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Introducing…
How Self-Service Laundry Works
Why Laundry Business?
 Laundry service is a basic need – there will always be
demand for it
 Laundry business is CASH business – no collection problems
 More and more people will be forced to have their laundry
serviced – condominiums and town houses have limited
spaces for laundry in residences
 Filipino lifestyle is changing – consumers are starting to
prefer doing their own laundry with machines that finish the
job quickly
Why Self-Service Laundry?
 Because more and more customers are complaining
about traditional laundry services:
 Too expensive – P25-P45 per kilo with minimum 5 Kilos
 Takes too long to get clothes – 3-5 days turn around time
 Clothes get lost or damaged
 Clothes get washed with others’ clothes
Why Self-Service Laundry?
 Because self-service laundry solves the usual
complaints about traditional laundry services:
 Less expensive – as low as P8 per kilo no minimum
 Laundry is done in less than 2 hours
 Customers wash and watch their own clothes
Why Self-Service Laundry?
 PLUS!!! Self-service laundry provides additional
advantages to customers and shop owners:
 Flexible – can offer full-service if customers want it
 Customers wash on their preferred time and day
 Customers bring their own supplies – no inventories
 Requires minimal manpower – 1-2 attendants only
The Potential of
Self-Service Laundry
 Estimated Full Service Shops operating nationwide:
 More than 10,000 shops
 Potential Market Size for Self-Service Shops nationwide:
 2,500-3,000 shops
 Assuming 1 Self-Service Shop is to 3-4 Full Service Shops
 Estimated number of existing Self-Service Shops nationwide:
 Less than 200 (8% only of potential)
 Based on actual market survey and distributors business volume on
self-service laundry machines
What are the benefits of a
Mr. Laba Luvah franchise holder?
 Turn-key Operations
 Use of Mr. Laba-Luvah brand, logo and trademarks
 Site selection and analysis
 Provision of business plan with financial projections
 Business setup assistance
 Design and construction of shop
 Delivery, installation and testing of equipment
 Delivery, installation and setup of card payment and cash
management systems
 Recruitment assistance, selection and training of manpower
 Provision of standardized manuals of operations, management and
administration
 Continuing management consultancy, training and technical support
What are the benefits of a
Mr. Laba Luvah franchise holder?
 Integrated Marketing, Sales and Customer Service
Standards
 Inclusion into the Laba Luvers Club Marketing System
 Customer Loyalty Program (Pre-Paid Payment System)
 Referral System
 Provision of Business Development Services
 In-Store Promotional Programs
 Business Partners Programs
 Commercial Clients Program
 Corporate Social Responsibility Programs
 Standardized Customer Engagement Levels
Feasibility of
Mr. Laba-Luvah Self-Service Laundry
 Assumptions:
1. Right location – near condos and residential areas, beside
main road, and with parking spaces
2. Sufficient space – with enough space for the machines,
waiting and working area for customers inside the shop.
Recommended: at least 25 SQM
3. Long operating hours – recommended: 16 hours of
operations, Monday to Sunday
4. Right number of machines – recommended: start with 6
washers and 6 dryers with provision for additional units
5. At least 50% machine usage rate – means machines are in
use for at least 8 hours out of 16 hours of operations
Feasibility of
Mr. Laba-Luvah Self-Service Laundry
PROJECTED SALES WASHER DRYER
Maximum Daily Operating Time
16 hours x 60 minutes
ProcessTime Per Load
Includes loading / unloading
Loads Per Day Per Machine
At 50% usage rate (Machines operate 8 hours/day)
Service Fee Per Load
Gross Sales Per Machine
Total No. of Machines
Total Daily Gross Sales
Total Monthly Gross Sales
Total Annual Gross Sales
TOTAL ANNUAL PROJECTED GROSS SALES
960 minutes 960 minutes
35 minutes45 minutes
10 loads
(960 / 45) * 50%
8 loads
80% ofWasher loads go to Dryer
P 70 P 80
P 700 P 640
6 6
P 4,200 P 3,840
P 126,000 P 115,200
P 1,512,000 P 1,382,400
P 2,894,400
Feasibility of
Mr. Laba-Luvah Self-Service Laundry
PROJECTED EXPENSES AMOUNT
Rent
25 SQM commercial space
Utilities
Electricity, Water, Gas (See Last Slide for Details)
Salaries and Benefits
2 Laundry Care Specialists (Shop Attendants)
Machine Maintenance Allowance
Shop Maintenance Allowance
Wi-Fi Connection
Total Monthly Projected Expenses
TOTAL ANNUAL PROJECTED EXPENSES
P 23,000
P 59,634
P 27,300
P 1,500
P 1,000
P 999
P 113,433
P 1,361,196
Feasibility of
Mr. Laba-Luvah Self-Service Laundry
POTENTIAL INCOME AND ROI AMOUNT
Total Annual Projected Gross Sales
LESS:Total Annual Projected Expenses
Total Annual Net Income
LESS: Estimated Annual Depreciation
LESS: Franchise Royalty Fee (15%)
Total Net Income BeforeTaxes
LESS: IncomeTax (30%)
Total Annual Net Income AfterTax
Net Profit Margin
Estimated Startup Investment + Franchise Fee
Estimated Return of Investment (ROI)
P 2,894,400
P 1,361,196
P 1,533,204
P 427,325
P 229,981
P 875,898
P 262,769.40
P 613,128.60
21.18%
P1.85 M
3 years, 2 months
How It Works
 Support us in building the Franchise Model Shop by being one of our
Financiers.
 For a minimum investment of P100,000 only to be placed with us for 36
months, we’ll give you:
1. P300,000 worth of Franchise Fee Certificate use this to avail of a
Franchise or re-sell to another investor later.
2. P36,000 worth of interest fees – we’ll pay you an annual interest rate of
12% for 3 years for your investment. Repayment of the loan will be
amortized to you every month through Post Dated Checks.
3. Quarterly Status Reports – see first hand the operational and financial
viability of the prototype Mr. Laba-Luvah shop.You’ll have an idea how
your own shop will make money when it’s time to set up your own.
4. Option to Pre-Terminate the Investment or Convert to Partial
Startup Fee after one year with no penalties and you still get to keep
the Franchise Fee Certificate!
The Franchise Model Shop
Construction begins: Last week, June 2015
Target Grand Opening: Last week, July 2015
The Franchise Prototype Shop
The Franchise Prototype Shop
DESCRIPTION: 25 SQM, Located within a commercial
area between 2 boutiques, beside a milk tea shop, water
refilling station and convenience store. It’s along a very
busy, main road connecting EDSA and N. Domingo in
Cubao, Quezon City. Densely populated with residential
and business establishments. Besides Cubao LTO; walking
distance from 3 condominiums; within the area of 2 other
condominiums and several townhouses.
LOCATION: PT Square, #85 P.Tuazon St., Cubao, Quezon City
The People Behind
Mr. Laba-Luvah
OUR EXPERTISE:
 Sales
 Marketing
 Customer Service
 Training
 Finance
 Operations
 Management
 Administration
The Companies Behind
Mr. Laba-Luvah
Placing Your Investment
 Fill out the Financier’s
Commitment Form
 Forward the form to us together
with the check representing your
investment amount payable to
CLEANWORLD COMMUNITY
MARKETING CORPORATION
 You will receive from us:
 1 Promissory Note
 36 Post Dated Checks
 1 Franchise Fee Certificate
Annex:
Detailed Utilities Expenses
ELECTRICITY
Cycles
per
month
Kw-hr per
Cycle
Kw-hr
Cost
Cost per
cycle
Total Cost /
Month
Grand
Totals
Washer 1,920 0.36 10.00 3.60 6,912.00
Dryer 1,536 0.19 10.00 1.90 2,918.40
WATER
Cu. m.
per Cycle
Cu. m.
Cost 9,830.40
Washer 1,920 0.049 54.00 2.65 5,080.32 5,080.32
GAS
Kg. per
Cycle
Kg. Cost
Dryer 1,536 0.42 67.00 28.14 43,223.04 43,223.04
Water for operations 500.00
Electricity for operations 1,000.00
Total for Utilities 59,633.76
DETAILED COMPUTATION OF UTILITIES CONSUMPTION

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Mr. Laba-Luvah's Financiers presentation (2015 june26)

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  • 8. Why Laundry Business?  Laundry service is a basic need – there will always be demand for it  Laundry business is CASH business – no collection problems  More and more people will be forced to have their laundry serviced – condominiums and town houses have limited spaces for laundry in residences  Filipino lifestyle is changing – consumers are starting to prefer doing their own laundry with machines that finish the job quickly
  • 9. Why Self-Service Laundry?  Because more and more customers are complaining about traditional laundry services:  Too expensive – P25-P45 per kilo with minimum 5 Kilos  Takes too long to get clothes – 3-5 days turn around time  Clothes get lost or damaged  Clothes get washed with others’ clothes
  • 10. Why Self-Service Laundry?  Because self-service laundry solves the usual complaints about traditional laundry services:  Less expensive – as low as P8 per kilo no minimum  Laundry is done in less than 2 hours  Customers wash and watch their own clothes
  • 11. Why Self-Service Laundry?  PLUS!!! Self-service laundry provides additional advantages to customers and shop owners:  Flexible – can offer full-service if customers want it  Customers wash on their preferred time and day  Customers bring their own supplies – no inventories  Requires minimal manpower – 1-2 attendants only
  • 12. The Potential of Self-Service Laundry  Estimated Full Service Shops operating nationwide:  More than 10,000 shops  Potential Market Size for Self-Service Shops nationwide:  2,500-3,000 shops  Assuming 1 Self-Service Shop is to 3-4 Full Service Shops  Estimated number of existing Self-Service Shops nationwide:  Less than 200 (8% only of potential)  Based on actual market survey and distributors business volume on self-service laundry machines
  • 13. What are the benefits of a Mr. Laba Luvah franchise holder?  Turn-key Operations  Use of Mr. Laba-Luvah brand, logo and trademarks  Site selection and analysis  Provision of business plan with financial projections  Business setup assistance  Design and construction of shop  Delivery, installation and testing of equipment  Delivery, installation and setup of card payment and cash management systems  Recruitment assistance, selection and training of manpower  Provision of standardized manuals of operations, management and administration  Continuing management consultancy, training and technical support
  • 14. What are the benefits of a Mr. Laba Luvah franchise holder?  Integrated Marketing, Sales and Customer Service Standards  Inclusion into the Laba Luvers Club Marketing System  Customer Loyalty Program (Pre-Paid Payment System)  Referral System  Provision of Business Development Services  In-Store Promotional Programs  Business Partners Programs  Commercial Clients Program  Corporate Social Responsibility Programs  Standardized Customer Engagement Levels
  • 15. Feasibility of Mr. Laba-Luvah Self-Service Laundry  Assumptions: 1. Right location – near condos and residential areas, beside main road, and with parking spaces 2. Sufficient space – with enough space for the machines, waiting and working area for customers inside the shop. Recommended: at least 25 SQM 3. Long operating hours – recommended: 16 hours of operations, Monday to Sunday 4. Right number of machines – recommended: start with 6 washers and 6 dryers with provision for additional units 5. At least 50% machine usage rate – means machines are in use for at least 8 hours out of 16 hours of operations
  • 16. Feasibility of Mr. Laba-Luvah Self-Service Laundry PROJECTED SALES WASHER DRYER Maximum Daily Operating Time 16 hours x 60 minutes ProcessTime Per Load Includes loading / unloading Loads Per Day Per Machine At 50% usage rate (Machines operate 8 hours/day) Service Fee Per Load Gross Sales Per Machine Total No. of Machines Total Daily Gross Sales Total Monthly Gross Sales Total Annual Gross Sales TOTAL ANNUAL PROJECTED GROSS SALES 960 minutes 960 minutes 35 minutes45 minutes 10 loads (960 / 45) * 50% 8 loads 80% ofWasher loads go to Dryer P 70 P 80 P 700 P 640 6 6 P 4,200 P 3,840 P 126,000 P 115,200 P 1,512,000 P 1,382,400 P 2,894,400
  • 17. Feasibility of Mr. Laba-Luvah Self-Service Laundry PROJECTED EXPENSES AMOUNT Rent 25 SQM commercial space Utilities Electricity, Water, Gas (See Last Slide for Details) Salaries and Benefits 2 Laundry Care Specialists (Shop Attendants) Machine Maintenance Allowance Shop Maintenance Allowance Wi-Fi Connection Total Monthly Projected Expenses TOTAL ANNUAL PROJECTED EXPENSES P 23,000 P 59,634 P 27,300 P 1,500 P 1,000 P 999 P 113,433 P 1,361,196
  • 18. Feasibility of Mr. Laba-Luvah Self-Service Laundry POTENTIAL INCOME AND ROI AMOUNT Total Annual Projected Gross Sales LESS:Total Annual Projected Expenses Total Annual Net Income LESS: Estimated Annual Depreciation LESS: Franchise Royalty Fee (15%) Total Net Income BeforeTaxes LESS: IncomeTax (30%) Total Annual Net Income AfterTax Net Profit Margin Estimated Startup Investment + Franchise Fee Estimated Return of Investment (ROI) P 2,894,400 P 1,361,196 P 1,533,204 P 427,325 P 229,981 P 875,898 P 262,769.40 P 613,128.60 21.18% P1.85 M 3 years, 2 months
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  • 21. How It Works  Support us in building the Franchise Model Shop by being one of our Financiers.  For a minimum investment of P100,000 only to be placed with us for 36 months, we’ll give you: 1. P300,000 worth of Franchise Fee Certificate use this to avail of a Franchise or re-sell to another investor later. 2. P36,000 worth of interest fees – we’ll pay you an annual interest rate of 12% for 3 years for your investment. Repayment of the loan will be amortized to you every month through Post Dated Checks. 3. Quarterly Status Reports – see first hand the operational and financial viability of the prototype Mr. Laba-Luvah shop.You’ll have an idea how your own shop will make money when it’s time to set up your own. 4. Option to Pre-Terminate the Investment or Convert to Partial Startup Fee after one year with no penalties and you still get to keep the Franchise Fee Certificate!
  • 22. The Franchise Model Shop Construction begins: Last week, June 2015 Target Grand Opening: Last week, July 2015
  • 24. The Franchise Prototype Shop DESCRIPTION: 25 SQM, Located within a commercial area between 2 boutiques, beside a milk tea shop, water refilling station and convenience store. It’s along a very busy, main road connecting EDSA and N. Domingo in Cubao, Quezon City. Densely populated with residential and business establishments. Besides Cubao LTO; walking distance from 3 condominiums; within the area of 2 other condominiums and several townhouses. LOCATION: PT Square, #85 P.Tuazon St., Cubao, Quezon City
  • 25. The People Behind Mr. Laba-Luvah OUR EXPERTISE:  Sales  Marketing  Customer Service  Training  Finance  Operations  Management  Administration
  • 27. Placing Your Investment  Fill out the Financier’s Commitment Form  Forward the form to us together with the check representing your investment amount payable to CLEANWORLD COMMUNITY MARKETING CORPORATION  You will receive from us:  1 Promissory Note  36 Post Dated Checks  1 Franchise Fee Certificate
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  • 29. Annex: Detailed Utilities Expenses ELECTRICITY Cycles per month Kw-hr per Cycle Kw-hr Cost Cost per cycle Total Cost / Month Grand Totals Washer 1,920 0.36 10.00 3.60 6,912.00 Dryer 1,536 0.19 10.00 1.90 2,918.40 WATER Cu. m. per Cycle Cu. m. Cost 9,830.40 Washer 1,920 0.049 54.00 2.65 5,080.32 5,080.32 GAS Kg. per Cycle Kg. Cost Dryer 1,536 0.42 67.00 28.14 43,223.04 43,223.04 Water for operations 500.00 Electricity for operations 1,000.00 Total for Utilities 59,633.76 DETAILED COMPUTATION OF UTILITIES CONSUMPTION