We are making the plan for expanding the business( Exporting ) in France from th

Question

We are making the plan for expanding the business( Exporting ) in France from the US.

The business model is Taco Bell ( Mexican Fast foods).

Please make a prediction about financial with using the data. ( show me how to get the numbers )

Years 1 through 5-PROJECTED

Basic Profit & Loss FOR the PRODUCT/SERVICE

Revenue

COGS

GM

SG & A

EBITDA

MAJOR COST REQUIREMENTS (if any)

ASSUMED MARKET SHARE/PENETRATION

IMPORTANT--TO BE ABLE TO DEVELOP FINANCIALS NEED TO HAVE GOOD DATA ON MARKET SIZE

What are the initial franchise fee and royalty fees?

Initial Franchise Fee = $45,000

Monthly Service Fee (Royalties) = 5.5% of Gross Sales

Marketing = 4.25% of Gross Sales (Includes national and local contributions)

Explanation / Answer

Franchise fee is the upright payment that a person makes to franchise a branch of the brand and operate in its bame and appropriate the profits. Here = $45000

The Royalty fee is the fee that the franchisee pays to the brand or teh franchisor. This is a percentage of the gross sales. Here= 5.5%

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