Consumer Card and Consumer Relationships with MFREEM
The monthly income and expenses of a franchisee that has invested Rs 10 Lakh and has monthly sales worth 1,560,000 is explained below. (All costs in Rupees �INR)
Total time for an investment of Rs 10,00,000 to break even is 33 months. If there is turnaround of more than Rs 60 for every Rs 1000, the break even time will be reduced and if the turnaround is less than Rs 60 per Rs 1000, it will take longer for break even.
In normal cases, Margin Free Market franchisees break even in between 36 and 60 months. The net profits recording after this break-even period is 100% profit only.
Rent | Rs. 10 x 1000 sq ft | 10,000 |
Salary | 4 nos. x 3000 | 12,000 |
Salary | Manager 8000 | 8000 |
Electricity, Water | 2000 | |
Telephone, Post | 3000 | |
Printing and Computer Stationery | 3000 | |
Rates and Taxes | 6000 | |
Interest and Bank Charges | (15%) | 13,000 |
Licence and Office Expenses | 1000 | |
Packing Materials | 2000 | |
Income Tax | 11,000 | |
Royalty | 1560 | |
Workers Charges | 3000 | |
Generator Expense | 1000 | |
Miscellaneous | 2,640 | |
Sale | 15,60,000 | |
Profit 7% | 1,09,200 | |
Total Expense | 79,200 | |
Net Profit | 30,000 |