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.
$75.00 USD
The template will be immediately available for download after purchase. This is included in the industry specific financial model bundle. Last Version Update: 1/31/2022
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
There are also costs that the franchisor must bare when they on-board franchisees. The point is that the franchisor supports and helps the franchisees be successful an in turn the franchisor succeeds as well. These cost configurations include:
- 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)
One of the smartest calculations the model will then show is the number of months it takes a given location to break even. This is based on initial on-boarding costs and on-going costs set against initial on-boarding fee and on-going franchise fee percentages.
More metrics (and visuals included therein) include average gross revenue earned per location (total franchise fees less on-going costs) per month and year.
There is a fixed cost schedule to account for franchisor operating expenses that are global in nature i.e. CEO/CFO/office/utilities and anything else that is not included in the up front and on-going support costs per franchisee.
The user can define an exit month / multiple if desired and that will flow through the rest of the model accordingly.
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