multi unit franchise concept opportunities

22
Franchise Investment Wealth Strategy Multi-Unit Concept Management Concept www.francnsult.com

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At FranCnsult, our firm also specializes in Passive/Active business ownership of select proven franchises where our clients work on not in the businesses.

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Page 1: Multi Unit Franchise Concept Opportunities

Franchise Investment

Wealth Strategy

Multi-Unit Concept Management

Concept

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Page 2: Multi Unit Franchise Concept Opportunities

INVESTOR PROFILE

• Seeks above average ROI and Asset

Appreciation

• Prefers professionally managed passive

business opportunities

• Holds diversified portfolios

• Accredited Investors

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Page 3: Multi Unit Franchise Concept Opportunities

Franchise Acquisition Target:

Emerging Growth Company

Acquiring & Opening 5, 10, 15, or 20 Unit

Blocks

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Page 4: Multi Unit Franchise Concept Opportunities

Managed Concept Investment

$1M for 55% of a 3 Unit Block

$2M for 55% of a 6 Unit Block

$3M for 55% of a 6 Unit Block

• Investor 55% / Management Company 45%

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Page 5: Multi Unit Franchise Concept Opportunities

Stakeholder Payout

10% Interest Paid Annually on Invested Capital; then

• Proceeds Payout throughout Capital Investment Recovery

Investor 80% / Management Company 20%

• Proceeds Payout after recovery of Capital Investment

Investor 55% / Management Company 45%

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Page 6: Multi Unit Franchise Concept Opportunities

Buyout/Exit Strategy

• Investor has option, given 60 days written notice, to buyout Management Company anytime after the initial 24 months of operation for 1 times most recent 12 months of cumulative Revenue.

• Management Company anticipates divestiture and/or reinvestment between year 5 and year 7.

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Page 7: Multi Unit Franchise Concept Opportunities

BUSINESS STRATEGY

Open and operate a minimum block of 3 units within 180 days of Funding.

Fiduciary and Legal Oversight Provided

Management Provided

Turnkey including all HR functions

Legal and Accounting Functions Provided

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Page 8: Multi Unit Franchise Concept Opportunities

KEY OBJECTIVES

Passive/Active Ownership in USA based Emerging Growth Franchises

Leverage business strengths to positively impact the financial returns of the business.

Build equity through asset appreciation that can be realized upon exit from the business.

Look for Fragmented Markets to penetrate

Management and Oversight Provided

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Page 9: Multi Unit Franchise Concept Opportunities

KEY OBJECTIVES

Target Strong “Brand” Recognition

Proven “Beta Unit”

Validation of a 20-25% percent Achievable

Annual Net Operating Income Pre-Distribution

Targeted ROI of under 36 months

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Page 10: Multi Unit Franchise Concept Opportunities

Franchise Profile

• Low Cost, Turnkey

• Absentee Passive/Active Ownership

• Prime Territories Available

• Recession Resistant

• Brand Name Recognition

• Multiple Revenue Sources

• Low Overhead and Small Inventory to Maintain

• Strong training and post acquisition support

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Page 11: Multi Unit Franchise Concept Opportunities

Typical Investment Vehicle

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Page 12: Multi Unit Franchise Concept Opportunities

TARGET MARKET

• Highly Fragmented.

• Substantial opportunity for growth

• Multi-Billion Dollar Booming Industry

• In USA this is a $100+ Billion industry

• Industry Growth projected in the next 4 years

• Massive new public awareness

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Page 13: Multi Unit Franchise Concept Opportunities

MARKETING

• Complete Turnkey Marketing Strategy

• Gorilla Marketing Plan

• Market Ready Media Spots Radio &

TV

• Signage and Collateral Solutions

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Page 14: Multi Unit Franchise Concept Opportunities

NUMBER / SOURCE OF

EMPLOYEES

2 or 3 full time per unit + part time pool

Employee base grows with the business and

the number of new customers each year.

Readily available sourcing & training

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Page 15: Multi Unit Franchise Concept Opportunities

TRAINING/STARTUP

• 3-5 days Onsite at each Location • Operations Manual

• Site Selection / Real Estate Advice • Grand Opening

• Marketing Training • Client Management

• Recordkeeping / Reporting • POS System

• Hands On Recruiting/Hiring Assistance • Staffing

General Management and Reporting • Marketing

Page 16: Multi Unit Franchise Concept Opportunities

EXCEPTIONAL SUPPORT

• Detailed Operations Manuals • Telephone Support

• Weekly Telephone Conferences with Founder

• On Site Management & Site Support Visits

• Annual Conference Training

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Page 17: Multi Unit Franchise Concept Opportunities

TERRITORY / LOCATION

• Each Territory has a protected radius

• Average of 35,000-50,000 population

• Franchises are located in a “A or B” level strip center, plaza or office complex

• Upper Middle Class Neighborhoods

• Unit sizes 1,500 -2,000 square feet

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Page 18: Multi Unit Franchise Concept Opportunities

FRANCHISE FEE

Standard market = $75,000 per unit

Discounts for 5 unit block purchases.

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Page 19: Multi Unit Franchise Concept Opportunities

Entry Cost per Unit

• Franchise Fee $75,000

• Build out 80,000

• Fixtures and Equipment 80,000

• Marketing 40,000

• Initial Start-up and Operating Capital 50,000

Total Cost $325,000* *See Item 7 of Franchise Disclosure Document (FDD)

*Assumes single unit stand alone no management provided

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Page 20: Multi Unit Franchise Concept Opportunities

3 Unit Proposal

• Franchise Fee $195,000.00

• Build out 240,000.00

• Fixtures & Equipment 240,000.00

• Marketing 120,000.00

• Initial Start-up and Operating Capital 150,000.00

• Legal, Admin., Project Mgmt., Misc. 55,000.00

Total Cost $1,000,000.00 *See Item 7 of Franchise Disclosure Document (FDD)

Page 21: Multi Unit Franchise Concept Opportunities

6 Unit Proposal

• Franchise Fee $375,000.00

• Build out 480,000.00

• Fixtures & Equipment 480,000.00

• Marketing 250,000.00

• Initial Start-up and Operating Capital 300,000.00

• Legal, Admin., Project Mgmt., Misc. 100,000.00

Total Cost $2,000,000.00 *See Item 7 of Franchise Disclosure Document (FDD)

Page 22: Multi Unit Franchise Concept Opportunities

Alex H. Cunningham

Senior Consultant Office: 859-402-0729

Cell: 859-533-3841

Fax: 859-201-1105

[email protected]

http://www.linkedin.com/in/ahcunningham

Solving the Puzzle of Owning a Franchise

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