Confidential — Authorized Commercial Stakeholders Only

Wekoodo × Flute · August 4, 2026 · Version 7.0

FluteCommerce

Confidential Investment & Business Case

Prepared for: Authorized Commercial Stakeholders at Flute
Prepared by: Andrew Angell & Richard Freedkin — Managing Members, Wekoodo, LLC
Terms valid: Through August 31, 2026

This package contains pricing, economic assumptions, payment terms, and proposed licensing terms — please limit distribution to the appropriate Flute stakeholders. It accompanies the separate FluteCommerce V1 Platform & Scope Brief, which carries the complete product and delivery discussion.

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01 · Executive summary

Two forms of value, one owned platform

Wekoodo proposes to engineer and deliver FluteCommerce: a white-label, multi-tenant hosted ecommerce platform built around Flute payments and native dual pricing. Flute controls its brand, deployment, merchant relationships, and platform data under a perpetual platform license.

Acquisition and retention

A hosted storefront Flute can offer to existing merchants and use to win established migrators, agent-sourced merchants, direct FluteCommerce signups, and other sellers outside its current merchant book.

Processing economics

Every active storefront places more online volume on Flute's rails, while direct FluteCommerce signups can generate materially stronger economics under the proposed house-account treatment.

01 · Executive summary

The commercial engagement at a glance

Platform build	$295,000 fixed, less a $10,000 credit from the PHP SDK engagement — net $285,000
Payment structure	Four equal milestones of $73,750; credit applied to the signature milestone
Delivery window	14–16 weeks from SOW signature to launch-ready
Ongoing	$5,500/month maintenance and compliance beginning 90 days post-launch; $750/month optional DevOps; hosting at cost, paid directly to vendors
Included	ACH support added to the Flute PHP SDK and integrated into FluteCommerce; 40 hours of integration and solution-definition workshops
Merchant-equivalent payback	At base economics: 233 direct merchants active for a full 12 months — or 304 merchants at the 70% agent / 30% direct mix active for a full 24 months — cover the build and all recurring platform costs during the window

The 14–16-week window assumes timely access to Flute systems, stakeholder decisions, and phase reviews. Material dependency delays or approved scope changes may adjust the schedule, with final timing confirmed in the SOW.

01 · Executive summary

Payback needs about 1.2% of the book Flute already has

With roughly 26,000 active Flute merchants as the conservative denominator, the base-case 24-month count at the modeled mix equals approximately 1.2% of Flute's existing book — before crediting any net-new acquisition: no catalog migrations from WooCommerce or Magento, no new agent-sourced merchants, no direct FluteCommerce signups from outside the book.

For context, Wekoodo's scope-based estimate for a traditional US agency build of comparable breadth is $450,000–$900,000 over 6–12 months, triangulated from published US agency rate data. The FluteCommerce engagement is milestone-gated and delivered by the team that already built Flute's PHP SDK.

02 · What the investment delivers

The complete v1 scope, fixed

Multi-tenant platform foundation with tenant-isolation testing
White-label storefront, merchant admin, and Flute operator console
Native compliant dual pricing across pre-purchase and post-sale surfaces
Card, ACH, and offline payment paths through Flute
Catalog, inventory, orders, refunds, shipping, tax, discounts, content, reviews, and customer accounts

WooCommerce, Magento, and CSV catalog migration wizards
Flute catalog synchronization, custom domains, reporting, and platform observability
Built-in agentic help desk and launch-readiness hardening
ACH support added to the Flute PHP SDK as part of this engagement
40 hours of integration and solution-definition workshops

V1 boundary: US-only and USD-only, one store per merchant, one professional theme, no merchant billing module. Broader migration coverage, cash-discount and surcharge models, wallets, restaurant features, multi-store, theme editing, and agent-executed checkout remain separately scoped v2+ options.

02 · What the investment delivers

Seven delivery gates

Phase	Delivery gate
1 · Foundation	Multi-tenant core, pricing engine, compliance suite, identity, and admin shells
2 · Catalog & Storefront	Catalog and themed storefront with compliant dual-price display
3 · Money Paths	Card/ACH/offline checkout, orders, refunds, and sandbox reconciliation
4 · Shipping, Tax & Discounts	Carrier rates, tax, coupons, and sale pricing
5 · Content & Discovery	Content, reviews, customer accounts, SEO, and AI-agent feed
6 · Onboarding & Migration	Signup, synchronization, migration, domains, and operator console
7 · Launch Readiness	Notifications, reporting, support, security, observability, and acceptance run

02 · What the investment delivers

40 hours of joint workshops, included

Applied across the highest-priority cross-system decisions required to finalize v1 acceptance criteria, with Flute's product, API, operations, and reporting stakeholders:

ZCP calculation authority — configuration ownership and penny-exact acceptance vectors
Reporting ownership — metric definitions, data sources, and the Flute-dashboard vs FluteCommerce-admin boundary
Catalog source of truth — read/write synchronization, conflict handling, and cross-channel inventory ownership
Integration boundaries — webhooks, scheduled polling, event schemas, and reconciliation

Outputs: a decision log, responsibility matrix, API/event requirements, and acceptance criteria. Workshops define the agreed v1 implementation — they do not silently add new APIs, reports, or capabilities. Anything outside v1 goes through the change process. Standalone value: $7,400.

03 · Fixed investment

Four equal milestones, each gated on acceptance

Payment milestone	Due when	Amount
1 · Project start	SOW signature	$73,750
2 · Working sandbox demo	Phases 1–3 accepted: storefront, cart, checkout, and refunds demonstrated penny-exact against the Flute sandbox	$73,750
3 · Feature complete	Phases 4–6 accepted and full v1 scope demonstrated	$73,750
4 · Final delivery	Phase 7 launch-readiness acceptance run passed	$73,750
Fixed build total		$295,000

The $10,000 PHP SDK credit applies to Milestone 1: $63,750 due at signature and a $285,000 net build investment.

04 · The economics

What one merchant is worth

Per Schedule A's Net Revenue definition — collected dual-pricing revenue, minus interchange and assessments, minus the processor fee schedule. All figures pre-tax; every input is sourced or labeled as a planning assumption in Appendix A of the written package.

Per merchant / month	Bear ($7k volume)	Base ($15k volume)	Bull ($45k volume)
Net Revenue — dual pricing	$27.38	$155.75	$741.77
Net Revenue — standard pricing (opt-outs)	$7.83	$28.50	$106.00
Blended profit to Flute, per store†	$8.61	$61.89	$373.01

At base volumes, a dual-pricing merchant produces $155.75/month in Net Revenue versus $28.50 under the standard-pricing book modeled here. The dollar gap is the durable investment driver.

† Blends the opt-out share and signup mix. The model gives Flute 100% of Net Revenue on merchants signing up directly through FluteCommerce under the proposed house-account term, and 25% on agent-sourced merchants.

04 · The economics

Scenario dials — illustrative, not forecasts

Dial	Bear	Base	Bull
Average monthly card volume per store	$7,000	$15,000	$45,000
Dual-pricing program rate	3.00%	3.50%	4.00%
Interchange + assessments	2.20%	2.10%	2.00%
Merchants opting out of dual pricing	30%	20%	10%
Signup mix — agent-sourced / direct	80/20	70/30	60/40
Stores live at the end of year 1	75	200	400

Program-rate dials sit at or below published live program examples. Store count, signup mix, and ramp are planning inputs controlled by Flute. Wekoodo will provide the unlocked, month-by-month model and can re-run it against Flute portfolio data.

04 · The economics

Merchant-equivalent payback — the operational sizing view

How many merchants, if active for an entire measurement window, equal repayment of the $295,000 build? The view includes the modeled opt-out share and first charges every recurring cost — hosting, optional operations, maintenance — before crediting a dollar toward the build.

Merchants needed — base case ($15k stores)	Direct signups (100%)	Agent-sourced (25%)	At the mix (70/30)
Active for the full 12-month window	233	966	497
Active for the full 24-month window	143	591	304

These are steady-state cohort equivalents, not calendar forecasts — 304 for the 24-month window means 304 base-case merchants at the 70/30 mix active for all 24 months. Calendar payback depends on the actual adoption ramp; the month-by-month model is retained for the finance walkthrough.

04 · The economics

≈1.2%

of the current ~26,000-merchant book equals the 24-month base-case payback count at the modeled mix. The 12-month direct count is under 1%.

Those percentages deliberately isolate the platform's acquisition upside — they count no merchant outside Flute's existing book:

No catalog migrations from WooCommerce, Magento, or another platform
No merchants newly brought to Flute by an agent
No direct merchants signing up through FluteCommerce
No new online sellers or other net-new acquisition channels

The caveat is merchant quality, not the size of the opportunity: the base case assumes $15,000 in monthly card volume per store. Re-running the model against Flute's actual portfolio deciles will show how many current merchants meet or exceed that profile. The ~26,000 denominator is conservative relative to Flute's more recent estimate near 29,000.

04 · The economics

The two strongest levers

1 · Acquire established, higher-volume sellers

At bull-size stores ($45,000/month), the 24-month counts fall to 28 direct merchants or 50 at the modeled mix.

2 · Grow the direct-signup share

Under the proposed house-account term, one direct signup is worth four times one agent-sourced merchant to Flute.

At bear-size stores ($7,000/month), the 24-month counts rise to 919 direct or 2,613 at the mix — the bear case is a strategic retention and owned-asset case, not a near-term payback case.

A measured rollout supports both levers: begin with an invite-only, concierge cohort to tune onboarding, then open fully automated self-service signup.

04 · The economics

Bounds and upside

$1.7M annualized

modeled run rate at the bull scenario's 400-store year-one exit — approximately $142,000/month after recurring platform costs, pre-tax. This is the run rate at the year-one exit, not the amount earned during the ramp-up year.

Downside bound: past break-even, the platform's full recurring cost is approximately $6,900–$7,500/month across a 100–500 store fleet.
In every scenario, Flute retains the strategic value of the platform, merchant relationships, and storefront retention.

Bull exit assumes $45,000 monthly card volume per store, 10% opt-outs, and a 60% agent-sourced / 40% direct signup mix.

05 · Ongoing investment

Ongoing costs, with zero hosting markup

Line	Amount	Notes
Maintenance & compliance plan	$5,500/mo	Up to 15 story points/month; maintenance only, never new scope; begins 90 days post-launch; 12-month initial term
Hosting	≈$555–$1,275/mo	At cost across 100–500 stores, paid directly by Flute to vendors on Flute-owned accounts; budget re-verified at signature
DevOps & platform operations (optional)	$750/mo	Deploys, scaling, backups and restore drills, staging, incident response, cost monitoring, monthly health report
Approved changes / out-of-scope	$185/hr	Estimated and approved in writing before work begins
Integration & solution workshops	Included	Up to 40 hours across ZCP, reporting, catalog/inventory, and integration boundaries; standalone value $7,400

Hosting budget assumes most merchants use platform subdomains; custom domains beyond Laravel Cloud's included 250 are budgeted at $0.25/domain/month. Self-managed cloud servers may cut raw hosting bills ~40–50%, but infrastructure operations then become Flute's responsibility — the optional operations line covers the recommended managed-platform path.

06 · Required maintenance & compliance plan

A payments platform cannot remain static

The required plan is deliberately maintenance-only — new features are separately scoped through the v2+ roadmap or rate card. $5,500/month includes up to 15 story points of:

Framework & dependency currency

A monthly update window, with critical CVE patches targeted within five business days.

Flute API compatibility

Absorption of non-breaking API changes as Flute's API evolves.

Compliance-driven changes

Automated monitoring of card-network bulletins and state-law developments, with tracked engineering changes when rules move — plus a compliance watch and quarterly memo outside the point allocation.

Support: built-in help desk for tier-1 → Flute's merchant support as human first line → Wekoodo second-line engineering, with P1 response within four business hours during business-hours coverage. Critical defects in Wekoodo-authored code are fixed outside the point allocation.
Terms: begins 90 days post-launch after the included 90-day warranty; 12-month initial term renewing annually; 60 days' notice to decline renewal; annual adjustment capped at the lesser of CPI or 5%; overage estimated and approved first.

Wekoodo provides engineering monitoring and implementation, not legal advice — interpretation of network rules and law remains with Flute's counsel. A fully staffed white-label help desk can be quoted separately.

07–08 · Why Wekoodo & commercial terms

Proposed terms from a team Flute has already seen deliver

Wekoodo built Flute's PHP SDK and has delivered production integration across Flute's transaction, settlement, and webhook surfaces. Dual-pricing compliance is a specific engineering domain: the pricing engine tests the card-price-of-record, single-storewide-rate, and one-total-receipt rules on every build.

Payment: $63,750 at SOW signature after the $10,000 credit; remaining milestones invoiced on acceptance, net 10. Work may pause when an invoice is more than 10 days past due.
Acceptance: enumerated, demoable criteria per phase; five business days to review; punch-list items are fixed under warranty and don't block a milestone. Phases are sequential.
Termination for convenience: at a phase boundary — Flute pays for accepted work plus 50% of the in-flight phase and keeps all delivered work product.
Warranty: 90 days after launch, included.
Ownership: Flute owns its deployment, branding, configuration, merchant relationships, and platform data, with a perpetual license to the delivered platform. The codebase and dual-pricing engine are licensed non-exclusively; Wekoodo retains the right to use and develop its technology in its own products.
Channel attribution (proposed): direct FluteCommerce signups with no agent attached are Flute house accounts at 100% of Net Revenue. The SOW must confirm attribution rules; the economics assume this treatment.
Validity: terms hold through August 31, 2026; hosting and card-network figures re-verified at signature.

These are proposed commercial terms, not final legal language. The definitive SOW and licensing provisions should receive appropriate legal review.

09 · Next steps

Six steps from here to kickoff

Confirm v1 scope using the companion Platform & Scope Brief and working prototype.
Prioritize the joint workshops for ZCP, reporting, catalog/inventory, and other v1 integration boundaries.
Walk through the finance model with every formula unlocked — and re-run it against Flute's actual portfolio data if available.
Confirm commercial alignment, including house-account attribution and the desired DevOps operating model.
Prepare the SOW with milestone acceptance criteria within five business days of the go-ahead.
Schedule kickoff with Flute's API team for the week the SOW is signed.

Prepared by Wekoodo, LLC · drew@huckangell.com · This document and its commercial terms are confidential to Flute.