I'm trying to revise my calculations of the following for a theoretical Dunkin franchise in South Africa: 

- Forecasted annual sales and revenue and market share

- Expected annual return on investment

- An analysis of the breakeven point for each year

- How you arrived at your suggested price including acceptable profit margins, channels of distribution, and competitors' pricing for similar products

I submitted the following:
"Forecasts

For forecasting efforts, I will be using a statistically mid-range Miami, FL franchise, as the city's annual GDP of around US$300 billion is comparable to that of South Africa (World Economic Forum, 2016). Additionally, I'll be using a non-drive through location, as only 31% of South African households have a car (de Villiers, 2019). 

The franchise owner also owes a one-time franchise fee, which for Miami, FL is US$80,000, as well as yearly continuing franchise fee of 5.9% of gross sales and a continuing advertising fee of 5% of gross sales (Franchise Chatter, 2022). The breakeven analyses in Tables 1-3 account for 1.5% growth each year, which was determined based on the 1.5% percent projected population growth of South Africa as reported by the World Population Review (2023). And the profit for year one is based on the average yearly restaurant sales of a non-drive through franchise in the US south of US$965,916 (Franchise Chatter, 2022)."

From those numbers, I built out Y1 and Y2 best-, average-, and worst-case scenarios in terms of expenditures, average sales, franchise fees, start-up costs, and profit/loss.

 

I received a 0 for the sections and the feedback I received was:

 

Transcribed Image Text:

How are you calculating profitability. Sales minus Cost of goods sold Gross profit minus expenses net income before taxes net income COGS, is about 20% see https://sharpsheets.io/blog/how-profitable-is-a-donut-shop/ Some rubrics weren't covered. Please revise this. How are you calculating profitability. Sales minus Cost of goods sold Gross profit minus expenses net income before taxes net income COGS, is about 20% see https://sharpsheets.io/blog/how-profitable-is-a-donut-shop/ Some rubrics weren't covered. Please revise this.