Franchise Financial Models
From concept to franchise system
What's In The Franchise Financial Model
We build comprehensive master financial models that cover every aspect of your franchise system. This includes detailed unit economics for franchisees, franchisor revenue modeling (franchise fees, royalties, and other income streams), territory and growth planning, breakeven analysis, and sensitivity scenarios to test different assumptions.
Every franchise model includes franchisee pro-forma financials (what franchisees will earn), Item 19 support and financial performance representations, franchise sales forecasting and pipeline modeling, working capital requirements, territory profitability analysis, and 5-year growth projections. You receive a dynamic Excel model plus comprehensive documentation explaining all assumptions and calculations.
Franchise Financial Models are priced at R85,000. Most franchisors engage us before filing disclosure documents or launching sales.
We can also provide ongoing support as your franchise system scales, updating models based on actual franchisee performance and helping you refine your unit economics.
Do I need this if I'm just starting to franchise?
Absolutely—this is especially critical when you're just starting. Prospective franchisees will scrutinize your financials, banks require detailed models for SBA loans, and you'll need Item 19 financial performance representations in your FDD. Getting the numbers right from the start prevents costly mistakes and builds credibility with early franchisees who will become your case studies.
What if our concept hasn't been proven at multiple locations yet?
We typically recommend having at least 2-3 company-owned locations with 12+ months of operating history before franchising. This gives us real data to build credible models. If you're earlier stage, we can start with a feasibility model to test if franchising makes sense for your concept, then build the full franchise model once you have proven performance data.
Can you help with Item 19 and franchise disclosure requirements?
Yes, we structure our models to directly support Item 19 financial performance representations in your Franchise Disclosure Document. We provide the underlying calculations, document all assumptions, and format the data in a way that franchise attorneys can easily incorporate into your FDD. While we don't provide legal advice, we work closely with franchise attorneys to ensure our financial models meet all regulatory requirements.
