Athletic Shoe Store Franchise Business Plan

The Athlete's Foot

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Company Summary

The Athlete's Foot sells quality athletic footwear for the entire family, specializing in running shoes and accessories. We have selected a location in a renovated shopping center anchored by Fresh Market, Bed Bath and Beyond, Blockbuster Video, and four restaurants. The balance of tenants caters primarily to children. The quality of our customer service and the lack of competition in the city will allow us to quickly become the footwear headquarters for the local individual athlete and various teams, leagues and schools. This Athlete's Foot store, while part of a worldwide chain, will be family owned and operated.

2.1 Start-up Summary

The start-up costs include:

  • Store build out the store and operations 
  • Inventory control, (computers and cash registers)
  • The foot scanner and fixture
  • Opening inventory
  • Franchise Fee.

Start-up costs will be financed through a combination of owner investment, short-term loans and lines of credit, and long-term borrowing. The start-up chart and table show the distribution of the planned financing.

Start-up Funding
Start-up Expenses to Fund $58,000
Start-up Assets to Fund $184,000
Total Funding Required $242,000
Assets
Non-cash Assets from Start-up $156,000
Cash Requirements from Start-up $28,000
Additional Cash Raised $0
Cash Balance on Starting Date $28,000
Total Assets $184,000
Liabilities and Capital
Liabilities
Current Borrowing $20,000
Long-term Liabilities $150,000
Accounts Payable (Outstanding Bills) $2,000
Other Current Liabilities (interest-free) $0
Total Liabilities $172,000
Capital
Planned Investment
Investor 1 HKL $70,000
Investor 2 $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $70,000
Loss at Start-up (Start-up Expenses) ($58,000)
Total Capital $12,000
Total Capital and Liabilities $184,000
Total Funding $242,000
Start-up
Requirements
Start-up Expenses
Accountant $1,000
Legal $2,500
Stationery etc. $1,000
Architect / Design Assistance $2,500
Training $3,000
Insurance $600
Security Deposit & 1st Months Rent $4,700
Pre-opening Marketing $5,000
Franchise Fee $25,000
Misc. / Contingency $12,700
Total Start-up Expenses $58,000
Start-up Assets
Cash Required $28,000
Start-up Inventory $85,000
Other Current Assets $1,000
Long-term Assets $70,000
Total Assets $184,000
Total Requirements $242,000
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Start-up Funding
Start-up Expenses to Fund $58,000
Start-up Assets to Fund $184,000
Total Funding Required $242,000
Assets
Non-cash Assets from Start-up $156,000
Cash Requirements from Start-up $28,000
Additional Cash Raised $0
Cash Balance on Starting Date $28,000
Total Assets $184,000
Liabilities and Capital
Liabilities
Current Borrowing $20,000
Long-term Liabilities $150,000
Accounts Payable (Outstanding Bills) $2,000
Other Current Liabilities (interest-free) $0
Total Liabilities $172,000
Capital
Planned Investment
Investor 1 HKL $70,000
Investor 2 $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $70,000
Loss at Start-up (Start-up Expenses) ($58,000)
Total Capital $12,000
Total Capital and Liabilities $184,000
Total Funding $242,000
Start-up
Requirements
Start-up Expenses
Accountant $1,000
Legal $2,500
Stationery etc. $1,000
Architect / Design Assistance $2,500
Training $3,000
Insurance $600
Security Deposit & 1st Months Rent $4,700
Pre-opening Marketing $5,000
Franchise Fee $25,000
Misc. / Contingency $12,700
Total Start-up Expenses $58,000
Start-up Assets
Cash Required $28,000
Start-up Inventory $85,000
Other Current Assets $1,000
Long-term Assets $70,000
Total Assets $184,000
Total Requirements $242,000