PROJECTED CAPITAL INVESTMENT

Site Name: Las Pinas - Vergon Ville

Site Address: Flores Commercial Building Aurora Drive, Vergo Ville Las Pinas

LEASE TERMS
Term 5 years renewable
Transaction type Building Shell
Lot Area
Floor Area (Per sqm) 130.00
Rentable Area (sqm)
Monthly Rent (VAT Exclusive) 50,000.00
Rent per sqm (Floor Area) 384.62
Escalation (starting on Yr 2) 5%
CUSA -
Other Charges -
Advance Rent (3 mos/VAT Incl.) 168,000.00
Security Deposit (3mos/Non-VAT) 150,000.00

INVESTMENT
for ROI Initial Cash Outlay Merchandise Loan
Estimated Project Cost (VAT Incl.) 2,036,000.00 2,036,000.00 2,036,000.00
*Construction Cost 1,769,000.00
*Design Plans 56,000.00
*Electronics Plans 11,000.00
*Facilitation: Utilities 90,000.00
*Facilitation: Permits 110,000.00
Franchise Fee (VAT Incl.) 672,000.00 672,000.00 672,000.00
Merchandise Inventory 800,000.00 320,000.00
Store Supplies and Tools 170,000.00 170,000.00
Change Fund 15,900.00 15,900.00
Advance Rent (VAT Incl.) 168,000.00 168,000.00
Security Deposit 150,000.00 150,000.00
TOTAL 2,708,000.00 4,011,900.00 3,531,900.00

Year Escalation Gross Monthly Rent 12% Vat Monthly Rent

Year 1 0% 50,000.00 6,000.00 56,000.00
Year 2 5% 52,500.00 6,300.00 58,800.00
Year 3 5% 55,125.00 6,615.00 61,740.00
Year 4 5% 57,881.25 6,945.75 64,827.00
Year 5 5% 60,775.31 7,293.04 68,068.35

* Estimate only - subject to bidding of Philippine Seven Corporation's accredited contractor

Change order not included
Note: Lease Terms and Investment subject for changes
 FC BUSINESS PLAN TEMPLATE 12/24/2018 07:03:16
Site Name: Las Pinas - Vergon Ville
Site Address: Flores Commercial Building Aurora Drive, Vergo Ville Las Pinas

Investment Renovation / Joining Fee 2,036,000.00

Franchise Fee 600,000.00
Total Investment for ROI 2,636,000.00

Seasonality Rate 98.24% 88.56% 102.21% 111.59% 107.89% 99.77% 98.46% 92.19% 94.49% 95.64% 92.70% 117.67%

Store Budget Template (plug in your assumptions below)

(blue - enter your figures; gray - calculated cells)
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 TOTAL AVERAGE
Sales 1,959,750 1,735,615 2,003,053 2,186,937 2,114,472 1,955,276 1,929,561 1,806,789 1,851,811 1,874,396 1,816,751 2,306,052 23,540,464 1,961,705
Cost of Sales 1,371,825 1,214,931 1,402,137 1,530,856 1,480,130 1,368,693 1,350,693 1,264,752 1,296,268 1,312,077 1,271,726 1,614,237 16,478,325 1,373,194
Gross Profit 587,925 520,685 600,916 656,081 634,341 586,583 578,868 542,037 555,543 562,319 545,025 691,816 7,062,139 588,512
7-Eleven Split 199,895 177,033 204,311 223,068 215,676 199,438 196,815 184,292 188,885 191,188 185,309 235,217 2,401,127 200,094
Gross Income 388,031 343,652 396,605 433,014 418,665 387,145 382,053 357,744 366,659 371,130 359,717 456,598 4,661,012 388,418
Operating Expenses:
Salary (Regular) 54,000 54,000 54,000 54,000 54,000 54,000 54,000 54,000 54,000 54,000 54,000 54,000 648,000 54,000
Salary (Temporary) 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 168,000 14,000
Employee Benefits - - - - - - 20,000 20,000 20,000 20,000 20,000 20,000 120,000 10,000
Inventory Variation 9,799 8,678 10,015 10,935 10,572 9,776 9,648 9,034 9,259 9,372 9,084 11,530 117,702 9,809
Cash Variation 392 347 401 437 423 391 386 361 370 375 363 461 4,708 392
Bad Merchandise 980 868 1,002 1,093 1,057 978 965 903 926 937 908 1,153 11,770 981
Repairs and Maintenance 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000 10,000
Security Service 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000 15,000
Financing expenses - - - - - - - - - - - - - -
Amortization (Bank Loan) 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000 50,000
Depreciation (new building) -
Depreciation (goodwill) - - - - - - - - - - - - - -
Franchise Fee 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000 10,000
Selling Supplies (variable) 5,879 5,207 6,009 6,561 6,343 5,866 5,789 5,420 5,555 5,623 5,450 6,918 70,621 5,885
Store Supplies (fixed) 7,839 6,942 8,012 8,748 8,458 7,821 7,718 7,227 7,407 7,498 7,267 9,224 94,162 7,847
Water 500 500 500 500 500 500 500 500 500 500 500 500 6,000 500
Rent 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000 50,000
CUSA - - - - - - - - - - - - - -
Electricity 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 540,000 45,000
Taxes / Licenses 19,598 17,356 20,031 21,869 21,145 19,553 19,296 18,068 18,518 18,744 18,168 23,061 235,405 19,617
Miscellaneous
Insurance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 1,000
Xerox and Printing 100 100 100 100 100 100 100 100 100 100 100 100 1,200 100
Postage Telephone & Telex 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 1,000
Travel and Transportation 100 100 100 100 100 100 100 100 100 100 100 100 1,200 100
Representation & Entertainment 100 100 100 100 100 100 100 100 100 100 100 100 1,200 100
Others 500 500 500 500 500 500 500 500 500 500 500 500 6,000 500
Rent Income - - - - - - - - - - - - - -
Total Operating Expenses 295,786 290,698 296,769 300,943 299,299 295,685 315,101 312,314 313,336 313,849 312,540 323,647 3,669,969 305,831

Net Profit 92,244 52,953 99,835 132,070 119,367 91,460 66,952 45,430 53,323 57,282 47,176 132,951 991,043 82,587
Add: Non-cash items
Amorization (renovation) - - - - - - - - - - - - -
Depreciation (new building) - - - - - - - - - - - - - -
Depreciation (goodwill) - - - - - - - - - - - - - -
Depreciation (franchise fee) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000 10,000
Total Cash Inflow 102,244 62,953 109,835 142,070 129,367 101,460 76,952 55,430 63,323 67,282 57,176 142,951 1,111,043 92,587

Key Figures
Average Sales Per Day 65,325 57,854 66,768 72,898 70,482 65,176 64,319 60,226 61,727 62,480 60,558 76,868 784,682 65,390
Gross Margin 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Net Income to Sales 5.2% 3.6% 5.5% 6.5% 6.1% 5.2% 4.0% 3.1% 3.4% 3.6% 3.1% 6.2% 4.7% 4.7%

Assumptions ROI Analysis Average Daily Sales: 65,325

Gross Profit 30.00% (28%-30%) Investment Payback ROI
Cost of Sales 70% (70%-75%)
7-Eleven Split 34% 2,700,000 2.4 41%
Inventory Variation 0.50% of sales 2,800,000 2.5 40%
Cash Variation 0.02% per month 2,900,000 2.6 38%
Bad Merchandise 0.05% of sales 3,000,000 2.7 37%
Repairs and Maintenance 15,000 per month
Security Service 14,000 per month (depending on hours of service)
Dereciation (renovation) 60 months NOTE : The information/data indicated herein are solely based on the projections made by the
Depreciation (new bldg) 60 months undersigned for the formulation of its business plan. Further, undersigned acknowledges that
Depreciation (goodwill) 60 months Philippine Seven Corporation (PSC) does not guarantee nor commit to any projections contained
Depreciation (franchise fee) 60 months herein during the term of the franchise agreement and shall hold PSC free and harmless from any
Selling Supplies (variable) 0.30% of sales liability in the event that margins and/or profits fall short from those indicated in this business plan.
Store Supplies (fixed) 0.40% of sales
Water 500 per month
Electricity 90,000 7-Eleven shares in 50% of bill. Franchise Applicant
Taxes / Licenses 1% of sales (depending on location) Date : ___________________
Miscellaneous 500 per month (refer to items under this account)
 FC BUSINESS PLAN TEMPLATE 12/24/2018 07:03:16

Site Name : Las Pinas - Vergon Ville

Site Address: Flores Commercial Building Aurora Drive, Vergo Ville Las Pinas

Investment Renovation / Joining Fee 2,036,000.00

Franchise Fee 600,000.00
Total Investment for ROI 2,636,000.00

5 -Year Projection
(blue - enter your figures; gray - calculated cells)
Yearly
Year 1 Year 2 Year 3 Year 4 Year 5 Increase Assumptions
Sales 23,540,464 24,011,273 24,491,499 24,981,329 25,480,955 2.0% Gross Profit 29.79% (28%-30%)
Cost of Sales 16,478,325 16,759,869 17,046,083 17,337,042 17,632,821 Cost of Sales 70% (70%-75%)
Gross Profit 7,062,139 7,251,405 7,445,416 7,644,287 7,848,134 7-Eleven Split 34%
7-Eleven Split 2,401,127 2,465,478 2,531,441 2,599,057 2,668,366 Inventory Variation 0.50% of sales
Gross Income 4,661,012 4,785,927 4,913,974 5,045,229 5,179,769 Cash Variation 0.02% per month
Operating Expenses: Bad Merchandise 0.05% of sales
Salary (Regular) 648,000 660,960 674,179 687,663 701,416 2.0% Repairs and Maintenance 10,500 per month
Salary (Temporary) 168,000 168,000 168,000 168,000 168,000 Security Service 13,000 per month (depending on hours of service)
Employee Benefits 120,000 122,400 124,848 127,345 129,892 2.0% Dereciation (renovation) 60 months
Inventory Variation 117,702 120,056 122,457 124,906 127,404 Depreciation (new bldg) 60 months
Cash Variation 4,708 4,802 4,898 4,996 5,096 Depreciation (goodwill) 60 months
Bad Merchandise 11,770 12,005 12,246 12,490 12,740 Depreciation (franchise fee 60 months
Repairs and Maintenance 120,000 122,400 124,848 127,345 129,892 2.0% Selling Supplies (variable) 0.30% of sales
Security Service 180,000 183,600 187,272 191,017 194,838 2.0% Store Supplies (fixed) 0.40% of sales
Financing expenses - - - - - Water 500 per month
Amortization (Joining Fee) 600,000 600,000 600,000 600,000 600,000 Electricity 91,000 7-Eleven shares in 50% of bill.
Depreciation (new building) - - - - - Taxes / Licenses 1% of sales (depending on location)
Depreciation (goodwill) - - - - - Miscellaneous 500 per month (refer to items under this account)
Franchise Fee 120,000 120,000 120,000 120,000 120,000 Interest Rate 12%
Selling Supplies (variable) 70,621 72,033 73,474 74,944 76,442

Store Supplies (fixed) 94,162 94,162 94,162 94,162 94,162

Water 6,000 6,300 6,615 6,946 7,293 5.0%
Rent 600,000 630,000 661,500 694,575 729,304 5.0%
CUSA - - - - -
Electricity 540,000 550,800 561,816 573,052 584,513 2.0%
Taxes / Licenses 235,405 240,113 244,915 249,814 254,810
Miscellaneous
Insurance 120,000 122,400 124,848 127,345 129,892 2.0%
Xerox and Printing 1,200 1,224 1,248 1,273 1,299 2.0%
Postage Telephone & Telex 12,000 12,240 12,485 12,734 12,989 2.0%
Travel and Transportation 1,200 1,224 1,248 1,273 1,299 2.0%
Representation & Entertainment 1,200 1,224 1,248 1,273 1,299 2.0%
Others 6,000 6,120 6,242 6,367 6,495 2.0%
Rent Income - - - - -
Total Operating Expenses 3,777,968 3,852,064 3,928,551 4,007,522 4,089,075

Net Income 883,044 933,863 985,423 1,037,707 1,090,693

Add: Non-cash items
Amorization (renovation) 600,000 600,000 600,000 600,000 600,000 NOTE : The information/data indicated herein are solely based on the projections made by the
Depreciation (new building) - - - - - undersigned for the formulation of its business plan. Further, undersigned acknowledges that
Depreciation (goodwill) - - - - - Philippine Seven Corporation (PSC) does not guarantee nor commit to any projections contained
Depreciation (franchise fee) 120,000 120,000 120,000 120,000 120,000 herein during the term of the franchise agreement and shall hold PSC free and harmless from any
Total Cash Inflow Monthly 1,603,044 1,653,863 1,705,423 1,757,707 1,810,693 liability in the event that margins and/or profits fall short from those indicated in this business plan.
Total Cash Inflow Yearly 19,236,528 19,846,354 20,465,078 21,092,481 21,728,320

Key Figures Franchise Applicant

Average Sales Per Day 784,682 800,376 816,383 832,711 849,365 Date : ___________________
Gross Profit 30.00% 30.20% 30.40% 30.60% 30.80%
Net Income to Sales 6.8% 6.9% 7.0% 7.0% 7.1%
 FC BUSINESS PLAN TEMPLATE 12/24/2018 07:03:16

ctions made by the

cknowledges that
projections contained
nd harmless from any
in this business plan.
Store Budget Template - Budget Decription

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 TOTAL
Sales
Cost of Sales (Based on merchandise assortment, estimate the cost of goods. See attached guide on margins of different product categories.)
Gross Profit (Sales - Cost of Sales)
7-Eleven Split (Gross Profit x 7-Eleven Split Percentage)
Gross Income (Gross Profit - 7-Eleven Split)
Operating Expenses:
Salary (Regulars) (Calculate salaries for all regular employees.)
Salary (Temporary) (if necessary)
Employee Benefits (Include 13 month pay, medical benefits, SSS, bonuses, leaves, as necessary)
Inventory Variation (This is the monetary value of the difference between actual stock against book value. These are stocks lost due to pilferage.)
Cash Variation (This is the discrepancy between the register receipts versus actual cash in drawer.)
Bad Merchandise (Non-refundable damaged goods)
Repairs and Maintenance (Repairs of bldg incldng walls, partitions, doors, electrical repairs, door locks, fuse boxes, plumbing; eqpt maint. incldng replacement of flourescent tubes & light bulbs, etc.)
Security Service (24 hrs or 12 hrs at option of franchisee)
Financing expenses (Interest expense on capital financed)
Depreciation (renovation) (Investment on renovation costs including fees for A&E, permits & licenses); estimated average of P10,000 per sqm
Depreciation (new bldg) (Investment in putting-up a new bldg including fees for A&E, permits & licenses); estimated average of P12,000 per sqm
Depreciation (goodwill) (Investment in getting rights over the leased premises)
Franchise Fee (Amortized for 5 years)
Selling Supplies (variable) (Plastic bags, packaging supplies, tissue paper)
Store Supplies (fixed) (Store forms, cleaning and office supplies)
Water (Water bill)
Rent (If property is being leased or if owned or acquired, the equivalent rent)
Electricity (This expense is shared 50/50 between 7-Eleven and franchisee)
Taxes / Licenses (Business and local taxes; health permits and the like)
Distribution Charge (3.5% of 45% of Cost of Sales which may vary in the future)
Miscellaneous (Other incidental expenses like insurance on building [fire & other perils] merchandise [burglary & theft] and store operation requirements
Insurance such as fidelity bond, etc.)
Xerox and Printing (photocopying expenses)
Postage Telephone & Telex (Communications expenses such as phone bills, courier services, etc.)
Travel and Transportation (Travelling expenses related to store concerns)
Representation & Entertainment
Others (uniforms, gasoline expense for generator, etc.)
Total Operating Expenses

Net Profit (Gross Income - Total Operating Expenses)

Key Figures
Average Sales Per Day (Sales / 30)
Gross Margin (Gross Profit / Sales)
Net Income to Sales (Net Profit / Sales)
Table of Typical Average Corporate Store Expenses
Sales
Cost of Sales
Gross Profit
Salary (Regulars)
Salary (Temporary)
Employee Benefits
Bad Merchandise
Inventory Variation
Cash Variation
Repairs and Maintenance
Security Service
Financing expenses
Depreciation (renovation)
Depreciation (new bldg)
Selling Supplies (variable)
Store Supplies (fixed)
Water
Rent
Electricity
Taxes / Licenses
Distribution Charge
Miscellaneous
Insurance
Xerox and Printing
Postage Telephone & Telex
Travel and Transportation
Representation & Entertainment as necessary
Others
Highly dependent on location. This figure will determine how profitable the business will be.
The products that sell in a location determine the profit margins in a particular location.
As a rule, fastfood items (Slurpee, hotdogs, dimsum) have a higher gross margin than staples (canned goods, etc.)
Based on your market knowledge, estimate the percentage of sales that come from the different product categories.
The typical corporate store averages a gross margin of 24%-26%
Typical Margins
Fastfood: 35% Staples: 17% Personal Needs: 24% Beverages: 22% Others: 24%
Estimated monthly base salary x number of regular employees
Estimated monthly base salary, calculate if paid by the hour.
Include here medical benefits, sick leaves, etc. for regular employees.
Average of .05% of sales
1/4 of 1% of sales. Controllable cost.
Average of P400 per month
Average of P3,200 per month, for the building and equipment (PSC shall assume preventive periodic maintenance.)
Depends on location and hours of service, 24 hrs or 12 hrs
If investment is financed, calculate interest expense.
Costs for renovating the space including fees for A&E, permits & licenses
Costs for putting-up a new bldg including fees for A&E, permits & licenses
Estimated at 0.60% of sales
Estimated at 0.10% of sales
Estimated at P1,200 per month
fill in your figure
50% of P70,000 or P35,000 per month
Estimated at 2.00 % of sales, depending on location
3.5% of 45% of Cost of Sales; charged to items delivered by central distribution, none for DTSD (Direct to Store Deliveries)
Estimated at P1,500 per month
Minimal expense
Estimnated at P820 per month
Minimal expense
Estimated at P800 per month