I am excited about pushing this new template out. My initial design was for the purpose of running analysis on fitness studio scaling, but it turned into a financial model that can be used for many types of retail sector franchises. With this tool, anyone can create highly useful projections for scaling 1 to 'n' studios over 15 years and see exactly what the capital requirements and returns are. One of the most advanced parts of the model is capex timing and leverage. Let's dive in below!
$45.00 USD
After purchase, the template will be immediately available to download. It is also included in the capacity models, the retail sector models bundle, SaaS / Subscription models bundle, capacity models bundle, industry-specific models bundle, and the Super Smart Bundle.
Template Features:
- Model up to 15 years (easily toggle how many months you would like to see (from 1 to 180).
- Scale an unlimited number of fitness studios over time in up to 36 deployment tranches.
- Produces a three-statement model (Income Statement, Balance Sheet, and Cash Flow Statement)
- Dynamic capex purchasing schedules / initial startup costs per studio, financing, and more.
- Includes dynamic investing and distribution inputs that sit below the project cash flows.
- DCF Analysis, Equity Multiple, and IRR calculations included.
- Visuals for key financial metrics and niche KPIs such as average gross profit per studio.
- Extremely intelligent and user-friendly cash flow planning.
- Easily adjust all cells in yellow with blue text and all output summaries automatically update.
- Fully unlocked and editable Excel template.
Revenue Configuration (the average studio):
- Define the assumptions of a general single studio operation based on...
- Maximum capacity.
- Capacity attained over the tenure of the studio.
- Member pricing (up to 3 tiers) and price per month per member.
- Define the expected annual price increase.
- Configure other income per member per month and the margin earned on that.
- Note, this section can also be configured for any general retail shop and instead of 'max members per studio' you can think of that input as the maximum monthly customers achieved over time. Then, simply using the pricing to define on average how much the average customer spends each month. There is also a section lower in the OPEX tab to define the average cost per customer per month. This is what unlocks the model to be useful for nearly any kind of franchise.
Studio Expansion:
- Configure up to 36 tranches of studios.
- Define the month # the lease is signed.
- Define the count of studio lease signings per month.
- Define the number of months on average between lease signing and opening (global).
- Define up to three primary CAPEX categories and two non-capex categories. There is a separate tab to enter detailed costs for each of these high-level categories, which rolls into the total.
- Define the percentage of CAPEX items that are financed with debt (via LTC) (loan-to-cost).
- Define the percentage of non-capex items that are financed with debt (loan-to-cost).
- Note, you can also define the pattern these initial cost items are paid relative to the lease signing month. For example, 20% paid in month 1, 80% paid in month 4 or what have you and that pattern applies dynamically to all tranches over the entire model projection.
- For each tranche, choose up to two leverage options (by electing Yes/No).
- 1) Master line of credit facility and 2) Term loan that applies to each tranche individually.
- For the master credit facility, the model lets the user define a % of the costs (LTC) up to a certain month # and during this time it is interest-only payments, then at a defined month #, the loan switches over to an amortization schedule. As new studios are launched after this first refinance event, there is a second master line of credit facility that works in the same way and has its own refinance event. The entire final loan balance that remains is paid off at exit if the user selects to display a terminal value. All this flows to the financial statements accordingly.
- If you select to use the term loan, it will be a separate amortization calculation for each tranche, but still uses a defined LTC percentage, has an interest-only period, and then converts to an amortization schedule.
- All assumptions are defined in a single spot for all debt options.
- There is an input for CAPEX reserve to account for future renewal of equipment or what have you as a fixed percentage of each CAPEX category.
I know there can be a lot of flexibility needed for capital expenditure and leverage usage so my goal with the above was to have the maximum amount of flexibility that made sense with the type of scale the model is built for.
To see how well operations support any debt service, I've also included a debt-service-coverage ratio.
OPEX:
- Contains your typical corporate overhead cost schedules.
- For direct studio costs, the user can define costs that start when the lease is signed as well as costs that start when the studio opens.
- Additional costs available to enter for each member type (cost per month per member).
- Contains a dynamic cost schedule that lets the user adjust the monthly cost over the tenure of the studio. This was built so one could account for different types of costs to be accounted for that don't necessarily start at opening but might be relevant as the studio gains popularity / capacity.
- To account for things like franchise fees, ad fees, and/or credit card processing fees, I have a section to enter multiple costs as a percentage of gross revenues.
- There is a separate tab to account for other staffing costs for full-time employees (FTEs) and on that the user can define the description, start month, count, and annual salary as well as payroll tax and benefit inputs.
Equity / Investments / Distributions:
- There are two input rows on the 'Monthly Detail' tab to define how much equity is injected into the project and how much distributions happen.
- Additionally, if not all the distributions have been entered, there is an automated formula that distributes any remaining cash available to investors on the defined exit month #.
- The user can manually enter the investments to ensure the cash balance stays above 0 and that there is a sufficient reserve based on all the assumptions.
- An Investor Summary tab will show the total returns and IRR for equity injections accordingly.
Visualization:
- There are 18 visualizations.
- Includes advanced KPIs such as average gross profit per studio per month and year.
- A great place to sanity check your assumptions by visualizing what you have projected.
Three Statement Model:
- Fully connected monthly and annual financial statements.
- Includes things like cash balance, depreciation, balances per the accounting equation, and a clear view of all cash flow activities.
- These statements (Income Statement, Balance Sheet, and Cash Flow Statement) are all connected to the assumptions and have sanity checks on them.
I would suggest playing with this model a bit to get used to all the levers. Try modeling out a very conservative scenario with a few studios just so you get used to how all the assumptions work, then you can really see the power of this scaling framework / architecture by ramping things up.
Similar Financial Models:
