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 Return on Investment

You need the following building and equipment in order to produce 227,100 litres of finished product per month. This is based on an average work day using 4 semi-skilled employees.

1. Building size Approximately 464.50 sq. meters

2. Equipment (supplied) 2 mixing machines as supplied.

3. Equipment installation Minimal labor required with average 3 day setup time.

4. Utilities & water Local electricity or equivalent, warm clean water.

5. Equipment (not supplied) Fork lift and assorted light hand equipment.

6. Initial inventory (raw materials) Minimum raw material for 41,580 litres.

7. Additional inventory Containers & packaging equipment, supplied according to individual needs.

8. Sales materials Supplied as needed

.
Example of R.O.I (in U.S. dollars)
Total litres produced 227,100 567,750 1,040,875
Gross product sales* 1,260,000 3,150,000 5,775,000
Cost of goods sold 580,000 1,387,000 2,462,500
Gross profit 660,000 1,763,000 3,312,500
GS&A** 55,000 100,000 150,000
Net profit 625,000 1,663,000 3,163,000
Investment (example) 300,000 300,000 300,000
Return on Investment 208% 554% 1054%

* Sales and profit projections are based on actual experience but will vary according to region and market conditions. They may be less or greater in any given situation. Manufacturers maintaining factory outlets will enjoy higher returns.

** General sales & administrative cost

Projected Sales and Profits (in U.S. dollars)
Total Litres Produced 227,100 567,750 1,040,875
1,703,250
2,365,625
3,501,125
Gross Product Sales* 1,260,000
3,150,000
5,775,000
9,450,000
13,125,000
19,425,000
Cost of Goods Sold 580,000 1,387,000 2,462,500 3,887,500 5,307,500 7,618,750
Gross Profit on Sales
680,000
1,763,000
3,312,500
5,562,500
7,817,500
11,806,250
Gross Profit %
53.9
55.9
57.3
58.9
59.6
60.7
G.S.A.**
55,000
100,000
150,000
175,000
200,000
200,000
Net Profit on Sales
625,000
1,663,000
3,163,000
5,387,500
7,617,500
11,606,350
Net Profit %
49.6
52,8 54.8 57 58 59.7

* Sales and profit projections are based on actual experience but will vary according to region and market conditions. They may be less or greater in any given situation. Manufacturers maintaining factory outlets will enjoy higher returns.

** General sales & administrative cost

More on Licensed Manufacturing Franchises:

Building Requirements

Equipment List for Licensed Franchises

Raw Material Shipping Quantities


Franchise Features

 

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316 California Ave.
Suite 1082
Reno, NV 89509
Phone 702-789-2691
Orderline 1-800-664-3978
Fax (530) 272-8098

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