P3 Cost Analysts logo

P3 Cost Analysts Franchise

Audited Financials
Professional ServicesEst. 2018Fayetteville, AR
www.costanalysts.com

Risk Score

Pending analysis

Investment Range

$67,075 - $82,675

Franchise Fee

$54,500

Min Cash Required

$4,500

Total US Locations

46

Business Summary

P3 Cost Analysts Franchise offers individuals the opportunity to operate their own cost reduction consulting business. Franchisees meet with prospective business clients to educate them on potential savings and collect their vendor invoices. P3 Cost Analysts' auditing staff then analyzes these invoices to identify errors, overcharges, and opportunities for cost reduction. If savings are found and approved by the client, P3 Cost Analysts will bill the client for a share of the savings and then remit the revenues to the franchisee, after deducting audit and administrative service fees. If no savings are identified, the client owes no fee, making the engagement risk-free for the client.

Corporate History

P3 Cost Analysts Franchise, LLC was formed as an Arkansas limited liability company on September 9, 2018, and began offering its cost reduction consulting franchises on December 7, 2018. The company operates under the trade names P3 Cost Analysts and P3 Waste Consulting. Its parent company, Old Arkana, Inc., also does business as P3 Waste Consulting and offers similar cost reduction consulting services. Prior to establishing the franchise program, Old Arkana, Inc. maintained a small network of independent salespeople called "affiliates," but since the launch of the franchise program, P3 Cost Analysts Franchise has focused solely on selling and supporting new franchisees.

Financial Overview

Investment Range

$67,075 - $82,675

Franchise Fee (Low)

$54,500

Franchise Fee (High)

$59,500

Minimum Cash Required

$4,500

Royalty %

60%

Equipment Costs (Low)

$400

Equipment Costs (High)

$2,600

Working Capital

$6,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

P3 Cost Analysts Franchise appears to be in good financial health, showing positive working capital, consistent net income, and positive cash flow from operations for the years ending December 31, 2024, 2023, and 2022. The independent auditors did not express substantial doubt about the company's ability to continue as a going concern.

Financing Details

P3 Cost Analysts Franchise does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any loans, leases, or other obligations for franchisees.

Performance Metrics

Total US Locations

46

Franchised Units

45

Corporate Units

1

Franchising Since

2018

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

P3 Cost Analysts Franchisees can renew their agreement for two additional five-year terms if they meet certain conditions. These include providing written notice of their intent to renew 6 to 12 months before the current term ends. Franchisees must be in good standing, meaning they have no defaults under the agreement or any other agreements with P3 Cost Analysts Franchise or its affiliates, and have satisfied all monetary obligations. They must also complete any ongoing training P3 Cost Analysts Franchise requires, pay a successor fee of $2,500, and sign a general release of claims against P3 Cost Analysts Franchise. Finally, their business operations must be in full compliance with the System.

Training & Support Program

Franchisor Assistance

P3 Cost Analysts Franchise provides pre-opening assistance by furnishing written specifications for business operation and management, designating initial inventory including required computer software, and lending the Operating Manual. A mandatory three-week virtual Initial Training Program is provided, covering client targeting, sales, understanding the business model, data collection, and software use. Ongoing support includes general advisory assistance and field support, updates to the Operating Manual, and periodic inspections and evaluations of the franchised business. Franchisees also receive up to five days of ongoing training and meetings annually, which can be virtual or at designated locations, and may attend annual conventions and conference calls.

Initial Training Hours

120

Training Location

Virtual or at a Designated Location

Ongoing Support

P3 Cost Analysts Franchise provides ongoing support through general advisory assistance and field support, updates to the Operating Manual, and periodic inspections and evaluations of the franchised business and its operations. Franchisees receive up to five days of ongoing training and meetings per year, which may be at designated locations or through virtual classes. The franchisor may also host annual conventions and conference calls that include education and training.

Franchise Requirements

Ideal Candidate Profile

P3 Cost Analysts Franchise generally seeks franchisees who will operate their business on a full-time basis, though exceptions can be made for existing business owners who demonstrate the ability to effectively manage both ventures or for individuals with a significant professional network and executive connections that align with potential P3 Cost Analysts clients. If the franchisee is an entity, the designated Operating Principal must be approved by the franchisor, devote their best efforts to the business, have full authority over operational decisions, and must not have interests in competing businesses.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Hybrid

Owner Participation

Hands-On

Territory Type

Limited

Territory Size Requirements

P3 Cost Analysts Franchise defines each territory as a "Geographic District" which is comprised of approximately 200,000 people. These districts are defined by zip codes and are based on a particular area surrounding or near the franchisee's approved office location.

Staffing Notes

P3 Cost Analysts Franchise gives franchisees sole discretion over hiring employees and makes them entirely responsible for all employment decisions, including hiring, firing, compensation, and supervision, in compliance with all relevant laws. Franchisees are responsible for establishing their own employment policies and should consult local legal counsel. Managers and any staff with access to confidential information must sign confidentiality and non-compete agreements.