Test CAM before franchise expansion
Use past unit files to test new-site CAM assumptions.
Do not copy one site's costs into another model. Grade each match first.
The final memo should show each source and limit. Add the advisor's choice.
Keep CAM beside franchise checks
CAM diligence adds lease facts to expansion work.
It does not replace the franchise disclosure document. It also does not choose sites.
The FTC Franchise Rule requires 23 disclosure items. CAM review is a separate advisor service.
Keep both workstreams in the file. Name each owner.
Pick mature source units
Start with open units that have full files.
Each source unit should have these records:
- Signed lease
- Signed lease changes
- Current CAM statement
- Past CAM statement
- Available cost support
- Lease event notes
- Delivery proof
- Advisor review status
Do not use a budget as actual cost proof. Mark missing records by name.
Franchise.com places rent among unit profit costs. It also points to different FDD items for different inputs.
That split matters. Lease facts and franchise facts answer different questions.
Build the evidence table
Use one row for each source unit.
| Field | What to record |
|---|---|
| Unit | Site name and address |
| Market | City and trade area |
| Lease type | Signed lease structure |
| Base rent | Actual source amount |
| CAM definition | Included and excluded costs |
| CAM period | Actual statement year |
| Tax treatment | Lease and statement source |
| Insurance treatment | Lease and statement source |
| Utility method | Lease and bill source |
| Cost support | Present, missing, or open |
| Review rights | Exact lease text |
| Proposed input | Assumption this row may inform |
| Compare grade | One approved label |
| Reason | Short source-backed note |
This franchise CAM guide lists base rent. It lists CAM, tax, insurance, and yearly bills too.
Use those cost groups. Do not reuse its sample amounts or rates.
Grade each unit match
Give every row one grade.
| Grade | Meaning | Allowed use |
|---|---|---|
| Comparable | Core facts align | May inform a named input |
| Directional only | Some facts align, but one gap remains | State the gap beside the input |
| Not comparable | A key fact differs | Do not use the row |
No grade can prove a future cost.
Common stops include a different lease type. A very different market can stop use too.
A changed cost pool can also stop use. So can a missing statement.
Write the reason first
The grade needs a short reason.
Use this format:
Grade + matching facts + gap + allowed use
Example:
| Grade | Matching facts | Gap | Allowed use |
|---|---|---|---|
| Directional only | Lease type and unit use | Market and CAM year | Frame questions |
That note makes the model easier to review.
Separate facts from assumptions
Use two columns in the expansion model.
One column holds past source facts. The other holds new-site assumptions.
Do not turn a past fact into a forecast. Add a clear note.
BOMA's checklist treats new leases and renewals as distinct. That split can guide event review.
It is not a franchise forecast. It does not set new-site costs.
Walk a sample match
This expansion example is fictional. It does not show client results.
Pine Eats runs one mature unit. The firm is testing a second site.
| Field | Mature unit | Proposed site |
|---|---|---|
| Market | North district | West district |
| Lease type | NNN lease | NNN draft |
| CAM period | Full past year | No actual year |
| Support | Present | Landlord estimate |
| Grade | Directional only | Not yet set |
The lease type matches. The market and evidence period do not.
The past row can frame questions. It cannot set the new cost.
The advisor should seek local support. Counsel should review draft lease meaning.
Set three stop rules
Stop a match when the source cannot support it.
Stop for weak files
Do not grade a unit without its signed lease. Require its statement too.
Stop when key facts differ
Do not blend unlike markets or lease types. Mark the reason.
Stop for outside advice
Send legal meaning to counsel. Send tax advice to the right expert.
The advisor still owns the final model. The model should show each open question.
Build the client memo
Keep the memo short and reviewable.
Use these sections:
- Proposed site choice
- Source units used
- Unit match grades
- Supported model inputs
- Open source gaps
- Outside review needs
- Advisor next step
Avoid a broad claim about future cost. State what the past files can support.
Carry proof into diligence
Set new audit scope first. Use the audit offer guide before source work.
The portfolio CAM queue ranks mature unit files.
Pull current facts from the annual lease cost check. Then grade the unit match.
The franchise advisor pillar ties expansion proof to client work.
A mixed deal team may need another model. Map it in the Practice Growth hub.
Diligence may create a lease-year task. The franchise resource hub holds its tools.
Keep this work inside the advisor's site plan. The franchise consultant page shows that role.
Where CAMAudit fits
CAMAudit reads only the past unit files you supply.
Franchise advisors use those files to test expansion plans.
It can run fixed math and flag source-linked review items. It can build a branded CAM audit.
It does not pick a site or forecast future CAM.
A firm partner reviews and signs each past unit report.
Your firm owns the model and expansion memo.
A past-unit report may support a dispute letter draft. Your firm checks that draft.
It is not legal advice. Have counsel review before sending.
The service line guide keeps source review apart. Use it to set the expansion handoff.