Fred Franks is an aspiring entrepreneur. His dream is to open a restaurant that deep-fries everything. Deep-fried Twinkies, deep-fried hotdogs, and deep-fried salads were just some of the dishes he wanted to serve. Always a marketing genius, Fred wanted to call his restaurant TGI Fry-Days. He recognized another company was called TGI Fridays, so he made sure to have a very good (and expensive) lawyer.

Fred had $ 100,000 in his bank account, so in order to start TGI Fry-Days, he needed to borrow money. His bank asked for a full business plan with projected startup costs, pro forma income statement, and pro forma cash flow statement (no pro forma balance sheet needed).

Freds Available Sources of Financing

Personal Bank Account: Bank Loan: Interest on the Loan

Things Fred Would Need.

Kitchen Equipment Furniture & Fixtures Signage Working Capital

$ 100,000 $ 150,000

$1,500 per month

Cost

$ 150,000 $ 80,000 $ 10,000 $ 10,000

Useful Life

20 years 20 years 10 years

Revenue Forecast M1: $30,000 M2 & M3: $40,000 per month M4 M6: $55,000 per month M7: $20,000 (taking a summer vacation with his family) M8 M12: $60,000 per month

Variable Expenses: Wages: 25% of Revenues Cost of Goods Sold (food): 33% of Revenues Marketing: $2000 a month, except November & December (Holiday Season): $4,000 a month No Taxes. Consider TGI-Frydays to be an LLC

Other Expenses (alphabetical order) G&A $ 5,000 a month Insurance $ 500 a month Legal Fees $ 2,000 a month, but paid as $6,000 every 3 months (starting M1) Rent $ 6,000 a month

ONLY***Need help with the Cash flow .