FATHER SATURNINO URIOS UNIVERSITY

BUSINESS ADMINISTRATION PROGRAM

BUTUAN CITY

A Franchise Manual Presented to the

Faculty of Business Administration Program
Father Saturnino Urios University

In Partial Fulfilment of
The Requirement for the Degree of
 Bachelor and Science in Business Administration

Presented by:
Ricky Soriano
Jennie lyn Cabanero
Chrystal Moralla
Joshua Elric L. Gomez

March 2017
I. Executive summary

A. Company name: Suma cum laundry and cafe

Contact person: Ricky Soriano head manager
Location: J.C Aquino Avenue beside Greenwich and Caltex Gasoline
Station Butuan City.
Contact Number: 09105583641

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.

D. Key Personnel

Personnel Function Qualifications

18-35yrs old
Male/female
At least College
Guide and monitor every Graduate
operation done during process Knowledgeable
Manager
and is in full responsibility of (field of expertise)
Decisive
any happenings in business
Communication
skills

18-30yrs old
Male/Female
At least College
Assigned to the baking Graduate
section that will bake the Previous

goods and will be liable to Experiences in

Baker
maintaining food quality and baking with other
sanity amongst the baking companies
Multitasking
area.
Must be able to
handle pressure

Designated to do transaction 18-25yrs old

 Male/Female
At least High

such as receiving payments school Graduate

Cashier Good in
asking orders and give a
Quantitative
complete guide of the menu.
activity
Patient
Good character
18-25yrs old
Performs the cleaning in the Male/Female
At least High
Dishwasher kitchen and assists the baker
school graduate
in the baking area Patient
Well-Organize
Tasks to maintain the 18-35yrs
Male/Female
cleanliness of the comfort
At least High
Utility room, dining area and working
school graduate
area and organize what is Takes direction
must. well
18-25yrs old
Male/Female
At least High
Handle customer service and school graduate
Waiter Good
assist customers about their
queries or questions. communication
skills
Takes direction
well
18-40yrs old
At least high

Will be securing the school graduate

Security Male/Female
surroundings to avoid any
Guard (preferably male)
casualties Physically fit
Ability to work
flexible hours
 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 donut, bon appetea,
infintea, 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 labour 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
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 1 st 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.

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
chocolate with handmade dough

Drizzled with yummy frosting

Cupcakes made from authentic flavors from Php25
foreign countries.

Mind bogglingly delicious cake

made from high quality
Cakes Php35(per slice)
ingredients and has unique
sweet taste

Service Description Price

-Assorted T-shirts, short, blouse,
dress, etc. Php25/kg
Wash-Dry-Fold
-Comforter, bed sheets, curtains
and towels Php45/kg

We offer hand for special

Hand wash garments like coats, barong, long Php50/garments
sleeves(trouser) etc.
 Overall services that offers dry
Wash-Dry-Fold-Ironing Php40/kg
cleaning, folding and ironing
(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
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 price skimming pricing strategy
because it is designed to help the business to maximize sales on new product and
services; price skimming involves setting rates high during introductory phase. The
company then lower prices gradually as competitor goods appear on the market.
One of the benefits of price skimming is that it allows businesses maximize
profits on early adopters before dropping prices to attract more price-sensitive
consumers. Not only does price skimming help a small business recoup its development
costs, but it also creates an illusion of quality and exclusivity when your items is first
introduced to the marketplace .
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.

C. Franchisee Recruitment Plan and Flowchart

Figure 1-1

Suma cum laundry and

caf post the requirement
of recruitment in the
internet

Candidates Selecting CV Candidates send

send their their franchisee
franchisee requirements directly
requirements to the management

Screening
Interview
 Final Interview
Failed Passed
interview interview
(Exits) (Proceeds)

1month probation

Official franchisee

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
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
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
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.
 III. MANAGEMENT

A. Headquarters, Organization

Organizational Structure

Manager/owner

Marketing Financial & Service &Technical

Administration
Figure 1-2
Staff
Operational Manager
Responsible in all aspect of the business administration;
Coordinates the management and business operation;
Ensure all staffs are working base on their work specification.
Marketing Manager
Responsible in expanding the market and also in finding new opportunities to
increase companys profit;
Responsible in ensuring the companys income is consistent.
Administration and Financial Manager
Preparing budget and seeking for financial sources;
Controlling the financial progress in terms of expenditure, income and anything
related;
Checking the staffs attendance.
Service and Technical Manager
Ensuring the service given to the customers are guaranteed and satisfying;
Ensuring the technical systems are in good condition and functioning.

Policies and Procedure

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
Finance (internal financial procedures including money policy)
 B. Franchise
Organizational Chart

Laundry Manager

Asst. Laundry Manager

Washer Receptionist Charge & Billing

Figure 1-3
Policies and Procedure
Discipline and grievance procedure including gross misconduct
Sickness absence including pay rates, reporting arrangements, monitoring
Finisher
absence, dealing with short/long term absence
Annual leave including public holidays, carrying forward leave, requesting
holiday, pro rata entitlement for part-time staff
Finance (internal financial procedures including money policy)
C. Operational Manual

For dry cleaning

 For hand wash

Thin Garments including For Thick Garments such as

Bed Sheets, Curtains, Towels and Blankets and Comforters

Seat Covers with or without Foam.

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.
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.

E. PERT Chart
F.
IV. Financing and Accounting
A. Headquarters
Start-up or Turnkey Cost
Total Project Cost
Fixed Assets:
Water Tank P 9,999.75
Machineries 66,496.00
Furniture and Fixtures 13,000.00
Current Assets:
Cash (Net of pre-operating) P 166,522.25
Supplies 26,780.75
Other Equipment 10,458.75

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

3. Acquisition of Other Equipments

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 Equipments
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
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
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
 B. Franchise
1. Start-Up and Turnkey Cost
Total Project Cost
To be Acquired
Proponen TOTAL
Particular Existing SET UP
t
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
Facilities
34,875.75 34,875.75
3,381,038.7 3,591,038.7
Sub-total - 210,000
5 5

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
600,000 600,000
Circulation
Net Working Capital 600,000 3,040,000 - 3,640,000
3,981,038.7 7,231,238.7
TOTAL PROJECT COST 3,040,000 210,000
5 5

2. Pro Forma Income Statement

Income Statement
Particulars Year 1 Year 2 Year 3
Sales 5,840,000 5,956,800 6,073,600
Net Sales 5,840,000 5,956,800 6,073,600
Less: Cost of Production 1,071,230 1,133,000 1,221,000
Gross Profit 4,768,770 4,823,800 4,852,600
Less: Selling & Administrative
2,130,000 2,030,000 2,099,000
Expense
Operating Income 2,638,770 2,793,800 2,753,600
Less: Income Tax Expense 264,498 340,500 353,600
Net Income 2,374,272 2,453,300 2,550,300

3. Pro Forma Balance Sheet

Balance Sheet
Pre-
Particular Expansion Year 1 Year 2 Year 3
ASSETS
Current Assets
Cash 3,380,000 4,730,000 5,309,000 6,580,000
Accounts Receivable 150,000 150,000 150,000
Total Current Assets 3,380,000 4,880,000 5,459,000 6,730,000
Non-Current Assets
Land 1,000,000 1,000,000 1,000,000 1,000,000
Machinery & Equipment 556,163 556,163 556,163 556,163
Office Equipment and Facilities 34,875.75 34,875.75 34,875.75 34,875.75
Sub-total 1,591,039 1,591,039 1,591,039 1,591,039
Less: Accumulated depreciation
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES AND OWNERS EQUITY
Current Liabilities
Loans Payable 330,000 330,000 330,000 330,000
Total Current Liabilities 330,000 330,000 330,000 330,000
Non-Current Liabilities
Loans Payable 1,320,000 990,000 660,000 330,000
Total Non-Current Liabilities 1,320,000 990,000 660,000 330,000
Total Liabilities 2,640,000 1,980,000 1,320,000 660,000
OWNERS EQUITY
3,981,038.7
Capital, beg. 5,032,000 7,500,300 9,267,000
5
Add: Net Income 2,374,272 2,453,300 2,550,300
Additional Investment 960,000
4,241,038.7 11,817,30
Sub-total 7,406,272 9,953,600
5 0
Less: Withdrawals 165,233 165,233 165,233
4,241,038.7 11,652,06
Total Equity 7,241,039 9,788,367
5 7
TOTAL LIABILITIES & 7,581,038.7 11,108,36 12,312,06
9,221,039
OWNERS EQUITY 5 7 7
 4. Projected Cash Flow

CASH FLOW
Pre-
Particular Expansion Year 1 Year 2 Year 3
ASSETS
Cash Inflows
Cash Revenue
Collection of Accounts Receivable
Loan Proceeds
Additional Investment
Total Cash Inflow
Cash Outflow
Procurement of Machine & Equipment
Cost of Production
Payment of Selling

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. Insurance: Type and Cost

Insurance Type Cost
Health insurance Medical 100
Life insurance Funeral 150
Property insurance Fire 100

Appendix
Layout design