Step1: Free Initial 2-Hour Consultation
How Profitable is Your Franchise System?
Franchise Growth Partners measures our success by the overall operational performance and increased profitability of our franchisor clients. Your financial health is a reflection of a well-drafted, strategic plan, which clearly outlines the growth of your franchise system, as well as, financial stability and increasing profits. “Failing to plan is planning to fail.”
FGP/Franchisor: Financial Goal
For each $1.00 of annual revenue you generate as a franchisor, through franchise fees, royalty, distribution and other income, we together strive to achieve an owner’s discretionary income of 30% or $0.30, (including your CEO salary). Partnering with FGP, this high performance can be achieved, through a mutual analysis of your franchise organization. We will ensure that you acquire a “financial and operational” understanding of each aspect of your franchise system and recommend the re-design of business systems and processes to maximize profitability.
Annual Revenue (Franchise Fees, Royalty, Distribution, Other Income)
Revenue Growth Net-Operating Income Owners’ Discretionary Income
$1,000,000.00 x $.30 $300,000.00
$1,500,000.00 x $.30 $450,000.00
$2,500,000.00 x $.30 $600,000.00
$3,000,000.00 x $.30 $900,000.00
NOTE: This earnings performance is NOT achieved on how many franchises you sell, but rather on how efficient your franchise development system has been developed from its inception.
CEO Questions To Answer
As CEO of a small to medium franchisor, with less than 100 franchisees, you have the opportunity to answer three important questions before it is too late…. getting it right the first time!
- I can “grow rapidly”, sell 40 franchises this year, generate $3 million in revenue, and earn $50,000 in owner’s discretionary income. This is a plan of speed to market, excessive activity, without financial efficiency.
- I can focus on “conservative growth”, sell 15 franchises this year, generate $1 million in revenue, and earn $300,000 in owner’s discretionary income. This is a plan of slow growth, focused activity, with financial efficiency.
- I can enjoy “controlled growth”, sell 20 franchises this year, generate $2 million in revenue, and earn $600,000 in owner’s discretionary income. This is a plan of moderate speed to market, focused activity, and highly-efficient financially.
Conclusion
Seventy percent of all franchisors in the United States operate small family-owned to medium-sized franchise companies with less than 100 franchised units. FGP consults with clients in this early stage of their development to ensure a focus on growth, financial stability and profit performance. During this entrepreneurial stage, we partner with you to grow and transform your Leadership, Management, Working Capital and Concept Development.
Your 2-Hour Free Consultation will include an in-depth discussion regarding your current franchise organization. Take your first step toward achieving greater profitability!
Call 1-800-471-1682 or email us TODAY!
