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.

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

Year 2006 2005 2004 Basic Profit & Loss for the Product / sevice Revenue $8,365 $8,225 7992 Million Franchise fee & Royalty Fees $1,196 $1,124 1019 Million Total revenue $9,561 $9,349 9011 Million COGS $7,094 $7,070 6833 Million GM $2,467 $2,279 $2,178 Million SG&A $1,205 $1,253 $1,152 Million EBITDA $1,262 $1,026 $1,026 Million Major cost Requirement Assumed Market Share/ Penetration US Market Comapany sales $1.80 $1.80 $1.70 Billion Franchisee sales $4.50 $4.40 $4.00 Billion Gross sale national & Local $6.30 $6.20 $5.70 International sales Franchisee sales $0.20 $0.20 $0.20 Billion Gross Sale (world wide) $12.80 $12.60 $11.60 Billion Franchise fee & Royalty Fees $45,000 Million = $45,000 Mothly service fees 5.50% Gross Sales = $346,500,000 Marketing 4.25% Gross sales = $267,750,000 Taco Business model in France from US = $614,295,000

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.