multi unit franchise concept opportunities
DESCRIPTION
At FranCnsult, our firm also specializes in Passive/Active business ownership of select proven franchises where our clients work on not in the businesses.TRANSCRIPT
Franchise Investment
Wealth Strategy
Multi-Unit Concept Management
Concept
www.francnsult.com
INVESTOR PROFILE
• Seeks above average ROI and Asset
Appreciation
• Prefers professionally managed passive
business opportunities
• Holds diversified portfolios
• Accredited Investors
www.francnsult.com
Franchise Acquisition Target:
Emerging Growth Company
Acquiring & Opening 5, 10, 15, or 20 Unit
Blocks
www.francnsult.com
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%
www.francnsult.com
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%
www.francnsult.com
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.
www.francnsult.com
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
www.francnsult.com
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
www.francnsult.com
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
www.francnsult.com
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
www.francnsult.com
Typical Investment Vehicle
www.francnsult.com
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
www.francnsult.com
MARKETING
• Complete Turnkey Marketing Strategy
• Gorilla Marketing Plan
• Market Ready Media Spots Radio &
TV
• Signage and Collateral Solutions
www.francnsult.com
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
www.francnsult.com
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
EXCEPTIONAL SUPPORT
• Detailed Operations Manuals • Telephone Support
• Weekly Telephone Conferences with Founder
• On Site Management & Site Support Visits
• Annual Conference Training
www.francnsult.com
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
www.francnsult.com
FRANCHISE FEE
Standard market = $75,000 per unit
Discounts for 5 unit block purchases.
www.francnsult.com
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
www.francnsult.com
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)
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)
Alex H. Cunningham
Senior Consultant Office: 859-402-0729
Cell: 859-533-3841
Fax: 859-201-1105
http://www.linkedin.com/in/ahcunningham
Solving the Puzzle of Owning a Franchise
www.francnsult.com