The situation: The company owner had been a franchisee of this frozen yogurt brand for 10 years before we came. They developed it into 20 stores, but the sales revenues of those stores were not as good as the owner expected; some stores even made losses. Before being this brand’s franchisee, they had 18 years of experience in managing and developing two Food & Beverage chains, Sizzler Steak and Burger King as a franchisee.
The owner was near retirement age and wanted to sell these 20 stores to get money back for his retirement plan. We deemed the price he wanted to sell the company not feasible, and that he could only sell at one-third of the price. Therefore, they entered a service agreement with Augustone to assess their business operation and implement a restructuring plan.
Scopes of work we’ve done:
- Store location review: Re-evaluate store locations to determine if they are still a good fit for the product segment to generate stable revenue.
- Revenue model assessment that includes:
– Review current revenue streams and propose solutions to increase these revenue streams.
– Identify potential new revenue streams from existing business (support negotiating with the brand owner to get their permission to allow the company to sell more products from other brands (no conflict of interest) in current locations).
– Develop loyalty programs with institutional clients to strengthen B2B sales plans.
- Selling strategies assessment, including a marketing plan
- Support Building a Brand Development and Management Team
- Support Building a Financial Process and Centralized Financial Control at the company to ensure transparency with financial investors and shareholders, which would thereby build a business plan aligned with the direction of finding investors to divest and supporting them in opening more stores.
- Potential investor/lender identification and capital raising assistance
The result: After six months, with Augustone’s support, the owner sold their chain of 20 stores for 30% more than what they expected.