FEASIBILITY STUDY

A Feasibility Study is akin to a Business Plan.

1.                  Introduction

         Overview

         Objectives

         Business Strengths

         Executive Summary

2.                  Business Model

         Aims of the Franchise System

         Business Model Development

         Model, Roles and responsibility

         Site Selection, Lease negotiations and fitout

3.                  Business Structure

         Ownership

-                      Sole Trader

-                      Partnership

-                      Corporation

-                      Trust

4.                  Expansion Planning

         Customer profile

         Number of staff

         Location expansion

         Interstate

         Overseas

5.                  Franchisee Investment Requirements

         Initial Fee

         Acquisition costs

         Fitout and construction

         Capital

         Working capital

         Cash Flow

         Finance

6.                  Franchisee Profitability

         Royalty

         Advertising contribution

         Income estimates

         Cost of goods

7.                  Franchisee Return on Investment

         Projected annual revenue

         Nett Profit

         Investment requirement

8.                  Franchisor Source of Revenue

         Initial Franchise Fee

         Royalties

         Product supply

         Licensed supply

         Other source of revenue

-                      Advertising Levy / Marketing Fund

9.                  Franchisor Revenue Estimates

         Granting of Franchise

         Head Office costs

10.              Advantages and Disadvantages of Franchising

         Advantages for Franchisor

         Disadvantages for Franchisor

         Advantages for Franchisee

         Disadvantages for Franchisee

11.              Issues and Recommendations

         Existing and Future Operations

         Establishment of Pilot Store

         Intellectual Property

         Branding and Standards

         Human Resources

         Course of Action

         Critical Path