Skill: Evaluate Franchise Opportunity
Domain
retail
Description
Evaluates franchise investment opportunities analyzing unit economics, territory potential, and franchisor track record for investment decisions.
Tags
franchise, investment, retail, due-diligence, unit-economics
Use Cases
- •Franchise investment analysis
- •Territory evaluation
- •Unit economics modeling
- •Franchisor assessment
Proprietary Business Rules
Rule 1: Unit Economics Validation
Analysis of per-unit profitability and payback period.
Rule 2: Territory Potential Assessment
Market size and competitive density evaluation.
Rule 3: Franchisor Track Record
Historical performance and franchisee satisfaction analysis.
Rule 4: Investment Return Modeling
IRR and cash-on-cash return projections.
Input Parameters
- •
opportunity_id(string): Opportunity identifier - •
franchise_info(dict): Franchise concept details - •
territory_data(dict): Market demographics - •
investment_terms(dict): Investment requirements - •
unit_financials(dict): Unit-level economics - •
franchisor_data(dict): Franchisor information
Output
- •
investment_score(float): Overall opportunity rating - •
unit_economics(dict): Per-unit financial analysis - •
territory_assessment(dict): Market evaluation - •
return_projections(dict): Financial return estimates - •
risk_factors(list): Investment risks identified
Implementation
The evaluation logic is implemented in franchise_evaluator.py and references data from CSV files:
- •
category_benchmarks.csv- Reference data - •
market_factors.csv- Reference data - •
franchisor_standards.csv- Reference data - •
projection_params.csv- Reference data - •
evaluation_weights.csv- Reference data - •
investment_thresholds.csv- Reference data - •
royalty_benchmarks.csv- Reference data - •
parameters.csv- Reference data.
Usage Example
python
from franchise_evaluator import evaluate_franchise
result = evaluate_franchise(
opportunity_id="FRN-001",
franchise_info={"brand": "FastServe", "category": "QSR", "units_nationwide": 500},
territory_data={"population": 150000, "median_income": 65000, "competitors": 3},
investment_terms={"franchise_fee": 45000, "buildout": 350000, "royalty_pct": 0.06},
unit_financials={"avg_revenue": 1200000, "avg_ebitda_margin": 0.15},
franchisor_data={"years_franchising": 15, "franchisee_satisfaction": 85}
)
print(f"Investment Score: {result['investment_score']}")
Test Execution
python
from franchise_evaluator import evaluate_franchise
result = evaluate_franchise(
opportunity_id=input_data.get('opportunity_id'),
franchise_info=input_data.get('franchise_info', {}),
territory_data=input_data.get('territory_data', {}),
investment_terms=input_data.get('investment_terms', {}),
unit_financials=input_data.get('unit_financials', {}),
franchisor_data=input_data.get('franchisor_data', {})
)