1. business and industrial

MICRO-FRANCHISE PROGRAM
Dear Prospective Franchisee,
I would like to thank you for
your interest in owning a
unique franchise and an
extraordinary lifestyle with
your fleet of boats and jetskis
for just $6,000. Kenny Tham
Founder & Director
A micro-franchise is a simple business you could
participate at only a fraction of cost, let it run by
itself while still maintaining your job or other
obligations.
Our concept is simple; we want to bring the fun of
the boating lifestyle to people who don’t want to
deal with the high cost and hassles of owning and
maintaining a boat. We want to make a traditionally
lifestyle for the wealthy affordable to most people
in Singapore. We want to make boating an Income
Generating Hobby. We want you to be part of a
growing industry, lifestyle and culture.
Owning a boating micro-franchise opens up the
possibility to experience a lifestyle most people
would envy while generating a decent income. With
a 100% Capital Back Incentive, your downside risk
is very much protected.
When you are the owner of a micro-franchise, you
will be centered around entertaining, boating and the water. If you enjoy the sea, the
company of fun, friends and family, you know just how gratifying that lifestyle can be.
So I invite you to take a moment to review this package and find out for yourself how
the Planet Ocean Micro-Franchise may be a unique opportunity for you.
Thank you and cheers : )
MICRO-FRANCHISE PROGRAM
CAPITAL REQUIREMENT:
OPERATING COST:
TERM OF PROGRAM:
DURATION:
RENEWABILITY:
S$6,000 ONE-TIME INVESTMENT
NIL
24 MONTHS
JAN 2016 - DEC 2017
$100 A MONTH AFTER 24TH MONTH
WHAT IS A MICRO-FRANCHISE?
A micro-franchise is a business concept that an individual can start and operate on the
side while simultaneously having another job or obligation. It is a scaled down version of a standard franchise or BUSINESS IN A BOX, that is
affordable, hassle free, easy to start and protected financially to a large extend.
For Planet Ocean Micro-Franchise, we are able to structured a boats and jetski rental
franchise to be operational free i.e. franchisee need not involve in daily operations. HOW IS IT STRUCTURED?
1. ONE-TIME FRANCHISE FEE: S$6,000 Micro-Franchise fee includes all boating,
jetskiing, seamanship and marketing training. 2. NO RUNNING COST : There will be no operating and running cost involve for the
franchisee's for the first 24 months. Only $100 a month maintenance fee after the 24th
months.
3. 20% REVENUE SHARE: All franchisees are entitled to 20% share of revenue
including Membership Fees as well as Recurring Rental Income. Projections in
APPENDIX B.
4. CAPITAL BACK INCENTIVE: A incentive is put in place to help franchisee recover
their initial capital layout within the first 6 - 12 months. Details are illustrated in
APPENDIX A. APPENDIX A: CAPITAL BACK INCENTIVE
$600 CAPITAL BACK INCENTIVE: On top of 20% share of revenue from new
membership fee, $600 were paid back to the franchisee for every unit of new
membership sale. Limited to First 5 Units of Sales.
HOW DOES CAPITAL BACK INCENTIVE WORKS?
A simple illustration is this: Imagine you purchase a Cafe Franchise for $200,000. The franchisor provides that if you
made a $100,000 profit within the first year, they will pay you $100,000 to cover your
initial capital for the franchise fee. In reality, no franchise have such a term.
But this is the advantage to our franchisees. Low capital outlay with Capital Back
Incentive. When our franchisees made a profit of $3,000. We will pay $3,000.
Bellow is an illustration of the Sales Scenario for the first 5 members into the club.
Micro-Franchisee
New Membership Sales
20%
Commission
Capital Back
Incentive
Total
Receivables
1st New Member
$640
$600
$1,240
2nd New Member
$640
$600
$1,240
3rd New Member
$640
$600
$1,240
4th New Member
$640
$600
$1,240
5th New Member
$640
$600
$1,240
Total Receviables
3,200
3,000
6,200
APPENDIX B: RECURRING INCOME PROJECTION
20% ON RECURRING RENTAL INCOME: Franchisees are entitled to 20% commission
from rental income. Automatically accounted for via the booking system.
Micro-Franchisee
Assumptions:
1. Projection just based on 5 members
2. 20% Rental Revenue Sharing
3. Each member use once every 2 months
4. Some will rent a boat & some will rent a jetski
5. Median rental per session $360 [ ($240+$480) / 2 ]
Recurring Income From Members Usage
Amount
Median Rental Rates
$360
Franchisee 20% Revenue Share
$72
No Of Members
5
Members Usage A Year
6
Projected Rental Revenue A Year
$2,160
MEMBERS BRING MEMBERS APPROACH
MEMBERS BRING MEMBERS (MBM): Like any recreational clubs, members bring
members naturally. On average, a member will recommend 2 new members into the a
club. Franchisees will be trained how to successfully encourage the MBM process. Bellow is an illustration of the MBM process helps franchisees grow their members base.
Micro-Franchisee
Assumptions:
1. A member only refer 2
members into the club
2. There is no limit to the
number of members a
franchisee can
manage but here we
only stop at 14.
3. The same recurring
income assumption
applies.
Revenue From New Membership
Amount
20% of 14 New Members (20% x $3,200 x 14)
$8,960
Add Capital Back Incentive
$3,000
Total From New Membership Fees
$11,960
Recurring Income From Members Usage
Projected
Median Rental Rates
$360
Franchisee 20% Revenue Share
$72
No Of Members
14
Members Usage A Year
6
Projected Rental Revenue A Year
$6,048
Total Projected Income
$15,008
FREQUENTLY ASKED QUESTIONS
AS A MICRO-FRANCHISEE, DO I ENJOY FREE USE OF WATER CRAFTS?
Franchisees have unlimited access to all water crafts under the club management.
However, the usage of the water crafts are not free. It is a pay per use program. You will
still be entitled to 20% rebates on your own usage. WHAT WILL HAPPEN TO THE FRANCHISEES AFTER 24 MONTHS?
Franchisees may continue the program with a monthly maintenance fee of only $100. By
then, the business would be in auto-pilot mode and self generating passive income for
the franchisee. WILL THERE BE ANY LIMIT TO THE NUMBER OF MEMBERS UNDER MY GROUP?
There is a limit of 30 members under a group. This is to maintain the number of
members tagged to a fleet to avoid over subscription. However, we might increase the
allocation over time because there is more than enough capacity as fleet size increases. WHAT IS MY DOWN SIDE RISK?
Your downside risk is limited to your initial capital if you are unable to make it in this
franchise. It is almost impossible to be unsuccessful if you were to follow the sales
process we have imparted to you. However, if in any case that your franchise doesn’t
work, you are enjoying a boating lifestyle at a 20% rebates. FOR THE MICRO-FRANCHISE PROGRAM, ARE WE ALSO A CLUB MARINE
MEMBER FOR THE NEXT 2 YEARS?
Yes, as a franchisee, you are also a Club Marine Member for the next 2 years. No extra
fees needed. If you decide not to continue as a franchisee after 2 years, all you have to
pay is $195 to renew your Club Marine Membership on the 3rd year and continue to
enjoy the membership. The renewal of $195 comes with $100 booking credits.
CLUB MARINE MEMBERSHIP IS A ONE-TIME FEE OF $3,200?
Yes. It is only a one-time payment of $3,200. A new member may choose 12 easy
payment of $282.80 using DBS or POSB credit cards. This include a 5% admin fee to
this facility. The 2nd year renewal is only $195 and it comes with $100 booking credits.
DOES THE MEMBERSHIP INCLUDE THE BOATING LICENSE COURSE AND TEST?
It does not include the boating license or the Powered Pleasure Craft Driving License
(PPCDL) package. The reason to exclude is because some of the new members have
already obtained their PPCDL. Check out Appendix C for PPCDL package.
DOES THE MICRO-FRANCHISE PROGRAM INCLUDE OF THE PPCDL PACKAGE ?
It does not include the boating license or the Powered Pleasure Craft Driving License
(PPCDL) package. The reason to exclude is because some of the Franchisee have
already obtained their PPCDL. Check out Appendix C for PPCDL package.
WHAT HAPPEN WHEN ONE OF MY MEMBER UPGRADE TO A FRANCHISEE?
You will receive a $800 referral fee to compensate for your loss in rental income upfront.
FREQUENTLY ASKED QUESTIONS
ARE THE WATER CRAFTS FULLY BOOKED ON WEEKENDS?
Generally, new members will book on a weekends for their first session. After that, they
will avoid weekends. The reason is because during the weekends, the southern and
northern islands are packed with chartered boats. Experienced members choose
weekdays bookings so that they can enjoy the whole island for themselves. DON’T THEY NEED TO WORK?
This is a good question. I have asked many of them. They just mention they have their
ways. In any case, it is not difficult to take a half-day off once every 2 months. ARE THE WATER CRAFTS INSURED?
The water crafts are fully insured plus a Third Party damages up to $100,000. The insurance access is $8,000.
HOW ABOUT THE PASSENGER ON BOARD?
Members need to purchase their own personal accidental insurance. The reason is
because there is no insurance that covers all boats and passenger.
HOW DOES CLUB MARINE MARKET YOUR MEMBERSHIP?
We have done road shows in Raffles Place previously and various other marketing
campaigns. We will continue to conduct road shows to market our unique Discover
Boating session. This is a 4 hour experiential learning program where new prospects are
invited to participate. The fees for each session is $100 per
pax. Participants will be making a $320
payment up front. This is 10% of the
membership fees. The reason is to filter those who are
really keen to take up the membership
to join in the session and not for those
who want a cheap ride. 2014 Marketing Campaign. Banners and Road Shows At Change
Alley Raffles Place.
If they decide to join the membership
after the experiential learning session,
they just need to top up the balance
90% of the full membership fee. The
session is free for them. If they feel that boating is not for them after the session, we will refund $220 back to
them.
The next coming road show will be in July 2015 at Novena Square. Subsequent events
will be in Changi City Point, Changi Airport Terminal 3, Parkway Parade, Commercial
Buildings and Business Parks and Banner Ads In City Hall MRT.
Target Audience: Working Executives & Professionals.
APPENDIX C: PPCDL PACKAGE
Lessons at Marina Country Club @ Punggol:
Description
Duration
Vendor
Description
Theory Test Application
NA
Singapore Poly
Generally booking is one
month in advance.
$21.40
Practical Boat Handling
Half Day
METS
Test oriented practical
lesson. Train you to pass the
actual practical test.
$188.00
Maritime Theory Lesson
Full Day
METS
Test oriented theory lesson.
Text book and test questions
included.
Inclusive
Theory Test
1 Hr
Singapore Poly
Computer Based 30 Multiple
Choice Questions based on
PPCDL syllabus.
PAID
Practical Test Registration
NA
Singapore Poly
Register for practical test
after completed theory test.
$53.50
Practical Test Refresher
2 Hrs
METS
Practical refresher to be
conducted one day before
actual test day.
$240.00
Total Package
Price
$502.90
Lessons at Marina @ Sentosa
Description
Duration
Vendor
Description
Theory Test Application
NA
Singapore Poly
Generally booking is one
month in advance.
$21.40
Practical Boat Handling
Half Day
Sentosa
Test oriented practical
lesson. Train you to pass the
actual practical test.
$320.00
Maritime Theory Lesson
Full Day
Sentosa
Test oriented theory lesson.
Text book and test questions
included.
Inclusive
Theory Test
1 Hr
Singapore Poly
Computer Based 30 Multiple
Choice Questions based on
PPCDL syllabus.
PAID
Practical Test Registration
NA
Singapore Poly
Register for practical test
after completed theory test.
$53.50
Practical Test Refresher
2 Hrs
Sentosa
Practical refresher to be
conducted one day before
actual test day.
$220.00
Total Package
Price
$614.90
Lessons at RSYC
Description
Duration
Vendor
Description
Theory Test Application
NA
Singapore Poly
Generally booking is one
month in advance.
$21.40
Practical Boat Handling
2 Days
RSYC
Test oriented practical
lesson. Train you to pass the
actual practical test.
$320.00
Maritime Theory Lesson
2 Days
RSYC
Test oriented theory lesson.
Text book and test questions
included.
Inclusive
Theory Test
1 Hr
Singapore Poly
Computer Based 30 Multiple
Choice Questions based on
PPCDL syllabus.
PAID
Practical Test Registration
NA
Singapore Poly
Register for practical test
after completed theory test.
$53.50
Practical Test Refresher
2 Hrs
RSYC
Practical refresher to be
conducted one day before
actual test day.
$240.00
Total Package
Price
$634.90