E2 Business Plan from ImmigrationBusinessPlan.com

JAMES SMITH
FRENCH BAKERY, LLC
For E-2 Visa
Purpose
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Launchpad Ltd.
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This venture was initiated by
James Smith, long
established Cook Chef in the
South of France.
4
French Bakery, LLC

EXECUTIVE SUMMARY
T
his venture was initiated by James Smith, a
long established Cook Chef in the south of
France. Mr. Smith brings together strong business
acumen, operational managerial skills, as well as
outstanding cooking skills to build French Bakery,
LLC. This new venture is a profitable Kosher bakery-centric
concept store mixing the coffee lounge
experience of Starbucks with the vast array of
French bakery products comparable to the ones
offered by Paul, the leading French bakery chain.
The concept was developed further to extensive
market studies in southeast Florida.
French Bakery, LLC (“The Company”) was incorporated
on May 2, 2007 in the County of Palm
Beach in the State of Florida. It is fully owned
by James Smith, who invested $99,130 into the
Company to fund the venture.
On May 11, 2007, the Company signed a five-year
business lease agreement with Investment Limited
(the lessor) to become a permanent tenant in
the 2,000-sq ft retail space located at 1956 NE 5th
Avenue, Unit 3, Boca Raton, FL 33431. The total
amount due at closing was $65,655.50 including
one month’s rent in advance, two months’ worth of
deposit, and key money.
from the former tenant, justifying a key money of
$50,000. Therefore, the Company has acquired a
turn-key operation with all the required permits, allowing
French Bakery, LLC to be operational from
day one without any further investment or construction
work.
The Bakery is in a prime location in an open plaza
at the corner of the Federal Highway, which is the
busiest street in Boca Raton.
The open plaza anchors both a CVS pharmacy
and a Publix supermarket. As such, it is one of the
most popular open plazas in Boca Raton.
The Company’s activity will be substantial. It forecasts
to open a second bakery in year 3 and enhance
its local exposure. French Bakery, LLC’s
headcount will increase from 10 employees in
year 1 to 29 employees in year 5.
The Company business model is based on four
sub-business models revolving around the bakery
unit.
This space was formerly occupied by a bakery
that closed after two years of operations due to
poor quality of the products offered.
In addition to the lease, the Company has acquired
all the equipment, furniture, and machinery
French Bakery, LLC
5

FRENCH BAKERY CONCEPT STORE
F
rench Bakery, LLC concept store is about
bringing Starbucks Coffee’s lounge experience
together with a French bakery offer such
as Paul’s (the leading French bakery chain in
Europe) while observing Kosher dietary laws.
French Bakery, LLC will come across as a fine
French bakery where customers can enjoy a
similar experience to a Starbucks. Comfortable
couches, relaxing music, newspapers, and
bookcases will convey a cozy atmosphere with
a homey feeling. The products will appeal to
all consumers regardless of their observance
of dietary laws since the kosher aspect will not
be prominently displayed. A discrete sign in the
counter area as well as on the door will inform
customers that French Bakery, LLC is a Kosher
institution.
As described in the chart, the initial product mix
will include mainly sandwiches, bread, and pastries.
Salads, soups, and quiches are forecast
to represent 20% of the total sales. This sales
mix will change as the offer will be adapted according
to customers’ taste and suggestions.
Sandwiches 36 %
Bread 20%
Pastries 20%
Soups and salads 10%
Quiches 5%
Other 5%
A wide variety of breads will be offered and used to make an extensive offer of sandwiches. The offer
will include low-carb dietetic bread and sandwiches to cater to health-conscious customers.
Pastries will include croissant, pain au chocolat (chocolate croissant), as well as all sorts of cakes
and pies. A vast array of both French and American specialties will be available.
6
French Bakery, LLC

THE MARKET OPPORTUNITY
French Bakery, LLC is located in Boca Raton, a
dynamic city in southwest Florida, counting a total
population of 74,500 people.
This concept brings together two markets: the kosher
food market and the bread-centric fast food
market.
French Bakery, LLC
7

THE BREAD CENTRIC FAST FOOD MARKET
The emergence of a new type of fast food
bread centric concept
The fast food market has come a long way since
the traditional burger and fries offer. Today, Mc
Donald’s or Burger King is only one of the alternatives
that a consumer can choose from for a
quick meal. Many factors have pushed for this
change, for instance:
• Customers are more health conscious these
days. They know what is and what is not
good for them, and alter their eating habits
in consequence.
• Customers are more demanding in terms of
quality of food and aliments. In this perspective,
they like seeing the food-making process,
which encourages new concepts with
open kitchen and on-site cooking.
• Customers’ taste has become more sophisticated
since they have become well travelled.
Thus, they expect a wider variety of dishes
and specialties. For instance, a crepe, a bruschetta,
a croissant, a baguette, or a fajita
are commonly ordered.
• Customers expect more and more to eat or
be served in an environment that provides an
experience, that has an identity and that tells
a story.
These changes have pushed for a new segment
in the fast food market that addresses the search
for variety, for better taste, for healthier food, and
for a better experience. In the past 15 years, the
US market has seen the emergence of major
bakery-centric fast food chains answering those
criteria.
From its roots in Boston, Au Bon Pain has grown to become one of the leading bakery
café chains. With more than two hundred locations operating in the United States, South
Korea, Taiwan, and Thailand, Au Bon Pain is a leader in many trade channels from urban
office buildings to airports, hospitals and suburbs. The company’s upscale urban cafés offer
French-baked goods like croissants, baguettes, and pastries forming the core of the chain’s
menu, which has expanded over the course of its 20-year history to include sandwiches,
salads, soups, gourmet coffees, and other beverages.
8
French Bakery, LLC

Panera Bread is a leader in the quick-casual restaurant business with more than 1,000 bakery-cafes
in almost 40 states. Its locations, which operate under the Panera and Saint Louis
Bread Company banners, offer made-to-order sandwiches built using a variety of artisan
breads, including Asiago cheese bread, focaccia, and its classic sourdough bread. Its menu
also features soups, salads, and gourmet coffees. In addition, Panera sells its bread, bagels,
and pastries to go. Almost 400 of its locations are company-operated, while the rest are run
by franchisees.
It’s not just about bagels anymore. Increasingly, people are turning to their corner Einstein
Bros for quick, tasty lunches—from innovative salads to hearty soups and creative sandwiches.
The 2,220- to 2,500-square-foot cafés seat 40 people in an atmosphere featuring
sophisticated fixtures and comfy, casual tables and waiting areas. High-quality food is the
standard here, with a diverse menu ranging from gourmet, to-go coffee and specialty coffee
drinks to baked goods, salads, made-to-order sandwiches and decadent desserts. There are
over 300 Einstein Bros locations mostly in the southeast, and many more to come.
Atlanta Bread’s offerings include freshly baked breads, pastries, sandwchies, soups, salads,
and gourmet coffees. The concept is to serve meals quickly in an atmosphere the company
descibes as a “relaxed, no-rush setting that features hardwood floors, a decor highlighted
with warm, inviting colors, and soft classical music playing in the background.” The bakery/
cafe that was originally established in 1993 from an Atlanta suburb of Sandy Springs, Georgia
counts today close to 100 units, mostly located in the south east.
French Bakery, LLC
9

Paul, one of Europe’s most successful restaurant chains counting over 300 units in Europe,
the middle-east and Asia, has entered the US market with its first locations in southeast Florida.
2007 will see another 9 opening in the sunshine state. It offers a French style of meals:
savory, and sweet pastries, a selection of French pancakes, simple dishes, and a selection of
salads, soups and sandwiches, all prepared on the premises. PAUL shops are designed like
old-fashioned bakeries to evoke its traditional aspect. To that effect, the bread is still prepared
and cooked in full view of the customers. The old-fashioned, country-style decoration of the
shops makes the customers travel to the French countryside.
A
poll has been carried out to determine
which decision criteria customers use in
their choice of eating place and what their
respective importance would be. It appeared that
the following four points were the most common
criteria mentioned in their order of importance:
• Constant Quality
• Taste
• Experience
• Price
A strong emphasis has been put on the constancy
of the food quality. It appears that if a regular
customer is disappointed once by the quality of
the food, he will most probably not return to that
location to eat. Specialists agree that to belong
to this industry, one needs to deliver constant
quality on its products since catering is a ruthless
market where customers hardly give a second
chance.
Taste is the second most important factor. Customers
expect to find their beloved classic dishes
while requesting exotic touches from time to
time. The experience that the concept offers is
the third most important decision criteria.
Customers don’t only expect a clean area. They
also want to relax and enjoy the time they will
spend in a unit, even if it is only for take away.
Quite surprisingly, price is only the fourth decision
criteria.
It seems that if they have the other three criteria
satisfied, customers are willing to pay more. Of
course the amount needs to stay within the fast
food price limits.
A large Jewish community
The Jewish population of Boca Raton represents
40% of the total local population. It is catered by
20 kosher businesses (ranging from markets,
delis, to fast food and traditional restaurants), 4
private Jewish schools, and 13 synagogues. As
of today, there is no similar concept to French
Bakery, LLC in the Kosher food segment in Boca
Raton and its vicinities.
An underdeveloped kosher bread centric fast
food market
There is no real direct competition to French
Bakery, LLC mainly because market players are
using bread and baked goods in general as a
cross-selling item. Either there is a problem with
the offer being limited, or there is no real retail
concept, or the quality is simply not there. However,
it appears that everybody is pushing into
the baked good segment, which is a good indicator
of what local people are looking for.
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French Bakery, LLC

THE BOCA RATON KOSHER BREAD CENTRIC
FAST FOOD MARKET
There are only two businesses offering kosher
bakery products in Boca Raton:
• Albertson’s Market
• Salomon Bakery
At Albertson’s, the biggest kosher market in the
city, an in-house bakery offers a limited range of
baked products:
premises are small and there is a clear hygiene
problem to such an extent that regular customers
stopped shopping there.
In terms of bread-centric kosher fast food, again,
there is no direct competitor. Boca Tov Café, which
offers a menu for breakfast and lunch composed
mainly of sandwiches and salads made on the
premises, has a limited offer. In addition, no effort
has been invested in the interior design.
This business provides baked goods not only to its
end customers, but also to many kosher restaurants
and competing markets in the Boca Raton
area since there are only two Kosher bakers. Due
to the increasing demand from its customers, Albertson’s
will soon offer French baguettes.
Salomon Bakery is a much smaller business, providing
a wider range of baked products. Although
it offers a small sitting area, more than 90% of its
business is take away. This is not a direct competitor
to French Bakery, LLC. The quality of the offer,
especially the bread, is in constant decline. The
Challah Bread
$2,99
Danish
$1,29-$1,99
Pita Bread
$4,99 (pack of 6)
Cakes
$24,99 and up
French Bakery, LLC
11

FRENCH BAKERY, LLC COMPANY PRESENTATION
The Corporation
French Bakery, LLC (“the Company”) was incorporated
as a limited-liability company on May 2,
2007 in the County of Palm Beach in the State of
Florida. The CEO and 100% owner of the Company
is James Smith. The capital of the Company
(the sum of common stocks and paid-in surplus)
is US$99,130 as at May 21, 2007. The Federal
Tax ID is 20-8987049.
Street. This intersection counts the highest level
of car traffic in Boca Raton.
The open plaza boasts both a CVS pharmacy and
a Publix supermarket. As such, it represents one
of the most popular open plazas in Boca Raton.
People going to CVS or Publix will be able to go
to French Bakery, LLC to have lunch or breakfast
or simply buy some pastries or bread on their way.
The 5-year leasehold of the first French Bakery,
LLC
On the 11th of May 2007, the Company closed a
business lease agreement with the Lessor Investment
Limited for a total amount of $65,655.50.
This amount includes one month rent in advance,
two months’ deposit, and key money. This lease
makes the Company a permanent tenant of the
2,000-sq ft retail space located at 1956 NE 5th Avenue,
Unit 3, Boca Raton, FL 33431 for a period
of five years.
The former tenant of that unit was a bakery that
decided to close business after two years of operations,
as the management was unable to deliver
sufficient quality.
The Company, through its business lease agreement,
has acquired all the equipment, furniture,
and machinery that belonged to the former tenant.
Such acquisition is part of the $50,000 key
money that the Company agreed to pay upon signature
of the lease. Therefore, the Company has
acquired a turn-key operation with all the required
permits to start the business on day 1 without any
further investment or construction work.
Location, location, location
The Boca Raton unit is located in an open plaza at
the corner of the Federal Highway and 20th
The management
James Smith will manage the Company. He has
already demonstrated a strong ability to execute
similar projects in the past.
As shown on his résumé, James Smith has 14
years of unparalleled experience in the food industry.
He graduated from the Ecole Hoteliere de Lyon,
the second most prestigious French hospitality
school. This school is famous for the achievements
of its alumni in the food industry.
He has set up and operated several restaurants
and catering businesses in the south of France.
Along the way, he has developed an expertise on
maintaining quality while optimizing margin and
building a solid operational team in order to develop
and manage successful food businesses.
Terrace de L’Etoile was the last business operated
by James Smith for a duration of eight years.
This multimillion dollar-sales restaurant in the
heart of Nice, France earned a solid reputation for
the quality of both its products and services. Mr.
Smith doubled the sales of the business while increasing
margin through the introduction of more
profitable products.
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French Bakery, LLC

In 2006, further to a trip to Florida, James Smith
identified an opportunity to start a chain of kosher
bakeries that would provide both a US traditional
offer and a French sophisticated bakery offer. To
take that project to the next level, James Smith
took an intensive training on the most recent bakery
techniques used by the leading French national
bakery chains.
Employees are this business’ greatest asset. Great
care would be taken in recruiting people who love
working with these products and who are always
ready to help. The consistency of the quality depends
on this aspect.
French Bakery, LLC will be open from 7 am to 7
pm from Monday to Thursday. It will close at 4 pm
on Friday. It will open at 8 am and close at 6 pm
on Sunday. Therefore, the bakery will be open 67
hours per week.
James Smith’s responsibilities will be purely managerial.
He will hire a competent team of bakers,
waiters, delivery men, and busboys.
The Company plans to open a second bakery in
year 3. It will hire a manager for the second bakery.
As shown in the table below, the number of
the Company’s employees is forecast to increase
from 10 in year 1 to 29 in year 5. Each bakery will
employ 15 employees after five years of operations.
COMPANY EMPLOYEES
Year 1 Year 2 Year 3 Year 4 Year 5
Managers 1 1 2 2 2
Bakers 3 5 6 11 12
Waiters 4 5 9 10 11
Busboys 1 1 2 2 2
Drivers 1 1 2 2 2
Total # of employees
10 13 24 27 29
French Bakery, LLC
13

Company strategy
The Company decided that the best way to enter
the local market would be to acquire an existing
bakery since this would represent a shortcut, given
the fact that an existing bakery would already have
all the permits to operate the business. Getting
permits can be a stumbling block for foreign entrepreneurs
who are not familiar with US regulations
and don’t know how to build a bakery in accordance
with those regulations.
The Company forecasts a rapid market entry in the
Boca Raton area through both a comprehensive
business model and an aggressive marketing effort.
The Company business model is based on four
sub-business models revolving around the bakery
unit:
1. Sales on premises with both breakfast and
lunch offers;
2. Delivery of products. Boca Raton has a high
concentration of offices. Therefore, the Company
intends to market its products to office
workers through delivery;
3. Supply contracts. The Company will seek to
win contracts to supply its products to hospitals,
schools, restaurants and hotels. This is a
big market. The Company will be able to compete
with a wide variety of products;
4. Catering services. The Company will provide
products for catering events. James Smith has
also a long experience in the catering service.
The Company will therefore be able to offer a
comprehensive catering offer from day 1.
Employees are this business’ greatest asset. Great
care would be taken in recruiting people who love
working with these products and who are always
ready to help. The consistency of the quality depends
on it.
French Bakery, LLC will be open from 7 a.m. to 7
p.m. from Monday to Thursday. It will close at 4 pm
on Friday. It will open at 8 am and close at 6 pm
on Sunday. Therefore, a bakery will be opened 67
hours per week.
French Bakery, LLC plans to put together marketing
material such as postcards, business cards,
brochure, delivery menus, as well as a website.
The Company is also planning to get in touch with
all the synagogues and the Jewish community
centers in Boca Raton and its vicinities to advertise
its products and be listed as a kosher business
in their directories.
On a daily basis, James Smith will contact potential
clients to get supply contracts and catering
contracts. The Company will send baskets with
fresh products to convince potential clients of the
quality of its products.
As mentioned earlier, the Company plans to open
a second bakery in year 3. The location of that second
bakery has not been decided yet. However,
several locations are already being considered:
Fort Lauderdale, Aventura, and Bal Harbour.
This second bakery would reinforce the Company
critical mass to achieve economies of scales.
14
French Bakery, LLC

FRENCH BAKERY, LLC FINANCIAL FORECAST
BOCA RATON UNIT FINANCIAL FORECAST
In the financial forecast, a slow-growth economy
without major recession has been taken into account.
French Bakery, LLC management has prepared a
five-year financial forecast for its operations in the
next five years.
Sale Forecast
As indicated in the table below, sales are forecast
to grow from $600,000 to $1,008,000 over the next
five years at a compound annual growth rate of
%13.8. These sales forecast refer to the Boca Raton
bakery unit only (the first bakery).
French Bakery, LLC sales are derived from four
lines of businesses.
Sales on premises
Sales on the premises are sales made on site.
They are forecast to reach a minimum level of
$450,000 in year 1.
The management forecasts that breakfast sales
and lunch sales represent 15% and 85% of total
sales, respectively, over the forecast period. The
average checks for a breakfast and a lunch are
expected to be $4.50 (for a pastry and a hot drink)
and $10 (for a sandwich and a soft drink).
A forecast sales of $450,000 for year 1 (280 opening
days) would imply 191 customers per day. More
precisely, 54 breakfast customers and 137 lunch
customers. This forecast can be easily achieved
given the high-traffic location of the bakery.
The sales are expected to grow to $700,000 by
year 5 as French Bakery, LLC will reach out to
more customers through a growing customer base
and widespread market awareness in Boca Raton
and its vicinities.
French Bakery, LLC
15

Delivery
As mentioned earlier, Boca Raton has a high
concentration of offices. French Bakery, LLC will
reach out to people working in offices at lunch time
through delivery.
This activity is expected to generate $70,000 in
year 1 (or 25 customers), up to $100,000 in year 5.
Contracts
French Bakery, LLC forecast to win bakery supply
contracts with restaurants, hospitals, schools,
universities, and hotels with forecast sales growing
from $50,000 in year 1 to $100,000 in year 5.
Those sales figures are conservative mainly because
this is a large market catered by only a few
players. Additionally, French Bakery, LLC will boast
of a wide variety of unique bakery products and
should get some attention from buyers in search of
new products.
Catering
French Bakery, LLC forecasts to grow catering
sales from $30,000 in year 1 to $108,000 in year
5. The average sale for a catering event is $3,000.
The management foresees to make 10 catering
events in year 1 up to 36 caterings events in year
5. This segment of the business depends mainly
on word of mouth and reputation, which take some
time to build.
Seasonality
French Bakery, LLC is subject to seasonality. The
busiest months are from November to April as the
warm Florida climate attracts snow birds and tourists,
as shown by the first 12 sales months of the
Boca Raton unit. July and August are the slowest
months.
16
French Bakery, LLC

Profit & Loss
Boca Raton unit’s Earnings Before Depreciation, Amortization Interest and Taxes (EBITDA) is forecast to
grow from $78,000 in year 1 to $178,000 in year 5.
PROFIT & LOSS ($’000)
Year 1 Year 2 Year 3 Year 4 Year 5
Sales Before Taxes 600 780 908 958 1,008
Cost of sales (COS) 150 195 227 240 252
Freight costs 17 21 25 26 28
Cost of products unsold 15 20 23 24 25
EFFECTIVE COST OF SALES (ECOS) 182 236 275 290 305
GROSS MARGIN 419 544 633 668 703
VARIABLE COST
Advertising 6 8 9 10 10
Shopping bags (packaging/cutlery) 6 8 9 10 10
Theft 0 0 0 0 0
Credit Card Commissions 10 13 15 16 17
TOTAL VARIABLE COST 22 29 33 35 37
MARGIN ON VARIABLE COST 396 515 600 633 666
FIXED COST
RENT 62.6 68 74 76 79
PAYROLL (incl. taxes & benefits) 237 315 350 360 390
Phone & internet 1.8 1.8 1.9 1.9 1.9
Utilities 5.0 5.1 5.2 5.2 5.3
Insurance 1.0 1.0 1.0 1.0 1.1
Travel 1.0 1.0 1.0 1.0 1.1
Accounting & Legal 3.0 3.0 3.1 3.1 3.2
Office expenses 1.0 1.0 1.0 1.0 1.1
Other 5.4 5.5 5.5 5.6 5.6
TOTAL FIXED COST 318 401 443 455 488
EARNINGS BEFORE TAXES, DEPRECIATION & AMORTIZATION (EBITDA) 78 114 157 178 178
Start-up expenses 12.8
Depreciation & amortization 6.4 8.9 11.4 13.6 16.1
Net interest expense (net interest income) 0 0 0 0 0
EARNINGS BEFORE TAXES 59.1 105.0 145.7 164.2 162.0
Income taxes 11.6 24.2 35.7 41.8 41.0
NET PROFIT 47.5 80.9 110.1 122.5 121.0
THE EBITDA MARGIN IS FORECAST TO INCREASE TO 18% ACROSS THE NEXT FIVE
YEARS AS INCREASING SALES WILL COVER MORE FIXED COSTS. NET PROFIT IS
FORECAST TO GROW FROM $53,200 IN YEAR 1 TO $121,000 IN YEAR 5.
French Bakery, LLC
17

Gross Margin
The bakery-centric fast food business is a highmargin
business. French Bakery, LLC management
forecasts to achieve reasonably a 75% margin
on the products sold across the forecast period.
However, the management accounts for the cost of
products unsold. With a short product life of 1 to 2
days, those products represent a waste that would
constitute 10% of the cost of products sold.
The freight includes not only the delivery of raw
materials, but also the delivery cost of products to
remote customers.
Taking into consideration the cost of products sold,
the freight cost, and the cost of products unsold,
the effective gross margin is forecast to be 66%.
owner. Mr. Smith made a transfer in the amount
of $74,580.00 from his personal bank account in
France to his personal bank account in the US. He
then withdrew $72,000.00 from his personal bank
account in the US and deposited that amount in the
Company’s bank account. In addition, he made a
transfer in the amount of $27,130.00 directly from
his personal bank account in the Company’s bank
account. The Company‘s outstanding balance after
those two deposits was $99,130.00.
Payroll
The payroll including taxes is forecast to grow from
$237,000 with 10 employees working 40 hours a
week in year 1 to $390,000 with 15 employees in
year 5.
Start-up expenses
The $12,800 start-up expenses are understated
since most of the expenses have already been incurred
through the corporate bank account of the
The owner of French Bakery, LLC will earn an
annual salary in the amount of $45,000 in year 1
growing to $49,000 in year 5.
THE MONTHLY EBITDA FOR THE FIRST TWELVE MONTHS OF OPERATIONS IS FORE-
CAST TO BE POSITIVE AS SHOWN IN THE TABLE.
18
French Bakery, LLC

Cash Flow Statement
As shown in the table set out below, the Boca
Raton bakery unit is forecast to generate a Cash
Flow From Operations (CFO) in the amount of
$103,000 including the start-up expenses for
$12,818.50 and rent deposit for $10,437 after 12
months of operations. The CFO is forecast to grow
to $137,000 in year 5. The Cash Flow balance at
the end of year 5 is forecast to reach $593,000.
CASH FLOW ($’000)
Year 1 Year 2 Year 3 Year 4 Year 5
SALES BEFORE SALES TAXES 600 780 908 958 1,008
CASH FLOW FROM OPERATIONS (CFO)
EBITDA 78 114 157 178 178
Start-up expenses - non recurring expense -13
Payment of income taxes 0 -12 -24 -36 -42
(Incr) Decr in account receivable 0
(Incr) Decr in trade debtors 0 0 0 0 0
(Incr) Decr in prepayments & accrued income 0 0 0 0 0
(Incr) Decr in inventory -6 -2 -1 -1 -1
Incr (Decr) in trade creditors 4 1 1 0 0
Incr (Decr) in other creditors (payroll incl taxes) 10 3 1 0 1
(Incr) Decr in other assets (rent deposits) -10 0 0 0 0
63 105 134 142 137
CASH FLOW FROM INVESTMENTS (CFI) -50 -10 -10 -10 -10
Increase in Fixed assets -50 -10 -10 -10 -10
CASH FLOW FROM FINANCING (CFF)
Net Interest Income (expense 0 0 0 0 0
Principal repayment of debt 0 0 0 0 0
Increase (Decrease) in Debt 0 0 0 0 0
Issue of ordinary shares 99
99 0 0 0 0
NET CASH FLOW 112 95 124 132 127
CASH FLOW BALANCE - BEGINNING OF PERIOD 0 112 207 331 463
CASH FLOW BALANCE - END OF PERIOD 112 207 331 463 591
THE COMPANY PLANS TO GENERATE A NET POSITIVE CASH FLOW FOR EACH OF
THE TWELVE FIRST MONTHS OF OPERATIONS. AS SUCH, THE NET CASH FLOW
FOR THE FIRST MONTH OF OPERATION IS EXPECTED TO BE $6,800.
French Bakery, LLC
19

Investment
As mentioned earlier, French Bakery, LLC signed
a five-year business lease on a unit owned by Investment
Limited for a total amount due at closing
of $65,655.50 as described below. James Smith
has injected $99,130 in the Company to finance
this lease transaction and provide a $25,874 operational
cash balance.
The table below includes the breakdown of the
$65,655 sum that was paid at closing:
The former tenant operated a bakery in that space.
The key money includes all the equipment, furniture,
and machinery left by the previous tenant, as
well as business permits, allowing French Bakery,
LLC to operate its business from day one. A detailed
list of those assets is enclosed in the appendix.
The former tenant operated a bakery in that space.
The key money includes all the equipment, furniture,
and machinery left by the previous tenant, as
well as business permits, allowing French Bakery,
LLC to operate its business from day one. A detailed
list of those assets is enclosed in the appendix.
INVESTMENT SUMMARY
Issue of Ordinary Shares (A):
Cash amount transferred from the investor’s personal
account to Company’s account $99,130.00
Minus:
First Month Rent ( $5,218.50 )
Security Deposit ( $5,218.50 )
Last month rent’s deposit ( $5,218.50 )
Key money ( $50,000.00 )
Legal fees ( $5,000.00 )
Business plan preparation fees ( $2,000.00 )
Accounting fees ( $600.00 )
Total of investment & expenses (B) ( $73,255.50 )
Operational cash balance as of opening balance
sheet date (A minus B) $25,874.50
THE MANAGEMENT CONSIDERS THAT THE KEY MONEY IS SPLIT BETWEEN TANGI-
BLE ASSETS FOR $40,000 AND INTANGIBLE ASSETS FOR $10,000.
20
French Bakery, LLC

Balance Sheet
BALANCE SHEET ($’000)
Year 1 Year 2 Year 3 Year 4 Year 5
ASSETS
Current Assets
Cash 112 207 331 463 591
Account Receivable 0 0 0 0 0
Inventory 6 8 9 10 10
Other 10.4 10.4 10.4 10.4 10.4
Total Current Assets 128 225 351 483 611
Long Term Assets
Net Intangible Fixed assets 10 10 10 10 10
Gross Tangible Fixed assets 40 50 60 70 80
Accumulated depreciation -6 -15 -27 -40 -56
Financial fixed assets 0 0 0 0 0
Total Long Term Assets 44 45 43 40 34
Total Assets 172 270 394 523 645
LIABILITIES & EQUITY
Current Liabilities
Trade creditors 4 5 6 7 7
Other creditors 10 13 14 15 16
Taxes payable 12 24 36 42 41
Short-term notes payables 0 0 0 0 0
Total current liabilities 25 42 56 63 64
Long-term liabilities 0 0 0 0 0
Total liabilities 25 42 56 63 64
Equity
Shareholders equity 99 99 99 99 99
Retained earnings 0 60 141 251 374
Start-up net earnings -13 -13 -13 -13 -13
Net earnings 60 81 110 122 121
Total Equity 147 227 338 460 581
Total Liabilities and Equity 172 270 394 523 645
THE TABLE SHOWS THE ANNUAL BALANCE SHEET RESULTS WITH TOTAL EQUITY
(“NET WORTH “) INCREASING FROM $86,000 IN THE OPENING BALANCE SHEET TO
$581,000 AT THE END OF YEAR 5.
French Bakery, LLC
21

FRENCH BAKERY, LLC CONSOLIDATED FINANCIAL FORECAST
Income Statement
the Boca Raton unit (bakery 1).
French Bakery, LLC has enclosed a set of financial
forecast on the basis of the opening of two bakeries
over the next five years. The financial forecast
of bakery 2 is based on the assumptions used for
CONSOLIDATED PROFIT & LOSS ($’000)
The management will make the investment in year
2 to build bakery 2 for a launch of operations on
the first day of year 3.
Year 1 Year 2 Year 3 Year 4 Year 5
Sales After Taxes 642 835 1,614 1,860 2,050
Sales Before Taxes 600 780 1,508 1,738 1,916
Purchases 150 195 377 435 479
Freight costs 17 21 41 48 53
Customs duties & expenses 15 20 38 43 48
COST OF SALES (COS) 182 236 456 526 580
GROSS MARGIN 419 544 1,052 1,212 1,336
VARIABLE COST
Advertising 6 8 15 17 19
Shopping bags 6 8 15 17 19
Theft 0 0 0 0 0
Credit Card Commissions 10 13 25 29 32
TOTAL VARIABLE COST 22 29 55 64 71
MARGIN ON VARIABLE COST 396 515 996 1,148 1,266
FIXED COST
RENT 63 68 136 144 153
PAYROLL (incl. taxes & benefits) 237 315 588 675 740
Phone & internet 2 2 4 4 4
Utilities 5 5 10 10 10
Insurance 1 1 2 2 2
Travel 1 1 2 2 2
Accounting & Legal 3 3 6 6 6
Office expense 1 1 2 2 2
Other (incl. Headoffice cost) 5 5 11 11 11
TOTAL FIXED COST 318 401 761 857 931
EBITDA 78 114 235 292 335
Start-up expenses 13 0 0 0 0
Depreciation & amortization 6 9 29 34 39
Net interest expense (net interest income) 0 0 0 0 0
EARNINGS BEFORE TAXES 59 105 206 258 296
Income taxes 12 24 56 73 85
NET PROFIT 47 81 151 185 211
SALES ARE FORECAST TO REACH $1.9 MILLION IN YEAR 5 WITH A GROSS MARGIN
OF 70% AND AN EBITDA AT $335,000.
22
French Bakery, LLC

Cash Flow Statement
Cash Flow from Operations is forecast to grow to
$265,000 in year 5. The Cash Flow from Investment
is forecast at $90,000 in year 2, as the company
will invest to build the second bakery. The
Cash Flow Balance is forecast to reach $788,000
at the end of year 5.
CONSOLIDATED CASH FLOW ($’000)
Year 1 Year 2 Year 3 Year 4 Year 5
SALES BEFORE SALES TAXES 600 780 1,508 1,738 1,916
CASH FLOW FROM OPERATIONS (CFO)
EBITDA 78 114 235 292 335
Start-up expenses - non recurring expense -13 0 0 0 0
Payment of income taxes 0 -12 -24 -56 -73
(Incr) Decr in account receivable
(Incr) Decr in trade debtors 0 0 0 0 0
(Incr) Decr in prepayments & accrued income 0 0 0 0 0
(Incr) Decr in inventory -6 -2 -7 -2 -2
Incr (Decr) in trade creditors 4 1 5 2 1
Incr (Decr) in other creditors (payroll incl taxes) 10 3 11 4 3
(Incr) Decr in other assets (rent deposits) -10 0 -12 0 0
CFO 63 105 208 239 265
CASH FLOW FROM INVESTMENTS (CFI)
Increase in Fixed assets -50 -90 -10 -20 -20
CFI -50 -90 -10 -20 -20
CASH FLOW FROM FINANCING (CFF)
Net Interest Income (expense) 0 0 0 0 0
Principal repayment of debt 0 0 0 0 0
Increase (Decrease) in Debt 0 0 0 0 0
Issue of ordinary shares 99
CFF 99 0 0 0 0
NET CASH FLOW 112 15 198 219 245
CASH FLOW BALANCE - BEGINNING OF PERI-
OD 0 112 127 325 544
CASH FLOW BALANCE - END OF PERIOD 112 127 325 544 788
THE CASH FLOW BALANCE IS FORECAST TO REACH $788,000 AT THE END OF YEAR
5.
French Bakery, LLC
23

Balance Sheet
CONSOLIDATED BALANCE SHEET ($’000)
Year 1 Year 2 Year 3 Year 4 Year 5
Number of bakeries 1 1 2 2 2
ASSETS
Current Assets
Cash 112 127 325 544 788
Account Receivable 0 0 0 0 0
Inventory 6 8 15 18 20
Other 10 10 22 22 22
Total Current Assets 128 145 363 584 831
Long Term Assets
Net Intangible Fixed assets 10 10 10 10 10
Gross Tangible Fixed assets 40 130 140 160 180
Accumulated depreciation -6 -15 -45 -79 -117
Financial fixed assets (incl. Loans) 0 0 0 0 0
Total Long Term Assets 44 125 105 91 73
Total Assets 172 270 468 676 903
LIABILITIES & EQUITY
Current Liabilities
Trade creditors 4 5 10 12 13
Other creditors 10 13 24 28 30
Taxes payable 12 24 56 73 85
Short-term notes payables 0 0 0 0 0
Total current liabilities 25 42 90 112 129
Long-term liabilities 0 0 0 0 0
Total liabilities 25 42 90 112 129
Equity
Shareholders equity 99 99 99 99 99
Retained earnings 0 60 141 292 477
Start-up net earnings -13 -13 -13 -13 -13
Net earnings 60 81 151 185 211
Total Equity 147 227 378 563 774
Total Liabilities and Equity 172 270 468 676 903
THE TABLE SHOWS THE ANNUAL BALANCE SHEET RESULTS WITH TOTAL EQUITY
(“NET WORTH “) INCREASING FROM $86,000 IN THE OPENING BALANCE SHEET TO
$774,000 IN YEAR 5.
24
French Bakery, LLC

CONCLUSION
O
n May 2, 2007, James Smith set up
French Bakery, LLC, a Florida company to operate
a French-themed bakery in Boca Raton, Florida.
100% owned by James Smith, French Bakery, LLC is
located at 1956 NE 5th Avenue, Unit 3, Boca Raton,
Florida 33431.
James Smith will manage the Company. He has
already demonstrated a strong ability to execute
similar projects in the past.
As it is shown in his résumé, James Smith has fourteen
years of unparalleled experience in the food
industry.
He has set up and operated several restaurant and
catering businesses in the south of France. Along
the way, he has developed an expertise on how
to maintain quality while optimizing margin and
building solid operational team in order to develop
and manage successful food businesses.
The company expects sales to grow from $600,000 in year 1 to $1,916,000 in year 5 with a company
head count of 10 and 29 employees respectively.
French Bakery, LLC
25

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