Queensland Homes Master Franchise Pty Limited · AUD, GST-exclusive · FY27 = Jul 2026 – Jun 2027
Prepared by Sam Lu · draft v8 · aligned to the QLD Franchise Strategy (14/07/2026) · 20-franchise capacity
Total Income
A$1.56m
7 active + capacity to 20
Gross Profit
A$788k
50.5% margin
Net Profit
−A$51k
after strategy investment
Build Value
A$30.9m
ex-GST, fee base
Total to NZ
A$335k
mgmt fee + royalty
Budgeted net loss of A$51k is a deliberate growth-investment year, not a trading problem. Gross profit is a healthy A$788k; the loss is created by ~A$113k of new, unsized strategy resourcing (Franchise BDM, offshore systems, QLD technical support, trade shows) plus the A$60k establishment rebase (−A$80k income). Strip the placeholder resourcing and AU is ~A$62k positive. These roles are flagged "to be agreed / sized" in the strategy — the number will firm up once Vicki/Gregg size them.
What changed from the strategy (14/07)
Establishment fee A$80k → A$60k average (A$80k now a stretch for premium territories only).
Three-role resourcing plan added — Franchise BDM (from Jan-27), offshore systems setup, QLD technical support / backup nominee.
Trade shows / expos added under B2B recruitment.
On-charge NZ's actual marketing/systems costs to AU (via the management fee).
Capacity expanded to 20 franchise lines — 7 active, 13 ready for next year's signings (target: 10 signed by Jun-27).
Levers back to breakeven
size Resourcing placeholders (~A$113k) — stage BDM/offshore/technical support to actual need and start dates.
Each additional signing adds ~A$60k establishment income — one extra recovers a role.
NZ charges (management fee + 0.5% royalty) can flex if AU affordability requires.
Design-range spend (A$50k) may be capitalised rather than expensed.
Monthly income & net profit
Most months run at or below breakeven while new franchises sit on Year-1 fixed fees and the strategy resourcing loads in; Nov-26 and Feb-27 lift on establishment fees. Full-year net result is a A$51k loss on the current placeholder resourcing.
FY27 budget — annual P&L (v8, strategy-aligned)
Account
FY27 (A$)
Note
Income
Franchise fees (3.5% / intro fixed)
884,881
Marketing fees (1.1% / intro fixed)
322,677
Royalty
35,423
Establishment fees
240,000
4 × A$60k (was A$80k)
Supplier sales rebates (0.25%)
77,313
Total Income
1,560,294
Cost of sales
Marketing & advertising (pass-through)
322,677
= marketing fees
B2B marketing (company funded)
120,000
Trade shows / expos (B2B)
20,000
strategy — placeholder
Systems (1.0% of revenue)
309,252
Gross Profit
788,366
50.5%
Overheads
NZ management fee (back office)
180,000
cost + 10%
Salaries — 1 FTE +20% (+ super)
161,280
Recruitment / commission
60,000
4 signings
Design range expansion
50,000
strategy
Franchise BDM (AU)
48,000
strategy — Jan-27, placeholder
Offshore systems-setup
27,000
strategy — placeholder
QLD technical support / nominee
18,000
strategy — placeholder
Other overheads
140,460
FY26 run-rates
Net Profit before fee to NZ
103,626
Franchise fee to NZ (0.5%)
154,626
Net Profit
(51,000)
growth-investment year
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
Restructures the old flat 1% fee into a cost-based services fee plus a reduced brand royalty — defensible and tax-efficient. Strategy 14/07 also directs AU to on-charge NZ's actual marketing/systems costs (website, LCM, NA) through this fee.
Rationale
Management fee — cost-plus. NZ back-office cost ~A$163.6k + 10% margin = A$180k. true up to actual
Royalty cut 1.0% → 0.5%. Brand/IP only — back office charged separately, avoids double-charge.
Tax efficiency. Services fee is not a royalty — avoids 5% AU royalty WHT (NZ–AU DTA).
Lever. Either charge can flex to protect AU affordability in a loss-making growth year.
Confirm with the group tax adviser; intercompany agreement + TP benchmarking. Not tax advice.
Key assumptions & open items
Assumptions
Volumes flow live from the Sales & Slab Down forecast; fees priced per franchise.
Fees on build value (slab-down), ex-GST (forecast ÷ 1.1).
Establishment A$60k average per new signing (strategy 14/07).
Marketing fund pass-through; B2B + trade shows are additional company spend.
NZ back-office actual cost — true up the A$180k management fee.
Gold Coast North & Ipswich establishment fees (expected below A$60k).
Design range — expense vs capitalise.
Lead pipeline — what the forecast demands
Contracts (FY27)
78
= sales forecast
Deals needed
227
at 35% deal→contract
Leads needed
~1,750
at 13% lead→deal
Lead→contract
4.55%
overall
A 3-month sales-cycle lag means July-26 contracts need leads generated before FY27 begins. Recruitment (B2B) is the strategy's #1 initiative; lead flow (B2C) fills the trading franchises.
Full monthly P&L, July 2026 – June 2027. Source: SWH_AU_FY27_Budget_Template_v8_21Jul2026.xlsx.
Source: SWH_AU_FY27_Budget_Template_v8_21Jul2026.xlsx · aligned to QLD Franchise Strategy FY27 (14/07/2026) · Stonewood Homes / Stonewood Group · Confidential — internal use only. Draft; resourcing lines are placeholders to be sized. Not tax advice.