STONEWOOD HOMES · CONFIDENTIAL — INTERNAL

Stonewood Homes Australia — FY27 Budget

Queensland Homes Master Franchise Pty Limited · AUD, GST-exclusive · FY27 = Jul 2026 – Jun 2027
Prepared by Sam Lu · 19/06/2026 · draft v6 · volumes per Mandy/Gregg sales & slab forecast
Total Income
A$1.64m
7 franchises, 66 slabs
Gross Profit
A$888k
54.2% margin
Net Profit
A$142k
8.7% margin
Build Value
A$30.9m
ex-GST, fee base
Total to NZ
A$335k
mgmt fee + royalty

The headline

  • FY27 budget for the Queensland master franchise: A$1.64m income, A$142k net profit on the linked sales & slab forecast.
  • Growth year — four new franchises (Gold Coast North, Ipswich, two more) on Year-1 fixed fees, so early months run thin while volume builds.
  • Recommended NZ charges restructure the old flat 1% fee into a cost-based management fee (A$180k) plus a reduced 0.5% brand royalty — broadly similar total, but defensible and tax-efficient.

Still to confirm

  • key NZ back-office actual cost — to true up the A$180k management fee.
  • B2B marketing quantum (A$120k placeholder).
  • New-franchise commencement dates & establishment terms.
  • Per-franchise contract values & GST treatment.
Tabs above break out the monthly trend, P&L, NZ-charge rationale and a full monthly budget appendix.

Monthly income & net profit

Early-year months run thin or negative: new franchises sit on Year-1 fixed fees while marketing, systems and B2B spend scale with build volume — the deliberate cost of buying growth. February spikes on assumed establishment fees.

FY27 budget — annual P&L

AccountFY27 (A$)Note
Income
Franchise fees (3.5% / intro fixed)884,881
Marketing fees (1.1% / intro fixed)322,677
Royalty35,423nil in intro
Establishment fees320,0004 × A$80k
Supplier sales rebates (0.25%)77,313
Total Income1,640,294
Cost of sales
Marketing & advertising (pass-through)322,677= marketing fees
B2B marketing (company funded)120,000separate
Systems (1.0% of revenue)309,252
Gross Profit888,36654.2%
Overheads
NZ management fee (back office)180,000cost + 10%
Salaries — 1 FTE +20% (+ super)161,280
Recruitment / commission60,0004 signings
Design range expansion50,000
Other overheads140,460FY26 run-rates
Net Profit before fee to NZ296,626
Franchise fee to NZ (0.5%)154,626
Net Profit142,0008.7%

Recommended NZ charges

The two charges to NZ recommended

NZ management fee (back office)A$180,000
Franchise royalty — 0.5% of build valueA$154,626
Total payable to NZA$334,626
AU net profit retainedA$142,000
Restructures the previous flat 1% franchise fee (A$309k) into a cost-based services fee plus a reduced brand royalty — broadly similar total, but defensible and tax-efficient.

Rationale

  • Management fee — cost-plus. NZ provides most back office (finance, marketing, IT, HR, exec oversight). Estimated cost ~A$163.6k + 10% margin = A$180k. true up to NZ actual cost
  • Royalty cut 1.0% → 0.5%. Back office now charged separately, so the royalty covers brand/IP/system only — avoids double-charging.
  • Tax efficiency. A genuine services fee is not a royalty, so it avoids the 5% Australian royalty withholding tax that applies to the franchise fee under the NZ–AU DTA.
  • Affordability. AU still nets ~A$142k (8.7%); royalty is the lever if more headroom is needed.
Confirm with the group tax adviser; support with an intercompany agreement and transfer-pricing benchmarking. Not tax advice.

Key assumptions & open items

Assumptions

  • Volumes flow live from the Sales & Slab Down forecast tabs; fees priced per franchise.
  • Fees on build value (slab-down), ex-GST (forecast ÷ 1.1).
  • New franchises (Gold Coast North, Ipswich, two new) on Year-1 fixed fees; establishment A$80k each.
  • Marketing fund is pass-through (collected = spent); B2B is additional company spend.
  • Salaries: one local FTE + 20% flexibility; SG 12%.

To confirm

  • key NZ back-office actual cost — to true up the A$180k management fee.
  • B2B marketing quantum (A$120k placeholder).
  • New-franchise commencement dates & establishment-fee terms.
  • Per-franchise contract values & GST treatment.

Lead pipeline — what the forecast demands

Contracts (FY27)
78
= budget sales forecast
Deals needed
227
at 35% deal→contract
Leads needed
~1,750
at 13% lead→deal
Lead→contract
4.55%
overall conversion
Reconciled to the budget: contracts are driven directly off the Sales forecast (78 sales, including both new "ANO" franchises). A 3-month sales-cycle lag means July-26 contracts need leads generated before FY27 begins — start that pipeline now.

By franchise

FranchiseContractsDealsLeads
Toowoomba2469531
Sunshine Coast2058447
Townsville1132247
Gold Coast North720154
Ipswich618139
ANO 1515116
ANO 2515116
Total782271,750

Monthly phasing (3-month lag)

Contract monthContractsLeadsLead-gen month
Jul 20265116Pre FY27 ⚠
Aug 20265116May 2026
Sep 2026493Jun 2026
Oct 20265116Jul 2026
Nov 20266139Aug 2026
Dec 2026124Sep 2026
Jan 20275116Oct 2026
Feb 20278177Nov 2026
Mar 20279200Dec 2026
Apr 202710224Jan 2027
May 202710224Feb 2027
Jun 202710224Mar 2027
Total781,769
Assumptions: 13% lead→deal, 35% deal→contract (Pipedrive history), A$550k avg contract, 3-month cycle lag. Monthly leads total differs slightly from the by-franchise total due to month-level rounding. Source: SWH_AU_FY27_Budget_Template_v7_19Jun2026.xlsx (Lead Requirements tab).

Appendix — detailed monthly budget (A$)

Full monthly P&L, July 2026 – June 2027. Source: SWH_AU_FY27_Budget_Template_v6_19Jun2026.xlsx.
Source: SWH_AU_FY27_Budget_Template_v7_19Jun2026.xlsx · Stonewood Homes / Stonewood Group · Confidential — internal use only. Draft, subject to confirmation of the open items. Not tax advice.