JUMP! SWIM SCHOOLS FRANCHISE
FINANCIAL PACK
LETTER FROM THE DIRECTOR Thank you for your interest in a JUMP! Swim Schools franchise. Included here is further financial information on our business. The business is definitely the strength of the model, however the overall success of each franchise is due to one single thing: we provide the perfect learning environment for children. Please review the attached financials at your convenience, and should you have any questions please don’t hesitate to get in touch. We look forward to you coming on board with us. Kind regards,
Ian Campbell Managing Director
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REPORT EXPLANATIONS We have a range of financial reports here for you to look through at your leisure. Please find on the following pages:
1.
Grafton Year 5 and 6 financials. This is an example of an established model’s performance. With a small population of 20,000 residents, Grafton will never be our highest earner but has shown what is possible within small towns. With 2 competitors it was a great test market for population vs competition as many larger areas have a similar level of competition but with 5x population.
2.
Projection template. This is an example of similar franchise performance upon opening. I will go through this in more detail. Basically calculated upon assumptions of 122 bookings on opening (sites range from 50-300 depending on season, but at this stage applicants are looking at a summer opening), growth of 6 per week (average of other franchisees) and base rental cost of 55K with 3 months rent free. Theses are only forecasts but give you an indication of how the business model performs with growth. As there is only one variable cost being wages and many fixed costs, the profitability significantly increases as the business grows. Ultimately this is a financial planning tool that is available for financial planning once you are part of the network.
Should you have any questions, feel free to email them through to
[email protected].
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GRAFTON YEAR 3 AND 4 FINANCIALS JUMP! SWIM SCHOOLS Grafton PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED JUNE 2015
Income Swim Fees (Including Membership fee) Retail Total Income Less Cost of Sales Retail Stock Total Cost of Sales Gross Profit Less Expenditure Advertising Cleaning Chemicals Electricity Insurance Office supply expense Rent Repairs and Maintenance Traning and development Superannuation Telephone & Internet Uniforms Wages and salaries Work cover Waste disposal Total Operating Expenses Net Profit Before Tax
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30 Jun 2015
30 Jun 2014
$375,480 $9,782 $385,262
$378,560 $9,657 $388,217
$5,257 $5,257 $380,005
$4,852 $4,852 $383,365
$5,478 $847 $1,145 $19,754 $3,571 $457 $33,757 $4,524 $145 $12,478 $187 $303 $147,824 $4,969 $1,032 $236,471 $143,534
$7,254 $787 $1,249 $18,756 $4,578 $234 $33,690 $2,478 $235 $13,854 $1,893 $302 $154,045 $5,373 $0 $244,728 $138,637
PROJECTION TEMPLATE PROFIT AND LOSS PROJECTIONS (Ex GST) Projections Franchise Owner Income Other Sales - Drink Sales - Merchandise Sales - Booking Pack Total Other Sales
Year 1
Year 2
Year 3
Year 4
Year 5
2,359 8,846 9,433 20,637
3,815 14,306 1,301 19,422
4,307 16,150 1,301 21,757
4,798 17,993 1,301 24,092
5,290 19,837 1,301 26,428
Swim School Fees - Direct Debit - Prepaid Total Lesson Sales
134,987 134,987 269,974
217,495 217,495 434,990
247,525 247,525 495,050
279,178 279,178 558,355
312,452 312,452 624,905
Total Income
290,611
454,412
516,808
582,448
651,332
1,179 4,423 1,350 6,952
1,907 7,153 2,175 11,235
2,153 8,075 2,475 12,703
2,399 8,997 2,792 14,187
2,645 9,918 3,125 15,688
COGS - Drinks - Merchandise - Refunds Total COGS
50.0% 50.0% 0.5%
Gross Profit on Sales Expenses Advertising Cleaning Chemicals Equipment Electricity Employment Expenses - Casual teathers - Management - Superannuation - Trainer Recruitment - Workers Comp Insurance (Public Liability Insurance) Royalty Marketing Fund Contribution Permits Accounting Loan Repayments (Interest Only) Postage Printing & Stationery Repairs & Maintenance Rent Staff Training Telecommunications - Internet/Phone Uniforms Water Total Expenses Profit (before Tax and Depreciation)
283,659
443,177
504,104
568,260
635,645
CPI Classes Classes CPI CPI
12,000 800 2,500 554 13,000
12,360 910 2,845 571 13,390
12,731 1,021 3,237 588 13,792
13,113 1,131 3,684 605 14,205
13,506 1,241 4,192 624 14,632
Fixed Fixed 9.5% Fixed 3.0% CPI 7.00% 3.00% CPI CPI 9.00% Session Growth Session Growth Session Growth 60,500 CPI
53,623 50,000 9,844 1,000 3,404 2,000 20,343 8,718 100 2,000 14,130 108 445 2,500 45,375 2,000
85,366 55,000 13,335 1,000 4,611 2,060 31,809 13,632 103 2,060 14,130 123 506 2,845 62,920 2,060
96,100 60,000 14,830 1,000 5,128 2,122 36,177 15,504 106 2,122 14,130 138 568 3,190 65,437 2,122
107,320 65,000 16,370 1,000 5,661 2,185 40,771 17,473 109 2,185 14,130 153 629 3,534 68,054 2,185
117,484 70,000 17,811 1,000 6,159 2,251 45,593 19,540 113 2,251 14,130 168 691 3,879 70,776 2,251
CPI
1,800
1,854
1,910
1,967
2,026
280 800
319 910
357 938
396 966
434 995
247,325 87.2%
324,719 73.3%
353,244 70.1%
382,829 67.4%
411,746 64.8%
36,334 12.8%
118,458 26.7%
150,860 29.9%
185,431 32.6%
223,899 35.2%
7.0% 3% 40% 16%
7.0% 3% 35% 14%
7.0% 3% 34% 13%
7.0% 3% 33% 12%
7.0% 3% 32% 11%
Session Growth Session Growth Expense % Profit % Royalty Fees (% of GP) Marketing Costs (% of GP) Payroll (% of GP) Rent (% of GP)
The within figures are based on estimates only.JUMP! Swim Schools Pty Limited make no representation or warranty that the figures or items included in these estimates are true or correct and the proposed Franchisee should rely on his own enquiries and financial advice. The proposed Franchisee acknowledges that they will satisfy themself independently of the financial prospects and viability of the franchised business. Applicants Name: (Sign) __________________________ (Print) _________________________
Date:
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PROJECTION TEMPLATE CONTD. JUMP! Swim Schools Franchises FINANCIAL ASSUMPTIONS
Franchise Owner Earnings before Tax / Dep. Booking Fee / sale (inc GST)
$35.00
COGS - Swin Nappy (Inc GST)
$12.15
Year 1
Year 2
Year 3
Year 4
Year 5
Total
36,334
118,458
150,860
185,431
223,899
714,982
Av Sessions / student per week
COGS - Goggles/Cap (Inc GST)
1.2
Av Kids per lesson
COGS -Booklet (Inc GST)
$2.00
3.5
Percentage of clients on DD
50%
Income at start of Year 1
$2,489
No. of classes at start of Year 1 Net Get Started Fee Profit per Client
122
$20.85
Other Weekly Income and Students at Expense Year End Scenarios
Weekly Swim Weekly Income Student No. Growth Goal Growth Goal (inc GST)
Weekly Student Income at Year End
Annual Growth % based on Classes growth
Other Income and Expense Scenarios
Average Swim Class Fees (GSTFree)
2016
$17.00
$0.00
5
$102
2016
452
7691
0
2017
$18.00
$0.00
1
$22
2017
515
9266
114%
2018
$19.00
$0.00
1
$23
2018
577
10967
112%
2019
$20.00
$0.00
1
$24
2019
640
12792
111%
2020
$21.00
$0.00
1
$25
2020
702
14742
110%
Other Income and Expense Scenarios
Royalties & Marketing fund (ex GST)
Av. Trainer Wage % of Swim Class Income
Overall Payroll % of Gross Income
Managers Salary (excl Super)
Av. Teacher Wage per hour(excl Super)
2016
$29,061
$0
$0.00
0
$26.00
$0.00
22%
40%
$50,000
2017
$45,441
$0
$0.00
0
$27.20
$0.00
22%
35%
$55,000
2018
$51,681
$0
$0.00
0
$28.40
$0.00
21%
34%
$60,000
2019
$58,245
$0
$0.00
0
$29.60
$0.00
21%
33%
$65,000
2020
$65,133
$0
$0.00
0
$30.40
$0.00
21%
32%
$70,000
Price (Inc GST)
COGS
% of Students buying Weekly
Products
Occupancy Costs Rent pa (including Outgoing)(ex GST)
60,500
Rent Free Period (months)
3
Drinks
2.00
50.0%
10.0%
Rental Bond (months)
2
Snacks
2.00
50.0%
10.0%
Annual Rent Rises %
4%
Merchandise
15.00
50.0%
5.0%
CPI %
3%
The within figures are based on estimates only. JUMP! Swim Schools make no representation or warranty that the figures or items included in these estimates are true or correct and the proposed Franchisee should rely on their own enquiries and financial advice. The proposed Franchisee acknowledges that they will satisfy themselves independently of the financial prospects and viability of the franchised business. Name: (Sign) __________________________________ (Print) _________________________________ Date: _____________
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