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Business plan for Cafe Latte
Management reporting and systems
ABC Franchises monitors the progress and success of each unit monthly and provides reports and an overview of the progress of the Franchise Channel as a whole. The Franchisee will be required to utilize the software packages provided by ABC Franchises as well as provide other related figures as requested. The Franchisee is accordingly required to submit monthly Management reports and annual audited financials.
Market analysis
The market analysis is conducted by ABC Franchises specialist. ABC Franchises is responsible for brand building and brand maintenance. The Location is selected to maximise the shop profitability ensuring franchisee success.
Sales and Marketing Strategy
Advertising
ABC Franchises contributes a significant portion of the finance to national media campaigns be it via print, audio or visual media. The Franchisee will be encouraged to enhance the image of the Cafe Latte by employing additional advertising and/or promotions, subject to approval from ABC Franchises. This additional advertising cost will be carried by the franchisee.
The franchisee will deploy an initial campaign to create awareness of the shops location and existence to the public. Promotions will be negotiated with ABC Franchises to introduce the outlet and create shop/outlet awareness to the public in the direct geographical area.
Financial Overview
Required Capital Funding
The franchise purchase amount is R1,200,000.
Cash Flow Analysis
An income cash flow of R170 000 per month is used in calculating the viability of the Sunshine Mall outlet. This figure of R170 000 is the actual average monthly outlet figures as provided by ABC Franchises for 4 outlets over the past 2 years. Refer to calculation averages below.
The analyses shows that the Cafe Latte will be viable and the entrepreneurs will be able to service the debt repayment schedule as required.
The Financial Plan
Please refer to our Financial Plan page for more information on what the Financial Plan entails.
Break-even Analysis
Fixed monthly costs for Clean Machine are estimated to be approximately R7,500, and break even monthly units are 203 units per month.
Please refer to our Break Even Calculator for a formula to calculate the Break-even point.
Projected Cash Flow
Click here to download a Cash Flow template.
Projected Income Statement (Profit and Loss)
Click here to download an Income Statement template.
Projected Balance Sheet
Click here to download a Balance Sheet template.
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