The Athlete's Foot

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Athletic Shoe Store Franchise Business Plan

Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Footwear Sales 0% $37,620 $50,018 $25,650 $26,933 $31,208 $50,445 $31,208 $30,353 $38,475 $36,765 $34,200 $34,628
Accessories / Apparel 0% $1,980 $2,633 $1,350 $1,418 $1,643 $2,655 $1,643 $1,598 $2,025 $1,935 $1,800 $1,823
Total Sales $39,600 $52,650 $27,000 $28,350 $32,850 $53,100 $32,850 $31,950 $40,500 $38,700 $36,000 $36,450
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Footwear Sales $20,691 $27,510 $14,108 $14,813 $17,164 $27,745 $17,164 $16,694 $21,161 $20,221 $18,810 $19,045
Accessories / Apparel $1,089 $1,448 $743 $780 $903 $1,460 $903 $879 $1,114 $1,064 $990 $1,002
Subtotal Direct Cost of Sales $21,780 $28,958 $14,850 $15,593 $18,068 $29,205 $18,068 $17,573 $22,275 $21,285 $19,800 $20,048
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Jane Lefkowitz, Owner / Mgr. / $18.K / Yr. 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Assistant Store Manager / $18K / Yr. 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Key Assoc. / $8.00 hr. - 40 hrs. 0% $1,024 $1,280 $1,280 $1,280 $1,280 $1,280 $1,280 $1,280 $1,280 $1,280 $1,280 $1,280
Part Time Assoc. "A" - $6.00 / Hr.- 12 hrs 0% $288 $288 $288 $288 $288 $288 $288 $288 $288 $288 $288 $288
Part Time Assoc. "B" - $6.00 / Hr. - 8 hrs. 0% $192 $192 $192 $192 $192 $192 $192 $192 $192 $192 $192 $192
Part Time Assoc. "C" - $6.00 / Hr. - 8 hrs. 0% $192 $192 $192 $192 $192 $192 $192 $192 $192 $192 $192 $192
Total People 6 6 6 6 6 6 6 6 6 6 6 6
Total Payroll $4,696 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 25.00% 0.00% 0.00% 0.00% 25.00% 0.00% 0.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $39,600 $52,650 $27,000 $28,350 $32,850 $53,100 $32,850 $31,950 $40,500 $38,700 $36,000 $36,450
Direct Cost of Sales $21,780 $28,958 $14,850 $15,593 $18,068 $29,205 $18,068 $17,573 $22,275 $21,285 $19,800 $20,048
Other $792 $1,053 $540 $567 $657 $1,062 $657 $639 $810 $774 $720 $729
Total Cost of Sales $22,572 $30,011 $15,390 $16,160 $18,725 $30,267 $18,725 $18,212 $23,085 $22,059 $20,520 $20,777
Gross Margin $17,028 $22,640 $11,610 $12,190 $14,126 $22,833 $14,126 $13,739 $17,415 $16,641 $15,480 $15,674
Gross Margin % 43.00% 43.00% 43.00% 43.00% 43.00% 43.00% 43.00% 43.00% 43.00% 43.00% 43.00% 43.00%
Expenses
Payroll $4,696 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952
Sales and Marketing and Other Expenses $3,845 $4,636 $3,084 $3,166 $3,438 $4,663 $3,438 $3,383 $3,900 $3,791 $3,628 $3,656
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Royalties (5%) $1,980 $2,633 $1,350 $1,418 $1,643 $2,655 $1,643 $1,598 $2,025 $1,935 $1,800 $1,823
Insurance $515 $684 $351 $369 $427 $690 $427 $415 $527 $503 $468 $474
Rent $2,267 $2,267 $2,267 $2,267 $2,267 $2,267 $2,267 $2,267 $2,267 $2,267 $2,267 $2,267
Payroll Taxes 10% $470 $495 $495 $495 $495 $495 $495 $495 $495 $495 $495 $495
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $13,772 $15,667 $12,498 $12,666 $13,221 $15,722 $13,221 $13,110 $14,166 $13,943 $13,610 $13,666
Profit Before Interest and Taxes $3,256 $6,973 ($888) ($475) $904 $7,111 $904 $628 $3,249 $2,698 $1,870 $2,008
EBITDA $3,256 $6,973 ($888) ($475) $904 $7,111 $904 $628 $3,249 $2,698 $1,870 $2,008
Interest Expense $1,381 $1,361 $1,342 $1,322 $1,303 $1,283 $1,264 $1,244 $1,225 $1,205 $1,186 $1,166
Taxes Incurred $563 $1,403 $0 $0 $0 $1,457 $0 $0 $506 $373 $171 $210
Net Profit $1,313 $4,209 ($2,230) ($1,797) ($398) $4,371 ($359) ($616) $1,519 $1,119 $513 $631
Net Profit/Sales 3.31% 7.99% -8.26% -6.34% -1.21% 8.23% -1.09% -1.93% 3.75% 2.89% 1.43% 1.73%
Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $39,600 $52,650 $27,000 $28,350 $32,850 $53,100 $32,850 $31,950 $40,500 $38,700 $36,000 $36,450
Subtotal Cash from Operations $39,600 $52,650 $27,000 $28,350 $32,850 $53,100 $32,850 $31,950 $40,500 $38,700 $36,000 $36,450
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $39,600 $52,650 $27,000 $28,350 $32,850 $53,100 $32,850 $31,950 $40,500 $38,700 $36,000 $36,450
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $4,696 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952 $4,952
Bill Payments $2,394 $11,902 $14,362 $9,878 $23,204 $31,853 $54,694 $16,375 $27,474 $38,947 $31,452 $28,976
Subtotal Spent on Operations $7,090 $16,854 $19,314 $14,830 $28,156 $36,805 $59,646 $21,327 $32,426 $43,899 $36,404 $33,928
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $9,465 $19,229 $21,689 $17,205 $30,531 $39,180 $62,021 $23,702 $34,801 $46,274 $38,779 $36,303
Net Cash Flow $30,135 $33,421 $5,311 $11,145 $2,319 $13,920 ($29,171) $8,248 $5,699 ($7,574) ($2,779) $147
Cash Balance $58,135 $91,556 $96,868 $108,013 $110,332 $124,252 $95,081 $103,329 $109,028 $101,454 $98,676 $98,823
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $28,000 $58,135 $91,556 $96,868 $108,013 $110,332 $124,252 $95,081 $103,329 $109,028 $101,454 $98,676 $98,823
Inventory $85,000 $63,220 $34,263 $19,413 $17,152 $19,874 $32,126 $19,874 $19,330 $24,503 $23,414 $21,780 $22,052
Other Current Assets $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Total Current Assets $114,000 $122,355 $126,819 $117,280 $126,164 $131,206 $157,378 $115,955 $123,659 $134,531 $125,868 $121,456 $121,875
Long-term Assets
Long-term Assets $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000
Total Assets $184,000 $192,355 $196,819 $187,280 $196,164 $201,206 $227,378 $185,955 $193,659 $204,531 $195,868 $191,456 $191,875
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $2,000 $11,418 $14,047 $9,114 $22,170 $29,985 $54,161 $15,473 $26,167 $37,895 $30,488 $27,938 $30,101
Current Borrowing $20,000 $19,625 $19,250 $18,875 $18,500 $18,125 $17,750 $17,375 $17,000 $16,625 $16,250 $15,875 $15,500
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $22,000 $31,043 $33,297 $27,989 $40,670 $48,110 $71,911 $32,848 $43,167 $54,520 $46,738 $43,813 $45,601
Long-term Liabilities $150,000 $148,000 $146,000 $144,000 $142,000 $140,000 $138,000 $136,000 $134,000 $132,000 $130,000 $128,000 $126,000
Total Liabilities $172,000 $179,043 $179,297 $171,989 $182,670 $188,110 $209,911 $168,848 $177,167 $186,520 $176,738 $171,813 $171,601
Paid-in Capital $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000
Retained Earnings ($58,000) ($58,000) ($58,000) ($58,000) ($58,000) ($58,000) ($58,000) ($58,000) ($58,000) ($58,000) ($58,000) ($58,000) ($58,000)
Earnings $0 $1,313 $5,522 $3,292 $1,494 $1,096 $5,467 $5,108 $4,492 $6,010 $7,130 $7,643 $8,274
Total Capital $12,000 $13,313 $17,522 $15,292 $13,494 $13,096 $17,467 $17,108 $16,492 $18,010 $19,130 $19,643 $20,274
Total Liabilities and Capital $184,000 $192,355 $196,819 $187,280 $196,164 $201,206 $227,378 $185,955 $193,659 $204,531 $195,868 $191,456 $191,875
Net Worth $12,000 $13,313 $17,522 $15,292 $13,494 $13,096 $17,467 $17,108 $16,492 $18,010 $19,130 $19,643 $20,274