This template is designed for a franchisor to plan out the on-boarding of franchisees over time. It goes for up to a period of 10 years and has robust revenue scaling and expense assumptions to fit as many scenarios as possible for this kind of endeavor. Additionally, a fully integrated 3-statement model is included.
Final Report Outputs Include:
- Monthly and Annual Income Statement, Cash Flow Statement, Balance Sheet (3-statement model is fully integrated)
- Monthly and Annual Profit / Loss detail and cash flow
- Cap Table
- DCF Analysis and IRR (for project level, and investor / operator)
- Annual Executive Summary
- Lots of visualizations
Let's talk about revenue and build-out assumptions. Any franchisor is going to need flexibility in determining how many locations they think they will on-board over time, the fees that will be charged, and the expected growth of those on-boarded. As such, the following configuration was built:
- Determine inputs for up to 3 franchisee types (they could be different regions/countries/etc.)
- Start month of each type
- Initial launch count of each type
- Monthly location growth by type (input as # added per month and then a percentage growth of that can be defined over time
- The revenue growth of each location type (number of years of growth until stabilized.
- Up front franchise fee by type
- On-going franchise fee percentage by type
- On-going ad fee percentage by type
- Retention of locations over time by type
- On-boarding costs by type (a schedule of costs can be defined and these are one time costs that happen in the month of on-boarding)
- On-going costs by type (these are costs that the franchisor pays each month by location and the amounts can vary by location type)