Spreadsheet: 270610d1381545009-circular-reference-help-sola-salon-ml-model
Sheet: ML Assumptions

 |  |  | Assumptions
 | Build-out Potential
 | Store Activity | 1st | 2nd | 3rd | 4th | 5th | 6th | 7th | 8th | 9th | 10th | Total |  |  | Royalty Payment from Stores to HQS
 | New Franchises Sales | 7 | 14 | 14 | 12 | 7 | 3 | 2 | 2 | 2 | 2 |  |  | Stores Age | SSTR | 0.06
 | Transfers | 0 | 0 | 0 | 2 | 2 | 1 | 1 | 1 | 1 | 1 |  |  | 1
 | Corporate Stores | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |  |  | 2
 |  |  |  |  |  |  |  |  |  |  |  |  |  | 3
 |  |  |  |  |  |  |  |  |  |  |  |  |  | 4
 | New Franchise Age of Stores | 1st | 2nd | 3rd | 4th | 5th | 6th | 7th | 8th | 9th | 10th | Total |  | 5
 | Year 1 |  |  |  |  |  |  |  |  |  |  |  |  | 6
 | Year 2 |  |  |  |  |  |  |  |  |  |  |  |  | 7
 | Year 3 |  |  |  |  |  |  |  |  |  |  |  |  | 8
 | Year 4 |  |  |  |  |  |  |  |  |  |  |  |  | 9
 | Year 5 |  |  |  |  |  |  |  |  |  |  |  |  | 10
 | Year 6
 | Year 7
 | Year 8 |  |  |  |  |  |  |  |  |  |  |  |  | ML Revenues
 | Year 9 |  |  |  |  |  |  |  |  |  |  |  |  | New Store Franchise Fee | 35000
 | Year 10 |  |  |  |  |  |  |  |  |  |  |  |  | Transfer Fee | 25000
 | Total Stores |  |  |  |  |  |  |  |  |  |  |  |  | Construction Management Fee | 0
 |  |  |  |  |  |  |  |  |  |  |  |  |  | Training Fee | 0
 | New Franchises Royalty by Age of Center |  |  |  |  |  |  |  |  |  |  |  |  | Design Fee | 0
 | Age of Stores | 1st | 2nd | 3rd | 4th | 5th | 6th | 7th | 8th | 9th | 10th | Total |  | Advertising Royalties paid to ML | 0.02
 | Year 1
 | Year 2 |  |  |  |  |  |  |  |  |  |  |  |  | ML Payments to US
 | Year 3 |  |  |  |  |  |  |  |  |  |  |  |  | Franchise Fee for Store sales due to [NAME] | 0.1
 | Year 4 |  |  |  |  |  |  |  |  |  |  |  |  | Royalty payment from ML to [NAME] | 0.01
 | Year 5
 | Year 6 |  |  |  |  |  |  |  |  |  |  |  |  | ML Fee Percentage
 | Year 7 |  |  |  |  |  |  |  |  |  |  |  |  | ML Net Revenues Generated |  | ML Fee Add Back |  | Actual ML Fee %
 | Year 8 |  |  |  |  |  |  |  |  |  |  |  |  | ML Fee Percentage | 0.05 | What [NAME] should be
 | Year 9 |  |  |  |  |  |  |  |  |  |  |  |  | ML Franchise Fee |  | Difference
 | Year 10
 | Royalties Collected |  |  |  |  |  |  |  |  |  |  | Sum |  | ML Franchise Fee Payment Plan | % | ML Fee | Note Term | Int. Rate
 |  |  |  |  |  |  |  |  |  |  |  |  |  | ML License note (debt) portion | 0.6 |  | 48 | 0.05
 |  |  |  |  |  |  |  |  |  |  |  |  |  | ML License cash (equity) portion | 0.4
 | Corporate Stores Age | 1st | 2nd | 3rd | 4th | 5th | 6th | 7th | 8th | 9th | 10th | Total |  | Note Payment per month
 | Year 1 |  |  |  |  |  |  |  |  |  |  |  |  | Note Payment per Year
 | Year 2
 | Year 3
 | Year 4
 | Year 5
 | Year 6
 | Year 7
 | Year 8
 | Year 9
 | Year 10
 | Total Stores
 | Corporate Store Revenue by Age of Center
 | Age of Stores | 1st | 2nd | 3rd | 4th | 5th | 6th | 7th | 8th | 9th | 10th | Total
 | Year 1
 | Year 2
 | Year 3
 | Year 4
 | Year 5
 | Year 6
 | Year 7
 | Year 8
 | Year 9
 | Year 10
 | Royalties Collected
 | Interest Expense | 1st | 2nd | 3rd | 4th | 5th | 6th | 7th | 8th | 9th | 10th
 | Corporate Store Interest Expense
 | Age of Stores | 1st | 2nd | 3rd | 4th | 5th | 6th | 7th | 8th | 9th | 10th
 | Year 1
 | Year 2
 | Year 3
 | Year 4
 | Year 5
 | Year 6
 | Year 7
 | Year 8
 | Year 9
 | Year 10
 | Interest Expense
 |  | 1st | 2nd | 3rd | 4th | 5th | 6th | 7th | 7th | 7th | 7th
 | Inflation rate per year | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03
 | Total
 | HQS Personnel | 1st | 2nd | 3rd | 4th | 5th | 6th | 7th | 7th | 7th | 7th
 | HQS MD | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1
 | Director of Ops | 0.5 | 0.5 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1
 | Director of Sales | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1
 | [NAME] staff | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1
 | Training Manager | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1
 | Operational Support | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1
 | Finance Manager | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1
 | Total
 | Company Centers Personnel
 |  | 1st | 2nd | 3rd | 4th | 5th | 6th | 7th | 7th | 7th | 7th
 | Store Manager/Director Corporate stores | 0.5 | 0.5 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1