Franchise Industry Research and Analysis Summary
What is the current national state and economic outlook for the franchise industry.
Findings:
- The franchise model is represented almost entirely in non-professional markets, and has not effectively penetrated professional fields like medical care, accounting and others.
- The Franchise industry is large enough to attract Fund investment.
- The franchise ownership model does not create meaningful differences in profitability as compared to privately owned businesses.
- It appears that whatever competitive advantage and profitability may be gained through efficiencies in opening a franchise is taken by the franchise owner as profit.
Questions:
- What is keeping professional white collar markets from getting into the Franchise Indusrty?
Franchise Licensing
- What are the common revenue sharing models for franchises?
- What are the barriers of entry for potential Franchise Buyers?
- What are the qualifications for SBA loans?
- What are the traditional financing terms and amounts?
- What is the Traditional Franchise package for sale from franchise owner to franchisee?
Regulatory Environment and Government Oversight
- What are the regulations that specifically address Franchise Owners?
- What is the Franchise Filing package?
- What is the Franchise licensing process across all 50 states?
Fund Research
- Are their any existing funds that focus on Franchise development and deployment?
- What are the national standards for ROI for investment funds?
Fund Modeling
- Build business model for $10M deployment based on the following data:
- Average deployment of funds for creation of Franchise
- Estimate rollout of sales based on assumptions
- Estimate licensing income based on Franchise Ownership income models
- Estimate ROI for fund based on one company and then scale model for $10M deployment
