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initial Investment for a New 35,000 square foot Gold's Gym Facility mm TOTAL ESTIMATED INITIAL INVESTMENT (excluding real estate purchase $5,000,500

Based on the information given please give financial conclusions for the referenced information below.x1.jpegx2.jpegx3.jpegx4.jpegx5.jpegx6.jpeg

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initial Investment for a New 35,000 square foot Gold’s Gym Facility —mm TOTAL ESTIMATED INITIAL INVESTMENT (excluding real estate purchase $5,000,500
costs and assuming no pool)

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Other Fees Royalty Greater of 5% of Facility's Gross Revenue each month or $2,000 per month. Marketing Greater of 2% of Facility’s Gross Revenue per month or $1,000 per month
Contribution Cooperative Amount that the Cooperative determines, up to 3% of Gross Revenue.
Contributions Marketing Difference between Marketing Spending Requirement and amount the franchisee
Spending spent. Requirement Shortfall Studio Gold'sFit and Gold’sCycle: currently $500 per trainee (if training occurs at Gold's
Program Academy; if field-based training $2,500 plus instructor travel expenses). Gold’sBurn:
Training Fee currently $200 per trainee (in addition to $500 per trainee fee charged for Gold’sFit} (if training occurs at Gold’s Academy; for field-based training $1,000 plus instructor
travel expenses in addition to $2,500 fee charged for Gold's Fit). Relocation Actual out—of—pocket costs and expenses incurred by Gold’s Gym in inspecting the
Expenses proposed new site. Convention Currently under $500, but could increase if the franchisor’s costs increase Registration
Fees Fee for Currently $500 per person per session, but could increase if the franchisor's costs
Ongoing increase
Training $2,500 for non-control transfer and $10,000 for control transfers. Successor 50% of initial franchise fee then charged for new Gold's Gym Facility franchises
Franchise Fee (currently would be $20,000)

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Management 3% of Gross Revenue, plus direct out—of—pocket costs and expenses.
Fee Costs and Will vary under circumstances.
Attorneys' Fees Indemnification Will vary under circumstances. Administrative $100 administrative fee and interest at 1.5% per month or highest interest rate the law
Fee and allows, whichever is less.
Interest Follow-up Approximately $300 to $500 per evaluation, but could increase if franchisor's costs
Inspection Fee increase. Supplier Approximately $500 to $5,000
Testing Fees Insurance Premiums plus the franchisor’s costs and expenses.
Costs Audit Expenses Cost of audit. Liquidated If the Franchise Agreement terminates for any reason other than the franchisee's
Damages Upon termination for the franchisor’s uncured breach, then in addition to other amounts the
Royalty franchisee owes the franchisor, the franchisee must pay the franchisor the defined
Franchise “Termination Damages.” Agreement Termination

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“*Based on the data above*** Total Startup Cash Needed (to Make First Sale) ——
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—— Salary and wages

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Payroll taxes
Travel Signs Tools and supplies Starting inventory Cash (working capital)
Other expense 1 Other expense 2 Total Startup Cash Needed =

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Comparison of the Financial Performance of Proposed Venture to Similar Firms Use the following tables to compare the proposed new venture to similar firms in regard to annual 5
(Year 1 and Year 2) and profitability (Year 1 and Year 2). Comparison of the Financial Performance of Proposed Venture to Similar Firms Assessment Tool Annual Sales Estimate of Proposed Venture’s Explanation of How the Estimate Annual Sales—Year 1 Was Computed Estimate of Year 1 Sales Summary: How proposed annual sales, on average,
compares to similar firms (circle one) Below Average Average Above Average Estimate of Year 2 Sales Summary: How proposed annual sales, on average,
compares to similar firms (circle one) Below Average Average Above Average Net Income Estimate of Proposed Venture’s Explanation of How the Estimate Net Income—Year 1 was Computed Estimate of Year 1 Net Income Summary: How proposed net income, on average,
compares to similar firms (circle one) Below Average Average Above Average Estimate of Year 2 Net Income Summary: How proposed net income, on average,
compares to similar firms (circle one) Below Average Average Above Average

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