1

I. Executive summary

A. Company Name

Company Name : Suma cum Laundry and Caf

Contact person : Ricky Soriano Head Manager
Location : J.C Aquino Avenue beside Greenwich and Caltex Gasoline
Station Butuan City.
Contact Number : +63127449854
Telephone Number: 342-3718

B. Type of Business

A combination of laundry and food service business with multiple service offerings
such as laundry cleaning, ironing, folding and caf at the same time that offers drinks
mainly the coffee and delightful comfort snacks such as doughnuts, cupcakes and
cakes.

C. Company Description

The Suma cum Laundry and Caf was termed from the word Suma cum laude
where students get the feeling of comfort and can remove their stress through its
sublime atmosphere. The business accentuates its main products the goods which is
the coffee, cupcakes, doughnuts and cakes that its ingredients are from foreign
countries that are authentic and freshly made brought to the locality with a lifetime
experience that brings a sensation of what it feels like to be living in another land but
with very affordable price and luxurious feeling. It mainly offers laundry namely ironing,
dry cleaning and folding for people who doesnt have no time for doing it. The concept
will be according to the event or holiday whenever there is something went viral will be
our theme of the week in our store to generate response from the customers. We
targeted students or working professionals because most of them are busy at school or
work so they wont have time to do the washing of clothes and specially to the students
who rents space best suits our business and they love to do overtime on their paper
works where they can do at ours since we are open 24/7.
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D. Key Personnel

Personnel Function Qualifications

18-35yrs old
Male/female
Guide and monitor every At least College
operation done during process Graduate
Manager
and is in full responsibility of any Knowledgeable (field
happenings in business of expertise)
Decisive
Communication skills
18-30yrs old
Male/Female
At least College
Assigned to the baking section
Graduate
that will bake the goods and will
Previous Experiences
Baker be liable to maintaining food
in baking with other
quality and sanity amongst the
companies
baking area.
Multitasking
Must be able to handle
pressure
18-25yrs old
Male/Female
Designated to do transaction At least High school
such as receiving payments Graduate
Cashier
asking orders and give a Good in Quantitative
complete guide of the menu. activity
Patient
Good character
Performs the cleaning in the 18-25yrs old
Dishwasher
kitchen and assists the baker in Male/Female
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the baking area At least High school

graduate
Patient
Well-Organize
18-35yrs
Tasks to maintain the cleanliness
Male/Female
of the comfort room, dining area
Utility At least High school
and working area and organize
graduate
what is must.
Takes direction well
18-25yrs old
Male/Female
Handle customer service and At least High school
Waiter assist customers about their graduate
queries or questions. Good communication
skills
Takes direction well
18-40yrs old
At least high school
graduate
Will be securing the surroundings Male/Female
Security Guard
to avoid any casualties (preferably male)
Physically fit
Ability to work flexible
hours
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E. Start-up Schedule and Competition

Suma cum Laundry and Caf start-up is scheduled on December 2013. The totality of
its construction process is within the length of 9 months. To further organize the activity in
preparation of business, the Suma cum Laundry and Caf suggested a plan as a guideline for
the start up. For the next 6 months, the first activities that is going to happen is the following:
Planning with the organization, choosing a location to start the construction, running all the
business papers such as fees and licenses, employee recruitment , advertising the business to
prospect buyers and the finale which is the grand opening of the business. The Suma cum
Laundry and Caf since is a combination of both laundry and caf, we considered the Bos
Coffee, Dunkin Donuts, Bon Appetea, Infinitea, Lemon Time, Caf Cat, and other small time
laundry businesses as our competitors for the main reason of having the same product offerings
and has establish its name to the society which is very popular.

F. Funds Request

The funds that will be needed by the Suma cum Laundry and Caf will be from the
partnerships individual personal savings that will be utilized for the enhancement and
betterment of the exterior and interior designs of the building.

G. Funds Use Statement

The funds accumulated will be for the construction of the building and materials that is
needed for its construction. For its external and internal designs, such as paints, bulbs, chairs,
tables and other necessity for the beautification of the building and for the equipment for the
functionality, the cashier register, washing machine, water tank, refrigerator, air-coolers, and
second the money accumulated will be used for the salaries of the employees and labor
expenses and lastly for the future expenses of the company wherein there must be a an
allocated budget for the next years during the operations for securement.

H. Funds repayment

The Suma cum Laundry and Caf will be not involved to any repayment of funds since it
has establish its funds through personal savings and does not rely on loaning from banks and
other loan entities.
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II. MARKETING

A. Major Marketing Objectives

Objectives: in providing laundry cleaning, folding and ironing services for customers and
at the same time we offer customers delightful sweets such as cupcakes, biscuits and
other pastries. Deliver customers with high quality of service and product.

Suma cum Laundry and Caf aims to:

To able to establish sustainable business by the end of the 1st year.

To produce net profits worth 15% in (Companys total revenue) deducted.
To meet the companys food reduction goal of 15%. Management will be diverting
their attention on degrading in the waste of food such as spoilage and leftovers in
tracking it every two weeks on a monthly basis.
To meet the companys annual goal of reaching the profit worth 40% in return
excluding all the liabilities from the firm (deduction) through maximizing employee
recruitment and expand at the same time advertise through print media like
newspapers, pamphlets every once a week to formulate and idea on customers
mind that Suma cum laundry exists to gain customers.

Mission

Our mission is to save your time and money and to provide our customers with
high quality laundry service within a comfortable ambient with friendly service. Suma
cum Laundry and Caf make it easy for you, we take out all the headaches from you
just come and relax here while you do your laundry.

Vision

Our vision is to be a leading provider of laundry services to all levels and

especially to students and employees living in apartment.
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B. Marketing Plan & Strategy

Our business is a composite of both product and service offerings which is the
laundry and caf. Suma cum Laundry covers the cleaning, folding and ironing
services and caf that offers budget friendly sweets (doughnuts, cupcakes and etc.).

Product Description Price

Coffee Strong and has a sweet aroma Php35.00

Topped with delicious sweet
Doughnuts Php30.00
chocolate with handmade dough
Drizzled with yummy frosting

Cupcakes made from authentic flavors from Php25.00

foreign countries.
Mind bogglingly delicious cake
made from high quality
Cakes Php35.00(per slice)
ingredients and has unique
sweet taste

Service Description Price

-Assorted T-shirts, short, blouse,
Php25.00/kg
dress, etc.
Wash-Dry-Fold
-Comforter, bed sheets, curtains
Php45.00/kg
and towels
We offer hand for special
Hand wash garments like coats, barong, long Php50.00/garments
sleeves(trouser) etc.
Overall services that offers dry
Wash-Dry-Fold-Ironing Php40.00/kg
cleaning, folding and ironing
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(CAF) COFFEE

One of our main products is coffee which has a distinct taste and has different
flavors to be choose from and coffee beans are made fresh from Tagaytay and because
the people in consuming coffee increases yearly and we have decided to place it since
customer find coffee as a comfort drink in stress specially to those students and
employees the population when it comes to purchasing of coffee is multitudinous.

(CAF) SWEETS

We offer variety of sweets namely: cupcakes, cakes and doughnuts since it is the
best when partnered with coffee and it suits every person may it be a teenager, young
adult and kids or even the days.

(LAUNDRY) DRY CLEANING

Our business offers the primary service which is the laundry cleaning that
basically washes clothes with high quality detergents to complete the satisfaction to the
customers since smells creates an impact to them.

(LAUNDRY) FOLDING

The folding service is the last phase of the process in which it is organized neatly
and placed in a customer for it to be presentable when handed to the customers
because most of the customers are fired in folding and would just throw away that
cause.
(LAUNDRY) IRONING
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One of our service offering is ironing because clich it is in the market that
laundry is just all about washing of clothes but our business offers ironing to be more
convenient and hassle free that would make our business apart from the competitors.

Target Market

Age : 14 and above

Gender : All gender
Location : Near in the city and in front of schools
Educational : Professional/Student/Employee

Pricing Strategy

The strategy that we are going to use is market penetration pricing strategy
because it is designed to launch a product or service, enter the market as swiftly as
possible and finally, capture a sizeable market share. Market penetration involves
lowering of price of a product or service with the aim of increasing sales.

One of the benefits of market penetration is that it can help a company increase
its overall sales volume. Lower prices can lead to higher sales volume, which allows
companies to boost the overall market share in the competitions expense.

The strategy that we are going to utilize in pricing our products/services is for the
reason of the process does not require any strenuously and it is much more convenient
to us since the processes requires computing just the cost of the products and services
and place a part as the mark up. Penetration pricing is also an effective strategy for
firms looking to enter new market segment. Along with generating more sales from
existing customer, market penetration pricing lets businesses find new buyers.
 9

C. Franchisee Recruitment Plan and Flowchart

Suma cum Laundry and

Caf post the requirement
of recruitment in the internet

Candidates send their Candidates send their

franchisee franchisee
Selecting CV
requirements via requirements directly to
email the management

Screening
Interview

Failed interview Passed

Final Interview interview
(Exits)
(Proceeds)

1 month probation

Official franchisee
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The recruitment plan in the flow chart consists of eight phases in becoming an
official franchisee. The requirement of the recruitment will be posted at the internet or
website of the business. The next step is with the sending of their franchisee
requirements and directly proceeds to the screening interview to test the potential
franchisee if they have what it takes in franchising the business and steps to the final
interview for further assessment and if failed it will be their end of connection if the
applicant will pass the he/she will be given 1 month probation in the next stage to test
how will they perform in real business fields and becomes an official franchise.

D. Franchisee Prospectus

History

We have come up with the idea of Suma cum Laundry and Caf since majority of
us can relate and have noticed that most of the students that boards goes to laundry
and would go afterwards to the nearest coffee stops so we decided why not combine
both business to create a new innovative business that hasnt been introduced here in
the city that would create huge sensation to the people because it is convenient for
them already.
We are looking for our ideal franchisee and do you possess one of this
characteristic? Hence, we wanted you to be part in the expanding our business Suma
cum Laundry and Caf. The following are the essential:

Interpersonal skills
Knowledgeable
Sagacious
Hardworking
Multi-tasking
Intrapersonal skills
Communication skills
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Self-Awareness
Empathy
Commitment
Passion
Persistence

E. Franchise Sales and Advertising

SALES

Our philosophy is to offer neither discount prices nor high prices. That means
standard cost to launder a shirt for P40/kilo and P20/half kilo compared to the high
prices in the market. For dry cleaning, the starting price will be P45/kilo and may go up
according to the type of fabric, compared to the high end price in the market, where the
starting price P50/10 shirt. With this level of pricing, the company will have excellent
sales with a reasonable profit. Aside from laundry, we also offer food for the customers
for those who wait for their laundry to finish with affordable price.
For the first time customer will be offered 20% off their next order. A coupon will
be attached to their order when they come to pick up. This is one of our strategies to
bring customers back to our business and build our customer base. In addition, we
guarantee to customer the benefits on our good and a high standard quality of service.

ADVERTISING

The Summa Cum Laundry and Caf will use effective ways to capture
customers attention and response. Flyers will distribute, advertisements will be mailed,
posting it on Social Medias such as Facebook, Instagram, etc., and flyers will be placed
on public areas. All the messages will be supported by promotions. Also, word of mouth
will be the best referral.
The company maintains a strong budget for effective advertising. The company
plan to use internet link which generate to email the customers with the promotions and
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sales. This is considered an excellent communication between the company and its
customers.
There are effective ways to keep communication and follow-up with our
customers in terms of informing them of our business updates. We will email, send
letters, or call our customers to keep them updated.

F. Franchisee Location Criteria Selection

Suma cum laundry is currently looking for property on local high streets, retail
parades and neighborhood centers where locals are most seen or goes to, because our
target customers are mostly students, working professionals and etc. and answers the
following criteria given:

Frontage minimum width 12ft (4.5m)

High Visibility for both cars and pedestrians

In Front of schools, companies or boarding houses

High footfall and traffic (Urban areas)

Bordering to supporting traders, like restaurants, entertainment venues (near business

establishments)

Car Parking near to premises

G. Grand Opening Plan

The franchisor and franchisee along with the all the people who contributed and
helped in building the business to be possible during the grand opening must be present
on the day where it is going to be held. Before the grand opening an advertisement will
be set in a week using different forms of promotion through distribution of pamphlets by
organizing a team that will distribute to people house to house or in public areas and will
be using also the transit advertising to effectively spread the awareness of the grand
 13

opening and during the event we will be giving away freebies and will have a raffle
promo to the customers and whoever wins will receive gift cards and etc. We will also
be giving discounts on every item purchase will be 50% and in the service we will be
giving also 50% free. There will be also government representatives to be part of the
event to grow brand presence through with their aid.

H. Customer Advertising

The Suma cum Laundry and Caf will be using both sales promotion and
because customers are more likely to be attracted whenever there are sales involve in it
like free taste and other sales promotion related and by that through this advertising we
can generate response quickly from the customers and at the same time create a
perception in the mind of the customers that will lead them in purchasing the
products/services we are offering since our belief is perception is everything. We will be
providing voucher for our loyal customers like discount and freebies vouchers.
We will be creating strategies that would easily attract the customers. By using
the social media we will going to make a Facebook page and website so that the
customer will easily tract our daily activities. Will be posting on updates like sales etc.,
and will also make a video advertisement of our business so that we can get the
attention of our potential customer.
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III. MANAGEMENT

A. Headquarters Organization

Organizational Structure

Manager/owner

Marketing Financial & Service

Administration &Technical

Staff

Personnel Management

Personnel Function Qualifications

18-35yrs old
Male/female
Graduate of any
Responsible in all aspect of the
business course
business administration;
Minimum of 5 years
Coordinates the management and
Manager/Owner experience as a
business operation;
manager
Ensure all staffs are working base
Knowledgeable
on their work specification.
Excellent written, verbal
and interpersonal
communication skills
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18-30yrs old
Responsible in expanding the
Male/Female
market and also in finding new
Graduate of any
opportunities to increase companys
Marketing business course
Manager profit;
Multitasking
Responsible in ensuring the
Must be able to handle
companys income is consistent.
pressure
18-25yrs old
Preparing budget and seeking for Male/Female
financial sources; Graduate of any
Administration
Controlling the financial progress in business course
and Financial
terms of expenditure, income and Good in Quantitative
Manager
anything related; activity
Checking the staffs attendance. Patient
Good character

Ensuring the service given to 18-25yrs old

the customers are Male/Female
Service and
guaranteed and satisfying; Graduate of any
Technical
Ensuring the technical business course
Manager
systems are in good condition Patient
and functioning. Well-Organize

Policies and Procedure

The work shall start at 9:00 in the morning.

The management will not tolerate late comers.
Proper duty hours will be observed at all times to avoid incidents such as
leaving early
Honesty is the best policy
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All employees are given the right to give suggestions and comments for the
betterment of the company and create new strategies to achieve the
organizational goals.
Discipline and grievance procedure including gross misconduct
Sickness absence including pay rates, reporting arrangements, monitoring
absence, dealing with short/long term absence
Annual leave including public holidays, carrying forward leave, requesting
holiday, pro rata entitlement for part-time staff

B. Franchise

Organizational Chart

Laundry Manager

Asst. Laundry Manager

Washer Receptionist Charge & Billing

Finisher
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Personnel Management

Personnel Function Qualifications

18-35yrs old
Male/female
Guide and monitor every Graduate of any business
operation done during course
Laundry Manager process and is in full Knowledgeable (field of
responsibility of any expertise)
happenings in business At least 3 years of experience
Decisive
Communication skills
18-35yrs old
Male/female
Graduate of any business
Responsible to assist the
course
business if the manager
Assistant Laundry
Knowledgeable (field of
Manager is not around and
expertise)
monitor the customer
At least 3 years of experience
Decisive
Communication skills
18-25yrs old
Male/Female
Responsible for washing
Washer At least High school Graduate
the clothes
Patient
Good character
Accommodate general
18-25yrs old
services in reception
Male/Female
area such as greeting all
Receptionist At least College
the incoming customers
Graduate/Vocational diploma
and employees
At least 3 years of experience
Prepares daily
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accomplishment report Excellent communication skill,

good interpersonal skills and
computer literate
Good character
18-25yrs old
Designated to do
Male/Female
transaction such as
At least College
receiving payments
Charge and Billing Graduate/Vocational diploma
asking orders and give a
At least 3 years of experience
complete guide of the
menu. Good in Quantitative activity
Good character
Responsible for checking 18-25yrs old
the finished washed Male/Female

Finisher clothes if it is clean and At least High school graduate

smells good and the Good communication skills
folding of the clothes Takes direction well

Policies and Procedure

The work shall start at 9:00 in the morning.

The management will not tolerate late comers.
Proper duty hours will be observed at all times to avoid incidents such as
leaving early
All employees are given the right to give suggestions and comments for the
betterment of the company and create new strategies to achieve the
organizational goals.
Discipline and grievance procedure including gross misconduct
Sickness absence including pay rates, reporting arrangements, monitoring
absence, dealing with short/long term absence
Annual leave including public holidays, carrying forward leave, requesting
holiday, pro rata entitlement for part-time staff
 19

C. Operational Manual

For dry cleaning

For hand wash

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Thin Garments including For Thick Garments such as

Bed Sheets, Curtains, Towels and Blankets and Comforters
Seat Covers with or without Foam.

D. Training Manual

Create programs and activities to provide skills development, such as cross training,
monitoring, coaching and job rotation.

Increase job motivation and satisfaction during the given probation to test its
capability.

Attending seminars for training and to gain more knowledge about laundry are the
following: receptionist, washer, laundry manager and cashier.

Time for learning in the workplace for them to actualize for the success of an
employee development program.
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E. PERT Chart

PHASE I
Industry Analysis Market Analysis Store Analysis Legal Analysis
30 days 30 days 30 days 40 days

General Overview Market Overview Management Structure

Target Market Layout -Trademark -Legal Structure
Survey of Industry
Statistical Average Sales Analysis Personal Requirements & Availability - Licenses -Zoning

PHASE II
Market Plan Building & Layout Location Selection Business Plan
30 days 60 days 30 days 30 days

Pricing Suggestions Building Plans Location Criteria

Advertising Program Location Selection Management
Layout Design
Product Description Accounting System
Engineering Site Layout
Legal Suggestions

PHASE III

Building Sites Development Franchise Training Employee Training Material and Supplies Ordering
80 0r more days 30 days 10 days 30 days

Lease Negotiation and Approval

Building and Constructions

PHASE IV

Follow-Up
Customer Advertisement Continuous
Grand Opening
30 days
10 days

Promotion Advertising
Grand Opening Campaign Continual Review of Operations
Opening Promotion
Actual Operation Begin
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IV. Financing and Accounting

A. Headquarters
Start-up or Turnkey Cost
Total Project Cost

Fixed Assets 89,495.75

Current Assets: 203,788.75
293,284.50
Sources of project financing

Equal contributions of the four partners for P 100,000.00 each

Jennie Lyn Cabaero - P 100,000.00
Christal Moralla - P 100,000.00
Joshua Gomez - P 100,000.00
Ricky Soriano - P 100,000.00
Total: P 400, 000.00

Pre-Operating Expenses

1. Investment
Investment through cash P 400,000.00
Total Investment P 400,000.00

2. Acquisition of Machineries
a. 2 Whirlpool Topload Washers Model: 4PWTW5905 P 34,498.00
b. 2 Whirlpool Dryers Model: 4PWED5905 31,998.00
Total: P 66,496.00
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3. Acquisition of Other Equipment

a. 1 Philipps Steam Flat Iron Model: GC 4400 Series P 4,600.00
b. Ironing Board 730.00
c. 1 Weighing Scale 2,799.75
d. Water Hose (50 ft.) 730.00
e. Calculator 200.00
f. 4 power regulators 1,399.00
Total: P 10,458.75
4. Acquisition of Water Tank
Water Tank P 9,999.95
Free Installation 0.00
Total: P 9,999.95
5. Cost of Renovation
a. Labor cost for 6 working days P 8,400.00
(P 350 x 4 Workers x 6 Days)
b. Total cost of materials 21,600.00
(Wood, Paint, Paintbrush, Nails, Etc.)
Total: P 30,000.00
Installation of Equipment
Installation of Clothes Hanger
Painting
Plumbing and Sink Installation
Comfort Room

6. Acquisition of Fire Extinguishers Good for one year

2 x 10lbs. Fire Extinguishers for P 2,000.00 / each P 4,000.00

7. Acquisition of Furniture and Fixtures

Table P 900.00
Chairs 400.00
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Sofa 2,500.00
Cost of Installation of Counters and Shelves 9,200.00
Total P 13,000.00

8. Promotion and Advertisement

Tarpaulin P 1,800.00
Leafleting 600.00
Total P 2,400.00

9. Acquisition of Supplies Good for One Year

Pair of Gloves P 99.50 / 2 pairs
Hangers (Plastics) P 159.50 /12 pcs.
Order Slips P 337.50/ 500 sheets
Delivery Slips P 520.00 / 500 sheets
Ball pens P 100.00
Mask P 60.00 / 2 pcs
1 File Organizer Rack P 400.00
1 Record Book P 75.50
Plastics for Clothes Bagging
24x40 P 2840.00 / 1000 pcs.
23x26 P 2560.00 / 1000 pcs
24x60 P 4,265.00 / 1000 pcs.
TOTAL P 11,417.00

10. Cost of Direct Supplies

Cost for Wash Dry Fold per week P 1449.07
Cost for Wash Dry Press per week 64.19
Cost for Hand washing per week 44.10
 25

Cost of Dry Cleaning per week 283.15

P 1,840.51 total cost per week
Direct Supplies P 1,840.51 per week
X 52 weeks 95,706.52
Plus Supplies Cost per year \ 11,417.00
107,123.00
TOTAL: Php. 655,344.7

2. Proforma Income Statement

Income Statement

Particulars Year 1 Year 2 Year 3

Sales 199,755,000 205,200,000 207,315,000

Net Sales 199,755,000 205,200,00 207,315,000

Less: Cost of Production 8,150,000 8,300,000 8,412,000

Gross: Profit 200,523,000 206,279,000 208.118,000

Less: Selling and Administrative
2,655,000 2,945,000 3,286,000
Expense
Operating Income 193,800,000 194,245,000 196,512,000

Less: Income Tax Expense 61,700,000 63,869,000 66,512,000

Net Income 130,400,000 135,266,000 139,675,000

 26

3. Proforma Balance Sheet

Particulars Pre- Year 1 Year 2 Year 3

Expansion
ASSETS

Current Assets

Cash 11,684,350 126,407,100 25,345,000 278,987,000

Accounts Receivable 375,000 200,000 200,000

Total Current Assets 11,684,350 126,752,123

Non-Current Assets

Land 150,000 150,000 150,000 150,000

Warehouse 485,000 485,000 485,000 485,000

Machinery and Equipment 5,000,000 5,000,000 5,000,000 5,000,000

Office and Equipment 112,125 112,125 112,125 112,125

241,292,12
Sub-total 29,115,825 259,281,334 280,434,125
5
Less: Accumulated
Depreciation
Total Non-Current Assets 29,115,825 259,281,334 24,292,125 280,434,125

TOTAL ASSETS 58,231,650 518,562,668 42,584,250 560,868,250

LIABILITIES & OWNERS Equity

LIABILITIES
 27

Current Liabilities

Loans Payable 585,800 585,800 585,800 585,800

Total Current Liabilities 585,800 585,800 585,800 585,800

Non-current Liabilities

Loans Payable 2,400,200 1,212,000 1,114,000 585,800

Total Non-Current
2,400,200 1,212,000 1,114,000 585,800
Liabilities
Total Liabilities 3,571,800 2,283,600 2,285,600 1,757,400

OWNERS Equity

Capital, beg. 3,491,785 13,375,769 127,962,922 24,510,965

Add: Net Income 127,319,059 131,279,949 13,116,536

Additional Investment 9,883,984

Subtotal 13,375,769 140,694,828 259,242,871 31,627,501

Less: Withdrawals 12,731,906 12,731,906 12,731,906

Total Equity 13,375,769 127,962,922 256,510,965 38,895,595

TOTAL LIABILITIES &
16,299,769 130,302,122 248,265,365 37,065,195
OWNERS Equity

4. Projected Cash Flow

CASHFLOW

Pre- Year 1 Year 2 Year 3

Expansion

Cash Inflows 197,458,000 203,562,240

Cash Revenue 350,000

 28

Collection of Accounts
Receivable
Loan Proceeds 2,924,000

Additional Investment 9,883,984

Total Cash Inflow 12,807,984 197,458,000 203,912,240

Cash Outflows
Procurement of Machine
2,924,000
and Equity
Cost of Production 5,772,113 5,945,276
Payment of Selling &
8,846,826 3,962,276
Administrative Expense
Payment for Loan
584,800 584,800 584,800
amortization
Payment of Income Tax 59,804,557 61,668,505 63,473,958

Personal Withdrawal 12,731,906 12,731,906 12,731,906

Total Cash Outflow 2,924,000 82,740,202 84,892,718 86,995,396

Net Cash Flows 9,883,984 114,717,789 119,019,522 122,681,084

Cash Beg. 800,400 10,684,384 125,402,182 244,421,704

Cash End. 10,684,384 125,402,182 244,421,704 367,102,787

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5. Break-even Analysis

1400000

1200000

1000000

800000

600000

400000

200000

0
100 200 250 300 35 0 400 450 500 550 600 650 700 750

6. Ratio Analysis

Liquidity Ratios
Current Ratios 0.8
Quick Ratio =0.7 0.7
Sales to Working Capital = -50.0 -50.0
Activity Ratios
Accounts Receivable Turnover 70.0
Days Sales in Receivables 6.1
Inventory Turnover 0.0
Days Cost of Sales in Inventory 0.0
Accounts Payable Turnover 0.0
Days Cost of Sales in Payables 0.0
Sales to Assets 7.7
Sales to Net Fixed Assets 20.7
 30

Net Fixed Assets to Equity 5.4

Probability Ratios
Percent Rate of Return on Assets 5.8

Percent Rate of Return on Equity 54.9

7. Provision for Taxation

Amount of Net Taxable Income Rate

Over But not over
P10,000 5%
P10,000 30,000 P500+10% of the Excess over P10,000
40,000 70,000 P2,500+15% of the Excess over P40,000
80,000 140,000 P8,500+20% of the Excess over P80,000
150,000 250,000 P22,500+25% of the Excess over P150,000
250,000 500,000 P50,000+30% of the Excess over P250,000
P125,000+32% of the Excess over P500,000 in
500,000
year 2017 onward.
 31

B. Franchise

1. Start-Up and Turnkey Cost

Total Project Cost

To be Acquired
TOTAL
Particular Existing Proponent SET UP

Fixed Assets

Land 1,000,000 1,000,000

Building 2,000,000 2,000,000

Machinery & Equipment 346,163 346,163

Washing Machine 150,000 150,000

Espresso Machine 60,000 60,000

Laundry & Caf Equipment and
34,875 34,875
Facilities
Sub-total 3,381,038 - 210,000 3,591,038

Working Capital 600,000 600,000

Raw Materials 160,000 160,000

Direct Labor 1,350,200 1,350,200

Selling & Administrative Expense 2,130,000 2,130,000

Sub-total 600,000 3,640,200 - 4,240,200

Less: Working Capital in Circulation 600,000 600,000

Net Working Capital 600,000 3,040,000 - 3,640,000

TOTAL PROJECT COST 3,981,038 3,040,000 210,000 7,231,238

 32

2. Pro Forma Income Statement

Income Statement

Particulars Year 1 Year 2 Year 3

Sales 5,840,000 5,956,800 6,173,600

Net Sales 5,840,000 5,956,800 6,173,600

Less: Cost of Production 1,510,200 1,633,000 1,720,000

Gross Profit 4,329,800 4,223,800 4,453,600

Less: Selling & Administrative Expense 2,130,000 2,030,000 2,069,000

Operating Income 2,199,800 2,293,800 2,384,600

Less: Income Tax Expense 364,498 420,530 453,600

Net Income 1,835,302 1,873,270 1,931,000

3. Pro Forma Balance Sheet

Balance Sheet
Pre- Year 1 Year 2 Year 3
Particular Expansion
ASSETS

Current Assets

Cash 3,640,200 5,821,039 6,732,848 7,309,370

Accounts Receivable 150,000 150,000 150,000

Total Current Assets 3,640,200 5,971,039 6,882,848 7,459,370

Non-Current Assets

Land 1,000,000 1,000,000 1,000,000 1,000,000

Building 2,000,000 2,000,000 2,000,000 2,000,000

Machinery & Equipment 556,163 556,163 556,163 556,163

Office Equipment and Facilities 34,875 34,875 34,875 34,875

 33

Sub-total 3,591,038 3,591,038 3,591,038 3,591,038

Less: Accumulated depreciation 291,038 345,519 430,346

Total Non-Current Assets 3,591,038 3,300,000 3,245,519 3,160,697

TOTAL ASSETS 7,231,238 9,271,039 10,128,367 10,620,067

LIABILITIES AND OWNERS EQUITY

Current Liabilities
Loans Payable 42,040 42,040 42,040 42,040

Total Current Liabilities 42,040 42,040 42,040 42,040

Non-Current Liabilities

Loans Payable 168,160 126,120 84,080 42,040

Total Non-Current Liabilities 168,160 126,120 84,080 42,040

Total Liabilities 210,200 168,160 126,120 84,080

OWNERS EQUITY

Capital, beg. 3,981,038 7,432,810 8,294,210 8,770,220

Add: Net Income 1,835,302 1,873,270 1,931,000

Additional Investment 3,040,000

Sub-total 7,021,038 9,268,112 10,167,480 10,701,220

Less: Withdrawals 165,233 165,233 165,233

Total Equity 7,021,038 9,102,879 10,002,247 10,535,987

TOTAL LIABILITIES & OWNERS
7,231,238 9,271,039 10,128,367 10,620,067
EQUITY
 34

4. Projected Cash Flow

CASH FLOW
Pre- Year 2 Year 3
Particular Expansion
Year 1

ASSETS

Cash Inflows

Cash Revenue 4,847,735 4,989,612 5,067,395

Collection of Accounts Receivable 150,000 150,000

Loan Proceeds 210,200

Additional Investment 3,040,000

Total Cash Inflow 3,250,200 4,847,735 5,139,612 5,217,395

Cash Outflow

Procurement of Machine & Equipment 210,200

Payment of Selling & Administration 2,095,125 3,520,000 3,980,000

Payment for Loan Amortization 42,040 42,040 42,040

Payment of Income Tax 364,498 420,530 453,600

Personal Withdrawals 165,233 165,233 165,233

Total Cash Outflow 210,200 2,666,896 4,147,803 4,640,873

Net Cash Flow 3,040,000 2,180,839 911,809 576,522

Cash Beg. 600,000 3,640,200 5,821,039 6,732,848

Cash End 3,640,000 5,821,039 6,732,848 7,309,370

 35

5. Breakeven Analysis

1400000

1200000

1000000

800000

600000

400000

200000

0
100 200 250 300 35 0 400 450 500 550 600 650 700 750

6. Ratio Analysis

Profitability Ratio

Particulars Year 1 Year 2 Year 3

Net Income 1,835,302 1,873,270 1,931,000

Divide: Net Sales 5,840,000 5,956,800 6,173,600

Net Profit Ratio 31% 31% 31%

Gross Profit 4,329,800 4,223,800 4,453,600

Divide: Sales 5,840,000 5,956,800 6,173,600

Gross Profit Ratio 74% 71% 72%

Liquidity Ratio

Particulars Year 1 Year 2 Year 3

Current Assets 5,971,039 6,882,848 7,459,370

Divide: Current Liabilities 42,040 42,040 42,040

Current Ratio 14.20 14.20 18

 36

Profitability Ratio
Particulars Year 1 Year 2 Year 3
Total Liabilities 210,200 168,160 126,120
Divide: Total Assets 9,271,039 10,128,367 10,620,067
Debt Ratio 2% 2% 2%

Total Equity 9,102,879 10,002,247 10,535,987

Divide: Total Assets 9,271,039 10,128,367 10,620,067
Equity Ratio 98% 99% 99%

Total Liabilities 210,200 126,120 84,080

Divide: Total Equity 9,102,879 10,002,247 10,535,987
Debt-Equity Ratio 2% 2% 2%

7. Provision for Taxation

Income Tax Expense

BIR Policy for Individual Taxpayers
If taxable income is Tax Due is

Not over 10,000.00 5%

Over 10,000 but not over 30,000 500+10% of the excess over 10,000

Over 30,000 but not over 70,000 2,500+10% of the excess over 30,000

Over 70,000 but not over 140,000 8,500+20% of the excess over 70,000

Over 140,000 but not over 250,000 22,500+25% of the excess over 140,000

Over 250,000 but not over 500,000 50,000+30% of the excess over 250,000

Over 500,000 125,000+32% of the excess over 50,000

Less:
Net Income Tax Less: Basic Income
Year Before Tax
Personal &
Income Amount
Excess
Tax Due
Additional

1 2,199,800 125,000 2,074,800 500,000 1,574,800 364,498

2 2,293,800 125,000 2,168,800 500,000 1,668,800 420,530

3 2,384,600 125,000 2,259,600 500,000 1,759,600 453,600

 37

V. Legal Aspects

A. Business Structure

Summa Cum Laundry business structure is a partnership where four partners owns
the business. The business name and trade name was registered in Butuan City. The
business owners made sure that it is registered in a partnership form as well as to make
a unique name for everyone to notice it quickly. The business is also covered with
insurances like health and property insurance. The business provides this insurance for
future purposes.

B. Contracts, Licenses and Trademarks

Since the business is a partnership entity it must be registered to the Securities

and Exchange (SEC) for the legality of the business and also it must be registered to
the Municipality of the city to acquire this City permit, sanitary permits, and other
necessary permit for the legality of the business. For the contracts, we will invest to an
insurance company to cover the accidents, emergencies and other contingencies that
may occur in the near future to cover up the financial health of the business.

C. Franchisee Agreement, Insurance and Disclosure Document

Franchisee Agreement

The Agreement is made on ______________________by and between

______________(Franchisor),_____________,________________,_______________
_______________________and ______________(the Franchisee), the basis of the
following understanding and agreements:
 38

1. Basis for Agreement

The Franchisor has developed methods for establishing, operating and

promoting businesses engaged in the business of ______________using the service
mark and related trade names and trademarks (Markes) and the Franchisor's
proprietary methods of doing business (the "Licensed Methods"). The Franchisor
grants the right to others to develop and operate a ________________ franchise, under
the marks and pursuant to the Licensed Methods.sss

The Franchisee desires to establish a _________________ franchise at a

location identified herein or to be later identified, and the Franchisor desires to grant the
Franchisee the right to operate a _____________franchise at such location under the
terms and conditions which are contained in this Agreement.

2. Grant of Franchise

The Franchisor grants to the Franchisee, and the Franchisee accepts from the
Franchisor, the right to use the Marks and Licensed Methods in correction with the
establishment and the operation of a ______________ franchise, at the location
described in Article 3 of this Agreement. The franchisee agrees to use the Marks and
Licensed Methods, as they may be changed, improved, and further developed by the
franchisor from time to time, only in accordance with the terms and conditions of this
Agreement.

The franchisee agrees at all times to faithfully, honest and diligently perform the
Franchisee's obligations here under and to continuously exert best effort to promote the
______________ franchise. the Franchisee agrees to utilize the Marks and Licensed
Methods to operate all aspects of the business franchised here under in accordance
with the methods and system developed and prescribed from time to time by the
franchisor, all of which are a part of the Licensed Methods. The Franchisee's shall offer
such products and services as the Franchisor shall designate and shall be restricted
 39

from manufacturing, offering or selling any products or services not previously

approved by the Franchisor in writing. The Franchisee's _____________must feature
_____________________brand items manufactured by the Franchisor or its designated
suppliers and related non-primary items ("item") approved by the Franchisor in writing.

3. Franchisee Fee

The Franchisee agrees to pay the Franchisor an amount of Php (1,800,000) as

Franchisee Fee. The payment of franchisee fee enables the franchisee to enjoy the use
of the franchisor's system. Name as well as assistance for a limited time.

Insurance Type Cost

Health insurance Medical 100
Life insurance Funeral 150
Property insurance Fire 100

D. Disclosure Document

FRANCHISE DISCLOSURE DOCUMENT

Suma cum Laundry and Cafe

You will operate a business laundry services and cafe. You will provide these
services to both individuals and businesses, operating under the Marks and using the
System.

Suma cum laundry is a laundry business at the same time cafe which offers the
public quality services which is ironing, laundry, cleaning, and folding and also offers
high quality food and Beverages of a distinctive character and quality under the name
Suma cum laundry and cafe.
 40

The total investment necessary to begin the operation of the traditional Suma
cum Laundry franchise ranges from PHP 1,800,000. This includes the initial fee of PHP
730,000 and must be paid to the franchisor or affiliate.

The disclosure document summarizes certain provisions of your franchise

agreement and other information in plain English. Read this disclosure document and all
accompanying agreement carefully. You must receive this disclosure document at least
fourteen (14) calendar days before you sign a binding agreement with, or make any
payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
Note, however, that no government agency has verified the information contained in this
document.

You may ask to receive your disclosure document in another format that is more
convenient for you. To discuss the availability of disclosures in different formats, contact
Suma cum Laundry or contact 09105583641

The terms of your contract will govern you franchise relationship. Dont rely on
the disclosure document alone to understand your contract. Read your entire contract
carefully. Show your contract and this disclosure document to an advisor, like a lawyer
or accountant.

Buying a franchise is a complex investment. The information in this disclosure

document can help you make up your mind. More information on franchising, such as A
Costumers Guide in Buying a Franchise, which can help you understand how to use
this disclosure document, is available from the Federal Trade Commission. Call your
state agency and visit your public library for other sources of information on franchising.

There may also be laws on franchising in your state. Ask your state agencies about
them.

Issuance Date: ___________

 41

THE STATE RECOMMENDS THE FRANCHISE OR HAS VERIFIRED THE

INFORMATION IN THIS DISCLOSURE DOCUMENT.

Call the state franchise, administrator listed in Exhibit F for information about the
franchisor or about franchising in your state.

MANY FRANCHISE AGREEMENTS DO NOT ALLOW YOU TO RENEW

UNCONDITIONALLY AFTER THE INITIAL TERM EXPIRES. YOU MAY HAVE TO
SIGN A NEW AGREEMENT WITH DIFFERENT TERMS AND CONDITIONS IN
ORDER TO CONTINUE TO OPERATE YOUR BUSINESS. BEFORE YOU BUY,
CONSIDER WHAT RIGHTS YOU HAVE TO RENEW OUR FRANCHISE, IF ANY, AND
WHAT TERMS YOU MIGHT HAVE TO ACCEPT IN ORDER TO RENEW.

Please consider the following RISK FACTORS before you buy this franchise:

1. THE FRANCHISE AGREEMENT REQUIRES YOU TO ARBITRATE DISPUTES

WITH US AND CONDUCT THE ARBITRATION IN [YOUR STATE]. OUT OF STATE
ARBITRATION MAY FORCE YOU TO ACCEPT A LESS FAVORABLE SETTLEMENT
FOR DISPUTES. IT MAY ALSO COST YOU MORE ARBITRATE WITH US IN [YOUR
COMPANYS STATE] THAN IN YOUR OWN STATE.

THE FRANCHISE AGREEMENT STATES THAT [YOUR STATE] GOVERNS THE

AGREEMENT; AND THIS LAW MAY NOT PROVIDE THE SAME PROTECTIONS AND
BENEFITS AS LOCAL LAW. YOU MAY WANT TO COMPARE THESE LAWS.

2. THERE MAY BE OTHER RISKS CONCERNING THIS FRANCHISE.

NOTE: THE AGREEMENT PROVISIONS REFERED TO IN THE RISKS FACTORS

MAY BE VOID UNDER SOME STATE FRANCHISE LAWS AND SOME STATE
 42

FRANCHISE LAWS MAY REQUIRE DISCLOSURE OF ADDITIONAL RISK FACTORS.

SEE EXHIBIT G.

We use services of one or more FRANCHISE BROKERS or referral sources to

assist us in selling our franchise. A franchise broker or referral source represents us, not
you. We pay this person a fee for selling our franchise or referring you to us. You should
be sure to do your own investigation of the franchise.

EFFECTIVE DATE:_______ day of _____________

E. Franchise Agreement

Agreement Term

The term of this agreement shall be for the period, commencing the date
of this agreement. Each year of the term as measured from the date this agreement is a
contract year.

Revenue Sharing

Franchisee shall remit to franchisor of the net profits of its business in the form
of royalties, etc. distribution of profits shall be made of on the [day] of [months].

Participating Franchises

While franchisee cannot guarantee that its franchises will adopt the agreement,
franchisee will use good faith commercially reasonable efforts to recommend adoption
 43

of the agreement to its franchises and anticipate a high level of adoption thereby.
Franchisor hereby agrees that each participating franchise shall execute letter
agreement, which has been approved by franchisee in form and substance, in favour of
franchisor, agreeing to be form to be bound of the terms of this agreement as if it were a
party hereto. Franchisee shall be liable for each participating franchises of its financial
obligations hereunder as if such participating franchisee were a location, unless
specifically designated otherwise. Implementation of the agreement at the franchise
level and franchise payments there under will be administered by the franchisor.

Payments

The parties acknowledge and agree that if franchisee fails to order number of
units required. Franchisee shall pay specific amount to franchisor as liquidated, an
amount equal to each unit which franchisee failed to order. If franchisor fails to deliver
number or units of order by franchisee, the franchisor shall pay to franchisee as
liquidated damages of amount, an equal amount to each which he franchisor failed to
deliver the parties hereto expressly agree and acknowledge the actual damages for
purpose of the subparagraph would be difficult to ascertain and that the amount set
forth above represents the parties reasonable estimate of such damages.

Marketing

With respect to advertising of product, franchisee with franchisor and to keep

franchisor reasonably advised appraised of its marketing plan and activities to comply
franchisors then-current customary marketing support policies and practices to the
extent they are reasonable and practicable. Franchisor shall have the rights to approve
such plans; franchisee shall provide a timely opportunity for said approval by franchisor.
Franchisor shall exercise its approval rights in a timely and reasonable manner.
 44

Placements

Franchisee shall exercise good faith commercially reasonable efforts to

maximize revenue on the sale or rental of products or services. At all times during the
entire revenue sharing period, franchisee shall make available for sale or rental of each
location of all products or service purchased for such location.

Material Breach

A material breach by a party of any material covenant, material warranty, or

material representation contained herein, where such defaulting party fails to cure such
breach within calendar days after receipt of written notice thereof, or within such
specific cure periods as is expressly provided for elsewhere in this agreement.
.
Insolvency and/or Bankruptcy

A makes an attempt to make any arrangement for the benefits of the creditors
or voluntary or involuntary bankruptcy, insolvency or assignment for the benefits of
creditors of a party or in the event any action or proceeding is instituted relating to any
foregoing and the same is not dismissed within calendar days after such institution.

Failure to make payments

A failure by either party to make payment of any monies payable pursuant to this
agreement, as and when is due. Except otherwise provided herein, no termination of
this agreement for any reason shall receive or discharge any party hereto from au duty,
obligation or liability hereunder which was accrued as of the date of such termination.
 45

Right To Use Names

Neither franchise or locations nor participating franchise shall acquire any right
to use nor shall use any copyrights, trademarks, characters or designs owned and
controlled by franchisor or any affiliates, including without any limitations, the names, or
any conjunction with other words or name in any advertising, publicity or promotion,
express or imply any endorsement of the same.

F. Franchisee Franchisor conditions

Article 1

Applicability

1. These general terms and condition apply to all agreements entered into any
Franchising Etc. A reference to other general terms and conditions, without written
recognition of such terms and conditions will not be accepted and these general
terms and conditions will prevail.

2. Clauses and agreements that deviate from these general terms and conditions are
legally valid only if Franchising Etc has confirmed these clauses and agreements in
writing.

Article 2

Parties

a. Franchising Etc.: Intermediary between Franchisor and candidate, referred to

hereafter as Franchising Etc.;
 46

b. Franchisor: The organization and its affiliated companies, to whom a candidate is

being introduced by Franchising Etc, referred to hereafter as the Franchisor;

c. Candidate: (Potential) franchisee introduced by Franchising Etc. to the Franchisor

referred to hereafter as the Candidate

Article 3

Provision of Information and Care

1. The Franchisor must timely provide Franchising Etc. with all (further) information
that could reasonably be of importance to the intermediation.

2. The franchisor must handle the Candidate, proposed by the Franchising Etc., and
the information provided together with this proposal in a proper and careful manner.
This also means that the Franchisor must report to Franchising Etc. on the
introductory discussion within five business days following the discussion.

3. Both parties must treat all confidential information that they become privy to within
the scope of their agreement, either from each other or another source, as
confidential.

4. Franchising Etc. is not responsible or liable for the content of the promotional
material provided by the costumer.

5. Publication of presentations and formula information must be done as soon as

possible following the written commission and the deliveries of information and
promotional material or at a point in time to be agreed upon alter.

Article 4
 47

Liability

A. Franchising Etc. disclaims any liability for damage or losses incurred by the
Franchisor or third parties due to negligent or erroneous action of a Candidate
during the selection procedure or after the conclusion of franchise agreement with
the concerned Candidate.

B. The Franchisor will hold Franchising Etc. harmless against claims from third parties
that are or could be directly or indirectly related to the intermediation by the
Franchising Etc.

Article 5

In conclusion

Franchising will make every effort, subject naturally to all of the above, to serve
Franchisors and candidates to the nest of its ability.

Except for matters that fall within the competence of the sub district court, the civil
court is competent to take cognizance of disputes, which have arisen pursuant to the
agreements, commissions, and calculated intermediation fee between Franchising
Etc., the Franchisor, and/or the Candidate,

Dutch law governs all agreements concluded, offers or action of Franchising Etc.,
subject to these terms and conditions, irrespective of whether the Franchisor and/or
the Candidate are established or reside abroad.

Franchising Etc. reserves the right change these general terms and conditions.
Changes will only become applicable once Franchising Etc. has informed the
Franchisor accordingly
 48

VI. Appendix

Layout design
 49

Suma cum Laundry is originally from the word Suma cum Laude since it is
rhymed and student can relate to it and because one of our target market is students.