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 27th Total revenue Sails Too $17355 cash $3621 Eftpos $13734

Management fee + Rent Settlement

• To be settled Tuesday March 29th :

$ 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 )