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FEASIBILITY STUDY
A Feasibility Study is akin to a Business Plan.
1. Introduction
· Overview
· Objectives
· Business Strengths
· Executive Summary
2. Business Model
· Aims of the Franchise System
· Business Model Development
· Model, Roles and responsibility
· Site Selection, Lease negotiations and fitout
3. Business Structure
· Ownership
- Sole Trader
- Partnership
- Corporation
- Trust
4. Expansion Planning
· Customer profile
· Number of staff
· Location expansion
· Interstate
· Overseas
5. Franchisee Investment Requirements
· Initial Fee
· Acquisition costs
· Fitout and construction
· Capital
· Working capital
· Cash Flow
· Finance
6. Franchisee Profitability
· Royalty
· Advertising contribution
· Income estimates
· Cost of goods
7. Franchisee Return on Investment
· Projected annual revenue
· Nett Profit
· Investment requirement
8. Franchisor Source of Revenue
· Initial Franchise Fee
· Royalties
· Product supply
· Licensed supply
· Other source of revenue
- Advertising Levy / Marketing Fund
9. Franchisor Revenue Estimates
· Granting of Franchise
· Head Office costs
10. Advantages and Disadvantages of Franchising
· Advantages for Franchisor
· Disadvantages for Franchisor
· Advantages for Franchisee
· Disadvantages for Franchisee
11. Issues and Recommendations
· Existing and Future Operations
· Establishment of Pilot Store
· Intellectual Property
· Branding and Standards
· Human Resources
· Course of Action
· Critical Path
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