Franchise Operating Model (D2)
What the franchisor supplies, what the agreement extracts and how unit economics flow back as royalty and marketing levy.
Rendering…
Make it your own.
direction: down
franchisor: Franchisor {
brand: Brand and intellectual property
ops: Operations manual and standards
supply: Nominated supply chain
academy: Franchise academy
}
agreement: Franchise agreement {
fee: Initial fee 32k
royalty: Royalty 6 percent of net sales
marketing: Marketing levy 2 percent
term: 10 year term, 5 year renewal
}
franchisee: Franchisee {
site: Site selection and fit-out
staff: Local hiring and rota
pnl: Unit profit and loss
}
customer: Market {
guests: Guests
}
franchisor.brand -> agreement.term
franchisor.ops -> franchisee.site
franchisor.supply -> franchisee.site: nominated suppliers only
franchisor.academy -> franchisee.staff: 6 week certification
agreement.fee -> franchisor.brand
agreement.royalty -> franchisor.brand
agreement.marketing -> franchisor.brand
franchisee.pnl -> agreement.royalty: paid monthly on net sales
franchisee.site -> customer.guests
customer.guests -> franchisee.pnl: revenue
franchisor.ops -> franchisee.pnl: audit score gates renewal