Financial Review Franchise Group Inc.
2014
2015
2016
2017
2018
1 Penetration defined as distribution revenue divided by system wide COGS
FRANCHISE
GROUP INC.
PSP has franchise-led growth amplified by robust capabilities
As PSP's franchise base grows, revenue and profitability grows beyond royalties.
and franchisee fees
1
•
•
•
($MM)
Captive distribution is a
strategic asset
Acts like an added royalty stream
while saving franchisees money
Increased penetration from ~65% in
2019 to ~90% by 20201
Opened two forward distribution
centers one in Q4 2020 and in Q1 2021
Distribution Revenue & EBITDA
23%
14'- PF20E
EBITDA CAGR
2
Compelling proprietary
brand offering
~8-10% higher margin than branded
products; drives customer loyalty
13% Private Label Sales Percentage
of Total System wide Sales 2020E
Private Label Sales & Penetration
3
Robust franchise pipeline
Accelerating franchise unit
•
openings with high buy-in rate of
existing franchisees
Franchise Stores Signed as of Jan. 2021
$154
$461
Long term
target of 25%
Existing New
■Conversions
$120
penetration
$104
13%
$377
11%
$78
11%
$339
$57
$300
$43
8%
7%
186
7
71
$249
6%
$211
$195
2015
$39
$32
$34
2016 2017 2018 2019 2020E
Incremental Margin
Enhancement (TTM June 2020)
108
$28
Franchise pipeline
$22
$15
+1,774 bps
64.9%
47.1%
$12
2019
2020E
Branded Products
Net Margin
Private Label
Net Margin
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