Franchisor Licensing Financial Model

The Franchisor Licensing 10-Year Financial Model is a comprehensive Excel tool designed to help entrepreneurs and business owners analyze the financial viability of a franchisor business.

• This model provides a detailed framework for projecting revenues based on franchise fees, royalties, and ad fees across up to three different location types.
• It also manages comprehensive expense tracking, including onboarding costs, running costs, operating expenses, and startup costs.
• The model includes full 3-statement financial modeling (income statement, balance sheet, cash flow statement), cap table management for investment summaries, and exit valuation based on sales multiples.

Key Features:

Detailed Revenue Projections:

• Models revenue from franchise fees, royalties, and ad fees across three location types.
• Allows for customizable rollout assumptions, franchisee revenue growth, and retention rates.
• Calculates revenue based on the number of locations, fees, and franchisee performance.

Comprehensive Expense Modeling:

• Models onboarding costs and ongoing running costs per location.
• Tracks operating expenses, startup costs, and variable costs related to revenue.
• Models capital expenditures with depreciation schedules.
• Debt schedule.

3-Statement Financial Reporting:

• Generates monthly and annual income statements, balance sheets, and cash flow statements.
• Accurately reflects the impact of revenue streams, expenses, and financing activities.

Performance Analysis:

• Calculates internal rate of return (IRR) and net present value (NPV) for the project.
• Provides detailed distribution analysis and executive summary.
• Calculates average break-even months per location and other key metrics.

Cap Table Management:

• Models equity contributions from investors and owners, with customizable ownership percentages.
• Joint venture capabilities.

Exit Valuation:

• Allows users to define an exit month and exit multiple based on sales.
• Allows for specifying how much of the exit value is assigned to fixed assets.

Visualizations:

Generates charts illustrating revenue, expenses, break-even analysis, location growth, and other key metrics.

Robust Validation:

Checks to ensure the model is working correctly.

Functionality:

• Users input data related to franchise fees, location growth, costs, and financing.
• The model automatically generates financial statements, calculates performance metrics, and projects cash flows.
• Users can analyze various scenarios and make informed decisions based on the model’s outputs.

Benefits:

• Provides a detailed and user-friendly tool for forecasting franchisor financials.
• Enables users to evaluate various operational and financial scenarios.
• Facilitates informed decision-making through comprehensive financial reporting and analysis.
• Helps to correctly project cash flow needs, and investor returns.

This model is an invaluable resource for entrepreneurs and business owners seeking to analyze and optimize the financial performance of their franchisor business.