Services for New Franchisors
New Ink Consulting works with up and coming franchisors to develop feasibility studies to assess the market viability of their concept as a franchise. Services include; franchisor business models, territory assessment, and creating an actionable punch list of items that need to be done to become a franchise system.
Typical topics:
Assessing Territory Delineation, Location Potential and Business Model
Deliverables include:
Bank-ready Business Models for Franchisees
New Ink Consulting creates bank-ready business plans for franchise candidates. To avoid Arthur Wishart issues, the franchisor is not asked about any forward-looking information. Where available, New Ink Consulting interviews existing franchisees to better understand the cost structure and validate the modeling based on real-world numbers.
The plans have two components:
New Ink Consulting works with up and coming franchisors to develop feasibility studies to assess the market viability of their concept as a franchise. Services include; franchisor business models, territory assessment, and creating an actionable punch list of items that need to be done to become a franchise system.
Typical topics:
- What model will allow franchisees to create sustainable revenue streams?
- What are the start-up expenses and projections for the franchisor?
- What needs to be prepared and in what order?
Assessing Territory Delineation, Location Potential and Business Model
Deliverables include:
- Five year projections for franchisor, including start-up costs, revenue flows and how many franchise units it will take to break even
- Overview of industry metrics for the territory (revenue growth, number of establishments, spend per capita, etc.)
- Examine territory’s demographics, business drivers and traffic sources, future development and competitive environment
- Implications to business given the area’s trends and economic factors
- Recommendations for square footage and rent to achieve margin targets
- Outline potential revenue per unit
- Given research above, map out territories for optimal franchisor returns
Bank-ready Business Models for Franchisees
New Ink Consulting creates bank-ready business plans for franchise candidates. To avoid Arthur Wishart issues, the franchisor is not asked about any forward-looking information. Where available, New Ink Consulting interviews existing franchisees to better understand the cost structure and validate the modeling based on real-world numbers.
The plans have two components:
- A written portion that illustrates the opportunity by analysing industry metrics, consumer behaviour, and competitive players.
- A 5-year financial pro forma template including cash flow, income statement, opening balance sheet, loan schedule and depreciation table.
