Franchise Business Plan For Lenders

Sweet T Inc.
Franchise Business Plan for Lenders
Franchise: Orange Leaf
Owners:
Cory & Myra Thompson

2 | P a g e
Contents
Mission statement .....................................................................................................................3
Objectives..................................................................................................................................4
Funding Requirments.................................................................................................................6
Company Overview....................................................................................................................7
Industry Analysis Summary: Frozen Yogurt stores in the us .......................................................8
Current peformance ..................................................................................................................8
Market outlook..........................................................................................................................8
Market trends: changing consumer preferences .......................................................................8
Segmentation.............................................................................................................................9
Target Market............................................................................................................................9
Local Demographics: Buckeye, Arizona....................................................................................10
Market Share ...........................................................................................................................11
Local Competitive Analysis.......................................................................................................12
Competitive Advantages..........................................................................................................12
Barriers to Entry.......................................................................................................................13
Keys to Success........................................................................................................................13
SWOT Analysis .........................................................................................................................13
Branding and Marketing ..........................................................................................................14
Objectives................................................................................................................................14
Campaigns ...............................................................................................................................14
Personnel.................................................................................................................................15
Organizational chart.................................................................................................................15
Staffing needs ..........................................................................................................................15
Sales Forecast ..........................................................................................................................16
Profit and Loss statement ........................................................................................................17
Cash Flow Statement ...............................................................................................................18
Projected Balance Sheet ..........................................................................................................19
Appendix: Monthly Financials ..................................................................................................20

3 | P a g e
MISSION STATEMENT
“Sweet T. Inc. believes healthy choices can be delicious. We delight customers with guilt-free frozen
yogurt treats. The Company provides top quality products and excellent service. Customer relationships, value
and integrity are the cornerstones of our values. We strive to continually improve our business partnerships to
maximize profitability for all parties involved.”

4 | P a g e
OBJECTIVES
The purpose of this plan is to provide lenders with the information necessary to evaluate the scope and future growth of
Sweet T Inc. in the market place. In addition to serving as a road map for management, the plan will show that:
1) A significant market opportunity exists when analyzing the current market demands and competitive landscape;
2) The management team in place is qualified to execute on a well-thought-out operational, marketing and sales strategy;
and
3) The correct capital structure will allow for a long lasting, profitable business.
Sweet T Inc.’s financial model shows consistent growth for the brand over the next 5 years. By year 5, plans call for the
Company to achieve $561K in annual gross revenue.
$340
$442
$486
$535
$561
$297
$386
$424
$467
$490
$31
$105
$137
$172
$191
-$6
$60
$88
$120
$139
-$100
$0
$100
$200
$300
$400
$500
$600
Year 1 Year 2 Year 3 Year 4 Year 5
Projected Operating Highlights By Year ($1,000's)
Revenue Gross Margin EBITDA Net Profit

5 | P a g e
EXECUTIVE SUMMARY
Sweet T. Inc. (also referred to as “the Company”) is seeking a $240K loan to open an Orange Leaf Frozen Yogurt Franchise
in the highly acclaimed Verrado & Main street community located in Buckeye, Arizona. The Franchisor has developed a
promising brand with over 300 profitable locations. The storefront is a 2,341 SF venue located on 21087 W. Main St and
ideally situated with high pedestrian foot traffic, an affluent demographic and no major frozen yogurt brand within a 15-
minute driving radius.
Market Size and outlook: The Company is entering the market at a time when the industry in which it operates is
experiencing considerable growth. Per market research firm IBISWorld, Frozen Yogurt store revenues will grow at an
impressive average annual rate of 18.2% to $1.9 billion over the five years to 2015. As the economy continues to improve,
revenue growth for the Frozen Yogurt Stores industry is likely to be robust over the five years to 2020. Consumer sentiment
is forecast to grow, supporting expected industry growth of 5.0% per year on average to $2.4 billion in 2020.
Business Model: The Orange leaf franchise plays in the self-serve yogurt market niche. This market segment accounts to
68.9% of the industry revenue. The Company sells self-serve yogurt at $0.49 / ounce. There are over 70 flavors and 3 sizes
available, small, medium and large. On average, Orange leaf is expected to charge on average $8 per cover. The
Franchisor charges a 4% advertising fee and 1% royalty fee based on gross sales. The Company will be open daily from
11:00am to 10:00pm.
Target Market: The primary target market for the products and services that are being offered by the Company will be
consumers 18 – 24: Consumers who are 18 to 24 make up the largest market segment, accounting for an estimated 24.4%
of the industry’s total sales. Consumers in this group are likely to indulge in sweet treats, leading to higher consumption of
frozen yogurt.
Local Demographics: Sweet T Inc.’s will be located on high foot traffic area known as Main Street at Verrado. Verrado is an
8,800 acre DMB master planned community located at the base of the White Tank Mountains There are approximately
70,000 residents living in a 15-minute driving radius and is only 30 miles away from downtown Phoenix. Over 15% of the
population is within the Company’s target market. The venue has ample access to street parking.
Marketing: Marketing will be done through a variety of mediums. The Company will automatically generate traffic from the
Franchisor’s website. Other marketing activities will include a local social media campaign, direct mailers and signage.
Competition and Competitive Advantages: Sweet T. Inch faces competition from other nearby Frozen Yogurt establishments,
with the most notable Yogurtime, Yo & I Frozen Yogurt, Twisted Cultures and Yogurtini. Despite a highly-competitive field,
The Company has a significant advantage over other businesses in the market as it is the only recognized national brand in
a 15-minute drive radius.
Management: Mr. Cory & Mrs. Myra Thompson are the principals of Sweet T. Inc. Mrs. Both individuals are seasoned
business professional who is well connected and attuned to the needs of his targeted market. Their work ethic and business
acumen will be the key drivers that propel this venture towards lasting success.
Financial Overview: The Company expects steady growth over the first five years of operation and projects the following
revenue to be generated:
Revenue $339,935 $441,916 $486,108 $534,718 $561,454
Covers 42,492 55,239 60,763 66,840 70,182
Earnings ($6,386) $59,544 $87,990 $120,430 $138,599

6 | P a g e
FUNDING REQUIRMENTS
To achieve the Company’s objectives, Sweet T Inc. is seeking $240,000 in debt financing. To adequately materialize the
venture, the Company will require $310,000 in capital. The owners will contribute the $70K balance. The funding will be
allocated in a variety of ways including staffing, franchise fees, construction and operations. The investment risk is minimal
based on the management experience and industry growth rates.
Expenses
Franchise Fees $15,000
Lease Deposit $3,698
Interior Decorating $15,000
Archtiect Fees $4,000
Training $200
Travel $1,500
Licences and Dues $4,000
Insurance $3,000
Professional Fees $2,000
Grand Opening Promotion $2,500
Total Start-up Expenses $50,898
Long-term Assets
Site Construction & FFE $189,000
Networking Eqiupment $3,500
POS $3,334
Total Long-Term Assets $195,834
Short-Term Assets
Working Capital $58,268
Inventory $5,000
Total Short-Term Assets $63,268
Total Expenses & Assets
Total Start-up Expenses $50,898
Total Start-up Assets $259,102
Total Funding Requirements $310,000
Use of Start-up Funding
Total Amount Being Requested $240,000
Total Funds Already Received $70,000
Total Funding $310,000
Bank Amount Being Requested $240,000
Total Amount Being Requested $240,000
Owner Contribution $70,000
Investor Contribution $0
Total Funding Already Received $70,000
Loss at Start-up (Start-up Expenses) ($50,898)
Total Funds Received & Requested $310,000
Cash Balance on Starting Date $63,268
Start-up Funding Already Received
Total Start-up Funding
Start-up Capital and Liabilities
New Start-up Funding Being Requested
Total Amount
Being
Requested,
$240,000
Total Funding
Already
Received,
$70,000
Total Funding
Total Start-up
Expenses,
$50,898
Total Start-up
Assets,
$259,102
Total Utilization

7 | P a g e
COMPANY OVERVIEW
Orange Leaf Frozen Yogurt is a self-serve, customizable frozen dessert franchise that’s rapidly expanding both in the U.S.
and abroad. Orange Leaf offers an array of flavors and toppings that are continually evolving. The yogurt is proprietary and
the company actively seeks insight into the ever- changing appetites of consumers through ongoing market research
programs. Orange Leaf delivers on current trends and starts many of their own including waffle cones, froyo cookie
sandwiches and frezzer-friendly to-go containers. Yogurt is prepared fresh daily in-store using a dehydrated yogurt base
and fat-free milk. There are over 70 flavors and Sweet T. Inc can pick the ones that appeal most to the local consumer base.
Franchisor support: Franchisees receive personalized assistance in such areas as site selection, lease negotiation,
construction, grand opening plans, and ongoing marketing and operations. Orange Leaf invests in social media, traditional
PR and thorough content plans to support franchisees’ local store marketing efforts and ensure their ultimate success.
Business Model: The Company sells self-serve yogurt at $0.49 / ounce. Orange Leaf prices are based on 1 ounce of weight.
The customer simply fills up their cup with any flavor of frozen yogurt they desire and as much as they want, and then their
cup is weighed in by the cashier. There are 3 sizes available, small, medium and large. On average, Orange leaf is expected
to charge on average $8 per cover.
Franchise Fees: The corporate entity charges franchisees a marketing fee of 4.0% and a franchise fee of 1.0%, in addition to
the average initial investment of $15,000. In return, franchisees receive assistance in store site selection, store construction
and design, product selection, employee training and marketing.
Ownership: The Orange Leaf Franchise will be operated by Sweet T Inc. The Comany is a C corporation. The principal
members are Cory and Myra Thompson.
Hours of Operation: The Company will be open daily from 11:00am – 10:00pm.

8 | P a g e
INDUSTRY ANALYSIS SUMMARY: FROZEN YOGURT STORES IN THE US
CURRENT PEFORMANCE 1
Operators in the Frozen Yogurt Stores industry were able to beat the economic freeze and grow strongly over the past
five years, as tart frozen yogurt became one of America’s favorite frozen desserts. The industry has remained resilient
even as other food segments faltered during the recession. IBISWorld estimates that industry revenue will grow at an
impressive average annual rate of 18.2% to $1.9 billion over the five years to 2015. Despite an increasingly saturated
market, the industry is expected to grow 3.9% in 2015, as some frozen yogurt franchises continue their aggressive
expansion plans and others that experience slowing franchise count growth will focus on increasing per establishment
revenue.
MARKET OUTLOOK
As the economy continues to improve, revenue growth for the Frozen Yogurt Stores industry is likely to be robust over the
five years to 2020. Consumer sentiment is forecast to grow, supporting expected industry growth of 5.0% per year on
average to $2.4 billion in 2020.
MARKET TRENDS: CHANGING CONSUMER PREFERENCES
Traditional frozen yogurt, which approximates ice cream in its sweet flavor, competes with tart frozen yogurt, which
tastes more like original cultured yogurt. Over the past five years, tart varieties have fared better than traditional ones.
The tart variety of yogurt, which has a slightly sour taste akin to that of traditional Greek-style yogurts, has been popular
since Pinkberry introduced the flavor in 2005. The increasing popularity of the dessert has enabled the rapid franchise
growth of well-known brands like Yogurtland, Red Mango and Menchie’s, which has made this industry one of the
foodservice sector’s biggest success stories of the past decade.
A HEALTH DRIVEN BOOM
Frozen yogurt is famous for its nutritional quality and has branded itself as ice cream’s leaner and more nutrient-rich
counterpart. Increasingly health-conscious Americans have opted to treat themselves with frozen yogurt rather than ice
cream In 2010, IBISWorld estimates that 1,274 locations existed in the United States; by the end of 2015, this figure is
expected to grow to 2,896, representing an average annual increase of 17.8%. The franchise model that many players in
the industry specialize in is responsible for this rapid expansion, as an army of entrepreneurs seeking a low-cost way into
the industry signed up for franchise agreements.
1
“Frozen Yogurt Stores in the U.S.” IBISWorld. 2016. Obtained at www.ibisworld.com.

9 | P a g e
SEGMENTATION
Self-serve yogurt: The Orange leaf franchise plays in the self-serve yogurt market niche. This market segment accounts to
68.9% of the industry revenue. Self-serve yogurt Unlike full-service stores that require employees to fulfill customers’
orders, self-serve stores give customers complete control over the quantity, flavors and toppings. Self-serve stores typically
have a row of yogurt stations that are preloaded with different flavors; customers then walk through the line and fill their
cups with as many flavors and toppings as they wish. The yogurt is then charged by weight at a price set by individual stores.
Self-serve stores have an advantage over full-service stores in that they can reduce wage costs. Because employees are not
required to take orders, fewer employees are needed per store and less training is involved. In addition, self-serve stores
cater to the rising do-it-yourself (DIY) trend, where consumers customize and personalize their orders. As such, self-serve
stores’ share of industry revenue has increased rapidly over the past five years to be the industry’s main product segment.
TARGET MARKET
Consumers 18 – 24: Consumers who are 18 to 24 make up the largest market segment, accounting for an estimated 24.4%
of the industry’s total sales. Consumers in this group are likely to indulge in sweet treats, leading to higher consumption of
frozen yogurt. Furthermore, a rising DIY trend within this group has boded well for the industry, with the emergence of self-
serve yogurt stores that allow consumers to customize their yogurt selections. This has also led to the high proportion of
purchases from consumers under the age of 18 with similar tastes to the age group directly above them.

10 | P a g e
LOCAL DEMOGRAPHICS: BUCKEYE, ARIZONA
Sweet T Inc.’s will be located on high foot traffic area known as Main Street at
Verrado. Verrado is an 8,800 acre DMB master planned community located at the
base of the White Tank Mountains. Verrado will have 14,000 residences at full build
out, and is entitled for 4.2M square feet of commercial space. With over 66 parks,
nationally recognized schools, top quality golf courses and recreation, Verrado is a
perfect fit for young, educated and affluent families.
Site Location: 21087 W Main St,
Buckeye, Arizona, 85396.
Retail Space: 2,341 SF
Features:
• Pedestrian friendly main street
• Highly educated affluent
community with award winning
schools
• Only a 30-mile drive to
downtown Phoenix
Demographics w/in 15-minute Drive:

11 | P a g e
MARKET SHARE
Orange Leaf is an Oklahoma City, OK-based frozen yogurt retailer. Established in 2008, the company now has over 300
stores. Orange Leaf has a self-serve format, allowing customers to personalize their frozen yogurt choices. The company
also follows a franchise business model much like the bulk of its competitors. Orange Leaf initially expanded in the Midwest
and South with most stores in Kansas, Texas, Missouri and Oklahoma, but has stayed away from the crowded California
market. The company has also expanded aggressively in the eastern states in recent years. The company also has a
Melbourne, Australia location, which it opened in December 2011. While each store is designed in a similar manner, the
company’s CEO encourages locations to tap into their local communities to make the customer experience unique. For
example, some stores feature murals of local landmarks on the walls to better fit into their communities. In 2014 and 2015,
the company has established partnerships with established consumer candy brands to develop new flavors, such as York
Peppermint Pattie, Ghirardelli Chocolate and Reese’s Peanut Butter Cup. Financial performance Much of Orange Leaf’s
success can be attributed to its rapid expansion. Since its inception in 2008, the company has opened over 300 stores, with
dozens more in the pipeline. In 2010, the company only had 43 locations. This has contributed to rapid growth of 59.0% per
year on average in the five years to 2015 to an estimated $152.5 million. The partnerships established with major consumer
candy brands have also helped boost sales for the company

12 | P a g e
LOCAL COMPETITIVE ANALYSIS
Sweet T Inc. is keenly aware that it must consistently analyze the competitive landscape to accelerate its position in the
marketplace. There are 4 frozen yogurt shops near the local vicinity of Buckeye, Arizona. None of the major industry players
are near a 15-minute drive radius.
Yogurtime:
Yelp Reviews: 2 stars, 14 reviews.
Yo & I Frozen Yogurt:
Yelp Reviews: 4.5 Stars, 152 reviews
Twisted Cultures Frozen Yougurt
Yelp Reviews: 3.5 Stars, 11 reviews
Yogurtini
Yelp Reviews: 4.5 stars, 39 reviews.
COMPETITIVE ADVANTAGES
What follows is a listing of the primary competitive advantages of the Company upon entering the market.
 Focus on an up and coming community where this a major gap in the market
 Leadership of the management team
 Commitment to outstanding customer service
 Great location with access to ample street parking
 High pedestrian traffic
 Branding of a large national brand
 Competitive pricing

13 | P a g e
BARRIERS TO ENTRY2
The Frozen Yogurt Stores industry has minimal barriers to entry, with low establishment costs and no formidable licensing
requirements. However, industry competition and market awareness can pose as a threat to potential entrants. Operators that plan
to enter this industry are not particularly constrained by the capital investment required to open a frozen yogurt store. Potential
operators seeking entry can lease premises and equipment, furniture and fittings, which lower initial capital costs, outlays and
borrowings considerably. Entry can also occur through signing a franchise agreement, where costs are relatively cheaper than other
food establishments. According to FRANdata, a research firm specializing in franchises, initial capital requirements cost about
$400,000 to open a frozen-dessert franchise.
KEYS TO SUCCESS3
Having a clear market position
Consumers should be able to clearly associate a brand with the product being sold.
Effective cost controls
Cost controls are important in this relatively low margin industry related to food inputs.
Being part of a franchising chain
Being part of a franchise with an established name and system can help operators when entering a competitive sector of
the industry, such as frozen yogurt retailing.
Product is sold at high profile outlets
It is important to have high profile locations for stores, with easy access and parking for customer convenience.
Production of premium goods
High-quality yogurt can demand a price premium, which reflects well in operators’ revenue and profit.
SWOT ANALYSIS
The following is a listing of the key strengths and weaknesses of Sweet T Inc., as well as the opportunities and threats that exist within
the marketplace.
Strengths Weaknesses
 High foot traffic area located on Main Street
 Access to parking
 Customer service commitment
 Commitment to security and cleanliness
 Near an affluent and growing community
 Company needs funding and working capital for
a successful launch
 As a new business, the Company must build its
credibility
Opportunities Threats
 Growth of the target market demographics
 Development of the local community
 Growth in the national market size
 Larger industry players can enter nearby
 Changing consumer preferences
2
IBID.
3
IBID

14 | P a g e
BRANDING AND MARKETING
Sweet T Inc. recognizes that maintaining a sterling, well-regarded brand is essential to propagating a strong standing
amongst consumers. Moving forward, Sweet T Inc. will strive to meet the following objectives as it accomplishes specific
keys to success:
OBJECTIVES
 Become a recognized frozen yogurt retailer in a 15-mile radius
 Develop a strong customer service model
 Ensure a clean, safe and friendly environment for people of all ages
CAMPAIGNS
Marketing for Sweet T Inc. will be done through the assistance of franchisors. Currently, Orange Leaf charges 4% of the
Company’s gross sales for advertising. The Company has the right to develop it’s own local marketing initiatives as well.
Below are the various campaigns Sweet T. Inc will execute.
Signage:
The Company will have a compelling sign that will attract pedestrian traffic. The Company’s brand will help drive customers
are already aware of the Orange leaf’s brand.
Social Media
Sweet T Inc. will allocate a budget to generate brand awareness and to manage its presence on social media sites, such as
Facebook and Twitter.
Integrated Brand Technology Platform ("IBTP")
The IBTP is a software technology stack that currently includes: access to, as it is developed, integrated point of sale
("POS"), digital menu boards, digital marketing boards, custom business facing mobile applications and the Orange Leaf
loyalty platform. The Company Will use this platform to generate local business.
Mailers:
From time to time, the Company will mail promotional print material to the Company’s target market. Mailers will be sent
to consumers within a 15 mile radius of the store.
Website:
A well-optimized web and mobile site with proper site structure, page layout, and clear and easy navigation, along with
targeted keywords embedded throughout the site has been constructed and will ensure proper search engine placement
and saturation. The Franchisor’s website will generate customers to the Company’s local store.

15 | P a g e
PERSONNEL
CORY THOMPSON - PRESIDENT
With more than two decades of operational and management experience, Mr. Thompson has developed a sharp eye for
how businesses get bloated with inefficiencies, cross-purposes and miscommunication — and how they can retool for a
sleeker, smoother, strategically focused organization. As an entrepreneur who quickly built his own successful consulting
business, Mr. Thompson is excited to launch his own franchise venture.
ORGANIZATIONAL CHART
STAFFING NEEDS
The personnel forecast below shows the staffing needs for the next five years.
President
Servers Director
Management Count
President / Manager 1 1 1 1 1
Director / Shift Manager 1 1 1 1 1
Server 3 4 4 4 4
Total Personnel 5 6 6 6 6
Management Salary
President / Manager $36,000 $36,000 $36,000 $36,000 $36,000
Director / Shift Manager $36,000 $36,000 $36,000 $36,000 $36,000
Management Cost
President / Manager $27,000 $36,000 $36,000 $36,000 $36,000
Director / Shift Manager $27,000 $36,000 $36,000 $36,000 $36,000
Server $43,200 $76,800 $76,800 $76,800 $76,800
Total Payroll $97,200 $148,800 $148,800 $148,800 $148,800
Personnel Assumptions: (1) Server wage are based on a Minimun wage of $8.05/hr.
Personnel Forecast

16 | P a g e
SALES FORECAST
The following is a five-year sales forecast:
Revenue Forecast
Total
Covers 42,492 55,239 60,763 66,840 70,182
Average Cover Price $8.00 $8.00 $8.00 $8.00 $8.00
Total Revenue $339,935 $441,916 $486,108 $534,718 $561,454
Direct Cost
Cost of goods & Supplies $0.80 $0.80 $0.80 $0.80 $0.80
Subtotal Cost of Revenue $33,994 $44,192 $48,611 $53,472 $56,145
Revenue Forecast Assumptions: (1) Year 1 assumes franchise is operational by month 4. 2) The location can
reach up to 7,000 monthly customers by the end of year 1. 2) Store will grow by 130% in year 2, 110% in year 3 and
4, 105% in year 5. 3) direct cost and supplies are approximately 20%.
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Revenue By Year
Covers
$0
$20,000
$40,000
$60,000
Month1
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
Year 1 Revenue Monthly
Covers

17 | P a g e
PROFIT AND LOSS STATEMENT
Below is a 5 year P&L projection.
Pro Forma Income Statement
Revenue $339,935 $441,916 $486,108 $534,718 $561,454
Subtotal Cost of Revenue $33,994 $44,192 $48,611 $53,472 $56,145
Merchant Credit Card Fees $9,348 $12,153 $13,368 $14,705 $15,440
Total Cost of Revenue $43,342 $56,344 $61,979 $68,177 $71,585
Gross Margin $296,594 $385,572 $424,129 $466,542 $489,869
Gross Margin/Revenue 87.25% 87.25% 87.25% 87.25% 87.25%
Expenses
Rent $29,550 $30,289 $31,046 $31,822 $32,618
Royalties $3,399 $4,419 $4,861 $5,347 $5,615
Advertising Fees $13,597 $17,677 $19,444 $21,389 $22,458
Insurance $3,600 $3,690 $3,782 $3,877 $3,974
Professional Fees $5,400 $5,535 $5,673 $5,815 $5,961
Repairs & Maintenance $9,000 $9,225 $9,456 $9,692 $9,934
Utilities $12,000 $12,300 $12,608 $12,923 $13,246
Travel $1,440 $1,476 $1,513 $1,551 $1,589
Startup Cost $50,898 $0 $0 $0 $0
Repair & Maintenance $7,200 $7,380 $7,565 $7,754 $7,947
Miscellaneous Expenses $9,600 $9,888 $10,185 $10,490 $10,805
Depreciation $19,583 $19,583 $19,583 $19,583 $19,583
Payroll Taxes $6,075 $9,300 $9,300 $9,300 $9,300
Total Personnel $97,200 $148,800 $148,800 $148,800 $148,800
Total Operating Expenses $284,743 $300,622 $306,982 $313,825 $318,587
Profit Before Interest and Taxes $11,851 $84,950 $117,147 $152,716 $171,282
EBITDA $31,434 $104,533 $136,731 $172,300 $190,865
Interest Expense $18,237 $16,025 $13,629 $11,035 $8,225
Taxes Incurred $0 $9,381 $15,528 $21,252 $24,459
Net Profit ($6,386) $59,544 $87,990 $120,430 $138,599
Net Profit/Revenue -1.88% 13.47% 18.10% 22.52% 24.69%
Income Statement Assumptions: (1) Depreciation is based on 10 years; (2) Total payroll taxes are 7.65%; (3) Company
taxes are based on 15%. 4) The Company will break-even my month 5 and will need to service 40,000 covers.
Year 1 Break-even Analysis
Monthly Revenue Break-even $28,938
Assumptions:
Average Monthly Revenue $28,328
Average Monthly Variable Cost $3,612
Estimated Monthly Fixed Cost $25,248

18 | P a g e
CASH FLOW STATEMENT
Below is a forecast of the Company’s cash situation. The Company can maintain a positive cash balance at all times.
Pro Forma Cash Flow
Cash Received
Revenue $339,935 $441,916 $486,108 $534,718 $561,454
Proceeds from Bank Loan $240,000 $0 $0 $0 $0
Owners Contribution $70,000
Subtotal Cash Received $649,935 $441,916 $486,108 $534,718 $561,454
Expenditures
Expenditures from Operations
Total Personnel $97,200 $148,800 $148,800 $148,800 $148,800
Bill Payments $158,597 $215,913 $228,341 $244,532 $253,745
Subtotal Spent on Operations $255,797 $364,713 $377,141 $393,332 $402,545
Additional Cash Spent
Start-up Costs $50,898 $0 $0 $0 $0
Principal Loan Repayment $26,651 $28,864 $31,259 $33,854 $36,663
Purchase Inventory $16,997 $22,096 $24,305 $26,736 $28,073
Purchase Long-term Assets $195,834 $0 $0 $0 $0
Dividends Paid $0 $0 $0 $0 $0
Subtotal Cash Spent $546,177 $415,672 $432,706 $453,921 $467,281
Net Cash Flow $98,759 $26,244 $53,402 $80,797 $94,173
Cash Balance $98,759 $125,002 $178,404 $259,201 $353,374
Cash Flow Assumptions: (1) Proceeds from Bank Loan assume funds were received in the amount of $240,000. 2) Terms are 7 Years fixed at 8% interest rate.
Worst Case Scenario (Revenue Decreases by 10%)
Revenue $305,942 $397,724 $437,497 $481,246 $505,309
Cost of Goods $39,008 $50,710 $55,781 $61,359 $64,427
Gross Margin $266,934 $347,014 $381,716 $419,888 $440,882
Gross Margin/Revenue 87.25% 87.25% 87.25% 87.25% 87.25%
Operating Expenses $284,743 $300,622 $306,982 $313,825 $318,587
Net Profit ($48,664) $23,409 $49,895 $79,118 $95,726
Cash Flow $56,481 ($9,892) $15,306 $39,486 $51,301
Cash Balance $56,481 $46,589 $61,895 $101,381 $152,682
Net Profit/Revenue -15.91% 5.89% 11.40% 16.44% 18.94%
-$40,000
-$20,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Month1
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
Year 1 Cash
Net Cash Flow
Cash Balance

19 | P a g e
PROJECTED BALANCE SHEET
The balance sheet is a snapshot of Sweet T Inc.’s financial condition.
Pro Forma Balance Sheet
Assets
Current Assets
Cash $98,759 $125,002 $178,404 $259,201 $353,374
Inventory $21,997 $44,093 $68,398 $95,134 $123,207
Other Current Assets $0 $0 $0 $0 $0
Total Current Assets $120,756 $169,095 $246,802 $354,335 $476,581
Long-term Assets
Long-term Assets $195,834 $195,834 $195,834 $195,834 $195,834
Accumulated Depreciation $19,583 $39,167 $58,750 $78,334 $97,917
Total Long-term Assets $176,251 $156,667 $137,084 $117,500 $97,917
Other Assets
Other Assets $0 $0 $0 $0 $0
Total Assets $297,006 $325,762 $383,886 $471,835 $574,498
Liabilities and Capital
Current Liabilities
Accounts Payable $20,044 $18,119 $19,512 $20,885 $21,613
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current Liabilities $20,044 $18,119 $19,512 $20,885 $21,613
Long-term Liabilities $213,349 $184,485 $153,226 $119,372 $82,709
Total Liabilities $233,392 $202,604 $172,738 $140,257 $104,321
Paid-in Capital $70,000 $70,000 $70,000 $70,000 $70,000
Retained Earnings $0 ($6,386) $53,158 $141,148 $261,578
Earnings ($6,386) $59,544 $87,990 $120,430 $138,599
Total Capital $63,614 $123,158 $211,148 $331,578 $470,177
Total Liabilities and Capital $297,006 $325,762 $383,886 $471,835 $574,498
Net Worth $63,614 $123,158 $211,148 $331,578 $470,177

APPENDIX: MONTHLY FINANCIALS
Year 1 Income Statement
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Revenue $0 $0 $0 $24,000 $26,640 $29,570 $32,823 $36,434 $40,441 $44,890 $49,828 $55,309
Subtotal Cost of Revenue $0 $0 $0 $2,400 $2,664 $2,957 $3,282 $3,643 $4,044 $4,489 $4,983 $5,531
Merchant Credit Card Fees $0 $0 $0 $660 $733 $813 $903 $1,002 $1,112 $1,234 $1,370 $1,521
Total Cost of Revenue $0 $0 $0 $3,060 $3,397 $3,770 $4,185 $4,645 $5,156 $5,723 $6,353 $7,052
Gross Margin $0 $0 $0 $20,940 $23,243 $25,800 $28,638 $31,788 $35,285 $39,166 $43,475 $48,257
Gross Margin/Revenue N/A N/A N/A 87.25% 87.25% 87.25% 87.25% 87.25% 87.25% 87.25% 87.25% 87.25%
Expenses
Rent $2,463 $2,463 $2,463 $2,463 $2,463 $2,463 $2,463 $2,463 $2,463 $2,463 $2,463 $2,463
Royalties $0 $0 $0 $240 $266 $296 $328 $364 $404 $449 $498 $553
Advertising Fees $0 $0 $0 $960 $1,066 $1,183 $1,313 $1,457 $1,618 $1,796 $1,993 $2,212
Insurance $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Professional Fees $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450
Repairs & Maintenance $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750
Utilities $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Travel $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120
Startup Cost $50,898 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repair & Maintenance $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
Miscellaneous Expenses $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Depreciation $1,632 $1,632 $1,632 $1,632 $1,632 $1,632 $1,632 $1,632 $1,632 $1,632 $1,632 $1,632
Payroll Taxes $506 $506 $506 $506 $506 $506 $506 $506 $506 $506 $506 $506
Total Personnel $8,100 $8,100 $8,100 $8,100 $8,100 $8,100 $8,100 $8,100 $8,100 $8,100 $8,100 $8,100
Total Operating Expenses $67,618 $16,721 $16,721 $19,721 $19,853 $19,999 $20,162 $20,342 $20,543 $20,765 $21,012 $21,286
Profit Before Interest and Taxes ($67,618) ($16,721) ($16,721) $1,219 $3,391 $5,801 $8,476 $11,446 $14,742 $18,401 $22,463 $26,971
Interest on Loan Repayment $1,600 $1,586 $1,571 $1,557 $1,542 $1,528 $1,513 $1,498 $1,483 $1,468 $1,453 $1,438
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($69,218) ($18,306) ($18,292) ($338) $1,848 $4,273 $6,963 $9,948 $13,259 $16,933 $21,010 $25,533
Net Profit/Revenue N/A N/A N/A -1.41% 6.94% 14.45% 21.21% 27.30% 32.79% 37.72% 42.16% 46.16%

Get funded with an outstanding business plan,
that will make your dream come alive!
 2,500+ Approved Business Plans
 Top MBA Expert Consultants
 Price Match Guarantee
 100% Satisfaction Rate
 Ready in 5-10 Business Days
Fill out the form on our website and get a quote: http://www.planwriters.net/
OR
Call us now for a FREE consultation: 800-691-6202
RECENTLY FEATURED IN:

Franchise Business Plan For Lenders

More Related Content

Similar to Franchise Business Plan For Lenders

More from Plan Writers

Recently uploaded

Franchise Business Plan For Lenders