Due Diligence Package

Business Profle Document l Subway 235 Bourke Street Melbourne

This document is to be kept Private and Confdental Copyright held by Finn Franchise Brokers l 1
1. Your Expert Franchise Broker
Finn Franchise Brokers is a natonal franchise brokerage and we have been engaged by the
Vendor of the business presented in this document to present, negotate and fnalise the sale of
their business to an approved Purchaser.
FINN FRANCHISE BROKERS
5/1335 Ferntree Gully Road
Scoresby Vic 3179
Tel: (03) 9763 9200
Fax: (03) 9012 4313
www.franchisebrokers.com.au
BROKER APPOINTED
Keith Corbet
Mobile: 0408 333 978
keith@franchisebrokers.com.au
Proud members of:
Franchise Council of Australia
Australian Insttute of Business Brokers
[insert broker
photograph]
Business Profle Document l Subway 235 Bourke Street Melbourne
This document is to be kept Private and Confdental Copyright held by Finn Franchise Brokers l 2
2. Disclaimer
This Business Profle has been prepared for informaton purposes only and is not intended to form any
part of an agreement between you and the Vendor. This profle is only provided to partes who have
completed an inital enquirers questonnaire and confdentality agreement expressing an interest in
purchasing the business known as Subway 235 Bourke Street Melbourne.
The Vendor of Subway 235 Bourke Street Melbourne has engaged Finn Franchise Brokers to act as its
agent to negotate the successful sale of the business. All documents and informaton contained within
this Due Diligence Package and prior Business Profle have been supplied to Finn Franchise Brokers by the
Vendor of the business and/or their advisors, franchisor and service providers. Finn Franchise Brokers
does not warrant the informaton is correct and has not audited the businesss fnancial informaton or
verifed that the documents and the informaton contained within these profles are correct. All images
and graphs are for indicatve purposes only.
Furthermore, no representatons or warrantes expressed or implied have been made by Finn Franchise
Brokers as to the accuracy or completeness of the informaton contained within this profle and Finn
Franchise Brokers accepts no responsibility for any errors, omissions, inaccuracies or misstatements
contained within this Due Diligence Package whatsoever. Finn Franchise Brokers and the Vendor strongly
recommend that you conduct a thorough investgaton on the business and seek independent legal,
commercial and fnancial advice before proceeding to contract for the purchase of this business.
Finn Franchise Brokers and the Vendor reserve the right to amend or replace this Due Diligence Package
or any informaton contained within it at any tme, and are under no obligaton to provide an amended
profle or updated informaton to you or your advisors.
This Due Diligence Package and prior Business Profle can only be distributed to your professional
advisors and consultants. You must not distribute, reproduce or use this Business Profle in any other way
without the expressed permission of Finn Franchise Brokers.
The Vendor has specifcally requested that you do not directly approach the Vendor, any staf, customers
or suppliers of the business without the express writen permission of the broker appointed. Therefore,
all enquiries or requests for additonal informaton must be directed to Finn Franchise Brokers and the
broker appointed.
If you decide not to proceed with the purchase of this business, within 7 business days you must return
all copies of this Business Profle and any other informaton that was supplied to you. If this Business
Profle and/or other informaton has been emailed or supplied to you electronically, you agree to
permanently delete the fles from your computer and any other computer that stores this Business Profle
and other informaton.
This document remains the property of Finn Franchise Brokers.
Business Profle Document l Subway 235 Bourke Street Melbourne
This document is to be kept Private and Confdental Copyright held by Finn Franchise Brokers l 3
Other cost consideratons
Included in the sale
2011, 2012 & 2013 Financial Year Profit & Loss Statements
1st July 2013 to 31st March 2014 Profit & Loss Statement

Recent Weekly Sales Report

2012/2013 Add-Back Summary
2012/2013 & 2013/2014 Financial Year Payroll Activity Summary
BAS Statements
Depreciation Schedule
Premises Lease Schedule
Franchise Agreement Schedule
Recent Staff Roster
Recent Rental Invoice
PLEASE NOTE: Copies of the following documents will be supplied to a potential purchaser
or their Solicitor during due diligence:
The Full Franchise Agreement and Disclosure Document.
Franchise Code of Conduct.
Appendices and Atachments

Photo Gallery
Form 6 Approval of Business Profile by the Vendor
Business Profle Document l Subway 235 Bourke Street Melbourne
This document is to be kept Private and Confdental Copyright held by Finn Franchise Brokers l 4
1. Business Name: Subway 235 Bourke Street Melbourne
2. Gross turnover 2013: $892,581
3. Adjusted net proft 2013: $183,136
4. Stock at Value (SAV): $7,000 - $10,000
5. Asking price: $675,000
6. Terms of purchase:
Plus bank guarantee
Sale Price plus SAV
3xmonths gross rent plus GST
7. Other cost consideratons:
7.1 Franchisor training: All training fees are included
7.2 Travel and accommodaton: Allow $2,000 minimum (2 weeks in Queens-
land)
7.3 Legal costs - franchise
agreement:
Allow $2,000 minimum
7.4 Legal costs - general advice: Allow $1,500 minimum
7.5 Legal costs - lease agreement: Allow $1,500 minimum
7.6 Lease bond/Bank guarantee: 3xmonths gross rent plus GST
Other cost consideratons
Business Profle Document l Subway 235 Bourke Street Melbourne
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Included in the sale
1. FitOut: The entre shop ft-out including signage, cab-
inetry, stainless steel ftngs and fxtures.
Extensive equipment and re-ft August 2013
2. Equipment: All of the equipment in the store that is used
to produce the products
3. Small Utensils and Appliances: All small appliances
4. Safety Equipment: First-Aid Kit x1
Fire Extnguisher x1
5. Uniforms: All Current staf uniforms and name badges
6. Staf: Experienced supervisory staf manage the
store while the owner manages another Sub-
way store. All staf are trained and experi-
enced in the operaton of the store.
7. Supplier relatonships: Established relatonships with existng suppli-
ers of products and ingredients
8. Goodwill: Goodwill associated with regular client base
since opening in 1994
Business Profle Document l Subway 235 Bourke Street Melbourne
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2011, 2012 & 2013
Financial Year Profit & Loss Statements
NB: 2011 Part Year November 2010 - June 2011
Bourke St Subway
3/235 Bourke Street
Melbourne Vic 3000
ABN: 81 123 079 229
Email: romel_n@hotmail.com
Created: 23-Jun-14 6:05 PM
Profit & Loss Statement
July 2012 To June 2013
This report includes Year-End Adjustments.
Page 1 of 2
Income
Sales
Sales $831,948.66
Sales-GST FREE $60,632.34
Total Sales $892,581.00
Rent Rec'd - Docklands prop $5,581.64
Rent Received $5,119.51
Total Income $903,282.15
Cost Of Sales
Cost Of Sales, Food $198,328.45
Cost Of Sales - Beverage $46,084.99
Total Cost Of Sales $244,413.44
Gross Profit $658,868.71
Expenses
General & Administrative Exp
Legal Fees $432.73
Bank Charges
Bank Fees $4,205.89
Merchant Fees $3,014.98
Phone $760.83
Total General & Administrative Exp $8,414.43
Subway Royalties
Royalty Payments $72,919.96
FAF Advertising Payments $40,972.51
Marketing Expenses
Advertising $550.00
Total Marketing Expenses $550.00
Operating Expenses
Repair $6,162.09
Cleaning $2,607.71
Uniforms $584.60
Total Operating Expenses $9,354.40
Employment Expenses
Wages & Salaries $322,422.56
Workers' Compensation $1,239.10
Other Employer Expenses $21,511.07
Total Employment Expenses $345,172.73
Occupancy Costs
Electricity $11,355.08
Rates $7,630.66
Rent $165,260.19
Water $317.68
Waste Removal $257.50
Total Occupancy Costs $184,821.11
Total Expenses $662,205.14
Operating Profit ($3,336.43)
Total Other Income $0.00
Other Expenses
Bourke St Subway
3/235 Bourke Street
Melbourne Vic 3000
ABN: 81 123 079 229
Email: romel_n@hotmail.com
Created: 23-Jun-14 6:05 PM
Profit & Loss Statement
July 2012 To June 2013
This report includes Year-End Adjustments.
Page 2 of 2
Docklands Property Rates $1,726.55
Docklands Property Strata Fees $6,669.68
Total Other Expenses $8,396.23
Net Profit/(Loss) ($11,732.66)
LITTLEHILL PTY LTD
A.B.N.: 81 123 079 229
PROFIT AND LOSS STATEMENT
FOR THE YEAR ENDED 30 JUNE 2012
2012 2011
$ $
SALES
Sales 1,013,440.26 628,105.98
LESS: COST OF GOODS SOLD
Opening Stock 5,000.00 -
Purchases 308,831.70 169,510.61
Closing Stock (5,000.00) (5,000.00)
308,831.70 164,510.61
GROSS PROFIT FROM TRADING 704,608.56 463,595.37
OTHER INCOME
Fringe Benefit Reimbursements 2,240.00 -
Interest Received 8,646.03 4,360.44
Other Income 2,280.00 -
Gross profit on rental operations 31,200.00 31,200.00
44,366.03 35,560.44
748,974.59 499,155.81
The accompanying notes form part of these financial statements.
These statements should be read in conjunction with the attached compilation
report of KAIAS PHILLIPS.
Page 11
LITTLEHILL PTY LTD
A.B.N.: 81 123 079 229
PROFIT AND LOSS STATEMENT
FOR THE YEAR ENDED 30 JUNE 2012
2012 2011
$ $
EXPENSES
Advertising & Promotion 528.00 221.76
Bank Charges 6,161.11 2,749.72
Cleaning & Rubbish Removal 1,202.31 791.55
Depreciation 21,386.94 27,031.84
Electricity & Gas 12,656.37 7,519.56
Filing Fees 226.50 218.00
Fines 1,980.00 -
Franchise & Royalty Fees 143,724.24 78,070.30
Insurance 5,621.45 3,126.98
Interest - Loans 39,464.60 22,762.70
Interest - ATO GIC 1,854.02 -
Kitchen Supplies 53.07 -
Legal Costs 5,000.00 -
Office Expenses 603.18 797.16
Owners Corporation Fees 10,524.68 6,714.28
Professional Fees - Accounting 5,165.00 9,283.00
Protective Clothing 1,059.85 -
Rates & Taxes 10,017.92 9,879.28
Registration & Subscriptions 495.45 -
Rent 174,237.46 123,601.54
Repairs & Maintenance 6,255.51 3,458.60
Security 215.00 -
Staff Amenities - 274.86
Superannuation 15,635.94 9,030.04
Telephone 1,557.81 1,164.63
Wages 335,562.67 141,976.90
Loss on Sale of Fixed Assets - 1,695.00
801,189.08 450,367.70
(Loss) Profit before income tax (52,214.49) 48,788.11
The accompanying notes form part of these financial statements.
These statements should be read in conjunction with the attached compilation
report of KAIAS PHILLIPS.
Page 12
Business Profle Document l Subway 235 Bourke Street Melbourne
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1st July 2013 to 31st March 2014 Profit & Loss Statements
Business Profle Document l Subway 235 Bourke Street Melbourne
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Recent Weekly Sales Report
Business Profle Document l Subway 235 Bourke Street Melbourne
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2012/2013 Add-Back Summary
Business Profle Document l Subway 235 Bourke Street Melbourne
This document is to be kept Private and Confdental Copyright held by Finn Franchise Brokers l 9
Financial Statements Summary 2013 Financial Year
Almost all franchise businesses are fundamentally designed to be managed by an owner-
operator. It is widely accepted that overall earnings for a business owner are based on
one owner working a standard 40/hrs per week operatonally within their business.
Based on the businesses proft and loss statements supplied and with all add-backs taken
into account, the owners earnings for this business is $183,136 for the period from July
2012 to June 2013 or a healthy $3,521.85 per week.
Financial Year Ended 2013 Weekly
1. Total Revenue/Sales: $892,581 $17,165.00
2. Net Proft/Loss -$98,944 -$1,902.77
Category of Add-back 2013+ Weekly
Salaries & Wages
1. Working owner resultng in lower
wages
$40,000
Salaries & Wages
2. Owners Wage
$141,365
Superannuaton
3. Owners Superannuaton 9% $18,500
Interest - Other
4.
$6,762.74
Interest - Loans
5.
$47,447.76
Fines
6.
$1,560
Depreciaton
7.
$18,913.71
Bank Charges
8.
$7,530.87
Total Add-Backs
Total Owners Adjusted Earnings
$282,080
$183,136 $3,521.85
Business Profle Document l Subway 235 Bourke Street Melbourne
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2012/2013 & 2013/2014 Financial Year Payroll Activity Summary
Business Profle Document l Subway 235 Bourke Street Melbourne
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BAS Statements
Business Profle Document l Subway 235 Bourke Street Melbourne
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Depreciaton Schedule
Bourke St Subway
3/235 Bourke Street
Melbourne Vic 3000
ABN: 81 123 079 229
Email: romel_n@hotmail.com
Created: 24-Jun-14 12:54 PM
General Ledger [Detail]
01-Jun-13 To 24-Jun-14
* Year-End Adjustments
Page 1 of 1
ID No. Src Date Memo Debit Credit Job No. Net Activity Ending Balance
1-2210 Lease Improvement at Cost
Beginning Balance: $76,254.11
$0.00 $0.00 $0.00 $76,254.11 Total :
1-2220 Lease Improvements Accum Dep
Beginning Balance: $3,081.00cr
$0.00 $0.00 $0.00 $3,081.00cr Total :
1-2310 Bldgs & Imprvmnts at Cost
Beginning Balance: $750,537.75
5 CD 24-Jan-14 J$R Refrigeration $56,580.85 $807,118.60
$56,580.85 $0.00 $56,580.85 $807,118.60 Total :
1-2320 Bldgs & Imprvmnts Accum Dep
Beginning Balance: $40,772.24cr
EFT CD 26-Aug-13 Shop Front Signs $4,545.45 $36,226.79cr
EFT CD 26-Aug-13 Floors Part Payment, $1,818.18 $34,408.61cr
EFT CD 08-Sep-13 Shop front Part Payment $2,727.27 $31,681.34cr
EFT CD 12-Sep-13 Refrigeration, replacement of both freezer and coolroom Part payment $18,181.82 $13,499.52cr
EFT CD 18-Sep-13 Balance of signage payment for bourke st $2,727.27 $10,772.25cr
EFT CD 18-Sep-13 Balance of Floor payment for renovation $3,681.82 $7,090.43cr
EFT CD 23-Oct-13 Signs renovation final payment $4,545.45 $2,544.98cr
EFT CD 18-Nov-13 Bourke St Renovation Shop Front $1,818.18 $726.80cr
EFT CD 18-Nov-13 Bourke St Renovation Interier Signage $2,727.27 $2,000.47
EFT CD 02-Dec-13 Bourke St Renovation Ceilings $2,727.27 $4,727.74
EFT CD 25-Feb-14 Shop Front Renovation Part Payment $1,363.64 $6,091.38
$46,863.62 $0.00 $46,863.62 $6,091.38 Total :
1-2410 Furniture & Fixtures at Cost
Beginning Balance: $0.00
EFT CD 04-Sep-13 Sharpline, Small goods purchased for renovation. Coolroom Shelves, Taps, Bench $7,272.73 $7,272.73
$7,272.73 $0.00 $7,272.73 $7,272.73 Total :
1-2420 Furniture & Fixtures Accum Dep
Beginning Balance: $0.00
$0.00 $0.00 $0.00 $0.00 Total :
1-2600 Plant & Equipment
Beginning Balance: $29,865.24
$0.00 $0.00 $0.00 $29,865.24 Total :
1-2601 Plant & Equip Accum Depn
Beginning Balance: $8,796.00cr
EFT CD 13-Sep-13 Aircon & Freezer $9,090.91 $294.91
EFT CD 17-Sep-13 Electrical work relaing to the renovation $9,090.91 $9,385.82
EFT CD 07-Oct-13 Balance of Fridge and Freezer Payment $6,363.64 $15,749.46
$24,545.46 $0.00 $24,545.46 $15,749.46 Total :
$135,262.66 $0.00 Grand Total :
Business Profle Document l Subway 235 Bourke Street Melbourne
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Premises Lease Schedule
Business Profle Document l Subway 235 Bourke Street Melbourne
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Franchise Agreement Schedule
Business Profle Document l Subway 235 Bourke Street Melbourne
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Recent Staff Roster
Business Profle Document l Subway 235 Bourke Street Melbourne
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Recent Rental Invoice
Business Profle Document l Subway 235 Bourke Street Melbourne
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Form 6 - Approval of Business Profle by the Vendor
Business Profle Document l Subway 235 Bourke Street Melbourne
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Gallery