Not to mention, do you know that this foal will have a good home till the day it dies? What if the girl who says she wants it keeps it till he's three then she loses her job and can't afford to feed him? What happens to the foal. What if she decides she just doesnt want him? What happens to the foal?
Slaughter Houses will kill pretty coloured horses.
At least if you have a horse of substance you have a little bit better chance of him finding a better home if for any reason something happens down the line.
I agree with Harlee about the studs.
And I agree that you should leave the breeding to the pros.
I'd look at money side of it first. Even though you'll give foal to the friend (for free or whatever) the vet bills could come up over $1000 (in case of emergency and all). Besides foal can be born dead or something can happen with mare (knock on wood!! But my friends had it happen twice :( ). It's just the whole cost may not worse it.