Assumptions

ParticularsReception/Director OfficeClass Room-Day CareClass RoomChild Fitness RoomChild LibraryTeachers Room Service/Amenities/ToiletsPlay & Open AreaGrand Total

Furniture and EquipmentTables and chair and Children Attraction

Table-chair for FacultyDirector/Office/Reception,library furnitureIndoor Play Things, FitnessLibrary Books

Total cost

Black board or Children Painting Wall and Attaction to walls

No's Sq Feet Total1 100 100 1 200 200 4 300 1,200 1 200 200 1 200 200 1 100 100 1 100 100 1 500 500

2,600

No/classes Cost Total Cost 4 32,000 128,000

4 10,000 40,000 8 5,000 40,000 3 10,000 30,000 1 50,000 50,000

50,000 50,000 338,000

Annexure 1

DRAFT REPORT FOR DISCUSSION PURPOSES ONLY

Inception cost

Franchise set up cost PSFELEMENTSArea (Sqft) 2,600

INR.Ceiling / Flooring/ Painting 78,000 30 Furniture and Equipment 338,000 Electrical, lights, fans ,wiring and labour 26,000 10Signage (Int/ext) - Sub-Total 442,000 170

Equipments & misc itemsAirconditioning - 20,000 LCD Projector & Screen 30,000 Computers 20,000 Printer and scanner 15,000 Van 0 250,000 0Greenry/ Child water park/ Sand play 25,000 CCTV 0 10,000 Misc expenses 0 Sub-Total 90,000 Total capital expenditure 532,000 205

Additional expenses for the franchisee 100,000

Professional Fees 25,000 Training Fees 30,000 15000 2

687,000 Franchisee fee 500,000 Service tax (12.36 percent) 0 TOTAL PROJECT COST 1,187,000

Centre Furnishing / Improvement etc.

Can be outsourced

Launch & Pre-Opening Marketing Expenses

Total financial Requirement for Set Up

Franchise HR Cost

Nos. Y1 Y2 Centre Manager - - Admin/Accounts 1 1 Teachers 5 5 Assistant/Maids 5 5 Security Guards 1 1 Total 12 12

Monthly PayoutCentre Manager 15,000 17,000 Admin/Accounts 8,000 8,000 Teachers 6,000 7,000 Assistant/Maids 3,000 3,150 Security Guards 4,000 4,200

Net PayoutCentre Manager - - Admin/Accounts 8,000 8,000 Teachers 30,000 35,000 Assistant/Maids 15,000 15,750 Security Guards 4,000 4,200 Total 57,000 62,950 Annual payout 684,000 755,400

Y3 Y4 Y5 - - - 1 1 1 5 5 5 15 5 5 5 18 1 1 1 12 12 12

19,000 21,000 23,000 10% 15000 8,000 8,000 8,000 8000 8,000 9,000 10,000 10% 6000 3,310 3,480 3,650 5% 3000 4,410 4,630 4,860 5% 4000

- - - 8,000 8,000 8,000 40,000 45,000 50,000 16,550 17,400 18,250 4,410 4,630 4,860 68,960 75,030 81,110 827,520 900,360 973,320

Franchisee revenue statement

Capacity (Nos)

Enrolment@100% Efficiency LevelPre-nursery 15Nursery 20LKG 20UKG 20Day care 8

EnrollmentAssumed EfficiencyPre-nursery Nursery

Assumed EfficiencyLKGUKG

Assumed EfficiencyDaycare

Total

Admission fee & Application feePre-nursery Nursery LKGUKGDay Care

Pre-nursery Nursery LKGUKGDay CareTotal

Tuition feePre-nursery Nursery LKGUKGDay Care

Annual collection - Tuition feePre-nursery Nursery

Annual collection - Admission & Application fee

LKGUKGDay CareTotal

Uniform ChargesLKGUKGTotal

Total revenue

Franchisee revenue statement

Y1 Y2 Y3

60% 80% 100% 9 12 15 12 16 20

35% 50% 70% 7 10 14 7 10 14

80% 80% 80% 6 6 6

41 54 69

5,600 6,200 6,800 5,600 6,200 6,800 5,600 6,200 6,800 5,600 6,200 6,800 1,600 1,800 2,000

50,400 74,400 102,000 67,200 99,200 136,000 39,200 62,000 95,200 39,200 62,000 95,200 10,240 11,520 12,800 196,000 297,600 428,400

Annual fee 33,000 36,300 39,900 39,600 43,600 48,000 52,800 58,100 63,900 52,800 58,100 63,900 79,200 87,100 95,800

297,000 435,600 598,500 475,200 697,600 960,000

369,600 581,000 894,600 369,600 581,000 894,600 506,880 557,440 613,120 2,018,280 2,852,640 3,960,820

10,500 15,000 21,000 10,500 15,000 21,000 21,000 30,000 42,000

2,235,000 3,180,000 4,431,000

Y4 Y5

100% 100% 15 15 20 20

100% 100% 20 20 20 20

100% 100% 8 8

83 83

7,500 8,300 10% 7,500 8,300 7,500 8,300 7,500 8,300 2,200 2,400

112,500 124,500 150,000 166,000 150,000 166,000 150,000 166,000 17,600 19,200 562,500 622,500

43,900 48,300 2500 10% 10% 52,800 58,100 3000 70,300 77,300 4000 70,300 77,300 4000 105,400 115,900 6000

658,500 724,500 1,056,000 1,162,000

1,406,000 1,546,000 1,406,000 1,546,000 843,200 927,200 5,369,700 5,905,700

1500 30,000 30,000 30,000 30,000 60,000 60,000

5,992,000 6,588,000

Franchisee income statement

ParticularsRevenueRevenue from operations

ExpensesRoyalty to FranchisorRent (Rs)PSFEmployee Cost

Operating ExpensesElectricity Travel cost (for BD & going to center)Printing & StationaryStory and Alphabet/Numeric, Picture Books (Library)Games and Toys-EquipmentRepairs & Maintenance - BuildingsTelephone ExpensesUniform Stationary and booksStaff Welfare ExpensesStudent Development Expenses + First aid

Misc others (stationery, utility, Maintenance etc)

Expenses excluding contingencyContingency ExpensesTotal CostPBDIT DepreciationPBTProject CostROI %Average ROI %Payback (Years)

Y1 Y2 Y3

2,235,000 3,180,000 4,431,000

335,000 477,000 665,000 780,000 780,000 780,000

25 25 25 684,000 755,400 827,520

36,000 39,600 Err:509 24,000 26,400 29,000 10,000 11,000 12,100 6,000 7,200 8,600 10,000 11,000 12,100 10,000 11,000 12,100 9,600 10,600 11,700 14,700 21,000 29,400 62,100 81,600 104,100 10,000 11,000 12,100 6,000 6,600 7,300

48,000 52,800 58,100

2,045,000 2,302,400 2,612,520 40,900 46,000 52,300 2,086,000 2,348,000 2,665,000 149,000 832,000 1,766,000 53,000 53,000 53,000 96,000 779,000 1,713,000 1,187,000

8% 66% 144%73%

1.4

Y4 Y5

5,992,000 6,588,000

899,000 988,000 15% 858,000 943,800 25 10%

28 30 900,360 973,320 Err:509

Err:509 Err:509 3,000 10% 31,900 35,100 2000 13,300 14,600 10000 10,300 12,400 500 20% 13,300 14,600 10000 10% 13,300 14,600 10000 12,900 14,200 800 42,000 42,000 70% 124,500 124,500 1500 13,300 14,600 10000 8,000 8,800 500

63,900 70,300 4000

3,052,360 3,323,120 61,000 66,500 2% 3,113,000 3,390,000 2,879,000 3,198,000 53,000 53,000 10% 2,826,000 3,145,000

238% 265%

Parameters Benchmark Jain ToddlersRent 20-25% 35%HR Cost 16-20% 31%Utility 10% 9%Royalty 15% 15%Marketing 10% #REF!Total Opex 71-80% #REF!Operating Profit #REF!

AssumptionsFranchisee setup cost (A1)Franchisee HR cost (A2)Franchisee revenue (A3)Franchisee income statemnt (A4)