Income Projections Year_1 Year_2 Year_3 Year_4 Year_5

EBITDA Margin (%) 32% 33% 34% 34% 35%

EBITDA Margin (%)

35%
35%
34%
34%
33%
33%
32%
32%
31%
31%
Year_1 Year_2 Year_3 Year_4 Year_5
 Project Milestones
Day Component Amount Notes
Day_0 Franchise Fee 2500000 Different per city
Day_10 Company incorporation 0
Day_30 Security Deposit (2+1) INR 960000 Registered Rent Agreement
Day_30 Brokerage Charges (INR) 15days 320000
Day_32 Architect Fee 150000 For layout & 3D model
Day_35 Advances towards equipment 3000000 30 % advance for various vendors
Day_35 Advance towards access control 245500 50% of security + keyfob
Day_40 Interior+AC kick off 600000 approx 5L every 5-10 days
Day_40 Signage 250000 Exterior
Day_45 Interior expense 600000
Day_50 Inbody + AED 290000
Day_50 Interior expense 600000
Day_55 Interior expense 600000
Day_60 Pre-Sales Kick off 420000 Spent till opening
Day_60 Interior expense 600000
Day_65 Interior expense 600000
Day_70 Uniform + Stationary 82000
Day_70 Interior expense 600000
Day_75 Interior expense 600000
Music system + TV etc. + water
Day_75 fountain 620000
Day_80 Signage 250000 Interior
Day_80 Interior expense 600000
Day_85 Interior expense 600000
Day_85 Balance - access + keyfob 245500
Day_90 Infra - desktops + housekeeping 200000
Day_90 Equipment delivery 7000000
Day_95 Misc 600000
Day_100 Grand Opening 180000 balance of hype and marketing
 Projected Establishment Cost
Item Description Cost (INR)
Centre Furnishing/Interiors + Airconditioning 60,00,000
Ceiling/Floor/Paint -
Furniture/Fixtures/Wood work -
Rent Security Paid 9,60,000
Brokerage Paid 3,20,000
Company Incorporation -
Architect Fee 1,50,000
Signage (int/ext.) 5,00,000
In Body-Body Composition Analysis 2,05,000
AED 85,000
Laptop+desktop+Ipad etc. 1,00,000
Additional accessories 1,00,000
Staff Uniforms 22,000
Stationary for gym 60,000
Misc. Total 6,00,000
Subtotal (INR) 91,02,000

Gym Equipment's (standard) 1,00,00,000

Cardio: Treadmills (6-8), CRT (2), Upright Bikes (1),
Recumbent Bike (1), Spin bike -2
Strength Stations : 11
Racks and benches:
Torque Storage
Free Weights 800~1000 Kg

Other Fixtures 13,93,500

Music System + Club TV 500000
Security Systems-CCTV 200000
Access Control Kit 282500
Wallet card + Key fob @ 500 pcs 291000
Drinking Water Fountain 120000

Subtotal(INR) 1,13,93,500
Total Capital Investment 2,04,95,500

Pre-sales expenses (M0 and M00)

Staff Salary -
Electricity Expenses 50,800
Local Marketing Expense ( pre launch ) 3,17,500
Franchise Fee 25,00,000
Training Fee* travel and stay in Delhi -
Total Project Cost 2,34,64,800
GST outflow on establishment @ 18% 2,76,88,464
 INPUTS
Item Description Rate/Type/Qty
Area Sq. Ft. 4,000
Rent per Sq. Ft. (INR) 80
Brokerage Charges (INR) 30days 3,20,000
Security Deposit (2+1) INR 9,60,000
Company incorporation
Cost of Interiors per Sq. Ft. (INR) 1,500
Electricity charges (INR) 1,00,000 Membership charges including GST (Input)
Total Members - Year_1 (annual) 650 Key Fob Reg Cost Coaching Suite Reg GST Cost to member
Pre-Sale_1 (100 members)(INR) 17,500 20,125 1,000 500 18% 22,420
Pre-Sale_2 (101 onwards)(INR) 19,000 21,850 1,000 500 18% 24,190
Annual Membership charges (INR) 21,000 24,150 1,000 500 18% 26,550
Rate of Interest (BANK) (INR) 12%
Recurring Members 0% Member Addition 0% Increment in Members due to Recurring

Staff Hiring Salary (INR) Total per month (INR) Note

Gym Manager (h2i) 1 30,000 30,000 Total salaries kick in once gym is open
Fitness Manager (mxm) 1 25,000 25,000 During pre-sale, minimum staff is on-boarded
Trainer (t2i) 4 18,000 72,000 Personal Trainers are on revenue sharing (60:40 or 70:30)
Assistant Trainer (t2i) 2 15,000 30,000 Average PT penetration is 20% i.e. of total memberships
Personal Trainers-freelance (p2i) 5 - Group EX is a mandatory expense as per brand guidelines
Sales Staff (h2i) 2 15,000 30,000 Recurring charges will be billed monthly and offered as additional payment open later in
House Keeping 6 15,000 90,000
Security Guard (optional) 1 8,000 8,000
Total Employee's 22 2,85,000

Optional Training expense Nos. Cost avg. INR month

Group Activity Trainers 0 -

Optional Services offered Nos. Cost avg. INR month * optional operational expense
Valet Parking 0 -

Stat compliance Nos. Annual Cost (INR) * added to establishment cost

Shop and Establishment lic. 1 -
Fire lic 1
Fire Extin 6 -
Premises Insurance 1 -
PPL lic. For music+novex 1 -
 Projected Overview
Item Description 5000 Cost (INR) Annual
Franchisee fee 25,00,000
Training Fee -
Brokerage paid 3,20,000 ** add cost of UPS
Company Incorporation
Rent Security
Gym Interior with AC 60,00,000
Architect Fee 1,50,000
Signage (Int/ Ext.) 5,00,000
Gym Equipment's + Functional + Accessories 1,00,00,000
Security, Access Control, Music System, TV 13,93,500
Ipad+Desktop+Mobile+Phone+Laptop 1,00,000
Additional accessories Soap disp. Tissue box,
dustbin, housekeeping material 1,00,000
AED 85,000
Marketing & Opening 6,00,000
Body Composition Analysis 2,05,000
Staff Uniforms 22,000
Stationary 60,000
Miscellaneous Total 6,00,000
Gym Maintenance/Upkeep 60,000

Total Expenses (INR) 2,26,35,500

Pre-Sales approx. revenue (INR) 29,65,625

Proposed reduction in initial investment 1,96,69,875

Revenue_Year_1
Approx. annual members 650 2,04,92,125
Cost of operations (INR) 1,39,41,043
Profit % 32%
Payback Period (years) 3.17
Note: Elements Removed - Rent & Security Deposit
 Projected Income Statement
Growth % YOY 5%
Income Projections Year_1 Year_2 Year_3 Year_4 Year_5

Revenue earned from memberships + Pre Sales +

Registration Fee + AF App revenue 1,42,52,125 1,49,64,731 1,57,12,968 1,64,98,616 1,73,23,547
Revenue earned from Personal training 62,40,000 62,40,000 62,40,000 62,40,000 62,40,000

Total Income (INR) 2,04,92,125 2,12,04,731 2,19,52,968 2,27,38,616 2,35,63,547

Cost of Operations
Monthly Royalty 15,00,000 15,00,000 15,00,000 15,00,000 15,00,000
Employee Yearly Overheads 34,20,000 37,03,200 40,11,780 43,48,131 47,14,876
Personal training revenue to trainers @ 40% 24,96,000 24,96,000 24,96,000 24,96,000 24,96,000
Incentive on Sales @ 2% 2,85,043 2,99,295 3,14,259 3,29,972 3,46,471
Floor Rental 38,40,000 38,40,000 38,40,000 38,40,000 38,40,000
Cost of Key Fobs/Cards 4,80,000 2,88,000 2,88,000 2,88,000 2,88,000
Member Engagement Expenses 1,20,000 1,20,000 1,20,000 1,20,000 1,20,000
AF Coaching Suite - - - - -
Gym Upkeep 60,000 1,50,000 2,10,000 2,73,000 3,54,900

Marketing Overheads
Local Area Marketing * excluding pre-sales 1,80,000 1,80,000 1,80,000 1,80,000 1,80,000
Social Media Marketing 1,80,000 1,80,000 1,80,000 1,80,000 1,80,000

Other Expenses
Electricity Charges * excluding pre-sales 12,00,000 12,00,000 12,00,000 12,00,000 12,00,000
Misc. Expenses * excluding pre-sales 1,80,000 1,80,000 1,80,000 1,80,000 1,80,000

Total cost of operations 1,39,41,043 1,41,36,495 1,45,20,039 1,49,35,103 1,54,00,247

% of Gross Reciepts 68% 67% 66% 66% 65%

EBITDA 65,51,083 70,68,237 74,32,928 78,03,513 81,63,300

Variable management fee - - - - -
EBITDA - Variable management fee 65,51,083 70,68,237 74,32,928 78,03,513 81,63,300
Interest Cost 28,15,776 20,29,646 11,81,458 2,89,506 -
Depreciation 24,00,000 24,00,000 24,00,000 24,00,000 24,00,000
PBT 13,35,307 26,38,591 38,51,471 51,14,007 57,63,300
EBITDA Margin (%) 32% 33% 34% 34% 35%
Average EBITDA 74,03,812
Project Cost 2,34,64,800
Projected Payback Period (Years) 3.17
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