How much will you invest yourself? 50,000

Transcription

1 The following information will be used to assist us with the preparation of your business plan. Please do your market research and prepare any other information you believe to be relevant. It is very important to the success of your business that you exercise due diligence when gathering information. Year 1 and General Estimations Investment & Financing Information How much are you planning to borrow from the bank? 150,000 What is the term of the loan (in months)? 120 What is the interest rate? 8.0% Your monthly loan payment will be approximately: 1, How much will you invest yourself? 50,000 What is the Capital Cost of the Leased Equipment (if any)? What is the term of the lease (in months)? What is the interest rate? Your monthly lease payment will be approximately: - What is the Capital Cost of Leased Office Equipment (if any)? What is the term of the lease (in months)? What is the interest rate? Your monthly lease payment will be approximately: - Fixed Assets Computer Hardware 12,654 Computer Software Furniture & Fixtures 16,590 Equipment 3,725 Leased Office Equipment Leased Equipment Leaseholds 58,962 Office Equipment 5,650 Signage 11,500 Franchise Fee 29,900 Labour Costs How many Part-Time employees will you begin with? What is the average rate of pay for each employee? How many hours is the average employee expected to work per week? Estimated Direct Labour per Week - In what month do you expect labour to increase? 4 By what percentage will it increase? 10% In what month will you add admin / management wages? 8 What will be estimated annual wage? $ 10,000

2 Other Estimations What is the monthly lease payment for copiers? What is the rent payment for the postage meter? How much do you intend to spend on marketing/advertising, monthly? What is the estimated monthly cost for Business Taxes? What is the estimated monthly cost for Fees / Dues / Subscriptions? What is the estimated monthly cost for Insurance? What is the estimated monthly cost for Meals and Entertainment? What is the estimated monthly cost for Miscellaneous & General? What is the estimated monthly cost for Store Rental? What is the estimated monthly cost for Store Maintenance? What is the estimated monthly cost for Utilities? What is the estimated monthly cost for Office Supplies and Printing? What is the estimated monthly cost for Postage & Delivery? What is the estimated monthly cost for Telephone / Fax? What is the estimated monthly cost for vehicles / mileage What is the estimated monthly cost for bank charges How much has Ledgers quoted you for the Sure Start Program? 1, What is the monthly accounting fee per the Sure Start Program Year 2 Estimations Growth Rate - (Typical 180% - 200%) % Additional Staff required in month 3 Pay rate of new staff (per hour) Hours per week of new staff Additional Labour Cost (monthly) Rent increase General Expense Increase Factor 2.00% Additional Admin Staff in Month? - Additional Admin Wages (annual)? $ - What % increase will you expend on advertising Year 3 Estimations Growth Rate - (Typical 130% - 140%) % Additional Staff required in month 6 Pay rate of new staff (per hour) Hours per week of new staff Additional Labour Cost (monthly) Rent increase General Expense Increase Factor Additional Admin Staff in Month? Additional Admin Wages (annual)? What % increase will you expend on advertising

3 Projected Financial Statements of FRANCHISE SYSTEM - LOCATION 3-Year Financial Plan (See Notice to Reader)

4 NOTICE TO READER We have compiled the projected balance sheet of FRANCHISE SYSTEM for the 1st 3 years and the projected statement of earnings and retained earnings for the same period from information provided by management. I have not audited, reviewed, or otherwise attempted to verify the accuracy or completeness of such information. These statements have been prepared for the use of internal management only, and are not intended for distrbution to third parties. Ledgers Canada Newmarket, ON December 10, 2007

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6 Projected Balance Sheet (Unaudited - See Notice to Reader) 3-Year Financial Plan Year 1 Year 2 Year 3 Assets Current assets: Cash $ 124,714 $ 246,806 $ 419,632 Accounts receivable Prepaid expenses - - Inventory 6,084 6,084 6, , , ,716 Capital assets (note 2) 96,825 81,071 68,040 Liabilities and Shareholders' Equity $ 227,623 $ 333,961 $ 493,756 Current liabilities: Accounts payable and accrued liabilities Wages & Benefits Payable Income taxes payable 7,566 24,992 39,352 Current portion of long term debt 11,055 11,973 12,966 18,621 36,965 52,318 Loans from shareholders (note 3) 49,900 49,900 49,900 Long-term debt (note 4) 128, , , , , ,698 Shareholders' equity: Share capital: Authorized: unlimited common shares Issued and outstanding: 100 common shares Retained earnings 30, , ,639 30, , ,739 $ 227,623 $ 333,961 $ 493,756 See accompanying notes to the financial statements.

7 Statement of Earnings and Retained Earnings (Unaudited - See Notice to Reader) 3-Year Financial Plan Year 1 Year 2 Year 3 Sales $ 192,146 $ 365,077 $ 492,854 Cost of Sales / Services 90, , ,770 Gross profit 101, % 203, % 279, % Expenses: Advertising 6, % 7, % 9, % Amortization 8, % 15, % 13, % Business Taxes and Dues % % % Equipment Leasing 1, % 1, % 1, % Insurance 1, % 1, % 1, % Interest and bank charges 4, % 6, % 8, % Interest on long term debt 11, % 10, % 9, % Meals & Entertainment 1, % 1, % 1, % Occupancy Costs 2, % 2, % 2, % Office Supplies 2, % 2, % 2, % Professional fees 4, % 4, % 4, % Telecommunications 3, % 3, % 3, % Training & Education 3, % - 0.0% - 0.0% Travel & Accommodations 2, % 1, % 1, % Vehicle 4, % 4, % 4, % Wages and benefits 4, % 13, % 16, % 63,836 78,736 82,325 Earnings before income taxes 37, % 124, % 196, % Income Taxes 7,566 24,992 39,352 Retained earnings, beginning of year - 30, ,232 Retained earnings, end of year $ 30,264 $ 130,232 $ 287,639 See accompanying notes to the financial statements.

8 Budget for 1st Year Activities Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Total Estimated Total Sales 12,013 13,469 14,073 14,757 15,062 15,555 15,833 16,361 16,951 17,578 19,478 21, ,146 Revenues: Communications ,459 Computer Services ,114 Postal Services ,071 1,156 10,568 General Business Services ,031 1,068 1,107 1,227 1,324 12,105 Printing / Copying 5,094 5,711 5,967 6,257 6,386 6,595 6,713 6,937 7,187 7,453 8,259 8,911 81,470 Retail Product Sales ,454 Shipping / Mailing 4,625 5,186 5,418 5,681 5,799 5,989 6,096 6,299 6,526 6,768 7,499 8,091 73,976 Total Revenue 12,013 13,469 14,073 14,757 15,062 15,555 15,833 16,361 16,951 17,578 19,478 21, ,146 Cost of Sales / Service Communications ,211 Computer Services Postal Services ,699 General Business Services ,237 Printing / Copying 1,783 1,999 2,088 2,190 2,235 2,308 2,350 2,428 2,516 2,609 2,891 3,119 28,514 Retail Product Sales ,959 Shipping / Mailing 1,619 1,815 1,896 1,989 2,030 2,096 2,133 2,205 2,284 2,369 2,625 2,832 25,892 Equipment Leasing* ,700 Royalties ,017 1,055 1,169 1,261 11,529 Total Cost of Sales / Service 5,900 6,497 6,745 7,025 7,150 7,353 7,467 7,683 7,925 8,182 8,961 9,592 90,480 Gross Profit 6,113 6,972 7,328 7,732 7,912 8,202 8,366 8,678 9,026 9,396 10,517 11, ,666 Gross Margin (%) 50.88% 51.76% 52.07% 52.39% 52.53% 52.73% 52.84% 53.04% 53.25% 53.45% 53.99% 54.36% 52.91%

9 Budget for 1st Year Activities Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Total Administrative Expenses: Admin / Management Wages ,167 Admin / Store Wages Employers EI Premiums Employers CPP Premiums Employer's WSIB Premiums Advertising & Promotion 2, ,800 Advertising Fund Contributions ,843 Business Taxes Fees / Dues / Subscriptions Insurance ,560 Meals & Entertainment ,200 Miscellaneous & General ,200 Occupancy Costs - Rent Utilities ,400 Maintenance Office Equipment Rental ,500 Office Equipment Leases Office Supplies & Printing Postage & Delivery Professional / Accounting Fees ,800 Telephones / Fax ,000 Training 3,325 3,325 Travel & Accommodations 2,838 2,838 Vehicle Expenses / Mileage ,800 Amortization - Computer Hardware ,755 Amortization - Software Amortization - Equipment Amortization - Furniture & Fixtures ,659 Amortization - Office Equipment Amortization - Leased Office Amortization - Leased Equipment Amortization - Leaseholds ,048 Amortization - Signage Amortization - Franchise Fees ,495 Total Administrative Expenses 11,768 2,835 2,847 2,860 2,866 2,876 2,882 3,799 3,811 3,824 3,862 3,892 48,122

10 Budget for 1st Year Activities Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Total Financial Expenses: Loan Interest 1, ,631 Lease Interest Bank Charges ,200 Credit Card Discounts ,882 Total Financial Expenses 1,280 1,297 1,300 1,305 1,304 1,306 1,304 1,306 1,310 1,313 1,336 1,353 15,713 Net Income (Loss) (6,936) 2,841 3,181 3,566 3,741 4,021 4,180 3,572 3,906 4,259 5,320 6,179 37,831

11 Cash Flow for 1st Year Activities Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Total Cash Inflows Loan Proceeds 150, ,000 Shareholder Loans 50,000 49,900 Sales of Products / Services 12,013 13,469 14,073 14,757 15,062 15,555 15,833 16,361 16,951 17,578 19,478 21, ,146 Total Cash Inflows 212,013 13,469 14,073 14,757 15,062 15,555 15,833 16,361 16,951 17,578 19,478 21, ,146 Cash Outflows Fixed Asset Additions 105, ,347 Inventory Acquisition 6,084 6,084 Direct Cost of Sales 5,900 6,497 6,745 7,025 7,150 7,353 7,467 7,683 7,925 8,182 8,961 9,592 90,480 Administrative Costs Advertising & Promotion 3, ,643 Business Taxes Fees / Dues / Subscriptions Insurance ,560 Meals & Entertainment ,200 Miscellaneous & General ,400 Occupancy Costs ,400 Office Equipment Rental ,500 Professional / Accounting Fees ,800 Telephones / Fax ,000 Training 3, ,325 Travel & Accommodations 2, ,838 Vehicle Expenses / Mileage ,800 Wages & Benefits ,534 Financial Expenses Loan Payments & Interest 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 1,820 21,839 Lease Payments & Interest Bank Charges & Other ,082 Total Cash Outflows 130,490 10,744 11,012 11,317 11,453 11,672 11,796 12,937 13,200 13,479 14,324 15, ,432 Change in Cash Position 81,523 2,725 3,061 3,440 3,609 3,883 4,037 3,424 3,751 4,099 5,154 6,007 Net Cash Remaining 81,523 84,249 87,309 90,750 94,359 98, , , , , , , ,714

12 Budget for 2nd Year Activities Month13 Month14 Month15 Month16 Month17 Month18 Month19 Month20 Month21 Month22 Month23 Month24 Total Estimated Total Sales 22,825 25,591 26,739 28,038 28,618 29,555 30,083 31,086 32,207 33,398 37,008 39, ,077 Revenues: Communications 981 1,100 1,150 1,206 1,231 1,271 1,294 1,337 1,385 1,436 1,591 1,717 15,698 Computer Services ,651 Postal Services 1,301 1,459 1,524 1,598 1,631 1,685 1,715 1,772 1,836 1,904 2,109 2,276 20,809 General Business Services 1,096 1,228 1,283 1,346 1,374 1,419 1,444 1,492 1,546 1,603 1,776 1,917 17,524 Printing / Copying 7,464 8,368 8,744 9,169 9,358 9,664 9,837 10,165 10,532 10,921 12,102 13, ,380 Retail Product Sales 3,766 4,223 4,412 4,626 4,722 4,876 4,964 5,129 5,314 5,511 6,106 6,589 60,238 Shipping / Mailing 7,989 8,957 9,359 9,813 10,016 10,344 10,529 10,880 11,272 11,689 12,953 13, ,777 Total Revenue 22,825 25,591 26,739 28,038 28,618 29,555 30,083 31,086 32,207 33,398 37,008 39, ,077 Cost of Sales / Service Communications ,494 Computer Services ,278 Postal Services ,283 General Business Services ,133 Printing / Copying 2,612 2,929 3,060 3,209 3,275 3,383 3,443 3,558 3,686 3,822 4,236 4,570 41,783 Retail Product Sales 1,318 1,478 1,544 1,619 1,653 1,707 1,737 1,795 1,860 1,929 2,137 2,306 21,083 Shipping / Mailing 2,796 3,135 3,275 3,435 3,506 3,620 3,685 3,808 3,945 4,091 4,534 4,891 44,722 Equipment Leasing* ,700 Royalties 1,369 1,535 1,604 1,682 1,717 1,773 1,805 1,865 1,932 2,004 2,220 2,396 21,905 Total Cost of Sales / Service 10,333 11,467 11,938 12,471 12,708 13,092 13,309 13,720 14,180 14,668 16,148 17, ,382 Gross Profit 12,492 14,124 14,801 15,568 15,910 16,462 16,774 17,366 18,027 18,730 20,860 22, ,696 Gross Margin (%) 54.73% 55.19% 55.35% 55.52% 55.59% 55.70% 55.76% 55.86% 55.97% 56.08% 56.37% 56.56% 55.80%

13 Budget for 2nd Year Activities Month13 Month14 Month15 Month16 Month17 Month18 Month19 Month20 Month21 Month22 Month23 Month24 Total Administrative Expenses: Admin / Management Wages ,000 Admin / Store Wages ,858 Employers EI Premiums Employers CPP Premiums Employer's WSIB Premiums Advertising & Promotion Advertising Fund Contributions ,302 Business Taxes Fees / Dues / Subscriptions Insurance ,591 Meals & Entertainment ,224 Miscellaneous & General ,224 Occupancy Costs - Rent Utilities ,448 Maintenance Office Equipment Rental ,530 Office Equipment Leases Office Supplies & Printing Postage & Delivery Professional / Accounting Fees ,896 Telephones / Fax ,060 Training - Travel & Accommodations 1,500 1,500 Vehicle Expenses / Mileage ,896 Amortization - Computer Hardware ,270 Amortization - Software Amortization - Equipment Amortization - Furniture & Fixtures ,986 Amortization - Office Equipment ,017 Amortization - Leased Office Amortization - Leased Equipment Amortization - Leaseholds ,324 Amortization - Signage Amortization - Franchise Fees ,156 Total Administrative Expenses 4,568 4,624 5,000 4,955 4,967 6,556 4,996 5,016 5,109 5,062 5,135 5,264 61,252

14 Budget for 2nd Year Activities Month13 Month14 Month15 Month16 Month17 Month18 Month19 Month20 Month21 Month22 Month23 Month24 Total Financial Expenses: Loan Interest ,784 Lease Interest Bank Charges ,224 Credit Card Discounts ,476 Total Financial Expenses 1,376 1,412 1,423 1,437 1,439 1,447 1,449 1,458 1,469 1,480 1,528 1,566 17,484 Net Income (Loss) 6,547 8,088 8,378 9,176 9,503 8,459 10,329 10,892 11,449 12,187 14,197 15, ,960 Break-Even Point 10,862 10,936 11,604 11,512 11,523 14,369 11,559 11,589 11,752 11,666 11,820 12, ,267

15 Budget for 3rd Year Activities Month25 Month26 Month27 Month28 Month29 Month30 Month31 Month32 Month33 Month34 Month35 Month36 Total Estimated Total Sales 30,813 34,548 36,097 37,852 38,634 39,899 40,612 41,966 43,479 45,088 49,961 53, ,854 Revenues: Communications 1,325 1,486 1,552 1,628 1,661 1,716 1,746 1,805 1,870 1,939 2,148 2,318 21,193 Computer Services ,929 Postal Services 1,756 1,969 2,058 2,158 2,202 2,274 2,315 2,392 2,478 2,570 2,848 3,073 28,093 General Business Services 1,479 1,658 1,733 1,817 1,854 1,915 1,949 2,014 2,087 2,164 2,398 2,587 23,657 Printing / Copying 10,076 11,297 11,804 12,378 12,633 13,047 13,280 13,723 14,218 14,744 16,337 17, ,163 Retail Product Sales 5,084 5,700 5,956 6,246 6,375 6,583 6,701 6,924 7,174 7,439 8,244 8,894 81,321 Shipping / Mailing 10,785 12,092 12,634 13,248 13,522 13,965 14,214 14,688 15,218 15,781 17,486 18, ,499 Total Revenue 30,813 34,548 36,097 37,852 38,634 39,899 40,612 41,966 43,479 45,088 49,961 53, ,854 Cost of Sales / Service Communications ,417 Computer Services ,725 Postal Services ,075 9,832 General Business Services ,280 Printing / Copying 3,527 3,954 4,131 4,332 4,422 4,566 4,648 4,803 4,976 5,160 5,718 6,170 56,407 Retail Product Sales 1,779 1,995 2,085 2,186 2,231 2,304 2,345 2,424 2,511 2,604 2,885 3,113 28,462 Shipping / Mailing 3,775 4,232 4,422 4,637 4,733 4,888 4,975 5,141 5,326 5,523 6,120 6,603 60,375 Equipment Leasing* ,700 Royalties 1,849 2,073 2,166 2,271 2,318 2,394 2,437 2,518 2,609 2,705 2,998 3,234 29,571 Total Cost of Sales / Service 13,608 15,140 15,775 16,494 16,815 17,333 17,626 18,181 18,802 19,461 21,459 23, ,770 Gross Profit 17,205 19,408 20,322 21,358 21,819 22,565 22,986 23,785 24,678 25,627 28,502 30, ,084 Gross Margin (%) 55.84% 56.18% 56.30% 56.42% 56.48% 56.56% 56.60% 56.68% 56.76% 56.84% 57.05% 57.19% 56.63%

16 Budget for 3rd Year Activities Month25 Month26 Month27 Month28 Month29 Month30 Month31 Month32 Month33 Month34 Month35 Month36 Total Administrative Expenses: Admin / Management Wages ,000 Admin / Store Wages ,391 Employers EI Premiums Employers CPP Premiums Employer's WSIB Premiums Advertising & Promotion Advertising Fund Contributions ,078 9,857 Business Taxes Fees / Dues / Subscriptions Insurance ,591 Meals & Entertainment ,224 Miscellaneous & General ,224 Occupancy Costs - Rent Utilities ,448 Maintenance Office Equipment Rental ,530 Office Equipment Leases - Office Supplies & Printing Postage & Delivery Professional / Accounting Fees ,896 Telephones / Fax ,060 Training - Travel & Accommodations 1,500 1,500 Vehicle Expenses / Mileage ,896 Amortization - Computer Hardware ,349 Amortization - Software Amortization - Equipment Amortization - Furniture & Fixtures ,389 Amortization - Office Equipment Amortization - Leased Office Amortization - Leased Equipment Amortization - Leaseholds ,324 Amortization - Signage Amortization - Franchise Fees ,156 Total Administrative Expenses 4,784 4,859 4,960 4,925 4,940 5,390 6,763 5,290 5,461 5,352 5,450 5,670 63,842

17 Budget for 3rd Year Activities Month25 Month26 Month27 Month28 Month29 Month30 Month31 Month32 Month33 Month34 Month35 Month36 Total Financial Expenses: Loan Interest ,866 Lease Interest Bank Charges ,224 Credit Card Discounts ,393 Total Financial Expenses 1,422 1,472 1,489 1,509 1,514 1,526 1,530 1,544 1,560 1,577 1,644 1,696 18,483 Net Income (Loss) 10,999 13,078 13,873 14,924 15,365 15,649 14,693 16,951 17,657 18,697 21,409 23, ,759 Break-Even Point 11,115 11,269 11,455 11,402 11,428 12,228 14,652 12,057 12,370 12,191 12,433 12, ,480

18 Notes to Projected Financial Statements (Unaudited - See Notice to Reader) 3-Year Financial Plan NATURE OF BUSINESS FRANCHISE is a private company incorporated under the laws of the Province of Ontario whose principal business activities is XXXXXXXXXXXXXX 1. Summary of significant accounting policies (a) Capital assets are stated at cost. Depreciation is provided for using the declining balance method and the following annual rates: Assets Rate Computer Equipment 45% Computer Software 100% Furniture & Fixtures 20% Office Equipment 20% Leased Equipment 20% Leaseholds Straight Line 10 years Franchise Fee Straight Line 10 years In the year of acquisition depreciation is provided for using one-half the annual rate. (b) Inventory is valued at the lower of cost and net realizable value. Cost is determined by the most recent invoice cost. 2. Capital assets Year 1 Year 2 Year 3 Accumulated Net Book Net Book Net Book Cost Amortization Value Value Value Computer Eq. $ 12,245 $ 2,755 $ 9,490 $ 5,219 $ 2,871 Computer Software - - $ - $ - $ - Furniture & Fixtures 16,590 1,659 $ 14,931 $ 11,945 $ 9,556 Office Equipment 5, $ 5,085 $ 4,068 $ 3,254 Equipment - - $ - $ - $ - Leased Office Eq - - $ - $ - $ - Leased Equipment - - $ - $ - $ - Leaseholds 40,962 2,048 $ 38,914 $ 34,590 $ 30,266 Signage - - $ - $ - $ - Franchise Fee 29,900 1,495 28,405 25,249 22,093 $ 105,347 $ 8,522 $ 96,825 $ 81,071 $ 68,040

19 Notes to Projected Financial Statements, page 2 (Unaudited - See Notice to Reader) 3-Year Financial Plan 3. Loans from shareholders The loans are non-interest bearing with no fixed terms of repayment. 4. Long-term debt Year 1 Year 2 Year 3 Standard Bank Small Business Loan $139,792 $128,737 $116, Year term, Enter Details of Lease Here $0 $0 $0 Enter Details of Lease Here Current portion of long term debt 11,055 11,973 12,966 $ 128,737 $ 116,764 $ 103,798

20 Notes to Projected Financial Statements, page 3 (Unaudited - See Notice to Reader) 3-Year Financial Plan The information contained herein has been prepared based upon information provided by the franchisor, XXXXXXXXXXXXX., as well as by the management of the franchise. The preparer has not attempted to verify the accuracy of the information or to justify the assumptions made and therefore accepts no responsibility for the completeness or content of this budget. Assumptions and Estimations The following assumptions were used in creating these Projections 1. Revenues: Revenues are estimated based upon actual results of existing XXXXXXXXXX franchises. We have choosen the mid-range of the values given. 2. Cost of Sales / Services Direct costs are estimated based upon margins provided by suppliers and averages from the actual results of other franchises Operating leases are estimated based upon information supplied by the vendor Royalties are 6% of revenues as per the franchise agreement 3. General & Administrative Costs Wages and Benefits: The management of the franchise will not take a salary for the first 6 months of operations to allow for cash-flow to steady. After this Part-time employees will be added as necessary All other estimations are based upon actual research and from information provided by other XXXXXXXX franchise owners. A summary of estimates is contained on the interview page of this business plan.

21 Advertising & Promotion: Franchisees are required to contribute 2% of the revenues to the National advertising fund. Additional local advertising has been provided at a rate of $500 per month Insurance Estimate: Insurance is estimated from a quote provided by the insurance company. Amortization: Based upon capital asset costs from Analysis of Investment and current Canada Revenue Agency rates 4. Financial Expenses Loan Interest: Lease Interest: Estimated interest rate for SBL with a 10-year term Estimated interest rate provided by Leasing company.

22 Description Class Rate UCC Additions Proceeds 1/2 Year Balance CCA Ending UCC CCA Monthly Net Book UCC CCA Monthly Net Book UCC CCA Monthly Net Book UCC CCA Monthly Net Book Capital Cost Allowance Schedule (Fixed Asset Continuity) Current Year 2nd Year 3rd Year 4th Year 5th Year Beginning of Disposal for Additions for CCA Claim UCC Beginning Claim Provision Value Beginning Claim Provision Value Beginning Claim Provision Value Beginning Claim Provision Value Computer Hardware 45 45% 12,245 6,123 6,123 2,755 9,490 9,490 4, ,219 5,219 2, ,871 2,871 1, ,579 1, Computer Software % Furniture & Fixtures 8 20% 16,590 8,295 8,295 1,659 14,931 14,931 2, ,945 11,945 2, ,556 9,556 1, ,645 7,645 1, ,116 Equipment 8 20% Leased Office Equipme 8 20% Leased Equipment 8 20% Leaseholds Years 40,962 20,481 20,481 2,048 38,914 38,914 4, ,590 34,590 4, ,266 30,266 3, ,483 26,483 3, , Office Equipment 8 20% 5,650 2,825 2, ,085 5,085 1, ,068 4, ,254 3, ,604 2, ,083 Signage 8 20% Franchise Fees Years 29,900 14,950 14,950 1,495 28,405 28,405 3, ,249 25,249 3, ,093 22,093 2, ,331 19,331 2, , ,347 52,674 52,674 8,522 96,825 96,825 15,754 1,313 81,071 81,071 13,031 1,086 68,040 68,040 10, ,641 57,641 8, ,

23 Loan Amortization Schedule Terms of Loan First Payment Date 11/01/2006 Principle Amount $150,000 Term in Months 120 Interest Rate 8.00% Payment $1, Amortization Schedule Payment Payment Current Interest Principal Principal Payments Current Long Term Number Date Rate Payment Portion Portion Balance Remaining Portion Portion 1 11/01/ % $1, $1, $ $149, , , /01/ % $1, $ $ $148, , , /01/ % $1, $ $ $147, , , /01/ % $1, $ $ $146, , , /01/ % $1, $ $ $145, , , /01/ % $1, $ $ $144, , , /01/ % $1, $ $ $144, , , /01/ % $1, $ $ $143, , , /01/ % $1, $ $ $142, , , /01/ % $1, $ $ $141, , , /01/ % $1, $ $ $140, , , /01/ % $1, $ $ $139, , , /01/ % $1, $ $ $138, , , /01/ % $1, $ $ $138, , , /01/ % $1, $ $ $137, , , /01/ % $1, $ $ $136, , , /01/ % $1, $ $ $135, , , /01/ % $1, $ $ $134, , , /01/ % $1, $ $ $133, , , /01/ % $1, $ $ $132, , , /01/ % $1, $ $ $131, , , /01/ % $1, $ $ $130, , , /01/ % $1, $ $ $129, , , /01/ % $1, $ $ $128, , , /01/ % $1, $ $ $127, , , /01/ % $1, $ $ $126, , , /01/ % $1, $ $ $125, , , /01/ % $1, $ $ $124, , , /01/ % $1, $ $ $123, , , /01/ % $1, $ $ $122, , , /01/ % $1, $ $1, $121, , , /01/ % $1, $ $1, $120, , , /01/ % $1, $ $1, $119, , , /01/ % $1, $ $1, $118, , , /01/ % $1, $ $1, $117, , , /01/ % $1, $ $1, $116, , , /01/ % $1, $ $1, $115, , , /01/ % $1, $ $1, $114, , , /01/ % $1, $ $1, $113, , , /01/ % $1, $ $1, $112, , , /01/ % $1, $ $1, $111, , , /01/ % $1, $ $1, $110, , , /01/ % $1, $ $1, $109, , , /01/ % $1, $ $1, $108, , , /01/ % $1, $ $1, $107, , , /01/ % $1, $ $1, $106, , , /01/ % $1, $ $1, $104, , , /01/ % $1, $ $1, $103, , , /01/ % $1, $ $1, $102, , , /01/ % $1, $ $1, $101, , , /01/ % $1, $ $1, $100, , , /01/ % $1, $ $1, $99, , , /01/ % $1, $ $1, $98, , , /01/ % $1, $ $1, $96, , , /01/ % $1, $ $1, $95, , , /01/ % $1, $ $1, $94, , , /01/ % $1, $ $1, $93, , , /01/ % $1, $ $1, $92, , , /01/ % $1, $ $1, $90, , , /01/ % $1, $ $1, $89, , , , ,244.70