Ladangku CFO Operator Models

New CFO Business Model What is a CFO?

Ladangku’s Chicken Factory Outlet (CFO)

Ladangku’s foray into retail outlet business.

Bringing Halal and clean chickens straight to the consumers

New CFO Business Model Objective

A new CFO business model designed to fulfill 3 main objectives:

1. To provide options for entrepreneurs as well investors to be involved in the poultry

industry

2. To maximise revenue and profit for the operator/investor as well as for LM

3. To allow rapid expansion of the CFO model by reducing barriers to entry and cost to
setup
New CFO Business Model Model Options

Silent Investor Model Full Entry Model Low Entry Cost Model

Multi Outlets Operator Model

Single Outlet Operator Model

New CFO Business Model Common Features

All new models will have the common features, as below:

• Lease agreement of the physical premise will be under the name of LM

• All costs for design and outlet renovations will be under the responsibility of LM
• All costs for equipment items will be under LM as well

This is to enforce the understanding that the outlet and all physical items within are owned by LM

• Operators are there to operate the business, and in no way do they own the business
• LM reserves the right to remove and stop any operators from operating the business, once valid causes have been
established for the removal eg performance, hygiene issues, disciplinary, branding violations etc

Operators common role and responsibilities

• Meeting targets set by LM
• Ensuring good upkeep of the outlet and equipment
• Providing good customer service
• Human resources based on the need of the outlet eg, hiring, firing, salary payment
• Payment of utilities, expenses et cetera
• Ordering and purchasing of stock from LM
 Ladangku CFO Operator Models Initial Requirements

Silent Investor Low Entry Cost

Full Entry Model
Model Model

Business Relationship Owner cum

Investor Operator Owner Operator Owner
Operator

Who operates? as Operator Operator operates Operator operates

Right To Operate Fee RM 75,000 RM 75,000 RM 12,000

Proof of Funds RM 20,000 RM 20,000 RM 10,000

Investor / Operator Registration Individual / Enterprise / Co Enterprise / Co Enterprise / Co

Owner of Physical Outlet and

equipment

Initial total Capital Requirement RM95,000 RM95,000 RM22,000

 Ladangku CFO Operator Models Scope of Responsibilities

Silent Investor Low Entry Cost

Full Entry Model
Model Model

Who runs day to day Operator operates Operator operates

operations of the outlet?

Daily takings

Payment of Utilities, Salaries,

Expenses

Staff Hiring and Management Operator Operator

Premise Cleanliness and Operator Operator

Upkeep
Premise and Equipment –
maintenance and repairs

Finance functions
 Ladangku CFO Operator Models
Distribution Model
Distribution Split
What happens in the event of
loss?
Who prepares the financial
statements of the business?
Profit / Loss Distribution
Silent Investor Low Entry Cost
Full Entry Model
Model Model
Profit/Loss Share Profit/Loss Share Revenue Share
60 LM : 40 Investor 50 LM : 50 Operator 10 LM : 90 Operator
Share of loss will be distributed
Share of loss will be distributed
based on the Distribution Split
based on the Distribution Split
(50:50). The loss amount
(60:40). The loss amount
attributed to the Operator will be
attributed to the Investor will be
deducted from the initial Right To
deducted from the initial Right To
Operate fee.
Operate fee.
The RTO, after deducting all Any loss or any profit from the
The RTO, after deducting all
losses, will represent the value of business will belong solely to the
losses, will represent the value of
equity held by the Operator in the operator
equity held by the Investor in the
business.
business.
This value will determine the RM
This value will determine the RM
value in the event the operator
value in the event the investor
wants to transfer his equity to
wants to transfer his equity to
Ladangku or to other 3rd party
Ladangku or to other 3rd party
 Ladangku CFO Operator Models Exiting the Business

Silent Investor Low Entry Cost

Full Entry Model
Model Model

Exit Penalty

100% Penalty from remaining RTO 100% Penalty from remaining RTO 100% Penalty from remaining RTO
0 to 12 months value value value

50% Penalty from remaining RTO 50% Penalty from remaining RTO 50% Penalty from remaining RTO
12 to 24 months value value value

10% Penalty from remaining RTO 10% Penalty from remaining RTO 10% Penalty from remaining RTO
25 to 36 months value value value

Exit Notice Period 3 months 3 months 3 months

(with written notice)

Buyback Value Remaining RTO value, after loss Remaining RTO value, after loss Remaining RTO value, after loss
and after penalty (if applicable) and after penalty (if applicable) and after penalty (if applicable)
 Ladangku CFO Operator Models KPI and Performance Requirement

Silent Investor Low Entry Cost

Full Entry Model
Model Model

Minimum Sales Value per RM 60,000 RM 60,000 RM 60,000

Month

Initial Gestation Period 2 months 2 months 2 months

Max number of consecutive 2 months 2 months 2 months

low-performing months
After official warning and 2 months After official warning and 2 months
After official internal review and 1
probation period, LM will remove probation period, LM will remove
Termination months probation period, LM will
the operator with 100% penalty the operator with 100% penalty
refund the RTO in full
from remaining RTO value from remaining RTO value
Ladangku CFO Operator Models Simulations

Simulation - Silent Investor Model – Profit Share 40:60

Gross Sales 100,000.00

Cost of Goods (Purchases) 78,500.00

Gross Profit 21,500.00 21.5%

OPEX 8,500.00

Net Profit 13,000.00 13%

Investor LM
Profit Distribution
5,200.00 7,800.00
Ladangku CFO Operator Models Simulations

Simulation – Full Entry Model – Profit Share 50:50

Gross Sales 100,000.00

Cost of Goods (Purchases) 78,500.00

Gross Profit 21,500.00 21.5%

OPEX 8,500.00

Net Profit 13,000.00 13%

Operator LM
Profit Distribution
6,500.00 6,500.00
Ladangku CFO Operator Models Simulations

Simulation – Low Entry Cost Model – Revenue Share 90:10

Gross Sales 100,000.00

Cost of Goods (Purchases) 78,500.00

Gross Profit 21,500.00 21.5%

LM Revenue Share (10%) 10,000.00

OPEX 8,500.00

Net Profit 3,000.00 3%

Operator
Profit Distribution
3,000.00
Ladangku CFO Operator Models Simulations

Interested to Join Us as CFO Operator / Investor?

Register your interest at

ladangku.my/CFO
Ladangku will schedule a business presentation and invite all interested parties to attend

Got any immediate questions?

Call / WhatsApp:

Feizrul 019 331 9397

Aliff 017 258 6218
Thank You