STUDIO NOIR · Franchisor Economics
Phase 1: not applicable.
Phase 3+ product. Full P&L rebuilt in 2032 as Phase 3 franchise launches.
Phase 3 franchisor economics (rough model)
Revenue sources per franchisee
- Franchise fee at signing: $40K-$75K per franchisee (one-time)
- Royalty stream: 6-8% of franchisee monthly revenue, ongoing
- National marketing fund: 2-3% of franchisee revenue, flows to fund for brand marketing (spent, not net revenue)
Per-franchisee lifetime value (rough)
Assume a franchisee at Phase 3 operates at similar economics to STUDIO NOIR Phase 2 flagship: ~$3.5M annual revenue.
- Signing fee: $60K (one-time)
- Royalty stream at 7%: $245K/year in perpetuity
- Marketing fund at 2.5%: $87K/year (spent, not to us)
Per-franchisee LTV over 10 years at $245K/year = $2.45M in cumulative royalty stream + $60K signing = $2.51M per franchisee LTV.
Phase 3 franchisor revenue trajectory
| Year | Franchised units live | Signing fees (new) | Cumulative royalty | Total franchisor revenue |
|---|---|---|---|---|
| 2033 | 1 | $60K | $75K (partial year) | $135K |
| 2034 | 3 | $120K | $525K | $645K |
| 2035 | 5 | $120K | $1.05M | $1.17M |
| 2036 | 8 | $180K | $1.7M | $1.88M |
| 2037 | 12 | $240K | $2.5M | $2.74M |
| 2038 | 18 | $360K | $3.7M | $4.06M |
Plus Raleigh flagship revenue (~$3.5M-$5M/year at Phase 2 maturity).
Combined franchisor + flagship revenue by 2038: roughly $7.5M-$9M annual, with strong margins on the royalty stream (60-70%+ margin because franchisor infrastructure cost is largely fixed).
Phase 3 franchisor cost structure
- VP Franchise Development: $200K/yr comp
- Director of Brand Standards: $150K/yr
- Franchise Operations Director: $130K/yr
- Franchise Marketing Lead: $110K/yr
- Legal + Compliance Lead: $130K/yr
- Site Selection Lead: $110K/yr
- Training Academy Lead (optional): $110K/yr
Total franchisor overhead at maturity: ~$1M/year in comp + benefits.
At 12 franchised units + Raleigh flagship (Year 2037), franchisor revenue = $2.74M, franchisor overhead = $1M, franchisor profit = ~$1.7M/year.
Plus Raleigh flagship EBITDA.
Combined enterprise value at Phase 3 maturity (2038+): rough estimate $30M-$75M (combined 6x-10x multiple on combined EBITDA + strategic premium for the franchise system as a category-defining brand).
Full Phase 3 franchisor economics rebuilt in 2032 by fractional CFO + franchise counsel.