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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

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