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:
An initial template is set up to the Franchisor's requirements and then New Ink Consulting works with candidates to research location-specific data and complete the financials based on research insights. Introductions to financial institutions are provided and advice on necessary documents for the loan application.
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.
An initial template is set up to the Franchisor's requirements and then New Ink Consulting works with candidates to research location-specific data and complete the financials based on research insights. Introductions to financial institutions are provided and advice on necessary documents for the loan application.