Krieger Analytics + Franchisors
We know franchising because we have been a franchisor since 2015. This industry boasts a distinctive financial landscape, where revenues and costs must be examined at multiple levels. Navigating this exceptional terrain demands not just knowledge, but an outsourced CFO with seasoned expertise.
In the world of franchising, success hinges on two pillars: the strategic moves of the franchisor and the thriving success of every franchisee. This is precisely where the role of a franchise fractional CFO shines bright – ensuring the franchisor’s triumph while fostering a vision that transcends to the franchisees.
Krieger Analytics has collaborated with franchises ranging from the the startup phase with single unit to the large systems with over 225 units. We’re intimately acquainted with the hurdles that franchises of all sizes face. As your dedicated franchise CFO, we grasp the pivotal significance of a robust franchise sales model, the power of unit-level metrics analysis, and the art of creating value at every tier.
KEY METRICS
System Wide Revenue
Franchisors must look through their numbers to the unit level economics. Understanding the financial landscape at the franchisee level is critical to success.
Royalties per Franchisee
Having a distribution graph of royalties by franchisee enables franchisors to identify where there are opportunities and how to best support franchisees.
Franchise Acquisition Costs
Profit in franchising is made from royalties, not sales of units. However, the costs associated with the sales cycle must be monitored to ensure the process is effective.
Average Unit Profit Margin
For a system to grow, their franchisees must be successful. By monitoring their profit, a franchisor can determine if more coaching is needed in different operating areas of the business.
