Licensed ownership Agreement Basics Opportunity to manage and - PowerPoint PPT Presentation

Licensed ownership

Agreement Basics • Opportunity to manage and operate Sails Too under licensed ownership • Licensed owner will obtain rights to use : 1. business names / artwork / websites / social media pages, URL and email accounts 2. All plant and equipment 3. Venue shop 2 and Courtyard , 115 Bussel Highway MARGARET RIVER • Agreement requires use of own Company/Trust with ABN/ACN • All proceeds and profits to be solely property of licensed owner • All ( Operational ) expenses + taxes to be responsibility of licensed owner

Agreement Basics • Licensed owner needs to respect and meet conditions as set out in Management agreement : 1. Manage the business in a professional and profitable manner 2. Maintain positive customer service ratios and healthy relationship with all customers, suppliers, council and other stakeholders 3. All directors, officers and staff are allowed to work in Australia and have clear police and drug records. 4. Maintain all plant/equipment, furniture , websites etc in excellent condition 5. Is responsible for all service related costs unless replacement is required 6. Agrees to pay for 100K contents insurance incl machinery breakdown.

Agreement Basics • In return the licensed owner agrees to pay 5 % weekly management fee + rent to licensor • Fees + rent p/wk ex gst management fee 5% Rent $ 828 VOG $ 294 • Management fee + Rent to be settled weekly on Tuesdays via Merchant settlement proceeds

Management fee + Rent Settlement • Financial week : Monday to Sunday ( 7 days ) • Eftpos transactions settle in separate Sails Too bank account • Licensor to forward all Eftpos proceeds on Tuesday a. less management fee ( incl of gst ) b. less rent ( incl of gst ) Example : Week ending Sunday Mar 27 th Total revenue Sails Too $17355 cash $3621 Eftpos $13734

Management fee + Rent Settlement • To be settled Tuesday March 29 th : $ 13734.00 Less Sailstoo management fee 5% + gst -$ 867.74 Less Sailstoo rent $ 1122 + $112.20 gst -$1234.20 Less possible expenses ( ie insurance , bank fees etc ) -$ - ---------------- Total settle Sails Too $11632.06 + copy of bank statement + itemized settlement report

Expected Returns Historical trade between $600.000 - $800.000 p/annum Nett profit before tax between 15-20% ( = $90000 - $150000 ) Subject to meeting following ratio’s - Cost of food 25-27% - Employment costs 30-32% - One Owner allocated wage between 50-55K p/yr

Business Opportunities • Margaret River regional / international Airport 2018 ? • Margaret River SUPERTOWN $10Mln awarded for CBD make-over • Tax deductible expenses : - car, food, GST on purchases, research, miscellaneous expenses

Agreement • sublease in line with master lease ( until 1 Dec 2022 ) + 5 year option • No Capital investment • 4 weeks rent as BOND ( $5351.00 ) • Working capital and stock transfer ( appr. 5K-10K )