RETURN ON INVESTMENT

FOR FRANCHISEE

ACADEMIC SESSION
2014-15
 RETURN ON INVESTMENT (FRANCHISEE) FOR GRADE A CITIES

I. Operational Aspects
Our Requirement
(a) 3000 to 3500 sq. ft of space/infrastructure.
(b) On prime location / easily accessible and approved commercial space.
(c) Basic amenities like toilets (separate for boys & girls), parking facility, pantry etc.
(d) Professional with clear track record of business.
(e) Sound financial background.
Our Support
(a) Brand name to use.
(b) National advertisement in leading newspaper.
(c) Study material, test series, etc.
(d) Prospectus, brochure, campaign (once a year – chargeable).
(e) Faculty & Admin Staff training and technical / academic assistance.

A. Total Investment – FOR A GRADE CITIES

1. License Fees (One Time) : Rs. 50 lacs
2. Infrastructure / Interior (One Time) : Rs. 15 lacs
3. Local Advertisement : Rs. 10 lacs
Total Expenses : Rs. 75 lacs

B. Variable Expenses (Franchisee)

S.NO HEADS PER YEAR (IN RS) PER MONTH (IN RS)
1 Counsellor 1,20,000.00 10,000.00
2 Center Head 2,40,000.00 20,000.00
3 Marketing Executives (2) 3,60,000.00 30,000.00
4 Peon / Attendant 72,000.00 6,000.00
5 Faculty (PCMB) 38,40,000.00 3,20,000.00
6 Rent (Infrastructure) 12,00,000.00 1,00,000.00
7 Light (Electricity) 1,80,000.00 15,000.00
8 Telephone + Internet 36,000.00 3,000.00
9 Power Backup (Generator) 60,000.00 5,000.00
10 Miscellaneous Expenses 60,000.00 5,000.00
TOTAL VARIABLE EXPENSES = 61,68,000.00 5,14,000.00

Total Investment + Variable Expenses = Rs. 1,36,68,000/-

*Service Tax as applicable will be charged

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II. Return on Investment & Profit (For the First Year)

On Average Growth of Center

COURSE NO. OF STUDENTS AVG. FEES (IN RS) REVENUE (IN RS)

Four Year Foundation (For Class IX Studying) 30 25,000.00 7,50,000.00

Three Year Foundation (For Class X Studying) 30 25,000.00 7,50,000.00

Two Year IIT-JEE (For Class XI Studying) 35 80,000.00 28,00,000.00

One Year IIT-JEE (For Class XII Studying) 35 80,000.00 28,00,000.00

One Year IIT-JEE (For Class XII Pass) 30 70,000.00 21,00,000.00

Two Year AIEEE (For Class XI Studying) 30 45,000.00 13,50,000.00

One Year AIEEE (For Class XII Studying) 30 45,000.00 13,50,000.00

One Year AIEEE (For Class XII Pass) 30 40,000.00 12,00,000.00

Two Year Medical (For Class XI Studying) 35 55,000.00 19,25,000.00

One Year Medical (For Class XII Studying) 35 55,000.00 19,25,000.00

One Year Medical (For Class XII Pass) 30 50,000.00 15,00,000.00

45 Days Crash Course For AIEEE/PMT 60 20,000.00 12,00,000.00

TOTAL REVENUE = 1,96,50,000.00

ROYALTY @ 20 % = 39,30,000.00

TOTAL INCOME = 1,57,20,000.00

Total Profit (Total Income - Expenses) = Rs. 1,57,20,000.00 - Rs. 1,36,68,000.00 = Rs. 20,52,000.00
*Service Tax as applicable will be charged

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On Medium Growth of Center (For the first year)

COURSE NO. OF STUDENTS AVG. FEES (IN RS) REVENUE (IN RS)
25,000.00
Four Year Foundation (For Class IX Studying) 40 10,00,000.00
25,000.00
Three Year Foundation (For Class X Studying) 40 10,00,000.00
80,000.00
Two Year IIT-JEE (For Class XI Studying) 40 32,00,000.00
80,000.00
One Year IIT-JEE (For Class XII Studying) 40 32,00,000.00
70,000.00
One Year IIT-JEE (For Class XII Pass) 40 28,00,000.00
45,000.00
Two Year AIEEE (For Class XI Studying) 35 15,75,000.00
45,000.00
One Year AIEEE (For Class XII Studying) 35 15,75,000.00
40,000.00
One Year AIEEE (For Class XII Pass) 35 14,00,000.00
55,000.00
Two Year Medical (For Class XI Studying) 40 22,00,000.00
55,000.00
One Year Medical (For Class XII Studying) 40 22,00,000.00
50,000.00
One Year Medical (For Class XII Pass) 35 17,50,000.00
20,000.00
45 Days Crash Course For AIEEE/PMT 100 20,00,000.00

TOTAL REVENUE = 2,39,00,000.00

ROYALTY @ 20 % = 47,80,000.00

TOTAL INCOME = 1,91,20,000.00

Total Profit (Total Income - Expenses) = Rs. 1,91,20,000.00 - Rs. 1,36,68,000.00 = Rs. 54,52,000.00

*Service Tax as applicable will be charged

Corporate Office: 46, Rajiv Gandhi Nagar, Kota (Raj.), www.eduwave.in Page 4
On Good Growth of Center

COURSE NO. OF STUDENTS AVG. FEES (IN RS) REVENUE (IN RS)
25,000.00
Four Year Foundation (For Class IX Studying) 45 11,25,000.00
25,000.00
Three Year Foundation (For Class X Studying) 45 11,25,000.00
80,000.00
Two Year IIT-JEE (For Class XI Studying) 50 40,00,000.00
80,000.00
One Year IIT-JEE (For Class XII Studying) 50 40,00,000.00
70,000.00
One Year IIT-JEE (For Class XII Pass) 50 35,00,000.00
45,000.00
Two Year AIEEE (For Class XI Studying) 40 18,00,000.00
45,000.00
One Year AIEEE (For Class XII Studying) 40 18,00,000.00
40,000.00
One Year AIEEE (For Class XII Pass) 40 16,00,000.00
55,000.00
Two Year Medical (For Class XI Studying) 50 27,50,000.00
55,000.00
One Year Medical (For Class XII Studying) 50 27,50,000.00
50,000.00
One Year Medical (For Class XII Pass) 40 20,00,000.00
20,000.00
45 Days Crash Course For AIEEE/PMT 150 3,00,00,000.00

TOTAL REVENUE = 5,94,50,000.00

ROYALTY @ 20 % = 1,18,90,000.00

TOTAL INCOME = 4,75,60,000.00

Total Profit (Total Income - Expenses) = Rs. 4,75,60,000.00 - Rs. 1,36,68,000.00 = Rs. 3,38,92,000.00

*Service Tax as applicable will be charged

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II. Return on Investment & Profit (For the Second Year)

A. Total Investment – FOR A GRADE CITIES (For Second Year)

1. Local Advertisement : Rs. 10 lacs
Total Investment : Rs. 10 lacs

B. Variable Expenses (Franchisee) (For the Second Year)

S.NO HEADS PER YEAR (IN RS) PER MONTH (IN RS)

1 Counsellor 1,80,000.00 15,000.00

2 Center Head 3,00,000.00 25,000.00

3 Marketing Executives (2) 4,20,000.00 35,000.00

4 Peon / Attendant 84,000.00 7,000.00

5 Faculty (PCMB) 43,20,000.00 3,60,000.00

6 Rent (Infrastructure) 13,80,000.00 1,15,000.00

7 Light (Electricity) 1,80,000.00 15,000.00

8 Telephone + Internet 36,000.00 3,000.00

9 Power Backup (Generator) 60,000.00 5,000.00

10 Miscellaneous Expenses 60,000.00 5,000.00

TOTAL VARIABLE EXPENSES = 70,20,000 5,85,000.00

Total Investment + Variable Expenses = Rs. 80,20,000/-

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On Average Growth of Center (For the Second Year)

COURSE NO. OF STUDENTS AVG. FEES (IN RS) REVENUE (IN RS)
25000.00
Four Year Foundation (For Class IX Studying) 30 7,50,000.00
25000.00
Three Year Foundation (For Class X Studying) 30 7,50,000.00
80000.00
Two Year IIT-JEE (For Class XI Studying) 35 28,00,000.00
80000.00
One Year IIT-JEE (For Class XII Studying) 35 28,00,000.00
70000.00
One Year IIT-JEE (For Class XII Pass) 30 21,00,000.00
45000.00
Two Year AIEEE (For Class XI Studying) 30 13,50,000.00
45000.00
One Year AIEEE (For Class XII Studying) 30 13,50,000.00
40000.00
One Year AIEEE (For Class XII Pass) 30 12,00,000.00
55000.00
Two Year Medical (For Class XI Studying) 35 19,25,000.00
55000.00
One Year Medical (For Class XII Studying) 35 19,25,000.00
50000.00
One Year Medical (For Class XII Pass) 30 15,00,000.00
20000.00
45 Days Crash Course For AIEEE/PMT 60 12,00,000.00

TOTAL REVENUE = 1,96,50,000.00

ROYALTY @ 20 % = 39,30,000.00

TOTAL INCOME = 1,57,20,000.00

Total Profit (Total Income - Expenses) = Rs. 1,57,20,000.00 - Rs. 80,20,000.00 = Rs. 77,00,000.00
*Service Tax as applicable will be charged

Corporate Office: 46, Rajiv Gandhi Nagar, Kota (Raj.), www.eduwave.in Page 7
On Medium Growth of Center (For the Second Year)

COURSE NO. OF STUDENTS AVG. FEES (IN RS) REVENUE (IN RS)
25000.00
Four Year Foundation (For Class IX Studying) 40 10,00,000.00
25000.00
Three Year Foundation (For Class X Studying) 40 10,00,000.00
80000.00
Two Year IIT-JEE (For Class XI Studying) 40 32,00,000.00
80000.00
One Year IIT-JEE (For Class XII Studying) 40 32,00,000.00
70000.00
One Year IIT-JEE (For Class XII Pass) 40 28,00,000.00
45000.00
Two Year AIEEE (For Class XI Studying) 35 15,75,000.00
45000.00
One Year AIEEE (For Class XII Studying) 35 15,75,000.00
40000.00
One Year AIEEE (For Class XII Pass) 35 12,00,000.00
55000.00
Two Year Medical (For Class XI Studying) 40 22,00,000.00
55000.00
One Year Medical (For Class XII Studying) 40 22,00,000.00
50000.00
One Year Medical (For Class XII Pass) 35 17,50,000.00
20000.00
45 Days Crash Course For AIEEE/PMT 100 20,00,000.00

TOTAL REVENUE = 2,37,00,000.00

ROYALTY @ 20 % = 47,40,000.00

TOTAL INCOME = 1,89,60,000.00

Total Profit (Total Income - Expenses) = Rs. 1,89,60,000.00 - Rs. 80,20,000.00 = Rs. 1,09,40,000.00

*Service Tax as applicable will be charged

Corporate Office: 46, Rajiv Gandhi Nagar, Kota (Raj.), www.eduwave.in Page 8
On Good Growth of Center (For the Second Year)

COURSE NO. OF STUDENTS AVG. FEES (IN RS) REVENUE (IN RS)
25000.00
Four Year Foundation (For Class IX Studying) 45 11,25,000.00
25000.00
Three Year Foundation (For Class X Studying) 45 11,25,000.00
80000.00
Two Year IIT-JEE (For Class XI Studying) 50 40,00,000.00
80000.00
One Year IIT-JEE (For Class XII Studying) 50 40,00,000.00
70000.00
One Year IIT-JEE (For Class XII Pass) 50 35,00,000.00
45000.00
Two Year AIEEE (For Class XI Studying) 40 18,00,000.00
45000.00
One Year AIEEE (For Class XII Studying) 40 18,00,000.00
40000.00
One Year AIEEE (For Class XII Pass) 40 16,00,000.00
55000.00
Two Year Medical (For Class XI Studying) 50 27,50,000.00
55000.00
One Year Medical (For Class XII Studying) 50 27,50,000.00
50000.00
One Year Medical (For Class XII Pass) 40 20,00,000.00
20000.00
45 Days Crash Course For AIEEE/PMT 150 30,00,000.00

TOTAL REVENUE = 2,94,50,000.00

ROYALTY @ 20 % = 58,90,000.00

TOTAL INCOME = 2,35,60,000.00

Total Profit (Total Income - Expenses) = Rs. 2,35,60,000.00 - Rs. 80,20,000.00 = Rs. 1,55,40,000.00

*Service Tax as applicable will be charged

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II. Return on Investment & Profit (For the Third Year)

A. Total Investment – FOR A GRADE CITIES (For Third Year)

1. Local Advertisement : Rs. 12 lacs
Total Investment : Rs. 12 lacs

B. Variable Expenses (Franchisee) (For the Third Year)

S.NO HEADS PER YEAR (IN RS) PER MONTH (IN RS)

1 Counsellor 2,16,000.00 18,000.00

2 Center Head 3,60,000.00 30,000.00

3 Marketing Executives (2) 4,56,000.00 38,000.00

4 Peon / Attendant 96,000.00 8,000.00

5 Faculty (PCMB) 48,00,000.00 4,00,000.00

6 Rent (Infrastructure) 15,18,000.00 1,26,500.00

7 Light (Electricity) 1,80,000.00 15,000.00

8 Telephone + Internet 36,000.00 3,000.00

9 Power Backup (Generator) 60,000.00 5,000.00

10 Miscellaneous Expenses 60,000.00 5,000.00

TOTAL VARIABLE EXPENSES = 77,82,000 6,48,500.00

Total Investment + Variable Expenses = Rs. 89,82,000/-

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On Average Growth of Center (For the Third Year)

COURSE NO. OF STUDENTS AVG. FEES (IN RS) REVENUE (IN RS)
25000.00
Four Year Foundation (For Class IX Studying) 30 7,50,000.00
25000.00
Three Year Foundation (For Class X Studying) 30 7,50,000.00
80000.00
Two Year IIT-JEE (For Class XI Studying) 35 28,00,000.00
80000.00
One Year IIT-JEE (For Class XII Studying) 35 28,00,000.00
70000.00
One Year IIT-JEE (For Class XII Pass) 30 21,00,000.00
45000.00
Two Year AIEEE (For Class XI Studying) 30 13,50,000.00
45000.00
One Year AIEEE (For Class XII Studying) 30 13,50,000.00
40000.00
One Year AIEEE (For Class XII Pass) 30 12,00,000.00
55000.00
Two Year Medical (For Class XI Studying) 35 19,25,000.00
55000.00
One Year Medical (For Class XII Studying) 35 19,25,000.00
50000.00
One Year Medical (For Class XII Pass) 30 15,00,000.00
20000.00
45 Days Crash Course For AIEEE/PMT 60 12,00,000.00

TOTAL REVENUE = 1,96,50,000.00

ROYALTY @ 20 % = 39,30,000.00

TOTAL INCOME = 1,57,20,000.00

Total Profit (Total Income - Expenses) = Rs. 1,57,20,000.00 - Rs. 89,82,000.00 = Rs. 67,38,000.00
* Every third year the fees is incremented by 10%.
*Service Tax as applicable will be charged

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On Medium Growth of Center (For the Third Year)

NO. OF AVG. FEES (IN REVENUE (IN

COURSE STUDENTS RS) RS)
Four Year Foundation (For Class IX
40 25000 1000000
Studying)
Three Year Foundation (For Class X
40 25000 1000000
Studying)

Two Year IIT-JEE (For Class XI Studying) 40 80000 3200000

One Year IIT-JEE (For Class XII Studying) 40 80000 3200000

One Year IIT-JEE (For Class XII Pass) 40 70000 2800000

Two Year AIEEE (For Class XI Studying) 35 45000 1575000

One Year AIEEE (For Class XII Studying) 35 45000 1575000

One Year AIEEE (For Class XII Pass) 35 40000 1400000

Two Year Medical (For Class XI Studying) 40 55000 2200000

One Year Medical (For Class XII Studying) 40 55000 2200000

One Year Medical (For Class XII Pass) 35 50000 1750000

45 Days Crash Course For AIEEE/PMT 100 20000 2000000

TOTAL REVENUE = 23900000

ROYALTY @ 20 % = 4780000

TOTAL INCOME = 19120000

Total Profit (Total Income - Expenses) = Rs. 1,91,20,000.00 - Rs. 89,82,000 = Rs. 1,01,38,000.00

*Service Tax as applicable will be charged

On Good Growth of Center (For the Third Year)

COURSE NO. OF AVG. FEES (IN REVENUE (IN

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 STUDENTS RS) RS)
Four Year Foundation (For Class IX
45 25000 1125000
Studying)
Three Year Foundation (For Class X
45 25000 1125000
Studying)
Two Year IIT-JEE (For Class XI Studying) 50 80000 4000000

One Year IIT-JEE (For Class XII Studying) 50 80000 4000000

One Year IIT-JEE (For Class XII Pass) 50 70000 3500000

Two Year AIEEE (For Class XI Studying) 40 45000 1800000

One Year AIEEE (For Class XII Studying) 40 45000 1800000

One Year AIEEE (For Class XII Pass) 40 40000 1600000

Two Year Medical (For Class XI Studying) 50 55000 2750000

One Year Medical (For Class XII Studying) 50 55000 2750000

One Year Medical (For Class XII Pass) 40 50000 2000000

45 Days Crash Course For AIEEE/PMT 150 20000 3000000

TOTAL REVENUE = 29450000

ROYALTY @ 20 % = 5890000

TOTAL INCOME = 23560000

Total Profit (Total Income - Expenses) = Rs. 2,35,60,000.00 - Rs. 80,20,000.00 = Rs. 1,55,40,000.00

*Service Tax as applicable will be charged

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