🐓 franchisa:

22

Milestones and Metrics (Expanded)

*Aligned with Ethiopia’s Market Dynamics and PPP Considerations*

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### 1. Break-Even Milestone: Month 18

Success Metric: 560,000 ETB net profit/month.

Key Activities & Metrics:

| Timeline | Activity | Metric | Target |

|---------------------|-----------------------------------------------|-------------------------------------|---------------------|

| Months 1–3 | Pilot launch in Bole District. | Daily customers | 500+ |

| Months 4–6 | Optimize menu based on feedback. | Customer retention rate | 60% |

| Months 7–12 | Open 2 additional Addis Ababa franchises. | Monthly revenue growth | 15% MoM |

| Months 13–18 | Achieve 5 franchises in Addis Ababa. | Gross margin | 50% |

Financial Drivers:

- Revenue: 67.2M ETB Year 1, growing 25% annually.

- Cost Control: IoT kitchen systems reduce energy costs by 15% (50,000 ETB/month saved).

- Contingency: If delayed, renegotiate supplier contracts (e.g., Amhara Poultry) to cut COGS by 5%.

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### 2. Regional Expansion Milestone: Year 2

Success Metric: 10 franchises in 3 cities (Addis Ababa, Bahir Dar, Hawassa).

Key Activities & Metrics:

| Timeline | Activity | Metric | Target |

|---------------------|-----------------------------------------------|-------------------------------------|---------------------|

| Months 7–9 | Launch 1st Bahir Dar franchise. | Same-store sales growth | 10% QoQ |

| Months 10–12 | Open 1st Hawassa franchise. | New customer acquisition rate | 30% |

| Months 13–18 | Scale to 5 franchises in Addis Ababa. | Avg. revenue per franchise | 1.2M ETB/month |

| Months 19–24 | Expand to 3 Bahir Dar / 2 Hawassa franchises. | Market penetration in tier-2 cities| 15% |

Operational Drivers:

- Localized Menus: In Bahir Dar, add fish options (Lake Tana sourcing); in Hawassa, vegan tibs for students.

- Staffing: Train 90% of tier-2 staff via Addis Ababa hub.

- Contingency: If delayed, pivot to franchising model to share expansion costs.

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### 3. Additional Critical Milestones

| Milestone | Timeline | Success Metric | Responsible Team |

|------------------------------|------------------|----------------------------------------|---------------------------|

| Halal Certification | Month 2 | EIASC approval for all franchises. | Legal & Compliance |

| Mobile App Adoption | Month 6 | 40% of orders via app. | Technology & Marketing |

| Eco-Packaging Rollout | Month 12 | 100% plastic-free packaging. | Supply Chain & Sustainability |

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### 4. Risk-Adjusted Metrics

| Risk | Early Warning Metric | Corrective Action |

|---------------------------|---------------------------------|------------------------------------------------|

| Inflation >15% | Monthly CPI exceeds 12% for 3 months. | Renegotiate fixed-price contracts with suppliers. |

| ETB/USD >60 | Forex rate fluctuations tracked weekly. | Increase hedging from 30% to 50%. |

| Franchise Delays | <2 new franchises/quarter. | Prioritize franchising over company-owned units. |

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### 5. Reporting & Accountability

- Monthly Reviews: Track KPIs via dashboards (e.g., Tableau) shared with investors.

- Quarterly Audits: Third-party validation of financials and sustainability claims.

- Stakeholder Updates: Town halls with staff and community leaders in expansion cities.

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Conclusion

Boaz Trading PLC’s milestones are tightly coupled with PPP-aligned pricing, localized operations, and risk-aware scaling. By tracking granular metrics—from daily customer counts in Bole to same-store sales in Bahir Dar—the franchise ensures disciplined progress toward its 20% ROI target. Contingency plans for inflation and currency risks further safeguard investor returns in Ethiopia’s dynamic market.

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*Aligned with Ethiopia’s Growth and Transformation Plan (GTP II) and UN SDGs.*

*Prepared for Investor Review | Q4 2023*

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