Most franchise models look clean on paper.
Real ramp rarely does.
Independent, fixed-fee diligence that clarifies your true capital exposure before you commit.
​Move forward with confidence — or walk away with clarity.
✔ Verify you’re working from the right inputs (numbers you can defend)
✔ Understand the downside if ramp is slower or costs come in higher
✔ Get a clear, defensible recommendation before capital is committed
30-Minute Call. No pitch. If I'm not the right fit, I'll tell you.
Built for service-based franchise buyers committing meaningful capital.
What You Receive
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A disciplined diligence process that confirms the right inputs before analysis begins
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A structured Due Diligence Review: franchisor questions, franchisee validation plan (top / average / lower performers), and identification of information gaps that materially impact risk
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A conservative financial risk review (when warranted): base-case and downside scenarios built on defensible assumptions
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Clear visibility into break-even timing, cash burn, and total capital required—including cash-flow break-even after debt service
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A written summary of findings and a plain-language recommendation you can defend
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The goal isn’t complexity.
The goal is clarity.​​
Capital & Runway​
How much total cash is required to reach cash-flow break-even, including debt service — and whether your stated capital is actually enough to get there.
Ramp & Break-even​
What happens if revenue takes 30, 60, or 90 days longer than projected. Most models assume clean ramps. Real operations rarely deliver them.
Fees + Debt Load ​​​
How royalty fees, marketing fees, and loan payments stack against early-stage revenue — and whether the fixed cost structure is survivable during a slow start.
Where Capital Risk Usually Shows Up
Why Independent Analysis Matters
Many franchise buyers rely primarily on information provided by the franchisor or broker.
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That’s normal. But those parties are not economically neutral.
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Lenders have a different focus as well. Their job is to evaluate loan repayment — not long-term investment quality.
We are not affiliated with franchisors.
We do not earn commissions or referral fees.
We are not compensated based on whether you move forward.
Our role is simple: to evaluate risk using disciplined, conservative assumptions — and help you make a clear, defensible decision before capital is committed.​​
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The earlier risk is identified, the less expensive it is to correct.
Who This Is / Isn't For
Who This Is For
This advisory is for investors who:
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Are evaluating a significant capital commitment ($300K+).
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Want an independent second opinion before committing capital.
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Are using or considering SBA or debt financing.
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Prefer disciplined analysis over optimistic projections.
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View risk analysis as protection — not an expense.
Who This Is Not For
This may not be the right fit if you:
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Have already decided to move forward regardless
of what the numbers show.
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Are looking for validation rather than evaluation.
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Prefer best-case projections over realistic assumptions.
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Are seeking informal advice rather than a disciplined evaluation of the numbers.
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Are looking for ongoing operational consulting or franchise coaching.
How The Process Works
A disciplined, step-by-step review before capital is committed.
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Step 1 – Strategy Call (30 Minutes)
We start with a focused 30-minute conversation to understand the decision you’re evaluating and the capital at risk.
If independent analysis isn’t the right next step, we’ll say so.
No pressure. No obligation.
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Step 2 – Due Diligence Review (Information & Validation)
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Before building a model, we confirm you have the right information—and identify what’s missing.
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This step is designed to prevent decisions from being made on incomplete inputs or curated narratives.
We provide:​
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A structured franchisor question set (must-answer items + what “good” looks like)
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A franchisee validation plan (top, average, and lower-performing operators)
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Identification of information gaps, unsupported assumptions, and the specific questions needed to close them
This step often surfaces risks buyers didn’t realize were still unresolved.
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Step 3 – Financial Risk Review
This is where the numbers are pressure-tested.
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We evaluate the opportunity using conservative, real-world performance assumptions.
We do not rely on best-case projections.
We model:​
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A defensible base case
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A realistic downside case (slower ramp, tighter margins, higher labor, higher fixed costs, debt sensitivity)
We focus on decision-relevant downside—how the deal holds up under stress, not how upside is pitched.
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Step 4 – Final Recommendation
You receive a clear, plain-language recommendation:
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Proceed
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Proceed with Changes
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Do Not Proceed
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We explain the reasoning—including the assumptions that matter most—so the decision is disciplined and defensible.
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Step 5 – Decision Support (Optional)
Some clients choose limited follow-up support to apply the findings as they move toward a final decision.
This may include:​
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Preparing for lender or SBA conversations
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Translating the analysis for partners or family stakeholders
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Refining assumptions as new information becomes available
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Evaluating whether changes materially improve the risk profile
No retainers.
No ongoing advisory obligations.
The goal is not to justify a deal.
The goal is to reach the right decision with clarity.
Engagement Structure
Two fixed-fee services. No retainers. No commissions. Scope confirmed after the Strategy Call.
Service What You Get Fee
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Due Diligence Franchisor question set, franchisee validation plan, information Starting at $1,500
Review gap analysis
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Financial Risk Base case + downside model, break-even analysis, written Starting at $2,950
Review recommendation
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Most clients start with the Due Diligence Review. If the opportunity still merits deeper analysis, we proceed to the
Financial Risk Review.
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The cost of disciplined analysis is small compared to the cost of getting the decision wrong.
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About Scott Lyons
Scott Lyons
Founder
Franchise Capital Risk Advisory
I’ve spent 15+ years leading and scaling multi-unit, service-based franchise operations across multiple markets — both as a franchisee and in senior leadership roles with full P&L accountability and capital responsibility.
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I’ve reviewed real operating performance and built projections grounded in real-world execution. I understand how projections translate — and where they break — once doors open.
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Franchise Capital Risk Advisory exists for one purpose:
to evaluate capital risk before funds are committed.
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My approach reflects how disciplined operators and lenders assess risk:
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Conservative assumptions
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Focus on downside exposure
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Clear decision criteria
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Pressure-testing under realistic conditions
My role is simple: Evaluate risk objectively, protect capital, and help you make a disciplined, defensible decision.