
Total Cash Payments for
Operating Activities
$376,040
Net Cash Flows from
Operating Activities
$115,875
C. Projected cash flow by month for the first year’s operation
Cash Inflows Cash Outflows Net Cash Flow
January $40,992 $31,336 $9,656
February $40,792 $31,136 $9,456
March $41,092 $31,436 $9,756
April $40,937 $31,281 $9,601
May $40,767 $31,111 $9,431
June $41,067 $31,411 $9,731
July $41,325 $31,669 $9,989
August $41,056 $31,400 $9,720
September $40,802 $31,146 $9,466
October $40,880 $31,224 $9,544
November $41,072 $31,416 $9,736
December $41,122 $31,466 $9,786
Figure 7: Cash Flows from Operating Activities
Figure 8

20. 18
D. Projected balance sheet, end of first year
Assets
American
Dollar
Chinese
Yuan
Liabilities and
Owners’ Equity
American
Dollar
Chinese
Yuan
Cash $85,000 560094.75 Notes Payable $192,500 1268449.88
Accounts Receivable $1,500 9884.02
Accounts
Payable
$4,200 27675.27
Inventory $4,000 26357.40 Total Liabilities $196,700 1296125.15
Total Current Assets $90,500 596336.17
Property & Equipment Owners’ Equity
Supplies $5,000 32946.75
Retained
Earnings
$39,080 257511.80
Furniture & Fixtures $60,000 395361.00
Total Owners’
Equity
$39,080 $257511.80
Equipment $95,000 625988.25
Total Property &
Equipment
$160,000 1054296.00
Less Accumulated
Depreciation & Amort.
$14,720 96995.23
Net Property &
Equipment
$145,280 957300.77
Total Assets $235,780 1553636.94
Total Liabilities
& Equity
$235,780 1553636.94
E. Projected three-year plan
F. A brief narrative description of the planned growth of the proposed business, including
financial resources and needs
The chart in Figure 10 shows the projected income for the first three years of
2017-2018 2018-2019 2019-2020
Revenue $491,915 $516,511 $542,336
Total Net Revenue $491,915 $516,511 $542,336
Cost of Goods Sold $117,538 $123,415 $129,586
Labor Costs $129,743 $136,230 $143,042
Utilities $11,459 $12,032 $12,634
Other Operating Costs $10,511 $11,037 $11,588
Controllable Costs $89,341 $93,808 $98,498
Total Operating Expenses $358,592 $376,522 $395,348
Net Income Before Taxes $133,323 $139,989 $146,989
Figure 9
Figure 10

21. 19
business. When the franchise is opened in 2017, the net income will total to $115,875, not
including taxes or royalty and advertising fees to the Burgerfi Company. In the two years
following that, I predict that income will increase by 5% as we develop a loyal customer base
and word spreads about this new franchise.
G. Proposed plan to meet capital needs
In opening this franchise I will encounter a great number of start-up costs and
operational costs. Burgerfi charges a franchise fee of $37,500 to open a franchise. I will
also need to pay multiple start-up costs, including the cost of equipment ($95,000),
leasehold improvements ($138,000), furniture and fixtures ($60,000), and other additional
costs ($47,500). My initial investments total to $378,000, including the franchise fee. I will
also need to pay Burgerfi a royalty fee of 5.5% of gross sales and an advertising fee of 1.5%
of gross sales.
Of the $378,000, I would like to borrow $200,000 from an investor, and the rest will
come from personal savings. I hope to borrow at a 5% interest rate over a 15 year time
Franchisee's Initial Investments
Franchise Fee
Leasehold
Improvements
Equipment
Furniture & Fixtures
Additional Funds
Leasehold
Improvements
$138,000
37%
Equipment
$95,000
25%
Furniture & Fixtures
$60,000
16%
Additional
Funds
$47,500
13%
Franchise Fee
$37,500
9%
Figure 11

22. 20
period, but I will turn to a bank loan as a backup with a slightly higher interest rate,
The other costs, those associated with the daily and monthly operations of the
business, are displayed in the income statement in Figure 6 and will be paid for using
revenue from sales. When the franchise is opened in 2017, the net income will total to
$115,875, not including taxes or royalty and advertising fees to Burgerfi. In the two years
following that, I predict that income will increase by 5% as we develop a loyal customer base
and word spreads about this new franchise. Figure 11 contains the breakdown of start-up
costs payable to Burgerfi.
XI. KEY METRICS
In order to effectively measure the success of this new franchise, I will compare the
predicted income statement with the income statements at the end of the first year. For the
following years, I will measure growth by comparing sales from one year to the next. At the
end of the first fiscal year, I would also like to conduct a survey from 100 randomly sampled
customers. This survey will ask how the opening of this franchise has affected their buying
decisions, view on the environment, dining preferences, standards for food quality, and
more.
XII. COMPETITIVE ADVANTAGE
From unique Burgerfi sauce, which is created by gourmet chefs and takes over 40
minutes to prepare, to the naturally-grown, hormone-free angus beef, Burgerfi’s quality of
food, service, and atmosphere is nearly impossible to match. According to Rosatti, “It all
begins with selecting the very best beef possible for an unmistakable flavor difference.”
Many other American companies with similar menus, such as Shake Shack and Five Guys,
would not have the impact Burgerfi is capable of due to their sustainable and natural
practices.

23. 21
XIII. CONCLUSION
In conclusion not only would this business help China, but China would also help
Burgerfi by opening it up to an entire new economy of consumers. I am looking for a
$200,000 loan to cover the start-up costs. The loan will be paid for over a fifteen-year time
period with a 5% rate of interest and the rest will come from personal savings. My monthly
payments to the investor will be $1,582.
XIV. BIBLIOGRAPHY
• Burgerfi growth:
http://www.bizjournals.com/southflorida/news/2014/03/26/burgerfi-among-
fastest-growing-restaurants-in-the.html
• Burgerfi vs. Environment: http://burgerfi.com/our-story/#earth
• Founder of Burgerfi: http://johnrosatti.com/
• Burgerfi franchising: http://www.franchising.com/burgerfi/
• Burgerfi nutrition information: http://burgerfi.com/wp-
content/uploads/2015/03/BURGERFI_Nutritional_Information.pdf
• Pollution in Beijing:
http://www.nytimes.com/2007/08/26/world/asia/26china.html?pagewanted=all&_
r=0
• Burgerfi Franchising: http://burgerfi.com/franchise/#the-process
• China’s economy http://www.heritage.org/index/country/china
• Chinese economy: https://www.cia.gov/library/publications/the-world-
factbook/geos/ch.html
• Food issues in China: http://www.theepochtimes.com/n3/1473141-5-chinese-meat-
scandals-that-will-make-you-cringe/
• Forbes article: http://www.forbes.com/sites/jackperkowski/2014/09/25/chinas-
growing-food-problemopportunity/
• Chinese laws: http://www.lawinfochina.com/Legal/index.shtm
• Manager of Burgerfi franchise in Delray Beach, Florida
• Cambridge AICE textbook