Table of Content
The Business
Executive Summary (Blue 1) .........................................................................................3
Description (Green 1) ....................................................................................................4
Objective, Mission and Generic Strategy
Job Description (Yellow 1) ............................................................................................5
Ownership structure, Personnel/Skills set
Organizational structure (Orange 1) ..............................................................................7
Insurance anticipated needed (Orange 1) .......................................................................7
Organization infrastructure (Red 1) ...............................................................................8
Product/ Service
Purpose (Blue 2) ............................................................................................................9
Unique features (Blue2) .................................................................................................9
History (Green 2) .........................................................................................................10
Zoning/ Regulations (Yellow 2) ..................................................................................11
Products/ Limitations (Yellow 2) .................................................................................11
Suppliers (Yellow 2) ....................................................................................................11
Operating Procedures (Orange 2) ................................................................................12
Facilities (Orange 2) ...................................................................................................12
Product Liability (Red 2) .............................................................................................13
Marketing Plan
Industry Profile (Blue 3) .............................................................................................14
Competition Profile (Green 3) .....................................................................................15
Customer Profile (Yellow 3) ........................................................................................17
Target Markets (Yellow 3) ...........................................................................................17
Marketing Penetration (Orange 3) ...............................................................................18
Advertising and Promotion (Red 3) .............................................................................19
Packaging (Blue 4) .......................................................................................................21
Pricing (Green 4) ..........................................................................................................22
Sales Estimate (Yellow 4) ............................................................................................23
Cost of product/ Service (Orange 4) ............................................................................24
Gross Margin (Red 4) ..................................................................................................26
Break Even Analysis (Red 4) ......................................................................................26
Financial Data
Income Projections (Blue 5) ........................................................................................27
Cash Flow (Green 5) ....................................................................................................28
Start- Up Expenses (Green 5) ......................................................................................28
Plan for Future Action
Time Line (Yellow 5) ..................................................................................................29
Needed Capital (Orange 5) ..........................................................................................30
Potential New Offerings (Orange 5) ............................................................................30
Exit Strategy (Orange 5) .............................................................................................30
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Executive Summary
The franchisor marketing plan that was chosen is MaggieMoo’s Ice-cream and
Treatery. MaggieMoo’s is a modern ice cream parlor that offers a variety of the freshest ice-cream flavors and combinations. Every desire of the customer can be fulfilled by offering them the choice to customize their recipe. The environment is bright, friendly and fun and welcomes people of all ages especially those with children or those with an inner-child themselves. MaggieMoo’s utilizes their competitive edge by using multiple sources of entertainment including birthday parties, special appearances by Maggie Moo herself, and its catering capabilities.
MaggieMoo’s
was ranked in the top 19 franchisors in 2001 and has been issued multiple awards since their rapid expansion in 1996. Top-ofthe-line training is offered to ensure the expertise of their employees through executive training at Moo University. The franchise location is in Radford, Virginia where our target market is well populated with children under the age of ten. The area of the location is escalating with an increased population and the production of growing retail establishments.
MaggieMoo’s
will reach its target market through many advertising outlets including television commercials, billboards, newspaper ads, radio and The
Yellow Pages. The pricing strategy for MaggieMoo’s demonstrates the product quality and the determination to provide the best experience for its customers. If you are ever in the mood for homemade ice-cream, what better place to choose than MaggieMoo's?
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The Business
Objective:
MaggieMoo’s
wants to be your long time friend. Whenever you are feeling down, hot or just in the mood for a treat, Maggie Moo’s will be right there.

Provide excellent customer service

Provide super premium ice cream made fresh daily

Provide a welcoming and suitable environment for all of our target markets

Surpass our competition

Maintain brand loyalty

Maintain close relationships amongst team members

To be involved in the community
Mission:
At
MaggieMoo’s, our mission is to provide a pleasant and enjoyable experience and atmosphere to all of our guests. We are committed to providing reputable customer service, as well super premium ice cream made fresh daily. We are always striving to exceed the expectations of our customers.
Generic Strategy:

Only the freshest ingredients will be used to make your delicious treat

The company will bring amazing new flavors

The best quality ice cream
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Job Description:

Able to work with ice cream material

Good customer service skills

Flexibility in work schedule

Able to keep up with store maintenance

Able to multi-task

Team oriented
About the Owners
Parvaneh Fatahi-yar graduated from Radford University with a Bachelors of
Business Administration degree. She has had over five years of experience in sales, which will bring knowledge and experience to the table. She is a hard a dependable worker, and a great team player.
Danielle Dow graduated from Radford University with two bachelor degrees. She has one degree in Marketing and a second degree in Management. Currently Danielle is attending VA Tech Institute to complete her Masters in business. She has a lot of experience in sales and working with people. She will take care of a big portion of the marketing, sales and promotional part of MaggieMoo’s .
Joanna Bonilla graduated from Radford University with a Bachelor in Business
Administration, double major in Marketing and Management. Then she continued her studies by attending graduate school at UNC Chapel Hill concerning her studies in marketing. During her studies at UNC she had an internship with Nike Inc. marketing
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Michael Jordan’s line. Joanna will be a big part in making executive decisions for the
MaggieMoo’s franchise.
Jordan Lester graduated from Radford University with a Bachelor in Business
Administration. Jordan continued his career and served as a second Lieutenant in the US
ARMY. Jordan will bring great leadership experience and motivation to our team.
-Manager:

Flexibility in work schedule

Good communication skills

Versatile

May have to travel

Ambiguous
-Full-time Employee:

Cheerful attitudes bring a smile to work everyday.

Team oriented
Our management team has extensive experience in the food and restaurant industry.
Some of the brands our team has managed include Panera Bread, Denny's and
McDonald's. We have marketing and promotions experience with brands including
Burger King, McDonald's, Starbucks, Pizza Hut, Dr. Pepper/7-Up, and Kellogg's.
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Organization Structure:
Maggie Moo’s
Owner
Lawyers, Accountants
Managers
Employees
Insurance Anticipated Needed:
Insurances that
MaggieMoo’s should consider getting are business owners’ insurance, fire insurance, workers’ compensation and casualty insurance. All this insurance will help make
MaggieMoo’s
be a safe working environment. We have explained below why we feel that these particular insurances are right for MaggieMoo’s .
MaggieMoo’s
needs a business owners’ insurance because if anything were to happen to any of the owners we feel that their part still needs to be covered and the business should still be able to run. Of course this insurance will replace income in the event of an accident or illness this way whomever gets hurt still has something to rely on when it comes to paying bills.
When owning a business, anything can happen and it is better to be protected than not. This is why we as owners feel that it is important to have fire insurance. Fire insurance will make it easier for us to know that just in case of any sort of fire we have this insurance that will reimburse the business for the losses.
Since we are going to have part-time and full-time workers, the law tells us that we have to have workers’ compensation. This will protect us if anything were to happen
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to an employee while at work. This will cover for all injuries expenses and it will also give the employee their salary.
We as owners, feel that health/life insurance will be a great way to retain our fulltime employees. We know that we will have to find the best fit insurance for our business. We do not feel like we have the proper revenue to pay for all our employee benefits but we are willing to pay for some of them. One of our goals is to retain our important employees and we feel this is a great way to do it. The last insurance that we believe is a good investment is casualty insurance. The reason we feel this way is because the number one reason for loss of money is from robbery.
MaggieMoo’s is a great business, and making it the safest and perfect environment is something we as owners are willing to invest in. With these factors in mind, these insurances prove to be an essential part of our franchise.
Organization Infrastructure:
As a franchise we believe we need a lawyer, accountant, and a business consultant. The lawyer will be responsible for the all the law aspects of the business.
They will make sure that all laws are followed and that all requirements are met to have this business. We will have monthly meeting with the lawyer to make sure that everything is going well with our business. The accountant will be responsible for all financial aspects of the business; for example payroll, bills that need to be paid, and any other important bills that have to be met. At the same time we feel that as a group we too need to keep records of everything. This way if there were ever to be a problem we will be aware of what is going on. Just like the lawyer we will be meeting with the accountant
8

monthly to keep up with everything that is going on. We feel that a business consultant is very important for our first few years in this particular business industry. The business consultant will be very important our first year, especially during the process of getting the business going. The business consultant is going to be the main person we will be talking to and the person we are going to trust to give us the best advice for our business.
Product/ Service
Purpose:
Provide memorable experience to the customer by providing them with their favorite nuts, candy or fruit into our ice cream, right in front of them.
Unique Features:
Cost: (requirements)
$237,000 start-up
$100,000 Liquid capital
$400,000 net worth
$30,000 franchise fee
Design
1200 Square ft.
Features
- Offer catering for private parties
-innovative recipes
-delicious cakes
-gifts
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-invitations
- Thermal Bag
-keeps ice cream cold on the way home
- Maggie Moo Christmas gift card
Capabilities
We have the ability to customize our product to fit the customer’s needs and wants. We do this by offering custom cakes, private parties, and variety of flavors.
History:
The first MaggieMoo’s was opened in Kansas City in 1989. Richard Sharoff was a former Boston Market franchisee who bought controlling interest of the troubled 19store chain in 1996 and the company became
MaggieMoo’s
International LLC. The headquarters moved to Columbia, MD, and half of the stores were closed. Richard
Sharoff realized that
MaggieMoo’s
had potential, so he decided to remarket the remaining stores in a colorful format and created a cow mascot. He then joined his cousin, Stuart Olsten in forming Olsten Venture partners, which became
MaggieMoo’s controlling partner in 2001.
Sharoff left in 2003, and was replaced by former Panera Bread executive Jon
Jameson. Sharoff filed suit against MaggieMoo's and the three members of its board, including his cousin he brought in to help fund growth in 2001. The lawsuit, filed in
Baltimore's U.S. District Court Dec. 8, alleges, among other things, breach of contract,
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breach of duty of good faith and fair dealing, and fraudulent inducement to contract. It asked for $150,000 in severance pay and unspecified punitive damages. The case never came into conclusion but as of right now Jon Jameson is the CEO.
Zoning/Regulations:
Our location is currently zoned for commercial business and general business use. Our property is already zoned to accommodate our building specifications.
Products/Limitations:
In order to house a
MaggieMoo’s
, the only limitation is that the building must be at least
1200 square feet. Our building is located on Lee Highway in Radford and it is approximately 3200 square feet. The size and location allows us to meet all specifications.
As for products, a few of our competitors sell food such as burgers. Since we are an ice cream franchise, we do not offer product of that such.
Suppliers
Since we are a franchise for
MaggieMoo’s
, we will have ongoing access to our expertise and materials in the areas of:
· Business Development and Administration
· Site Selection and Store Leasing
· Construction
· Purchasing
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· Training
· Store Operations
· Quality Control
· Advertising and Promotions
· Marketing
· Research & Development
Operating Procedures:
We will be making our own ice cream fresh daily, with a variety of flavors and toppings to choose from. We will make all of our products to fit the customer’s wants and needs. The distribution of our products will be from our store only at first. One of our plans for expanding would be catering birthday parties and other events with our cakes and ice cream.
Facilities:
Our facility is located in the Radford Shopping Center in Radford, VA.
The address is 7476 Lee Highway Radford VA, 24141. This facility offers us plenty of space to meet the requirements of MaggieMoo’s with 3,200 square feet including a large front room and a back unfinished storage space. Hall Associates Incorporated owns the property and is leasing it for $600 per month paid by the fifth of each month. Hall associates are located on 213 S. Jefferson Street Suite 1007 Roanoke, VA 24011-1714.
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See pictures below:
Product liability:
We will try to avoid any situation where a customer would feel the need to hold us liable for some event that happens on our property. Things we will warn the customers about what will be in our ingredients. We want to make sure the customers know the ingredients in our ice cream because some people may be allergic to some of our
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ingredients. Some of the major allergies we will have to watch out for are: Milk, peanuts, chocolate, and some fruits. We will keep the facility to the highest standards of cleanliness. This will eliminate the risk of illness from bacteria. And it is vital to keep the walkways and floors safe and clear of any obstructions or of slickness.
Marketing Plan
Industry Profile:
Ice Cream has been dated back to the infamous Alexander the Great. He sent a fleet of slaves to the mountains of the Apennines to fetch snow and ice. After they found the snow and ice, flavor was added. Then in the mid-1660s Italy made frozen ices, the founder of this was named Coltelli, this is called “Italian Ice”. Then finally frozen desserts made its way to America in the 1700s. The Governor of Maryland, Blanden, introduced ice cream when serving it to his guests.
Before the turn of the century, the homogenizer was invented which is use to give the smooth texture of ice cream, this was done by August Gaulin. After years and years of working to get the best ice cream it was finally done and ice cream was a huge success. The first commercial ice cream was made in Baltimore in 1851.
This industry that has been growing since Alexander the Great is now an eleven billon dollar industry. One of societies favorite ice cream flavors is Cookies N’ Cream made with real Oreo cookies, it was a huge hit in the 1983. This flavor was the fastest growing new flavor in the history of the ice cream industry. Then in 1991, another amazing flavor phenomenon was created Chocolate Chip Cookie Dough. Even though there are numerous flavors throughout different countries, these two are the ones that made history.
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Ice Cream consumption on a yearly average for an American is 23.2 quarts; this is any kind of ice cream from ice milk, sherbet, ices and other milk products. Children from ages two through twelve, and adults age forty-five plus eat the most ice cream per person. Portland, Oregon; St. Louis, Missouri; and Seattle, Washington are the top three cities in America that have higher capita for ice cream. The top five states that produce the most ice cream in order are California, Indiana, Ohio, Illinois and Michigan. On the same note the most popular day that ice cream is sold is Sunday. During the calendar year, July and August are the highest ice cream consumption months and July is National
Ice Cream month. As we can see everyone loves ice cream, ninety-eight percent purchase of households purchase ice cream. This is an amazing trend that will only continue to grow and expand.
Competition Profile:
Pistachio’s
Pistachio’s is our largest competitor because they are located in downtown
Radford. They offer Ben and Jerry’s ice-cream and the make cakes. On rainy days they have a promotion where you get one scoop free if you purchase one scoop.
Dairy Queen
Dairy Queen’s main product is soft serve ice cream in the flavors of chocolate and vanilla. Dairy Queen offers blizzard treats, Moolatte, Cones, Sundaes, smoothies,
Karmelkorn, burgers, cakes, and breakfast, lunch, and dinner foods. Dairy Queen has locations in Christiansburg and Blacksburg, Va.
15

Cold Stone
Cold Stone offers homemade ice cream in thirty different flavors and unique serving options. Cold Stone’s marketing is targeted towards an older generation. They also offer ice cream cakes. Cold Stone has yet to open a location near us, but they are in the process of opening one in Christiansburg, VA.
Sonic
Along with Dairy Queen, Sonic offers a variety of food as well as a minimal selection of ice cream products. Their products include soft serve ice cream, slushes, sonic blasts, and sundaes. Sonic is located off of West Main Street in Radford, Va.
Wendy’s
The only competition that Wendy’s has is their Frosty. They have an advantage because of their late hours. The nearest Wendy’s is located off of Lee Highway, right next to the plaza we are in.
McDonald’s
McDonald’s, located off of Lee Highway, offers ice cream cones, reduced fat ice cream cones, sundaes, McFlurry’s, and milk shakes. They also have a low cost menu, with some items pricing at just one dollar. McDonald’s also has a drive thru, which is open late.
Ben and Jerry’s
Frozen drinks, real fruit smoothies, soft serve, core sundaes, waffle cones, hot drinks, and cakes can all be found on the Ben and Jerry’s website. The closest Ben and
Jerry’s to our location is in Blacksburg, VA.
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Privately Owned Ice Cream parlors
The privately owned ice cream stores are located in Christiansburg, and Blacksburg, VA.
They offer only ice cream and are popular to locals in the area.
Customer Profile:
The first and primary customer to address is the younger children, to whom most of our marketing is aimed towards. We plan to gain a lot of business and attention from the local children. There are several local grade schools in the Radford, Blacksburg, and
Christiansburg area.
Another customer profile with which we expect a great response from is the local college students. Radford University college students make up the majority of this small town. Being that the four owners of this franchise are all Radford graduates, they are familiar with the expectations and needs of their former peers. College students are always looking for a fun place to hang out with friends, or to just get away and take a break from the studying and stress of busy schedules.
Our other customer’s will be local couples who will be able to enjoy the relaxed atmosphere provided by
MaggieMoo’s, whether it be on a Saturday evening, or a weekday afternoon.
Target Markets:
We have decided to make our primary target market college students and kids in the surrounding community. Several college students are from other locations than
Radford. We feel they are good targets because many of them probably already know about MaggieMoo’s from home. Now they will know that MaggieMoo’s is also available
17

to them in Radford.
MaggieMoo’s in Radford is located between two substantial universities, Radford and Virginia Tech. We will be able to provide an experience unique to any others offered in the area.
Of course, another target market will be the local children. With sponsoring local sports teams, we will get our name out there. The children can come in and enjoy a refreshing ice cream cone after a game. The children will see Maggie at the sports games, and standing on the roadside waving to the passing cars, and they will want to what this cool character is about.
The local couples are a target market because we want to be able to provide a versatile atmosphere that is welcoming to both the younger generations as well as the older ones. We will aim to bring the older generations in as a place fun for them to go and enjoy one another’s company.
Marketing Penetration:
We have decided to make our primary target college students and kids in the surrounding community. Several college students are from other locations other than
Radford and we feel they are good targets because many of them already know about
MaggieMoo’s . Now they will know that MaggieMoo’s is also available to them in
Radford. In order to reach the college population, we plan to purchase advertisements in the school newspaper, “The Tartan”, and the college directory that runs from August until the following August. These are good resources because the Tartan is distributed to students weekly and the directory is distributed once for a full year. For the Tartan we plan to put a coupon each week or a possible promotion. A promotion may include, 10% off with college ID, or one free scoop with the purchase of one scope if you show a
18

college ID. Also, to reach the college population we plan to use a cheap form of advertisement and that is flyers, also known as gorilla marketing. We plan to get permission to hang fliers on campus. We also will designate a few of our employees to distribute fliers on the cars of the students on campus and those that live off campus.
For the grand opening of our new
MaggieMoo’s franchise we will post a notice on the Radford portal for the first week. We realize that students use the portal frequently so this would be a great idea. Furthermore, the notice will have directions, feature flavor of the week, and the opening time.
In addition to reaching out to Radford University’s student body, we will reach the children of the community by various marketing strategies. For example, we will allow the company mascot (Maggie) to visit the local elementary schools. Also, we will create various commercials to show during prime time of the local television stations.
Maggie can stand on Lee Highway right outside of the plaza, waving to passing cars. We can also have Maggie attend local student sporting events, to help get us noticed and get our name out there.
Advertising and Promotion:
Advertising for MaggieMoo’s would center on Maggie herself. On the day of the grand opening we will have Maggie dressed up in her pearls to bring in customers that are in the area during that day. From there on, our advertising and promotion would be gorilla marketing as our first step. Since, it would be our first time in the New River
Valley, we feel it would be a good idea to start off small and then go big. For our small ideas flyers, posters and getting discount packages to the college students is our main target.
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To advertise to the little kids, Maggie will go to the elementary schools and have a little meet and greet. This way the kids can know who Maggie is and what she is selling, of course the kids then will go home and tell their parents about Maggie.
Hopefully, if the kids keep are persistent, the parents will want to go to MaggieMoo’s and try it out. Maggie then would be giving back to the community because when she visits, she will also have a story time with the kids. Maggie would promote for young kids to read, we would have a program where the kids would have to read a certain number of books. When the kids reach that number they will get a coupon to get a free ice cream cone at
MaggieMoo’s
.
On the other hand we also want to market to our college students, and of course for this market we have to take another route. We would focus on the college students at the beginning of each school semester, in the fall and spring. Our brochures will be passed out on opening weekend, when students are moving in. As well as including coupons in the welcome kits for incoming freshmen. MaggieMoo’s would have a college night were students with IDs will get a discount on their purchase; this would only be on a particular day like “Moondays at MaggieMoo’s ”. Nice colorful posters would be placed all around campus, residential life housing, and academic buildings. Radford University does this now and it really seems to get the word out. This advertising is low in cost which means it is a cost efficient strategy for us.
Our community is a big part of our customer as well, and we feel that the best way to advertise to them is if we sponsor some local sports teams.
MaggieMoo’s
will be willing to have any type of sports team and they can have our logo on their uniform, while
MaggieMoo’s
can help provide uniforms and give them specials on their game
20

days. This way
MaggieMoo’s
will get their name out to the families that are involved with the community. Since we will be at a popular area for local food shopper’s,
MaggieMoo’s will consult with Kroger and see if it would be possible to hand out flyers advertising MaggieMoo’s to their clients. In return MaggieMoo’s will have a section in the parlor to advertise for Kroger, as well as any other local businesses.
These are our plans to get MaggieMoo’s name out to the New River Valley area.
We expect to have positive results from these advertising techniques, and we feel that there is a much needed market for our business in this area. We also believe that our business may help other local business, bringing customers to them as well.
Packaging:
MaggieMoo’s is very decorative and colorful atmosphere.
MaggieMoo’s
mascot, a cow named Maggie, helps create this fun filled environment with her cheerful smile and ways. When entering a
MaggieMoo’s
store, you will see that the walls are covered with pictures of Maggie and her friends. Along with the pictures, there are fun facts about the ice cream industry. For example, some of the fun facts state “For the eighth consecutive year,
MaggieMoo’s wins blue ribbons for vanilla, strawberry, chocolate and dark chocolate.” All of Maggie’s friends are fun and interactive in the photos that are in the parlor.
MaggieMoo’s makes sure that everything that they serve their ice cream in has their logo on it. Cups, napkins and the ice cream cone wrappers are all examples of this.
If a customer is on the go, they can get
MaggieMoo’s
ice cream to go and the ice cream can be placed in a thermal bag to keep the ice cream nice and cold until they get home. If a company is having
MaggieMoo’s
as a treat everything is placed in a nice, easy carrying
21

box. The company has made it every easy for its customers to have its ice cream any time and in any amount.
Packaging at
MaggieMoo’s
is very creative and unique and we believe it give us the edge on all the other competitors because we are not afraid to stand out.
Pricing:
Our prices are aligned with most of the other premium ice cream shops. (Ex.
Cold Stone) we feel like people will pay higher prices for higher quality ice cream with plenty of fresh ingredients to choose from. If families want cheep ice cream they will go to the grocery store and buy it by the half gallon. If they want the premium ice cream and the experience that coming to our store provides, they will be willing to pay a little extra.
Our basic pricing is around 3.25 for a small 3.75 for a medium and 4.25 for a large.
Topping and the different serving options (cup, cone, and waffle cone) are extra. Also our prices are subject to change at any time we feel they are too high or too low.
In addition we will offer coupons and various limited time offers during our early weeks of operation to attract customers. We feel if we can get people to try our product they will keep coming back.
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Retailing - Restaurants
Total Revenue (Sales)
Total Expenses as % of Revenue
Net Income to Owner as % of Revenue
Detail of Expenses (as % of Revenue)
Cost of Goods Sold
Salaries & Wages
Advertising
Auto & Truck Expenses
Depreciation
Employee Benefits
Home Office Business Expenses
Insurance
Interest Expense
Legal & Professional Services
Meals & Entertainment
Office Expense
Retirement Plans
Rent - Equipment
Rent - Office & Business Property
Repairs
Supplies
Taxes - Business & Payroll
Travel
Utilities
Other Expenses
Total Expenses as % of Revenue
$ %
$200,800 100.0%
$178,954 89.1%
$21,846 10.9%
$85,321 42.5%
$30,981 15.4%
$3,253 1.6%
$2,312 1.2%
$4,554 2.3%
$273 0.1%
$158 0.1%
$2,655 1.3%
$2,444 1.2%
$1,173 0.6%
$152 0.1%
$504 0.3%
$44 0.0%
$1,601 0.8%
$11,317 5.6%
$2,491 1.2%
$3,201 1.6%
$7,394 3.7%
$367 0.2%
$8,161 4.1%
$10,599 5.3%
$178,954 89.1%
These are estimates from BizStats.com. Some of these costs will not affect us.
Sales Estimate:
Based on other Maggie moo’s stores our goal is to make $525,000 in sales revenue in the first 3 years. With about $150,000 of that being Net Profit. We came to these numbers by looking at
MaggieMoo’s
stores across the country and finding locations similar to ours.
The average revenue for sores in small cities like Radford was $200,800.
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Cost of Product/Service:
These are the costs that we are allowing for in our budget. Also at the bottom of the list we have a small amount set aside for miscellaneous, unforeseeable expenses. Our main cost is “cost of goods sold” that is a large variable expense that will start out smaller than our estimate here but will increase as we reach full capacity. Below are graphs or our cost breakdown and our variable and fixed costs.
Discription
Rent
Wages/Salaries
Advertising
Insurance
Cost of goods sold
Depreciation
Interest Expense
Legal Services
Repairs
Utilities
Misc.
Total Expenses
Cost
12,000
30,000
3,000
3,600
80,000
4,000
1,000
1,000
2,000
8,000
8,000
152,600
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Cost
Rent
Wages/Salaries
Advertising
Insurance
Cost of goods sold
Depreciation
Interest Expense
Legal Services
Repairs
Utilities
Misc.
25

Gross Margin:
Considering that we expect to make $200,800 in total revenue and we estimate
$152,600 in cost of sales, (including cost of goods sold and all other expenses), we expect a Gross Profit of $48,200. Those figures would give us a Gross Margin of 0.24 or 24%.
Breakeven Analysis:
We are measuring and tracking our sales in units. An average unit equals one medium portion of flavored ice cream with one additional toping mixed in, served in a disposable cup, one plastic spoon and two napkins. The sales price that the customer pays for one unit is $4.00. the break down of costs that go into one unit is as follows:
Cup
Ice creem
Toping
Labor spoon napkins (2)
$0.20
$0.50
$0.20
$0.40
$0.10
$0.10
Total cost (unit) $1.50
This makes our profit margin $2.50 or 62.5% per unit.
$2.50 per unit profit will be applied to the fixed costs not included in the unit breakdown.
In order to meet our Cost of sales number and “Break Even” we will have to sell at least
$152,600 or an average of 38,150 units. Or 104.5 units per day. This may seem high but our sales of birthday cakes and the money we will be receiving for birthday parties and other special events, will help us meet our goals. To meet our profit goals we will need to sell al least $200,800 or an average of 50,200 Units.
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This graph shows both the break even point and our profit goals.
Financial Data
Income projections:
1. Based on other Maggie moo’s stores our goal is to make $150,000 the first year
$175,000 the second year and meet our goal of $200,000 per year in sales revenue by year three
2. For the first 3 months we will be running specials and offering coupons to attract customers to our new store. During this time we will try to set a target for a gross margin of around 10% instead of the normal 24%. After the “grand opening period” is over we will spend the remaining 9 months fine tuning our pricing strategy.
3. These figures are based on the assumptions that we will make 525,000 in sales by year three and that we will turn a profit of $150.000.
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Cash Flow:
For the three years 20% of profits will go back into the business. The remaining profits will be divided up between the 4 owners equally. Any incidental expenses will come out of the 20% if they go over the budgeted amount
Start Up Expenses:
The franchising fee with be the one of the two large start up fees at the beginning.
We have to pay $30,000 up front to secure the franchise when we add the start-up costs of buying equipment renovating the store and putting op signs the total start up cost will be $250,000.
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Plan for Future Action
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Needed Capital :
The total start-up costs for a typical MaggieMoo’s store is between $237,000 and
$337,000. We each will contribute $100,000, which is the required net worth to open a
MaggieMoo’s
franchise. Joanna Bonilla is using $40,000 from her life insurance policy, and the rest of the money, $60,000, is being financed through bank loans from BB&T.
Fifty percent of Danielle Dow’s portion of the money will be contributed from her father, and the rest will be from a small business loan from Bank of America. Parvaneh Fatahiyar inherited money from a few of her close relatives that had been setting aside money for her future development. Jordan Lester is using money from his personal savings, which has been acquired throughout the years.
Potential New Offerings:
Promotions through MaggieMoo’s franchise are regulated through headquarters.
What we can do as a team is make sure that we are keeping a close connection with headquarters. Through extensive research, we have discovered different promotions consisting of holiday gift cards, and holiday cakes titled “Pink Peppermint Stick Truffle”,
“Ornament”, “Yule Log”. They also made pies for the Thanksgiving holiday. Another promotion they use frequently is flavor of the month. This creates awareness amongst customers for the different flavors of ice cream.
Exit Strategy:
As a group, we have decided that when we feel like we have made a generous amount of revenue we will begin to look for candidates to sell our established franchise to. If one of us decides that they would like to stay in the business then they will have to
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meet the financial needs and obligations themselves, or take on the responsibility of finding more partners.
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