model business plan franchise

Sample Business Plans
Retail, Consumers & E-commerce

Franchise Business Plan

You’ve finally decided to own a franchise business. Excellent. Entering a marketplace full of competitors and big industry names might seem overwhelming. However, a well-crafted business plan can provide a roadmap to success.

Are you looking to start writing a business plan for your franchise business? Creating a business plan is essential to starting, growing, and securing funding for your business. So we have prepared a franchise business plan template to help you start writing yours.

Free Business Plan Template

Download our free franchise business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

Fill in the blanks – Outline
Financial Tables

How to Write a Franchise Business plan?

Writing a franchise business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction: Your executive summary should explain why you want to start a franchise business. It should also explain which franchise brand you’re pursuing and what it does. Give a brief overview of how your business will be different.
Market opportunity: Describe the target market in brief, and explain the demographics, geographic location, and psychographic attributes of your customer. Explain how your franchise business meets its needs. Clearly describe the market that your business will serve.
Mention your product or services: briefly describe what products or services a customer can expect from your business, depending on your industry and franchise type.
Management team: Name all the key members of your management team with their duties, responsibilities, and qualifications.
Financial highlights: Provide a summary of your financial projections for the business’s initial years of operation. Include any capital or investment requirements, startup costs, projected revenues, and profits.
Call to action: After giving a brief about your business plan, end your summary with a call to action, inviting potential investors or readers to the next meeting if they are interested in your business.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

Depending on your business’s details, you’ll need different elements in your business overview. Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

Product distribution franchise: This franchise model involves the franchisor providing products and franchisees selling them to consumers. Product distribution franchisees must follow a few guidelines and pay a fee for using trademarks and trademark names.
Management franchise: Franchisee owners manage the day-to-day operations of management franchises. Franchisees operate independently from the franchisor.
Business format franchise: Franchisor gives the rights to use the trademarks and trade name to franchisees, but they are heavily involved in how the business operates and provides the service to consumers.
Company structure of your business , whether it is a sole proprietorship, partnership or something else.
Location of your business and why you selected that place.
Ownership: Describe the owners of your franchisee and mention their roles in running it. Who owns what shares in the business, and how each owner helps in the business?
Mission statement: Include a mission statement that aligns with the franchisor’s statement while highlighting your values and goals.
Business history: Include an outline of your franchise business’s history and how it came to be in its current position. If you can, add some personality and intriguing details, especially if you got any achievements or recognitions till now for your incredible services.
Future goals: It’s crucial to convey your aspirations and your vision. Include the vision of where you see your franchisee in the near future.

This section should provide an in-depth understanding of your business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market your business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market: Identify your target market and define your ideal customer. Know more about your ideal customer and the products or services they prefer. For instance, an ideal customer may prefer rapid food delivery from a fast food franchisee or unique designs and the latest clothing collection from a clothing brand.
Market size and growth potential: Provide an overview of the industry. It will include market size, trends, growth potential, and regulatory considerations. Highlight the competitive edge and how your business is different from the rest.
Competitive analysis: Identify and analyze the local market, including direct and indirect competitors. Evaluate their strengths and weaknesses, and explain how your business can offer qualitative services.
Market trends: Analyze current and emerging trends in your industry, such as technological changes or customer preferences. Explain how your business will cope with all the trends. For example, people are shifting towards online food ordering, so explain how you plan on dealing with this as a fast food franchisee.
Regulatory environment: Describe any regulations or licensing requirements that affect your business depending on your industry.

Some additional tips for writing the market analysis section of your business plan:

Use various sources to gather data, including industry reports, market research studies, and surveys.
Be specific and provide detailed information wherever possible.
Include charts and graphs to help illustrate your key points.
Keep your target audience in mind while writing the business plan.

4. Products And Services

The product and services section of a franchise business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

Create a list of the products or services your franchisee will offer. For example, if you own a fast-food franchise, you may include a menu description, pricing strategy, and specific services like takeaway, home delivery, drive-through facility, etc.
Describe each service: Provide a detailed description of what it entails, the time required, and the qualifications of the professionals who will provide it. For example, a Visual Merchandiser is responsible for creating attractive and effective displays in a clothing franchisee.
Emphasize safety and quality: In all descriptions of services and products, emphasize the importance of safety and quality. Explain how your franchisee will ensure consumer safety and quality depending on your business.

Overall, a business plan’s product and services section should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Develop your unique selling proposition (USP): Clearly define your unique selling propositions; which can be competitive pricing, extraordinary ambiance, brand recognition, etc.
Marketing strategies: Develop a marketing strategy that includes a mix of online and offline marketing tactics. Consider social media, email marketing, content marketing, brochures, print marketing, and local events.
Sales strategies: Mention your sales strategy as in – offering discounts, utilizing online delivery, planning royalty programs, partnering with local businesses, etc.
Customer retention: Describe how your business will retain customers and build loyalty, such as through loyalty programs, special events, or personalized service. Verify if these offers align with franchise policies to avoid future conflicts.

Overall, your business plan’s sales and marketing strategies section should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

Hiring plan: Tell the staffing requirements of your business, including the number of employees needed, their qualifications, and the duties they will perform. Also, mention the perks you will provide to your employees.
Operational process: As you are owning a franchisee, you should follow the standard operation procedure (SOP) set by your franchisor.
For example, McDonald’s has strict SOPs covering everything, including strict procedures for cooking, assembling, and packaging food, handling customers, and maintaining a clean environment.
Equipment & Technology: Describe the types of equipment that will be used in your daily operations, for example. If you own a fast-food franchisee you may require cold storage, a microwave, a refrigerator, etc.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the operations. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers: Describe your management team’s key members, roles, and responsibilities. It should include the owners, senior management, and people involved in the business operations, including their education, professional background, and any relevant experience in the industry.
Organizational structure: Describe the organizational structure of the management team, including reporting lines and how decisions will be made.
Compensation plan: Describe your compensation plan for the management team and staff, including salaries, bonuses, and other benefits.
Board of advisors: If you have a board of advisors for your business, then mention them along with their roles and experience.

Describe your franchisee’s key personnel and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement: Create a projected profit & loss statement that describes the expected revenue, cost of products sold, and operational costs. Your business’s anticipated net profit or loss should be computed and included.
Cash flow statement: Estimate your cash inflows and outflows for the first few years of operation. It should include cash receipts from clients, vendor payments, loan payments, and any other cash inflows and outflows.
Balance sheet: Prepare a projected balance sheet, which shows the business’s assets, liabilities, and equity.
Break-even point: Determine the point at which your franchise business will break even or generate enough revenue to cover its operating costs. This will help you understand how much revenue you need to generate to make a profit.
Financing needs: Estimate how much financing you will need to start and operate your business. It should include short-term and long-term financing needs, such as business loans.

Remember to be realistic with your financial projections and provide supporting evidence for your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

Include a table of contents for the appendix section to make it easy for readers to find specific information.
Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
Provide market research data, such as statistics on the size of the industry, consumer demographics, and trends in the industry.
Include any legal documents such as permits, licenses, and contracts.
Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your franchise business should only include relevant and essential information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This franchise business plan sample will provide an idea for writing a successful franchise plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready franchise business plan to impress your audience, download our franchise business plan pdf .

Wholesale Business Plan

Car Dealership Business Plan

400+ Business Plans Template Example

Best AI Tools for Small Businesses

Decide Effective Business Location for Business

Pricing Strategies to Attract Customers

Frequently asked questions, why do you need a franchise business plan.

A business plan is an essential tool for anyone looking to start or run a successful franchise company. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your franchise business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your franchise business.

How to get funding for your franchise business?

There are several ways to get funding for your franchise business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are:

Bank loan – You may apply for a loan in government or private banks.
Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
Angel investors – Getting funds from angel investors is one of the most sought options for startups.
Small business grants – there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your franchise business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your franchise business plan and outline your vision as you have in your mind.

What is the easiest way to write your franchise business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any franchise business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Turn your business idea into a solid business plan

Explore Plan Builder

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

400+ Business plan templates & examples
AI Assistance & step by step guidance
4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Starting a Business
Growing a Business
Small Business Guide
Business News
Science & Technology
Money & Finance
For Subscribers
Write for Entrepreneur
Tips White Papers
Entrepreneur Store
United States
Asia Pacific
Middle East
United Kingdom
South Africa

How to Write a Business Plan for Your Franchise This vital step can make the difference between success or failure in the franchise world.

By Clarissa Buch Zilberman Edited by Carl Stoffers May 8, 2023

You're set on becoming a franchisee . You may think it's time to call a franchisor, tell them you're interested, and get funding from your local bank , right? Wrong.

If you're considering buying a franchise, you'll need to write a thorough business plan before moving forward.

A business plan is a detailed document that describes how your business will achieve its goals. Consider it an essential tool for any business owner — including franchisees!

Sound daunting? It can be. But it's a crucial and necessary step in starting your own business. Plus, becoming a franchisee means that the franchisor will provide some of the strategies, plans and overall business information , with some minor tweaks for your specific market.

Here's how to get started.

Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

Start with comprehensive research

Before you can begin writing your franchise business plan, you need to gather information about your franchise business . Research the industry, market trends and competitors in the area. You should utilize a SWOT (strengths, weaknesses, opportunities, and threats) analysis of the business, as well.

Next, research the franchisor's history, vision, mission and values . This will help you understand the franchisor's expectations and see if your goals align with the brand. You may have already done a lot of this research when narrowing down your franchise choices .

Related: The 4 Biggest Myths About Franchising

Define your business concept and target market

Your business concept should include details about your product or service , pricing strategy, location, unique selling proposition and market advantages.

Much of this information will be supplied by your franchisor. However, make sure to tweak it correctly for your specific location and audience .

Develop a financial plan

A financial outline is a critical component of your franchise business plan. It should include details about your startup costs, ongoing expenses , revenue projections and profitability.

You should also share cash flow, balance sheets and income statements here. With these documents, you can readily identify any gaps in your business and develop strategies to address them.

Related: 10 Tips to Go From Employee to Boss, From Franchisees Who Did It

Outline your marketing and sales strategy

You may get a headstart from your franchisor on the marketing and sales strategy . This is where you'll want to include more information about your target audience, marketing channels and tactics to promote your business.

From a sales strategy perspective , include your pricing strategy, sales team structure and sales targets that are tailored to your area.

Develop an operations plan

Your operations plan should include details about your day-to-day work, staffing requirements and supplier relationships. You should also outline any technology and equipment needs, inventory management and quality control procedures , some of which your franchisor may dictate.

Create a management team and personnel plan

Your management team and personnel plan should detail the leadership structure of your business, each team member's role and responsibility and the qualifications and experience needed for each position.

You should also outline a staffing plan , which will include your recruitment strategy, employee benefits and training and development programs.

Create an executive summary

An executive summary is literally a summary of your business plan that will provide all the necessary information to someone who only has a few moments to review your business plan. It should summarize the key points of your franchise business plan and research.

Get started by outlining your business plan

A franchise business plan, at the minimum, should include the following sections :

Executive Summary: This section provides a brief overview of your business, your mission statement, goals and target market.
Company Description: This section includes more information about your business, such as what you do or sell, your company history and your management team.
Market Analysis: This section analyzes the market for your products or services, including your target market, competition and competitive advantage.
Operations Plan: This section describes how your business will operate, including your location, your marketing and sales strategies and management and staffing plan.
Financial Plan: This section projects your business's financial performance, meaning your revenue, expenses and profit.
Appendix: This section includes supporting documents, such as financial statements, marketing materials and legal documents.

A business plan will help you succeed

Writing a franchise business plan is a critical step in becoming a successful franchisee . It requires comprehensive research, a well-defined business concept, a solid financial plan, a strong marketing and sales strategy, a detailed operations plan and a competent management team.

Remember: It's a living document, so be sure to update it regularly as your business grows and changes. This will ensure that your plan always reflects the current state of your business.

Tackle a business plan logically and seek help from an expert or your franchisor, as necessary. Then you're off to get your loan, finish your applications and open your doors !

Related: Is Franchising Right For You? Ask Yourself These 9 Questions to Find Out.

Entrepreneur Staff

Freelance Writer, Editor & Content Marketing Consultant

Clarissa Buch Zilberman is a writer and editor based in Miami. Specializing in lifestyle, business, and travel, her work has appeared in Food & Wine, Realtor.com, Travel + Leisure, and Bon Appétit, among other print and digital titles. Through her content marketing consultancy, By Clarissa , she leverages her extensive editorial background and unique industry insights to support enterprise organizations and global creative agencies with their B2B, B2C, and B2E content initiatives.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Most Popular Red Arrow

They started a home-based side hustle earning up to $20,000 a month — and it's still growing: 'will never get old'.

TALEA Beer Co. co-founders LeAnn Darland and Tara Hankinson wanted to replicate the experiential appeal of a winery with their own brewery.

This Trend Is Threatening the Entire Housing Market — And It's Becoming Impossible to Overlook

Super commuters are reshaping the U.S. economy by choosing lower-cost living in distant areas, which impacts both housing markets and urban rental demand.

Young People Earning More Than $200,000 a Year Are Fleeing 1 U.S. State — and Flocking to 2 Others

They have significantly higher salaries than many of their peers — and they want their money to go further.

How To Start a Youtube Channel: Step-by-Step Guide

YouTube can be a valuable way to grow your audience. If you're ready to create content, read more about starting a business YouTube Channel.

Nvidia CEO Jensen Huang Lost $10 Billion in 1 Day

Nvidia's stock faced an unprecedented drop on Tuesday.

Document Circulating on the Internet Claims Taylor Swift and Travis Kelce Have a Breakup PR Plan. Here's Why That's Smart Business.

Does the superstar couple have a crisis management plan in place?

Successfully copied link

Franchise Business Plan Template

Written by Dave Lavinsky

Franchise Business Plan Outline

Franchise Business Plan Home
1. Executive Summary
2. Company Overview
3. Industry Analysis
4. Customer Analysis
5. Competitive Analysis
6. Marketing Plan
7. Operations Plan
8. Management Team
9. Financial Plan

Start Your Franchise Plan Here

You’ve come to the right place to create your business plan.

We have helped over 10,000 entrepreneurs and prospective franchisees with how to create a business plan to start a new franchise or grow their existing franchise.

How To Write a Franchise Business Plan & Sample

Below is are links to each of the key elements of a compelling business plan to help you start your own franchise business:

Executive Summary – The Executive Summary provides a high-level overview of your business plan. It should include your franchise brand, mission statement, as well as information on the products or services you offer, your target market, and your business goals and objectives.
Company Overview – This section provides an in-depth business description, including information on your franchise’s history, the company’s business model, ownership structure, and management team. You will also include a copy of your franchise agreement.
Industry Analysis – In the Industry Analysis section, you will provide an overview of the industry in which your business operates including market size, trends, and competition.
Customer Analysis – In this section, you will describe your target market and explain how you intend to attract customers to your business. You will also provide information on your customers’ needs and buying habits.
Competitive Analysis – The Competitive Analysis section will provide an overview of your direct and indirect competitors, including their strengths and weaknesses. It will also discuss your competitive advantage and how you intend to differentiate your franchise from the competition.
Marketing Plan – In the Marketing Plan section, you will detail your marketing strategies, including your marketing initiatives and promotion plans. You will also discuss your pricing strategy and how you intend to position your own business in the market.
Operations Plan – This section will provide an overview of your store’s operations, including your store layout, staff, and inventory management.
Management Team – The Management Team section will provide detailed information on your management team, their relevant experience, and their roles in the company.
Financial Plan – The Financial Plan includes the company’s financial details and financial performance representations as provided in the Franchise Disclosure Document (FDD). Financial statements including a projected profit and loss statement, balance sheet, and cash flow statement should be included in the appendix section.

Next Section: Executive Summary >

Free Franchise Business Plan Template PDF

You can download our free franchise business plan template PDF here. This is a sample franchise business plan template you can use in PDF format. You can easily complete your business plan using our Franchise Business Plan Template here .

Franchise Business Plan FAQs

What is a franchise business plan.

A business plan is a plan to start and/or grow your franchise business . Among other things, it outlines your business concept, identifies your target audience , presents your marketing strategy and details your financial projections..

What Are the Main Sources of Revenues and Expenses for a Franchise Business?

The main sources of revenue for a business franchise are franchise fees and royalty fees. Some also earn from other fees like distribution fees, site assistance fees, training fees, technologies, and rebates.

The key expenses for franchises are inventory, payroll, marketing and advertising, rent and loans.

How Do You Get Funding for Your Franchise Business?

Among the most common sources of funding for a franchising business are commercial bank loans, Small Business Administration (SBA) loans, personal savings and friends and family loans/gifts. There are also lenders that can supplement other loans with equipment financing and business lines of credit for franchise businesses.

This is true for a business plan for a franchise restaurant, a business plan for franchise store, or any other franchise business plans.

accuratefranchising.com

Call 888-331-8195

Developing a Franchise Business Plan: Key Elements to Include

Aug 15, 2023 | Blog

When embarking on the franchising journey, a well-crafted business plan is essential to guide your expansion and attract potential franchisees. A comprehensive franchise business plan outlines your vision, market analysis, financial projections, and operational considerations. In this article, we will explore the key elements to include in your franchise business plan and provide tips for creating a compelling document that captures the attention of potential franchisees.

Executive Summary:

Begin your franchise business plan with a compelling executive summary that provides an overview of your franchise concept, target market, and growth potential. Highlight the unique selling points of your franchise and emphasize the benefits for franchisees. This section should grab the reader’s attention and set the stage for the rest of the plan.

Franchise Concept and Market Analysis:

Detail your franchise concept, including your brand’s unique value proposition, target market, and competitive landscape. Conduct a thorough market analysis to identify your ideal customer profile, market trends, and potential demand for your franchise. This section should demonstrate your understanding of the market and why your franchise stands out among competitors.

Franchisee Support and Training:

Outline the support and training programs you will provide to franchisees. Describe the initial training process, ongoing support, and any resources or tools available to help franchisees succeed. Highlight your experience in franchising and how you will assist franchisees in achieving their goals.

Financial Projections:

Include detailed financial projections that outline your franchise’s potential revenue, expenses, and profitability. Provide a breakdown of the initial investment required, including franchise fees, equipment costs, and working capital. Project future sales and expenses based on market analysis, industry benchmarks, and historical data. This section should demonstrate the financial viability of your franchise opportunity.

Marketing and Advertising Strategy:

Detail your marketing and advertising strategy to attract potential franchisees and support franchisees’ growth. Identify the target audience, channels, and tactics you will use to generate brand awareness and drive sales . Discuss how you will support franchisees in local marketing efforts and provide marketing materials, campaigns, and digital strategies to help them succeed.

Operations and Systems:

Describe the operational aspects of your franchise, including your business model, supply chain management, quality control processes, and technology systems. Explain how you will ensure consistency across franchise locations and maintain high operational standards. Highlight any proprietary systems, software, or processes that set your franchise apart.

Legal and Compliance:

Address the legal and compliance requirements of franchising, including franchise disclosure documents , franchise agreements, and regulatory obligations. Ensure your franchise business plan reflects your commitment to all legal and industry regulations. Consider consulting with legal professionals experienced in franchising to ensure compliance and mitigate any potential risks.

Tips for Creating a Compelling Business Plan:

Clearly articulate your unique value proposition and competitive advantage.
Use data and market research to support your claims and projections.
Include visual elements such as charts, graphs, and images to enhance readability.
Keep the document concise, focused, and well-organized.
Use a professional tone and language to convey credibility and expertise.
Tailor the plan to address the needs and interests of potential franchisees.

Developing a comprehensive franchise business plan is a critical step in attracting potential franchisees and guiding the growth of your franchise. By including key elements such as market analysis, financial projections, operational considerations, and a compelling executive summary, you can present a clear and enticing vision to potential franchise partners.

Remember to continuously update and refine your business plan as your franchise evolves and new opportunities arise. With a well-crafted business plan, you are better positioned to attract and engage franchisees who share your passion and vision for success.

If you need assistance developing a franchise business plan or want expert guidance in the franchising process, contact Accurate Franchising, Inc today . Our team of experienced consultants is ready to help you achieve your franchising goals.

Sample Franchise Business Plan

Growthink.com Franchise Business Plan Template

Writing a business plan is a crucial step in starting a franchise business. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring franchise business owners, having access to a sample franchise business plan can be especially helpful in providing direction and gaining insight into how to draft their own franchise business plan.

Download our Ultimate Franchise Business Plan Template

Having a thorough business plan in place is critical for any successful franchise venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A franchise business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The franchise business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your franchise as Growthink’s Ultimate Franchise Business Plan Template , but it can help you write a franchise business plan of your own.

Franchise Business Plan Example – BrandExpand Ventures

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team.

Welcome to BrandExpand Ventures, our new franchise based in the vibrant community of Louisville, KY. We stand out as a beacon for local businesses by providing high-quality franchise services unmatched in the area. Our offerings are comprehensive, designed to empower our franchisees through the use of our established brand, efficient operating systems, extensive training, and robust marketing support. We also ensure the success of our partners by granting exclusive territories, eliminating internal competition within our network. Our location in Louisville not only reflects our commitment to serving the local community but also positions us strategically to understand and leverage unique market dynamics. With a foundation built on the rich experience of our founder and a commitment to excellence, BrandExpand Ventures is on a path to becoming a leader in the franchise industry.

Since our inception on January 5, 2024, BrandExpand Ventures has achieved significant milestones that underscore our commitment to building a robust and reputable franchise business. These accomplishments include the creation of a distinctive logo that aligns with our brand’s values, the careful selection of our company name to resonate with our mission and target audience, and finding an ideal location in Louisville, KY, to serve our community directly. These steps, though just the beginning, are indicative of our dedication to excellence and set the stage for our future success in the franchise industry.

The franchise industry in the United States is a burgeoning market with an estimated value of over $800 billion, offering diverse opportunities across various sectors. Expected to grow annually by 2-3%, the industry’s expansion is driven by consumer demand for familiar brands and the appeal of franchising as a comparatively lower-risk venture. Recent trends, such as the surge in health and wellness concepts and technology-driven business models, align well with BrandExpand Ventures’ innovative service offerings. Positioned in Louisville, KY, we are primed to tap into the growing demand for unique and customer-centric franchise opportunities, setting a solid foundation for success in this competitive landscape.

Our primary customer base includes local residents of Louisville, KY, seeking reliable services that cater to their daily needs and preferences. BrandExpand Ventures is committed to understanding and meeting the unique requirements of this community. Additionally, we target small and medium-sized businesses within the area, providing specialized services to help them streamline operations and enhance their customer experience. By also catering to tourists and visitors, we aim to create a diverse and sustainable customer base, contributing to our franchise’s growth and the local economy.

Our main competitors include Duck Donuts, known for its customizable donuts, Bruegger’s Bagels, offering fresh, high-quality bagels and breakfast options, and Tee24, a driving range and practice facility for golf enthusiasts. Despite the strengths of these competitors, BrandExpand Ventures distinguishes itself through superior franchise services, innovative business models, and a strong support system for our franchisees. Our strategic location in Louisville, KY, along with our focus on tailoring services to the local market, positions us advantageously to secure a significant market share and outperform our competitors.

BrandExpand Ventures offers a compelling suite of services, including brand name and trademarks, operational systems, training and support, marketing and advertising assistance, and exclusive territories. With competitive pricing for these services, we provide a solid foundation for entrepreneurs to succeed in the franchise industry. Our promotional strategies focus on online marketing, including social media campaigns and email marketing, to engage potential customers effectively. Additionally, local SEO, community events, partnerships, a referral program, and exceptional customer service will play crucial roles in building brand awareness and loyalty in Louisville, KY. These efforts are designed to attract and retain a strong, loyal customer base and ensure long-term success.

To guarantee the success of BrandExpand Ventures, our operational focus includes managing inventory, conducting daily financial transactions, implementing quality control measures, continuous staff training, and utilizing effective marketing strategies. We also prioritize communication with franchise headquarters, monitoring customer feedback, maintaining a welcoming store environment, ensuring compliance with regulations, and optimizing operations through technology. Our upcoming milestones include securing a prime location, obtaining necessary permits, building out the franchise location, developing a local marketing strategy, hiring and training staff, launching our business, establishing operational efficiencies, building a loyal customer base, reaching a significant revenue milestone, and evaluating scalability options.

Leading BrandExpand Ventures is Samuel Adams, our President, who brings a wealth of entrepreneurial experience and a proven track record in the franchise industry. His skills in operations, leadership, and strategic planning are invaluable to guiding our company towards sustained growth and innovation. Under Adams’ direction, BrandExpand Ventures is poised to achieve its mission and set new standards in the franchise sector.

Welcome to BrandExpand Ventures, a new franchise serving the vibrant community of Louisville, KY. As a local franchise business, we pride ourselves on filling the void left by the absence of high-quality local franchise businesses in the area. At BrandExpand Ventures, we’re more than just a name; we’re a partner in your business journey, dedicated to providing unparalleled franchise services that set our clients up for success.

At the core of BrandExpand Ventures are our comprehensive offerings designed to empower our franchisees. Our services cover everything from leveraging our established brand name and trademarks, implementing efficient operating systems and processes, to providing extensive training and support. Furthermore, we understand the importance of a strong market presence, which is why we offer robust marketing and advertising support to ensure our franchisees stand out. Additionally, we grant exclusive territories, ensuring our partners can operate without direct competition from fellow franchisees within the BrandExpand network.

Based in the heart of Louisville, KY, BrandExpand Ventures is strategically positioned to serve and support the local business community. Our roots in Louisville not only allow us to understand the unique market dynamics but also enable us to forge strong connections with the people and other businesses in the area.

Our journey to becoming a leading franchise business is built on a solid foundation. With a founder who brings valuable experience from running a successful franchise business and a commitment to offering superior franchise services compared to our competitors, BrandExpand Ventures is uniquely qualified to succeed. Our understanding of the franchise landscape, combined with our innovative approach to business, positions us as a formidable force in the industry.

Since our establishment on January 5, 2024, as a Sole Proprietorship, BrandExpand Ventures has hit several key milestones. We’ve poured our creativity and business acumen into designing a distinctive logo that embodies our brand’s values and vision. Additionally, developing our company name was a thoughtful process, ensuring it resonates with our mission and appeals to our target audience. Finding an ideal location was another significant achievement, allowing us to set our roots in Louisville, KY, and start serving our community directly. These accomplishments, though just the beginning, mark our commitment to building a robust and reputable franchise business.

The franchise industry in the United States is thriving, with an estimated market size of over $800 billion. This industry encompasses a wide range of sectors, from fast food restaurants to fitness centers to cleaning services, providing opportunities for entrepreneurs to invest in established brands and proven business models.

Market experts project continued growth in the franchise industry, with an expected annual growth rate of around 2-3%. This growth can be attributed to factors such as consumer demand for convenient and familiar brands, as well as the appeal of franchising as a lower-risk option for aspiring business owners. As more Americans seek the independence of business ownership without the uncertainty of starting from scratch, franchises offer a compelling solution.

Recent trends in the franchise industry, such as the increase in health and wellness concepts and the rise of technology-driven business models, bode well for BrandExpand Ventures. With a focus on providing innovative services to customers in Louisville, KY, BrandExpand Ventures is poised to capitalize on the growing demand for unique and customer-centric franchise offerings. By staying ahead of industry trends and delivering exceptional value to their target market, BrandExpand Ventures is well-positioned for success in the competitive franchise landscape.

Below is a description of our target customers and their core needs.

Target Customers

BrandExpand Ventures will target local residents as its primary customer base. These residents are seeking reliable and consistent services that cater to their daily needs and preferences. The focus will be on understanding the local community’s unique requirements and tailoring services to meet these effectively.

In addition to local residents, BrandExpand Ventures will also serve small and medium-sized businesses within the Louisville community. These businesses often look for partnerships and services that can help them streamline operations and enhance their customer experience. By offering specialized services catered to these business needs, BrandExpand Ventures will position itself as an invaluable partner within the local business ecosystem.

Furthermore, BrandExpand Ventures will tailor its offerings to attract tourists and visitors to the area. By providing services that cater to the needs and expectations of those visiting Louisville, the franchise will not only expand its customer base but also contribute to the local economy’s growth. This strategy is expected to create a diverse and sustainable customer base for BrandExpand Ventures.

Customer Needs

BrandExpand Ventures meets the rising demand for high-quality franchise services among residents who seek exceptional experiences. Customers can expect not just standard offerings but an emphasis on excellence that distinguishes BrandExpand from competitors. This commitment to quality ensures that every interaction and service provided exceeds customer expectations, fostering loyalty and satisfaction.

In addition to quality, BrandExpand Ventures understands the importance of personalized service. Each client receives tailored advice and solutions that align with their specific needs and goals. This personal touch not only enhances the customer experience but also builds a strong, trusting relationship between the brand and its clientele.

BrandExpand Ventures also recognizes the need for innovation in the franchise industry. Customers can access the latest trends and opportunities, ensuring they are always at the forefront of the market. This approach not only attracts forward-thinking entrepreneurs but also secures a competitive edge in a dynamic business environment.

BrandExpand Ventures’s competitors include the following companies:

Duck Donuts is a popular franchise known for its made-to-order donuts. They offer a wide variety of toppings and flavors, allowing customers to customize their donut experience. Price points at Duck Donuts are competitive, with options ranging from single donuts to larger dozen and bucket deals that cater to both individual indulgence and group treats. Duck Donuts has seen substantial growth, with revenues bolstered by both in-store sales and a strong emphasis on catering and special events. The brand operates locations across multiple states, demonstrating a broad geographic service area that appeals to a wide customer segment, including families, young professionals, and students seeking a unique, customizable snack option. Key strengths of Duck Donuts include its customizable product offering and a strong, recognizable brand. However, its reliance on a single product line could be seen as a weakness, limiting its appeal to a broader audience seeking more diverse menu options.

Bruegger’s Bagels offers a wide variety of bagels, breakfast, and lunch options, including sandwiches, salads, and soups. Their price points are designed to appeal to customers looking for a quick, affordable meal without compromising on quality. Bruegger’s has built a reputation for offering fresh, high-quality bagels baked in-store daily, which has become a significant revenue driver. The company operates numerous locations across the United States, serving a diverse customer segment that includes busy professionals, students, and families looking for a quick-service breakfast or lunch option. Bruegger’s Bagels serves multiple geographies, from urban centers to suburban communities, ensuring a broad market reach. Key strengths include a strong focus on product quality and freshness, as well as a diverse menu that appeals to a wide range of dietary preferences. However, Bruegger’s faces the challenge of competing with other fast-casual dining options and the need to continually innovate to keep their menu fresh and appealing to customers.

Tee24 – Driving Range & Practice Facility offers a unique blend of sports and entertainment, providing customers with high-quality golfing practice facilities and driving ranges. Their pricing strategy caters to both casual and serious golfers, with options ranging from single bucket purchases to membership packages that offer unlimited access. Revenues at Tee24 are driven by a combination of service fees, memberships, and sales from its pro shop, which offers golfing equipment and apparel. The facility is strategically located to attract customers from a wide geographic area, including Louisville, KY, and surrounding regions. The customer segment includes golf enthusiasts of all skill levels, from beginners to advanced players, as well as families and corporate groups seeking recreational activities. Tee24’s key strengths lie in its high-quality facilities and the ability to offer a year-round golfing experience, regardless of weather conditions. However, its key weakness could be the niche market it serves, limiting its appeal to non-golfers and those with no interest in the sport.

Competitive Advantages

As a leading business in the franchise industry, our approach at BrandExpand Ventures sets us apart from the competition. We pride ourselves on offering superior franchise services, a claim that is backed by our commitment to innovation, customer satisfaction, and an unmatched support system for our franchisees. Our unique business model is designed to foster growth and success for both our brand and the entrepreneurs we partner with. By focusing on comprehensive training programs, ongoing support, and leveraging the latest technology, we ensure that our franchisees have all the tools they need to thrive. This dedication to excellence not only enhances our competitiveness but also establishes a strong foundation for our franchisees to build upon.

Moreover, our strategic location in the heart of Louisville, KY, provides us with a distinct competitive advantage. The vibrant local economy and supportive community atmosphere create an ideal environment for franchise businesses to prosper. We capitalize on these local dynamics by tailoring our services and offerings to meet the specific needs of the Louisville market, enabling us to connect more effectively with customers and secure a significant market share. Additionally, our focus on innovation extends to marketing strategies and customer engagement, ensuring that we stay ahead of industry trends and continue to offer value that exceeds expectations. This forward-thinking approach positions BrandExpand Ventures as a leader in the franchise sector, ready to empower entrepreneurs and bring exceptional services to our community.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

BrandExpand Ventures emerges as a dynamic player in the franchise industry, offering a comprehensive suite of services designed to empower entrepreneurs and businesses aiming for expansion. At the heart of its offerings is the provision of Brand Name and Trademarks, a critical asset for businesses seeking to establish a strong market presence. Clients can expect to invest an average of $5,000 for the rights to operate under the BrandExpand Ventures umbrella, gaining instant recognition and credibility in their market.

Another cornerstone service is the development and sharing of Operating Systems and Processes. This service is tailored to streamline business operations, ensuring efficiency and consistency across the board. For an average price of $2,500, clients gain access to a proven framework for managing their day-to-day operations, significantly reducing the learning curve and operational risks associated with new business ventures.

Understanding the importance of human capital in the success of any franchise, BrandExpand Ventures places a high emphasis on Training and Support. For an average cost of $3,000, franchisees receive in-depth training programs covering all aspects of the business, from operational to customer service excellence. This is complemented by ongoing support to ensure franchisees can navigate challenges and capitalize on opportunities effectively.

Marketing and Advertising Support is another critical service offered, designed to help franchises attract and retain customers. With an average investment of $4,000, clients benefit from expertly crafted marketing strategies and materials, ensuring their business stands out in a competitive marketplace. This support extends to both digital and traditional advertising channels, maximizing reach and impact.

Finally, Exclusive Territories are a valuable asset offered by BrandExpand Ventures, ensuring franchisees can operate without direct competition from the same brand within a designated area. This exclusivity is available for an average price of $10,000, providing a clear path to market dominance in their local area.

In summary, BrandExpand Ventures presents a compelling value proposition for entrepreneurs looking to leverage the power of franchising. With a focus on brand strength, operational excellence, comprehensive training, marketing support, and territorial exclusivity, it offers a solid foundation for business success. Each of these services is priced competitively, ensuring clients can access the tools and resources needed to thrive in today’s dynamic business environment.

Promotions Plan

BrandExpand Ventures embarks on a strategic promotional journey to captivate and engage customers in Louisville, KY. The cornerstone of their promotional efforts lies in leveraging online marketing, a powerful tool that ensures widespread visibility and engagement. Through meticulously crafted social media campaigns, BrandExpand Ventures will reach potential customers on platforms where they spend a considerable amount of their time. Engaging content, paired with targeted ads, will drive traffic to their website and physical locations, effectively converting online interest into real-world patronage.

Moreover, BrandExpand Ventures will harness the power of email marketing. By building a robust email list, they will keep their audience informed and engaged with regular updates, exclusive offers, and valuable content tailored to their interests and needs. This direct line of communication will foster a sense of community and loyalty among their customer base.

Understanding the significant impact of local SEO, BrandExpand Ventures will optimize their online presence to ensure they appear at the top of search results when potential customers in Louisville search for relevant services. This will not only increase visibility but also drive higher quality traffic to their website, significantly enhancing the likelihood of conversion.

In addition to online marketing efforts, BrandExpand Ventures will engage in community events and partnerships. Participating in local events, sponsoring community activities, and collaborating with other local businesses will build brand awareness and establish a strong, positive presence within the community. This approach not only attracts new customers but also reinforces loyalty among existing ones.

To complement these efforts, BrandExpand Ventures will implement a referral program. Encouraging satisfied customers to refer friends and family by offering them incentives will create a powerful word-of-mouth marketing channel that can significantly amplify their reach and credibility.

Lastly, exceptional customer service will be a pivotal promotional method. By ensuring that every customer interaction is positive, BrandExpand Ventures will foster an environment where customers feel valued and appreciated. This will not only encourage repeat business but will also lead to positive reviews and recommendations, further enhancing their reputation and appeal.

In conclusion, BrandExpand Ventures will utilize a comprehensive blend of online marketing, community engagement, referral programs, and outstanding customer service to attract and retain customers in Louisville, KY. These strategic promotional efforts will establish a strong, loyal customer base and set the stage for long-term success.

Our Operations Plan details:

The key day-to-day processes that our business performs to serve our customers
The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of BrandExpand Ventures, there are several key day-to-day operational processes that we will perform.

Monitor and manage inventory levels to ensure that we always have the necessary products in stock to meet customer demand without overstocking.
Conduct daily financial transactions accurately, including processing sales, managing expenses, and ensuring all financial activities are recorded for future analysis and tax purposes.
Implement stringent quality control measures to ensure that all products and services meet the high standards our customers expect from us.
Engage in continuous staff training and development to ensure our team members are knowledgeable, efficient, and capable of delivering exceptional customer service.
Utilize effective marketing strategies to attract new customers and retain existing ones, including social media marketing, email campaigns, and local advertising.
Regularly communicate with the franchise headquarters to stay updated on any changes in operational procedures, marketing strategies, or product offerings.
Monitor customer feedback through various channels, such as online reviews and in-person comments, to identify areas for improvement and implement changes accordingly.
Maintain a clean and welcoming store environment that encourages customers to return.
Ensure compliance with all local, state, and federal regulations that affect our operations, including health and safety standards.
Optimize operational processes through the use of technology, such as inventory management software and customer relationship management (CRM) systems, to increase efficiency and reduce errors.

BrandExpand Ventures expects to complete the following milestones in the coming months in order to ensure its success:

Secure a prime location in Louisville, KY : Identifying and securing a lease or purchase for a prime location that is accessible and appealing to our target market. This also involves ensuring the site matches our brand’s image and operational needs.
Obtain necessary permits and licenses : Completing all legal requirements including health, safety, and business operation permits. This also includes any specific franchise operation licenses that are necessary to legally operate in Louisville, KY.
Build out and customize the franchise location : Conducting renovations and outfitting the franchise location to meet BrandExpand’s brand standards and operational requirements. This includes both the customer-facing areas and the back-end operational spaces.
Develop and implement a local marketing strategy : Crafting a marketing plan that includes pre-launch buzz, grand opening promotions, and ongoing marketing efforts to build brand awareness and attract customers in the Louisville area.
Hire and train staff : Recruiting a team that aligns with the brand’s culture and values, and providing comprehensive training to ensure high levels of service and operational efficiency from day one.
Launch our franchise business : Officially opening the doors to customers with a well-publicized grand opening event. This marks the transition from the planning and preparation phase to operational business.
Establish operational efficiencies : Fine-tuning operations to manage costs effectively, ensuring a smooth customer experience, and maintaining quality control across all aspects of the business.
Build a loyal customer base : Implementing customer relationship management (CRM) strategies to retain customers, encourage repeat business, and generate positive word-of-mouth.
Get to $15,000/month in revenue : Achieving this revenue milestone to prove the business model’s viability in the local market and setting the stage for further growth and possibly future expansion.
Evaluate and plan for scalability : Assessing the business’s performance and potential for scaling up operations or opening additional locations in Louisville, KY, or beyond, based on demand, operational capacity, and financial health.

BrandExpand Ventures management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Samuel Adams, President

With a robust track record of entrepreneurial success, Samuel Adams brings a wealth of experience to BrandExpand Ventures as its President. Adams has previously demonstrated his business acumen by efficiently running a franchise business, where he honed his skills in operations, leadership, and strategic planning. His expertise in scaling businesses and driving operational excellence makes him an invaluable asset to BrandExpand Ventures. Adams’ proven ability to lead businesses to success positions him as a cornerstone of the management team, guiding the company towards achieving its mission of sustainable growth and innovation.

Financial Plan

BrandExpand Ventures requires $297,000 in funding to achieve our growth objectives. This funding will be allocated towards capital investments such as location buildout, furniture, equipment, and technology, as well as non-capital investments including working capital, initial rent, staff salaries, marketing, supplies, and insurance. With this financial plan in place, we are confident in our ability to reach our goals and establish a successful franchise in Louisville, KY.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Franchise Business Plan Example PDF

Download our Franchise Business Plan PDF here. This is a free franchise business plan example to help you get started on your own franchise plan.

How to Finish Your Franchise Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your franchise business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

There's No Place Like HFC ™

VISION & CORE VALUES
HOME SERVICES INDUSTRY
FRANCHISE BENEFITS
FRANCHISE FINANCING
FRANCHISE STATISTICS
AWARDS & ACCOLADES
HEART & HOME

Franchise FAQs
Blogs & News
Get Started

Franchise Business Plan: How to Effectively Write One

Man working on laptop and checking phone

You’ve probably heard the saying, “If you fail to plan, you plan to fail.” If you are thinking about entering the world of franchising, you first need to craft a solid business plan.

A business plan is a formal written document that outlines your goals and describes how you plan to achieve them, while allowing for potential challenges you may encounter. In other words, your business plan acts as a GPS for your entrepreneurial journey, helping you anticipate roadblocks and detours as you move forward toward your destination.

How is a Franchise Plan Different?

A franchise business plan incorporates elements specific to the franchise model. This includes details about franchise fees, royalty payments, marketing and advertising support from the franchisor, training and operational guidelines provided by the franchisor, and the rights and obligations of both the franchisee and franchisor. Additionally, the franchise plan often references the franchisor’s track record, brand recognition, and established business model, leveraging these as strengths in the plan.

When Should I Write My Franchise Business Plan?

Once you’ve done your research and decided which franchise opportunity you’ve going to pursue, it’s time to write your plan. It’s important to have the plan in place before you sign the franchise agreement. At this stage in the game, a well-crafted plan shows the franchisor that you understand the business and are committed to operating the franchise successfully. If you intend to seek financing to buy your franchise, lenders will want to see the plan to assure them of your profit potential. Your plan needs to include the amount you want to borrow, how you’ll use the funds, and the preferred terms of the loans.

How to Craft an Effective Franchise Business Plan

Here are the elements you should include in your plan:

Executive summary: Begin with a concise overview of your franchise, including the business concept, financial features, and what sets your franchise apart.
Business description: Delve deeper into the specifics of the franchise. What services or products will you offer? Who’s your target market?
Market analysis: Research your industry, market size, and local competition. Understand the trends and growth patterns in your sector.
Management structure: Detail the organizational structure. Who will manage daily operations? How many employees do you plan to hire?
Marketing and sales strategies: How will you attract and retain customers? Outline your advertising, promotions, and sales tactics.
Financial projections: Provide a forecast for the next three to five years. Include projected income statements, balance sheets, cash flow statements, and capital expenditure budgets.

The U.S. Small Business Administration has a more detailed list of items you might want to consider including in your business plan.

How Franchisors Can Help

Established franchisors can be an invaluable asset when it comes to writing your business plan. You can use them as a resource for data on market trends, customer demographics, and historical financial performance of existing franchise units. The franchisor may even provide you with a plan template tailored to their specific business model. However, it’s essential to remember that while a franchisor can provide guidance, customizing the plan to your specific location, market conditions, and personal goals is your responsibility.

Franchising with Home Franchise Concepts

In business for more than thirty years, Home Franchise Concepts knows the importance of a robust business plan and can guide you through the intricacies of creating one for any or our ten premier home services brands: Presently, Budget Blinds®, The Tailored Closet®, PremierGarage®, Concrete Craft®, AdvantaClean®, Kitchen Tune-Up®, Bath Tune-Up®, Two Maids®, Aussie Pet Mobile®, and Lightspeed Restoration™

We understand that many potential franchisees are new to the world of business, so we are happy to answer your questions about how to become a franchise owner .

Contact Home Franchise Concepts Today

Writing a business plan might seem daunting, but with the right support, it becomes a rewarding process. And with a partner like Home Franchise Concepts by your side, you’re equipped with the tools and insights to create a plan that not only impresses lenders but also sets you on a path to achieve your entrepreneurial dreams. To get started, simply contact Home Franchise Concepts today.

Share This Post With Others!

What is a Franchise Broker and Are They Worth It?

Window Cleaning Franchises vs. Other Home Service Franchises

Franchise Business Plans

Athletic shoe store franchise business plan.

The Athlete's Foot is a new franchise retail athletic shoe store.

Fast Food Restaurant Business Plan

Fresin Fries will entice youngsters to bring their friends and family with our innovative environment, fresh-cut Belgian fries, and selection of unique signature dipping sauces.

Franchise Sandwich Shop Business Plan

Franchise Sub Shop is a national franchise sub sandwich quick-service restaurant.

Pizzeria Franchise Business Plan

4 Moons Pizzeria offers a comfortable, friendly ambience, with its new “Modern Pizzeria” design.

Coffee Shop Franchise Business Plan

JavaHub Café will offer an exceptional range of specialty coffees, teas, and light meals within a warm and welcoming atmosphere, leveraging a brand that stands for quality, community, and sustainability.

Do you have a favorite brand that you’d love to be a part of? You may want to consider opening a franchise. But like any successful business, you’ll need a business plan to get it up and running, as well as get approval to be a franchisee. Luckily you can easily put yours together with one of our franchise sample plans. Download one today and become part of your favorite brand’s business journey.

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Search for:
Add your franchise

Home > Blog > Franchise Development > How to Write a Franchise Business Plan

How to Write a Franchise Business Plan

Entrepreneurs who have decided to franchise their business owing to its past success and ability to replicate the business idea will need to write a business plan for a franchise. In many cases, this business plan will share many similarities with business plans for start-ups. However, a fundamental difference is that a franchise business plan must cover two types of target audiences: prospective franchisees as well as their customers.

In a sense, this is what sets a franchise business plan apart from other business plans that may apply to sole proprietors, limited liability companies, partnerships and others. In this article, we explore what a franchise business plan is, why it is important for your franchise business and how to write a business plan for a franchise.

Table of contents:

What is a franchise business plan?

Why you need to create a business plan, why franchisors are looking for business plans from their franchisees, important elements you need to include in your franchise business plan, how to create a franchise business plan, concluding remarks.

A franchise business plan is a document that is prepared by the entrepreneur in question when they wish to franchise a business. This document is extensive and plays an essential role in the business’ future development.

A franchise business plan is a living document that will require input from management and team members and which will be adjusted over time to meet the goals and aspirations of the business owner.

However, in short, a franchise business plan is a “roadmap” which methodically sets out how business objectives will be achieved. It can be used both internally and externally.

Internally, it can be used by management teams to check whether the business is on track with its predetermined objectives.

Externally, it is presented to lenders for financial assistance. Such lenders will then evaluate the depth, complexity and potential for profitability and returns of the business in question. They will then decide whether or not to award a prospective franchisor the necessary capital to proceed with the next step towards franchising their business and the likelihood and time frame for such capital to be repaid.

a group of colleagues creating a business plan

As a “roadmap” to a franchise business’ future structure, operations, organisational team, marketing strategy , financial projections and more, the importance of a business plan cannot be overstated.

There are several crucial reasons that you should consider when it comes to the question: why write a business plan in the first place?

Here are some of them:

Clarify and evaluate your franchise business idea from multiple angles for more certainty and higher chances of success.
Helps with goal setting and expansion/growth plans including sales, marketing and business operations.
Enables you to identify potential problems that could arise and how you can circumvent them.
It acts as a way of tracking your progress.
Gives you more clarity about your financial needs and the projected financial returns you can expect.
Assists with strategic planning over the short, medium and long term as it involves detailed research into a wide number of stakeholders.
Communicates your vision to prospective employees and investors, giving them more confidence in your franchise venture.
Attract funding from investors, banks and lenders.

When a franchisee expresses interest in a franchise opportunity , franchisors may require that these franchisees prepare a business plan.

This business plan is presented to lenders to enable them to assess whether the prospective franchisee is as thoroughly prepared for the business journey ahead to make it as successful as possible.

The primary purpose of determining this is through a detailed business plan that sets out the franchisee’s organisational structure, operations, market research, marketing plans, financial projections and more.

Whereas a franchisor can often offer help to a franchisee in developing their business plan, financial projections are typically not included by the franchisor because this could have important legal ramifications.

A further reason why a franchisor requires a business plan from their franchisees is to determine whether the franchisee is able to handle and abide by the franchise business model whilst serving the franchisor’s customers in a manner that ensures consistency across the brand.

Your franchise business plan should contain several important elements. Although these may differ from one franchisor to the next, some of the sections are standard and uniform across the board.

These may include:

An executive summary: this is the first page of the franchise business plan and contains a concise summary of everything that is contained in the remainder of the document. As such, it is usually written last. It can be divided into three sections: a business summary, business aims and a financial summary.
Company description: the company description contains information about the type of business in question, who it is led by, the background, education and previous experience of the owner and what value they bring to the business.
Mission and vision statement : the mission statement is generally expressed as a sentiment that is about one sentence long. It indicates what purpose the business seeks to achieve. The vision statement on the other hand is what the business’ meaning and purpose is for each of your stakeholders.
Business structure : since your focus is on creating a franchise business, the business structure to be clarified here is a franchise business.
Products and services : other aspects that need to be clarified are what products and/or services your business will be providing to its customers. If you are offering a variety of these, consider grouping similar ones together and describing them briefly. If you are only going to offer one product/service or a handful, you can spend more time describing each one in detail.
Industry analysis : studying the industry in which your franchise business will operate is also important to show lenders that your business idea is viable and replicable. Industry analysis will start with what other companies (i.e. your competitors) are offering the market, what prices they are asking for their products/services, where they are located and how you plan to strategically position your franchise business so that you outperform them.
Market analysis : as part of the market analysis, you will need to conduct customer segmentation. This will necessarily involve identifying your target market and their needs as well as determining strategies of reaching them and winning them over to your franchise product or service offering.
Logistics and operations: logistics and operations refer to the actual production or service delivery activities that you will be carrying out, how you will do so, at what cost, where and when, as well as how frequently these logistical aspects will need to be employed.
Marketing plan: a detailed marketing plan is created after conducting market research and analysis. The plan will contain the strategy through which customers will be marketed to in terms of new promotions/discounts, special offers, company news, raising brand awareness, boosting sales, measuring key performance indicators (KPIs), refining the strategy and measuring its success.
Franchise Marketing Plan Download
Business management and organisational structure: this section will contain details of the leadership and management of your franchise business as well as a brief outline of what skills, knowledge and experience each person brings to the table.
Financing projections/financial plan: this is possibly the hardest but most important section to prepare because it will undertake number crunching, forecasting and analysis.
Appendix: use the appendix to attach any relevant documents to support any preceding section of your franchise business plan.

Knowing more about the various elements that go into a franchise business plan, you can now proceed. Below are some steps to follow in the process of how to write a business plan for a franchise.

Step 1: Present your business and your business idea

Since you already have a successful business behind you and you are seeking to branch out into franchising, you need to indicate why your idea can be replicated successfully in different territories.

Talk about the history of the business, the ownership structure, when it started trading and its progress to date.

Discuss your products and/or services mentioning what sets them apart and what benefits they offer. Are you planning on introducing an entirely new concept to the industry? Are there any disadvantages that you foresee and how will you deal with these?

Step 2: Highlight the key features of the industry

Mention any industry regulations that must be abided by, what types of companies dominate the industry and who the major players are, what key features of the industry need to be known, etc.

Step 3: Specify your target market and competitors

Your target market and competitors should be clearly identified as should the market in which you will be operating.

Target markets and ideal customer personas should be identified including their key demographic information and what influences their purchasing decisions.

Clarify what size of market share you aim to acquire and the steps for doing so.

Outline your primary competitors. Pay special attention to emphasising what their advantages and disadvantages are compared to your franchise business offering.

It’s important to never openly criticise your competition. Instead, approach any references to them with due respect.

Step 4: Outline your marketing and sales strategy

What price will you charge for your products or services – low, mid-range or high? What is the unique selling point that you will seek to emphasise? Do your products or services have unique features and how will these be set apart from competitors? Which marketing channels or combinations thereof will you use? What are your monthly, quarterly and annual sales KPIs and how will your marketing strategy help you reach these?

What will your marketing budget be? What measures will you put in place to test, refine and measure the success of your marketing and sales efforts? How will sales be conducted – online, over the phone, or over the counter at a retail outlet? What is your anticipated cost per acquisition? How will you seek to reduce this? How will you differentiate between marketing for franchisees and marketing for your customers?

Step 5: Note your organisational structure and staffing needs

Who will sit on your management team and what skill set do they bring to the table? Who will be responsible for what department in your franchise business?

How many staff members will you start out with? What will their key roles and responsibilities be? How much will it cost you to retain your staff on a monthly basis?

Also important is the recruitment of franchisees. Will you have a dedicated team to train and support these and what kind of support will you offer? What will be the defining characteristics of your franchise offering and unique selling points?

Step 6: Clarify the intricacies of your business operations

Where will the franchise business headquarters be located? In which territories will future franchisees operate? How will the division of territories be undertaken (if any)?

Do you make use of production facilities? If so, how will you streamline your logistics processes to ensure that your franchisees benefit from these operations?

Will you need to make new investments in equipment? How is your existing infrastructure able to support future growth and further expansion?

What are the relationships with your suppliers like and who are they? What sort of pricing structure can they offer your future franchisees to enable them to optimise their investment?

Step 7: Prepare your financial forecasts

Start out by presenting your sales, income, turnover, profit and other historical figures to provide proof of your current business’ success before you turn to franchising. Going back between three to five years should be sufficient.

What is the gross margin on each product? How does capital flow in your business in terms of stock, debtors, creditors, etc.

What major financial investments have you made and what have been the results of these? Offer an updated balance sheet including a profit and loss account. Provide comparisons with industry norms.

Once the historical aspect has been taken care of, it’s also advisable to create forecasts for the next few years. If you make any assumptions for any of your forecasts, each of these should be explained and supported in full.

How realistic are your forecasts? Never try to inflate projected income, sales, profit, turnover or other amounts. Be as realistic as possible. Factor into account that payment delays may occur. How do you plan on dealing with these?

Specify the type and amount of financing you are looking for. Is it a medium- or long-term loan or an increased overdraft facility? What interest rates and instalment amounts can you afford to pay over the loan period?

Franchising your business will require a franchise business plan to put your goals into perspective and to help lenders back your business idea. And although it can be quite a detailed process, there are several key steps you can take to prepare a thorough and detailed business plan to convince lenders to support your franchise business.

In the beginning of the journey to franchising, many franchisors struggle to implement effective strategies and plans to set them up for success. But there is help at hand. Join our How to Grow Your Franchise Sustainably Without Costing Your Personal Life masterclass to find out about how the 5Fs Franchising Model has been implemented successfully across multiple global franchises and how you can achieve a greater work-life balance by prioritising better and making the most of your existing infrastructure and network.

Stay in touch

" * " indicates required fields

Share on with your network

Fill your details in order to get our free resource

Note: Please provide a valid email address where we can send you the Free PDF resource.

Featured Opportunity

Fantastic Services Franchise

Founded in 2009, Fantastic Services has grown from humble beginnings to become a highly regarded global enterprise with over 500 franchisees.

£5,000 +VAT

Our Top 5 Franchisors of the Week

1-800-Plumber + Air

Honest Abe Roofing

Focal Point Coaching

Wow 1 Day Painting

Facial Mania Med Spa

Top 5 industries of the month, cleaning franchises, courier franchises, fast food franchises, coffee franchises, gym & fitness franchises, leave a comment cancel reply.

Your email address will not be published. Required fields are marked *

Don’t miss out our top articles of the month

Franchising - main terms you must know.

Confused by the very specific terminology that’s used with regard to franchising? Don’t worry, we’re here to help you! Below, you’ll find the answers to frequently asked questions such as “what does franchising mean?”, and so many others.

Is my Business Suitable for Franchising?

“Can I franchise my business?’ is an important question that many business owners ask themselves when they experience success with their current enterprise. Franchising your business can be an excellent way of expanding your operations and building onto your existing success as you seek new locations across the country to develop and grow. Wondering why … Continued

Should You Use a Franchise Consultant

An Introduction to Franchise Consulting Services It doesn’t matter whether you’re a new or established franchisor or even a prospective franchisee – you can make use of professional franchise consulting services. But what does a franchise consultant do? Table of contents: How You’ll Benefit If You’re a Franchisor How You’ll Benefit If You’re a Franchisee … Continued

Understanding the Role of a Franchise Consultant vs. Franchise Broker

Choosing the route to franchise ownership can be both an exciting and challenging experience for many aspiring business owners. If you are someone who has just embarked on the process of understanding the industry better, you will quickly learn that there are many different terms used in the industry, which may be confusing. Two of … Continued

Brand Compliance and Strategies for Implementing It Across All Creative Processes

The very nature of franchise marketing is that it involves numerous simultaneously moving parts. Whether it’s social media or pay-per-click (PPC) ads, blog posts, your website’s design, or even your franchisees and their employees’ uniforms or the stationery used for formal communication, one thing is clear: brand compliance is a must. Since a franchisor has … Continued

5 Factors That Make a Franchise Successful

Franchising is an excellent way to achieve your business objectives and goals because it offers so many opportunities for growth in addition to strong returns on investment. Joining the franchise world is an exceptional opportunity to turn your professional dreams and aspirations into reality because of the numerous franchise success factors. But these are highly … Continued

How Can AI Technologies Influence Your Marketing Strategy?

With most franchisors having internal marketing departments, you will be well aware that this task has been highly labour-intensive until now. Over the past few years, and especially the last few months, there’s been a rise in artificial intelligence (AI) tools. Siri and Alexa aside, many franchisors already use AI in their marketing efforts in … Continued

Which Industries Are Most Likely to Franchise?

IIn the UK, the franchise industry, although unregulated, is extensive and it’s expected to see continued growth over the coming years. The same is true for the US, even though the industry is regulated with various states having state-specific requirements. If you currently run a business and want to know what are the most common … Continued

Franchise Training: The Most Common Questions Answered

Franchisors who sell their franchise opportunities to prospective franchisees often offer a range of benefits that come with the package. There is usually a mix of training and support, marketing and advertising, business development, location build and outfitting, recruitment, financing and payroll and a whole lot more. When you are evaluating different franchise opportunities, you … Continued

Complete Email Marketing Guide for Franchises

Franchisors have a dual job when it comes to marketing. On the one hand, they market to their customers. On the other hand, they market to prospective franchisees. One of the best ways to achieve this dual objective is through email marketing. The reason behind this is simple: it’s a highly effective way of building … Continued

The Importance of Diversity and Inclusion in Franchising

Cultural diversity and inclusion are not just fluff words to be used to conveniently tick corporate boxes. Instead, they are important pillars of societal, community and business growth and development. But what role does cultural diversity and inclusion play in franchising and what do these terms mean in the first place? Read on to find … Continued

How to Franchise Your Service Business

If you currently run a service-based business and it has performed well over time with a proven business model, you may now be thinking about business expansion. One option you have is franchising. But with this comes the question of how to franchise a service business. Especially since service franchising, and franchising in general, are … Continued

Privacy Overview

Cookie	Duration	Description
cookielawinfo-checkbox-analytics	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional	11 months	The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy	11 months	The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.

Are looking for custom service?

Franchise Templates
Franchise Buying Guides
Best Franchises BEST FRANCHISES TO BUY in 2024 in the UNITED STATES
Food Franchise Opportunities
Education Franchises
Health and Wellness Franchises
Services Franchises
How to Franchise
Franchising Software
Franchise Marketing
Franchise Legal

Franchise Business Plan Example Presentation

The first and most fundamental principle of franchising, Franchising prosperity doesn’t quite develop by chance. A franchise business plan increases the likelihood of a new franchisor and the franchise’s success by twofold.

Secondly, Businesses operate since they stick to a well-defined and well-executed strategy.

Over 543,000 new firms start in the United States every month, yet only 7 out of 10 survive after two years , while 5 out of 10 survive after five years.

Surprisingly, over 70% of organizations that survive for five years follow a strategic business strategy.

The finest strategies begin with a particular goal and then establish objectives and techniques to help you achieve it.You should identify a few franchise-specific points in your business plan to franchise.

What is a franchise business plan?

A business plan is a roadmap that outlines a company’s primary business operations, objectives, and strategies for achieving those objectives.

When starting a franchise business, it is important to have a plan. This document will outline your goals, strategies and tactics for your business.

Moreover, this business plan serves as a guide to help you stay on track and meet your desired results.

Lastly.a few key components in your franchise business plan, and below is a brief overview of each section

Components of a franchise model business plan

Company Overview and Purpose of franchise
Mission and Vision statement
Company’s organizational structure
Industry Analysis
Market research and planning
Business Operations
Franchise Marketing plan
Structure of franchise management and support
Franchise Financial Plan
Franchise Development Plan

1. Company Overview and Purpose of franchise

The franchisor, its products and services, opportunities, risks, strategies, target market, competition, competitive advantage, and franchisor’s strengths and weakness is analyzed.

Above all,the executive summary of your business plan could be the most crucial component.

However, Call it the ‘elevator pitch.’

Therefore,The executive summary should never be longer than two pages, and if it will condense to one page, that’s even better.

To sum up,I would suggest a one-page or one-slide overview of the company and industry. You can download the template on a company overview or a comprehensive franchise business plan.

2. Vision Statement

Firstly,Your company’s culture is defined by a vision and mission statement.

Secondly,the vision and mission statement will explain the company’s primary motivations for being in business and define the boundaries of its operations.

The vision statement reflects your concept regarding the franchisor and system, customers, vendors, profitability, professionalism, community, and the workers.

In addition,it contains franchise ambitions and the regions or cities they intend to expand their franchise business .

3. Company’s organizational structure

The organizational structure and hierarchy give the reader knowledge regarding the company.

Also, it contains whether and when the company was bought out by the creators.Subsequently with current funding such as stock ownership, mortgages, loans, overdrafts, and debentures.

Write on notable achievements you’ve made as well as any challenges you’ve faced and overcome—the management of the company and their previous experiences and accomplishments.

4. Background and analysis of the industry

The industry analysis and background part, second only to the executive summary, is the one that gets the most attention.

Secondly,you must recognize your market, competitors, and market position for your organization to have proper guidance.

When comparing an organization and its goods & services to competitors, use infographics for clarification and analysis.

Lastly, I recommend to use Canva ,a tool to prepare images and infographics for your franchise business plan and your marketing campaign.

By answering the following questions, define the industry in which you work:

How big is the business? The reader will be interested in knowing the industry’s size or expansion.
Do a few large enterprises dominate the market, or is it divided among many smaller shops?
Who are your primary competitors, leading companies, franchisors, and suppliers in the industry?
Is there a big range of possible clients in the industry, or do a few people responsible for a substantial percentage of income?
What variables are critical to your industry’s success?
What laws, environmental developments, and commercial developments will have an impact on your sector?
Based on published projections, what do the industry’s rapid expansion and profile look like?

5. Market research and planning

You discuss your customer profile, market volume, industry developments, present and future competition, and the kind of location you require. It demonstrates to the potential franchisee that you are familiar with the industry you will be working in.

Market research should include

Market size and Market share of the franchisor or its micro industry.
Type of Market
Market Share Analysis
Hybrid market
Current Business Formats of these markets
Demand and Supply-side drivers contribute to the growth of the market segment.
Franchise Readiness and Feasibility analysis
Ideal Franchisee Profile
Franchise Financial Facts
Franchising Models selected among COCO, FOCO, COFO or FOFO models
Different Expansion formats
Unit Franchise format
Master and Sub franchise format
Area Franchise format
Multi-unit Franchise format
Type of business model suitable
Business Format Franchising or Product-based franchising

6. Business operations

In any business, employees are the most valuable asset. Firstly,you detail your staffing plans for hiring and paying employees and the training programmes you or the franchisee will give in this area.

Additionally, addresses having the necessary products and materials to sell to the wider populace and run the business. The Operations plan includes concerns with your vendors, such as how they will deliver to you and how you will sell to them.

Also, enlighten yourself on your well-written franchise operational manual , which contains standards for franchisees to follow when operating your franchise.

7. Franchise Marketing plan

Every investor, lender, bank and member of management wants to know how you plan to bring in new clients for your franchise. You define the entire franchise system’s marketing strategy, along with any neighbourhood and localized marketing tactics, in this area.

Brand recognition, brand building initiatives , and franchise growth marketing strategy should focus on the market strategy.

Make it clear to the reader how you plan to launch your business. Finally, you’ll take care of the pricing specifics.

8. Structure of franchise management and support

Summarize the day-to-day administration necessary to drive the organization, and provide background details about your supervisors if you know who they are. Specify the volume and sort of employees you’ll need to hire, as well as your wage and benefit plans as well as your staff retention strategies.

Prepare your franchise support documents like :

Escalation Matrix
Franchise startup checklist
A Franchise Suggestion format
The Franchise non-disclosure/non compete agreement
Vendor checklist and purchase formats
Brand kit: Brand logos and brand graphics. Use definition and process.

To sum up, describe the position and responsibilities of your franchise manager , who will be in charge of selling your franchise and providing daily support to franchisees to ensure that business operations operate smoothly.

9. Financial planning for franchise business

Firstly, How much money will you need to get your business off the ground?

Secondly, Is it possible that the business will require additional funds in the future?

Give a five-year profit and loss forecast as well as a cash flow analysis. Examine the number of sales needed to break even and create a profit in detail.

Franchise Financial plan includes the fees projected profit and loss statement for franchisees. The franchisor shares this franchise document with the franchisee before signing the franchise. The franchisee will examine and cross-check the financial terms and conditions with the franchise disclosure document.

10. Franchise Development Plan

To start with,you must include a full description of the “hows” in the business plan in addition to the “whats” of day-to-day operations.

Secondly,What modifications do you expect to make to meet the plan if your company is already up and running?

To summarize,How much will such changes cost, and when do you plan to repay those costs? Figure out how much money you’ll need when you open and how long it will take to break even and make a profit if you’re beginning a business.

The franchisor must have a franchise sales plan that aligns with their franchise expansion and location strategy and schedules.

11. Appendix

The appendix is where you can give the reader printouts of your tax records, business and industry publications, information about the community you’ll be servicing, and any other material that will assist them to comprehend the firm.

Writing a business plan may seem daunting, but it is essential to expand your business.

In short,you should enjoy the task of writing your business plan, and if not, you may lack the discipline required to run your own company.

Franchise business plan example

Starting a franchise can be a great way to own your own business with less risk than starting from scratch. It can also be a lucrative way to own a business, with some franchises earning over a million dollars in revenue annually.

However, there are a few key things to consider when starting a franchise. First, you will need to create a detailed business plan.

This plan should include an overview of the franchise, its target market, and how you plan to compete in that market. Likewise, you also include a section on financials, including your estimated startup costs and your projected income and expenses.

You can download our , franchise business plan template from our downloads page on the website.

Franchise proposal sample doc

A franchise proposal is a document,which is to request the approval of a franchising opportunity from the head office or board of directors.

The proposal should be well-written and organized to make it easy for the head office to understand.

Most importantly,be concise and provide all the necessary information to make an informed decision.

The following is a sample franchise proposal is pitch deck to potential franchisee.

Conclusion: Get You Franchise business Plan example

You should have a solid business strategy in place if you want to expand your company effectively. Instead of paying for advisory services, you can construct your business plan with the help of the following points.

Expand your business now with the help of Franchise Deck and profit from developing a franchise business plan.

Give us a chance to sail with you on your franchising journey. The first milestone of the franchise business model is the franchise business plan.

The franchise business plan comprises a franchise expansion strategy to decide why, how, when and where to franchise your business.

The franchise model business plan template and customized franchise plan include the franchise strategic plan, franchise proposal sample doc is part of franchise marketing kit.

Do you have any more innovative business plans? Share your plans with us to assist you in improving them, and give us your feedback on the same.

A highly successful franchisor is dedicated to its brand. Running a franchise requires a strong drive and motivation for success. Hence a franchise business plan can help an entrepreneur achieve his/her goals in the right way.

A standard business plan usually consists of-an govt summary, an overview of your services, thorough market and business research, a marketing and sales technique, operational particulars, financial projections, and an appendix.

ranchise business plans are essential for long-term success in the franchise industry. A comprehensive plan should include research into the target market, potential competitors, and the costs associated with the business. A business plan should also outline the legal requirements for setting up a franchise in the chosen market. A well-crafted franchise business plan should include detailed information about the franchise’s products and services, as well as the marketing strategy. It is important to include financial projections for the franchise business in the plan, including estimated startup costs and expected revenues.

A franchise business plan should also provide information on the franchisee’s responsibilities and the franchisor’s expectations. A key component of the business plan is a competitive analysis, which will enable the franchise to assess its competitive position in the market. It is also important to include a risk management plan in the franchise business plan to identify and mitigate potential risks to the business. A detailed operational plan should be included in the franchise business plan, which should outline the day-to-day operations of the franchise. The franchise business plan should include a clear vision and mission statement to guide the franchisee’s decisions.

A franchise business plan should also include a section on customer service, outlining the standards and policies that will be in place. A franchise business plan should also include a section on employee training and development, as well as procedures for hiring and managing employees. The franchise business plan should include strategies for managing inventory and controlling costs. The franchise business plan should also include a section on financial management, including budgeting and forecasting. Finally, the franchise business plan should include a section on exit strategies, outlining how the franchise will be exited and the possible outcomes.

How will your online business run day-to-day? The operations part describes the required requirements for your small business to run easily.

this is franchise business plan,

incase you need help with online business plan,email me a t [email protected]

Buying a Franchise with Little to No Money

EverLine Coatings Franchise Cost Profit Reviews

The Boiling Crab Franchise Cost Profit Reviews

Monkey Bizness Franchise Cost Profit Reviews

Franchisors grow their franchise business strategically, and franchises make more profits, franchise services.

How to Create a Franchise Business Plan

When you start any business, including a franchise , it is important to think ahead. And, developing a business plan is a crucial part of any venture. Entrepreneurs that want to succeed or secure financing for setting up a franchise have to think about all aspects of future business in order to be ready for any challenges that may come their way. If you outline a franchise business plan, you will be better prepared for operating your enterprise and making it a successful venture with a promising future. With franchising most of the work is laid out for you. Franchisors share a business model and marketing materials with their franchisees, and most financial information is drawn up in the FDD. However, it is still sensible and essential to develop a franchise business plan that is more detailed and well-thought-out. Below you will see some of the most important business aspects that entrepreneurs need to think of in order to create a good franchise business plan.

Market Research

Acquiring a franchise is an investment that comes with some risks. When you consider purchasing a certain franchise, it is essential to research whether its offerings will be in demand in the marketplace you desire to operate in, whether there are competitors with similar offerings, and what reputation the franchisor has in a certain region. Thoroughly analyze the market that you wish to enter, so you know what to expect in terms of demand, customer flow, and possible growth opportunities. When you clearly see the market potential and its possible downsides, you will be prepared for any challenges that you may face.

Franchise Concept

It is important to have a detailed description of a franchise concept. Usually, this kind of data is disclosed in the franchise agreement. It includes the creation story of the company, and its summary, what goods and services it sells, and what its purpose and mission are. It is crucial to learn all about the brand’s agenda and values, so you know whether you share it or not. When you have a clear idea of a franchise concept, you comprehend what potential it has and how you can best leverage it.

Developing a Marketing Strategy

The profitability of an enterprise is greatly influenced by the quantity of sales it makes. So, it is crucial to grasp how the parent company attracts new customers and retains existing ones. Typically, the parent company is in charge of advertising efforts. Entrepreneurs can find out more about promotion means and strategies in the Item 11 of the FDD. There is also information about training that usually includes courses on sales and marketing. If the franchisor takes full responsibility for marketing campaigns, then franchisees usually have to pay an ongoing advertising fee for this service. There are also brands that provide marketing materials and educate franchise owners on how to implement them right.

Creating a Financial Plan

It is one of the most important elements of your business plan, especially if you want to be considered a proper candidate for financing. Typically, financial information is presented in Item 19 of the FDD. Here you find a review of franchise units’ financial performance. However, bear in mind that possible profits range from one unit to another. Thus, you can’t rely only on financial reports in the said document. There exist many variables that can influence the revenue of an enterprise, including the location of a unit, the marketplace, demographic, and management. It helps to contact former and existing franchise owners to get a better notion of what to expect in terms of income.

When you draw up a financial plan, it is important to include not only possible financial prospects, but associated expenses as well. The size of initial investment and a percentage of ongoing fees are usually disclosed by the parent company. Entrepreneurs must be aware of how much funds they have to possess, what possible expenses may occur, and when an enterprise will start making money. All this information needs to be properly researched and analyzed, so you will be confident that you have enough funds to keep your establishment afloat and ensure its success.

Organizational Structure

In order for business to be lucrative and thriving, it is important for it to be properly organized and thought-out. Entrepreneurs must know what their role and duties are, how the enterprise needs to be operated, what processes there are, and how to handle them correctly. There is typically information about obligations imposed on a franchise owner and qualifications and experience that can help franchisees prosper. When you develop a business plan, include all organizational aspects of this or that franchise model, so you know what is expected from you as an owner, and what operations and goals have to be achieved.

Developing a Growth Strategy

When acquiring a franchise, it is crucial to think about the big picture. Ambitious entrepreneurs have to think of possible opportunities and potential of this franchise business. How can you leverage the full potential of this enterprise? What are the means of increasing profits? What extent of freedom will you possess, and how could you utilize it to your advantage? These are just some of the questions that have to be answered when you draw up a business plan. Business growth is a natural thing to worry about for franchisees. Think of possible growth opportunities in advance, so you will be prepared for implementing them in the future.

There is no single layout for drawing up a franchise business plan. We have presented the main aspects that should be taken into consideration. If you have a proper plan of how to achieve success, you can make sure that you’re prepared to follow it and carry out all elements of the plan. It is easier and safer to enter the preferred market by acquiring a franchise unit. A lot of business solutions are ready-made, and you wouldn’t have to worry so much about challenges and dangers associated with opening an independent business. Franchisors offer enormous assistance and guidance, and take care of important organizational and operational aspects.

Written by Vasil Gazizulin Founder of Topfranchise.com CEO Expedition 2009 - 2014 Author of a book «GROW WITH A FRANCHISE»

Like the site? Share with your friends!

Your Franchise Fit

Schedule A Free 15 - Minute Call
352-307-1000
[email protected]

How To Create A Franchise Business Plan

Embarking on the journey of establishing on how to create a franchise business plan can be an exhilarating venture, full of promise and potential. Yet, in the dynamic world of entrepreneurship, success is often rooted in meticulous planning and strategic foresight. A key pillar in the foundation of a flourishing franchise is the creation of a well-structured and thoughtful business plan. Whether you’re a prospective franchisee eager to chart your path or a seasoned franchisor aiming for expansion, understanding how to create a franchise business plan is the compass that can guide your success.

In this comprehensive guide, we delve into the intricacies of crafting a robust franchise business plan, exploring the vital components that transform aspirations into actionable strategies. Join us on this journey as we unravel the art and science behind creating a roadmap for franchise success.

What is a franchise business plan, why do you need a franchise business plan, what are the main types of a franchise, analysis of the local market, analysis of the local, regional and national competition.

A franchise business plan is a comprehensive document that outlines the strategic roadmap for both the franchisor and franchisee, providing a detailed framework for the successful establishment and operation of a franchise. This document encompasses various crucial elements, including the franchise concept, market analysis, financial projections, and operational strategies.

It delineates the rights and responsibilities of both parties, delineates the franchise model, and addresses key factors such as training, marketing, and ongoing support. A question on how to create a franchise business plan is crucial for both attracting potential franchisees and ensuring the successful expansion and management of the franchise network. It provides a comprehensive overview of the business opportunity, sets expectations, and serves as a reference point for all stakeholders involved in the franchising process.

The plan serves as a guiding tool, offering insights into the target market, competition, and potential risks. Additionally, it provides a structured approach to financial planning, helping stakeholders make informed decisions. Overall, a well-crafted franchise business plan serves as a foundational document, fostering clear communication, strategic alignment, and long-term success within the franchising relationship.

A franchise business plan is a fundamental and essential tool for various reasons, serving both the franchisor (the business owner granting the franchise) and potential franchisees. Here are several key reasons why having a franchise business plan is crucial:

For Franchisors: It provides a strategic roadmap for the expansion of the business through franchising. A well-thought-out plan outlines the goals, objectives, and steps needed to grow the franchise network successfully.
For Franchisees: It offers a clear understanding of the franchisor’s vision, mission, and strategic direction. Franchisees can align their goals with the overall business strategy outlined in the plan.
For Franchisors: It promotes transparency with potential franchisees. The business plan outlines the franchise opportunity, the business model, and the franchisor’s expectations, fostering trust and credibility.
For Franchisees: It provides clarity on what is expected from them, including initial investment, ongoing fees, and operational requirements. This transparency helps potential franchisees make informed decisions.
For Franchisors: A comprehensive business plan is often required when seeking financing or investors to support the expansion of the franchise. It demonstrates a well-thought-out strategy and financial viability.
For Franchisees: Some franchisees may seek financing to launch their businesses. A solid business plan can be instrumental in securing loans or attracting investors.
For Franchisors: It helps ensure legal compliance with franchise regulations. The business plan includes details about the Franchise Disclosure Document (FDD) and the franchise agreement, addressing legal considerations and requirements.
For Franchisees: Understanding the legal aspects of the franchise is crucial. The business plan provides insights into the legal framework within which the franchise operates.
For Franchisors: It aids in financial planning for the franchisor’s expansion strategy. The business plan includes financial projections, helping to assess the feasibility and profitability of franchising.
For Franchisees: It allows potential franchisees to understand the financial requirements, including initial investment, ongoing fees, and potential returns. This information is crucial for making informed financial decisions.
For Franchisors: It outlines the operational guidelines and support provided to franchisees. This ensures consistency across the franchise network and helps maintain the brand’s integrity.
For Franchisees: It serves as a guide on how to operate the franchise successfully. The operational plan provides insights into the day-to-day requirements and standards expected by the franchisor.
For Franchisors: It outlines the marketing and sales strategy for attracting potential franchisees. A well-structured plan helps in promoting the franchise opportunity effectively.
For Franchisees: It provides information on how the franchisor plans to market and promote the overall brand, which contributes to the franchisee’s success.

Source: Photo by iStockphoto

A franchise business plan is essential for both prospective franchisees and franchisors. It serves as a roadmap for the business and helps outline key elements that contribute to its success. Here are the key components that should be included in a franchise business plan:

Executive Summary :

The executive summary is a concise overview of the entire business plan, providing a snapshot of the franchise’s key elements. It should encapsulate the franchise’s mission, goals, and a brief summary of each section of the plan, offering potential investors and stakeholders a quick understanding of the business’s direction and value proposition.

Business Description :

In this section, provide a detailed overview of the franchise concept, highlighting its uniqueness and value proposition in the market. Discuss the franchise’s history, background, and development, including any notable milestones or achievements. This narrative should convey the brand’s story and its journey to its current position, establishing a compelling narrative for investors and franchisees.

Franchise Model :

Clearly define the franchise model, specifying the type of franchise (e.g., retail, service, manufacturing) and its operational structure. Detail the rights and responsibilities of both the franchisor and the franchisee, outlining the contractual agreements, support systems, and operational guidelines that govern the franchising relationship. Clarity in the franchise model ensures alignment and understanding between all parties involved.

Market Analysis :

Conduct a comprehensive analysis of the target market, delving into demographic trends, consumer behavior, and competitive landscape. Identify the target audience and their preferences, as well as competitors operating within the same market space. Analyze market trends and potential demand drivers to assess the market’s viability and growth prospects, informing strategic decisions and marketing initiatives.

SWOT Analysis :

Perform a SWOT analysis to assess the franchise’s internal strengths and weaknesses, as well as external opportunities and threats. Identify areas of competitive advantage, such as proprietary technology or strong brand recognition, as well as areas needing improvement, such as operational inefficiencies or market saturation. Use this analysis to develop strategies for leveraging strengths, addressing weaknesses, capitalizing on opportunities, and mitigating threats, enhancing the franchise’s competitive position.

Franchisee Requirements :

Outline the qualifications and characteristics of an ideal franchisee, including skills, experience, and financial capabilities. Specify the financial requirements for prospective franchisees, detailing initial investment costs, ongoing fees, and potential revenue streams. Clear communication of franchisee requirements ensures alignment between franchisors and potential investors, reducing the risk of misunderstandings or mismatches.

Training and Support :

Describe the training programs provided to franchisees, covering topics such as product knowledge, operational procedures, and customer service standards. Detail ongoing support mechanisms, including marketing assistance, operational guidance, and technology support, designed to empower franchisees and facilitate their success. Robust training and support systems are essential for maintaining consistency and quality across the franchise network.

Marketing and Sales Strategy :

Outline the marketing plan for the franchise, encompassing both corporate-level and franchisee-level initiatives. Define the target market segments, positioning strategies, and promotional tactics aimed at attracting customers and driving sales. Develop sales strategies and targets, setting clear objectives and performance metrics to measure success. A cohesive marketing and sales strategy ensures brand visibility, customer engagement, and revenue growth for the franchise.

Financial Projections :

Provide detailed financial forecasts, including income statements, balance sheets, and cash flow projections, for both the franchisor and potential franchisees. Include assumptions used in creating the financial projections, such as sales forecasts, pricing strategies, and cost structures. Financial projections provide stakeholders with a clear understanding of the franchise’s revenue potential, profitability, and return on investment, guiding investment decisions and business planning.

Legal Structure and Agreements :

Clearly define the legal structure of the franchise, including entity formation, ownership arrangements, and regulatory compliance. Include details of the franchise agreement, disclosure documents, and any other legal agreements governing the franchising relationship. Addressing legal considerations upfront ensures transparency, accountability, and adherence to legal requirements, mitigating legal risks and liabilities.

Risk Analysis :

Identify potential risks and challenges associated with the franchise, assessing their likelihood and potential impact on the business. Common risks may include market volatility, regulatory changes, operational disruptions, or competitive threats. Develop strategies for risk mitigation, such as diversification, contingency planning, or insurance coverage, to protect the franchise’s interests and ensure business continuity.

Operational Plan :

Outline the day-to-day operations of the franchise, detailing key processes, workflows, and performance standards. Discuss the supply chain management, production processes, and quality control measures implemented to maintain operational efficiency and product/service excellence. An operational plan provides a roadmap for executing the franchise’s business model effectively, ensuring consistency and reliability across the franchise network.

Exit Strategy :

Provide a plan for the potential sale or exit from the franchise, considering factors such as succession planning, transfer of ownership, or business dissolution. Evaluate various exit options and develop contingency plans to mitigate potential risks and maximize value for stakeholders. A well-defined exit strategy provides clarity and direction for navigating transitions in ownership or market conditions, safeguarding the franchise’s long-term viability.

Include any additional documents or supporting materials that supplement the business plan, such as resumes of key personnel, market research data, legal documents, or financial statements. The appendix serves as a repository for relevant information that provides additional context and credibility to the business plan, enhancing its comprehensiveness and persuasiveness.

Remember that the specific details included on how to create a franchise business plan may vary depending on the nature of the franchise concept, industry dynamics, and target market characteristics. It’s important to customize the business plan to align with the unique needs, goals, and circumstances of the franchise, ensuring its relevance and effectiveness as a strategic tool for business growth and success.

Franchises come in various forms, catering to different industries and business models. The main types of franchises are:

This type involves the distribution of a franchisor’s products through a network of independent retailers. Franchisees benefit from the established brand and product line, focusing primarily on sales and distribution. Examples include beverage distributors, automotive parts suppliers, and consumer goods distributors.
Widely prevalent, business format franchises provide a comprehensive system encompassing not only products but also services, trademarks, and operational support. Franchisees gain access to a proven business model, standardized processes, and ongoing assistance. Popular examples include fast-food chains, retail outlets, and service-oriented businesses.
In a management franchise, the franchisor offers support in various aspects of business management, including marketing strategies, employee training, and operational guidance. Franchisees take on the role of managing the day-to-day operations while leveraging the expertise and support provided by the franchisor. This model is common in industries like hospitality and business services.
Single-unit franchises involve the ownership and operation of a single location. In contrast, multi-unit franchises empower entrepreneurs to own and manage multiple units within a specified territory. Multi-unit franchising offers economies of scale and broader market coverage, allowing for increased profitability.
Master franchisees hold the rights to operate and sell franchises within a designated territory. They act as intermediaries between the franchisor and sub-franchisees, facilitating expansion and providing localized support. Master franchises are often found in international expansion strategies.
Existing businesses can opt for a conversion franchise model, where they transition into a franchise system. This approach allows established businesses to benefit from a proven brand, operational framework, and expanded market reach while maintaining some degree of autonomy.
Similar to master franchising, area development franchises involve a commitment to opening a specific number of units within a predefined area. Area developers typically have exclusive rights to that territory, overseeing both the development and support of sub-franchisees.
Co-branding franchises bring together two or more complementary brands or services in a single location. This strategy leverages shared customer bases and resources, providing consumers with a diverse range of products or services. Examples include coffee shops within bookstores or automotive service centers with convenience stores.
Home-based franchises allow entrepreneurs to operate businesses from the comfort of their homes, minimizing the need for physical office space. This model is common in industries such as consulting, tutoring, or digital marketing services.

Understanding the nuances of these franchise types is crucial for prospective franchisees and franchisors, as it influences the structure, operations, and scalability of the business. Choosing the right franchise model depends on factors such as industry, market dynamics, and individual preferences.

An essential component of the franchise business plan is the analysis of the local market. This involves a detailed examination of the specific geographic area where the franchise will operate. Factors such as demographic trends, consumer behavior, and local economic conditions must be considered. Understanding the unique characteristics of the local market allows franchisors and franchisees to tailor their strategies to meet the specific needs and preferences of the target audience.

This analysis should cover aspects such as consumer purchasing power, cultural influences, and any local regulations that may impact the business. A well-informed understanding of the local market is crucial for developing effective marketing campaigns, setting appropriate pricing strategies, and ensuring the overall success of the franchise within its specific community.

In addition to local market analysis, evaluating the competition at the local, regional, and national levels is vital. Identify existing businesses offering similar products or services and assess their strengths, weaknesses, and market positioning. Understanding the competitive landscape helps in formulating strategies to differentiate the franchise and capitalize on unique selling propositions.

Regional and national competition analysis provides insights into broader market trends and potential challenges that may arise. By conducting a thorough examination of competitors, franchisors and franchisees can refine their value propositions, pricing strategies, and marketing tactics to gain a competitive edge. This analysis is integral to making informed decisions and adapting strategies based on the dynamics of the broader market.Top of Form

In conclusion, a question on how to create a franchise business plan is a meticulous process that involves careful consideration of various factors. From defining the franchise concept to analyzing local and broader market dynamics, the plan serves as a comprehensive guide for all stakeholders involved in the franchising process. It not only outlines the strategic roadmap for expansion but also enhances transparency, attracts investors, and ensures legal compliance.

On how to create a franchise business plan, Your Franchise Fit is committed to providing guidance and support at every step of the way. Whether you are exploring franchise opportunities, seeking assistance in crafting a business plan, or require insights into the intricate world of franchising, our expertise is here to assist you.

Contact us today or more information and personalized details tailored to your unique aspirations and business goals. Your Franchise Fit is dedicated to helping you embark on a successful and fulfilling journey in the world of franchising.

View all posts

Customer Reviews
Net 30 Account
Wise Services
Steps & Timeline
Work at a Glance
Market Research at a Glance
Business Plan Writing Services
Bank Business Plan
Investor Business Plan
Franchise Business Plan
Cannabis Business Plan
Strategic Business Plan
Corporate Business Plan
Merge and Acquisition Business Plan (M&A)
Private Placement Memorandums (PPM)
Sample Business Plans
Professional Feasibility Study
PowerPoint Presentations
Pitch Deck Presentation Services
Business Plan Printing
Market Research
L-1 Business Plan
E-2 Business Plan
EB-5 Business Plan
EB-5 Regional Centers
Immigration Attorneys
Nonprofit Business Plan
Exit Business Planning
Business Planning
Business Formation
Business License
Business Website
Business Branding
Business Bank Account
Digital Marketing
Business Funding Resources
Small Business Loans
Venture Capital
Net 30 Apply

Franchise Business Plan Template

Whether you want to start your own franchise business or expand an existing one, you need a business plan. the following franchise business plan template lets you know what elements you need to include in a successful franchise business plan., fill the form to download business plan templates.

To ensure your franchise business success in this highly competitive market, you need a properly structured franchise business plan. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their franchise businesses. Using the following franchise business plan template, you can put together an effective business plan.

Things to Know Before Writing a Franchise Business Plan

The franchise business industry has two primary agents; franchisor and franchisee. A franchisor is the business system/brand owner, and a franchisee is an entity that rents the business system/brand name against a fixed initial fee and royalty.

A franchise business plan is popular in many industries. Popular franchise systems are fast food chains like McDonald’s, KFC, Subway, etc. You can find a franchise opportunities in many industries.

A franchisee operates a business location under the guidelines of the franchisor. You have little freedom to experiment with new things.

The FDD, or Franchise Disclosure Document, is the legal contract between a franchisor and a franchisee. FDD has details of the rights and responsibilities of the two parties. This is generally a lengthy document. You need to understand it before you buy a franchise.

The franchise industry is growing fast. As International Franchise Association (IFA) reports, 2022 is the year of opportunity for franchises.

The estimated number of total franchises in 2021 was 774,965 with a total number of employees at 8,192,600, and an output of $787.7 billion.

The total GDP size of the franchise economy in 2021 was $474.2 billion. The growth projections for franchises in 2022 stand at 2.2%.

These are the top industries with the most number of franchises.

Quick Service Restaurants (188,402 franchises)
Retail Food, Products, and Services (162,579 franchises)
Personal Services (114,012 franchises)
Business Services (99,296 franchises)
Commercial & Residential Services (75,678 franchises)

Key Success Factors for Franchise Business

A franchise business has different dynamics as you are selling an established brand to a market with a demand for that brand’s products or services.

We have identified these five factors that play a crucial role in making a franchise successful.

A Loyal Customer Base for the franchisor brand makes sure you’ll have enough demand to successfully run your franchise business
A Clear Market Position . This means that you are selling products where there is a need and where the brand fulfills that need.
Franchisor Business Operating Expertise : When a franchisor has business expertise, chances are they will better lead the industry and develop the market for the brand
Established Brand Name : Running a McDonald’s franchise is far more profiting than a Huddle House
Ability to Control Stock: When franchisees can control stock locally, they can meet increased demand, control costs, and reduce waste.

Need a Business Plan Writer For Your Franchise Business?

Hire us Now!

What is a Franchise Business Plan?

A franchise business plan is a roadmap for starting and growing your franchise business. Your business plan outlines your business concept, identifies your target customers, presents your marketing strategy, and details your financial projections.

Any bank or investor you approach will require a franchise business plan, so putting one together will be critical to securing funding.

In short, writing a business plan can help you succeed if you’re thinking of starting a franchise business or pitching to investors or venture capitalists.

Why You Need a Franchise Business Plan

Franchise business plans can be used to gain interest from potential investors or to secure loans from banks. They are also helpful to you as the owner. A franchise business plan allows you to thoroughly analyze every aspect of your potential business.

A solid, detailed plan gives you a clear path to follow, forces you to examine the viability of a franchise business idea, and may help you better understand your company’s finances and competition.

A franchise business with a plan grows 30% faster than the rest. On the other side, if we look at the fast-growing companies, 71% of them have a business plan .

A franchise business plan is a living document that should be updated annually as your company grows and changes.

Free: Franchise Business Plan Examples

Do you need help creating a franchise business plan? Check out these six free, proven franchise business plan examples from different industries to help you write your own.

Funding Sources for Franchise Business

Conventional Banks and Credit Unions

You can get a loan from banks, credit unions, or other financial institutions. Getting such a loan for a franchise business depends on many factors including turnover, credit history, and expected revenue of the business.

SBA regularly offers loans, grants, and lifelines for small businesses. Keep an eye on the 7(a) program that is aimed at small businesses in the early stages.

Business Partners

A franchise business is a high investment business. Consider adding business partners to create a money pool big enough for the business needs.

Retirement Funds

If you have retirement funds available, you can use retirement funds or 401k for starting a franchise.

Securities-Backed Line of Credit

if you have an investment portfolio, you can get a line of credit against those securities. These securities will serve as loan collateral.

Equipment, Machinery, and Furniture Lease

You can get franchise machinery, vehicles, computers, furniture, and other equipment at lease. If you get an equipment lease, you may also get a buyout for $1 when the lease term ends.

Looking to Build Business Credit for Your Franchise?

A franchise business’ success is partially determined by its supply chain. We can help you purchase goods and services on Net 30 terms. Create a net 30 account with us and start building your business credit.

How to Write a Franchise Business Plan

To write a franchise business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a franchise business plan, or you can just download our proven sample business plans to get a better idea.

Free Franchise Business Plan Template in PDF and Word

Download our franchise business plan template in PDF and Word here.

Executive Summary

The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.

It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.

Tell them what kind of franchise business you have and what stage you’re in; for example, are you a startup, do you have a franchise already that you want to expand, or do you have a lot of franchise businesses?

Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.

Provide a high-level overview of the franchise industry
The name, location, and mission of your franchise company
A description of your franchise business, including management, advisors, and a brief history
Discuss the type of franchise business you are operating, Give an overview of your target customers., and how your company differs from competitors in the industry
Create a marketing plan that describes your company’s marketing strategies, sales, and partnership plans.
And give an overview of your financial plan

Check out these executive summary examples to help you write a perfect one for your franchise business plan.

Free: Franchise Business Plan Executive Summary Examples

An executive summary is the most important part of your franchise business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.

Company Analysis

Company summary: Your company analysis will describe the type of franchise business you are running and its future goals. The type of franchise business you might be focused on (for example, Quick Service Restaurants, Retail Food, Products, and Services, Personal Services, Business Services, or Commercial & Residential Services)
Company history: When and why did you start your franchise business?
What milestones have you achieved so far? Your milestones could include served 100th customer, new fleet purchase, etc.
Legal structure and ownership: Do you have S-Corp status? Is it an LLC ? A sole proprietorship ? Describe your legal structure.
Mission statement: An overview of your franchise company’s guiding principles. Learn how to write a perfect mission statement .

Industry Analysis

The franchise business plan’s research section will most likely be the most time-consuming. Here, you will elaborate on how you will fit into the existing franchise market.

Since your research findings should serve as a sound confirmation of the conclusions you have outlined thus far, they will demonstrate your understanding of the industry and market.

Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.

Give a quick overview of the franchise industry. Define the franchise business in terms of size (in dollars), historical background, service region, and products.
Examine previous trends and growth patterns in the franchise industry.
Identify the market’s major competitors.
Age, gender, and general lifestyle of the targeted market
Determine the factors that have an impact on the franchise industry. These might include government regulatory rules and other businesses’ competitive activities.
Using research data, the industry forecast expected growth over the next five to ten years. Predictions should be made for both the long and short term.
Describe how your franchise business intends to position itself in the industry. Concentrate on how your franchise business can benefit from opportunities highlighted in the industry.

Looking For Business Plan Writing Service For Your Franchise?

Hire Wise Business Plans Now

Customer Analysis

The first condition for franchise business is to identify its target customers clearly. Different franchise business have different customers.

The customer analysis section is an important part of any franchise business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how your franchise items will meet those requirements.

Customer analysis may be divided into two parts: psychosocial profiles (why your franchise items suits a customer’s lifestyle) and demographic profiles (descriptions of a customer’s demographic qualities).

With regards to demographics, include information about the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers have.

The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better you can attract and retain customers.

Competitor Analysis

It is necessary to do a competitor analysis. Because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:

Identify the strength and weakness of your franchise business competition.
Search for opportunities to distinguish your franchise from competitors.

The first step is to determine who your direct and indirect competitors are.

The direct competition consists of other franchise businesses that offer the same goods or services to the same audience.

Your indirect competitors are other options that customers have to purchase from you that aren’t direct competitors.

Among indirect competitors are the business selling similar product or service. For example, if you have McDonalds’ franchise, someone selling Chinese or Italian food is your indirect competitor.

Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your franchise business— but keep an eye on the indirect competition as well, just in case.

Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.

You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:

Prices – Are they offering cheaper products or services than you and other competitors, what value do buyers get for that price?
Quality – Are they offering premium quality? What is the perceived worth in the eyes of the customers?
Customer service – How they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
Reputation — The sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers

The final section of your competitive analysis should include a list of your areas of competitive advantage. For example, how will you offer better value at competitive prices for the target market.

Consider how you will outperform your competitors and include them in this portion of your franchise business plan.

Free: SWOT Analysis Examples

Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.

Marketing Plan

Creating a marketing plan for a franchise business involves identifying the target demographic and finding the goods and services that suit their preferences.

As part of your marketing plan for a franchise business, you should include:

Pricing and Product Strategy

Your franchise business must offer goods or products that are different from those of your competitors. Research what your competitors offer and how they price their offer.

Placing and Promotions

Place explains the location you’ll chose for your franchise and the reasons of the selection.

Promoting your franchise business is the final part of your marketing plan. In this step, you document how you will drive customers to purchase your goods or services. A few marketing methods you could consider are:

Marketing on social media
Web Marketing
Organize events
Local Newspaper and TV ads
Banners and Bill boards
Local Radio Ads

You should also think about your franchise company’s Unique Selling Proposition (USP), which should explain why clients should choose you over other franchise businesses. Ensure that your USP is reflected in your marketing.

Pro Tips: Learn how to create a marketing plan in a business plan .

Operations Plan

While the previous sections of your franchise business plan described your goals, your operations plan discusses how you will achieve them.

An operations plan section in a business plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.

Your operational plan should be able to answer the following questions:

Who – Personnel in charge of completing specific tasks.
What – A breakdown of the responsibilities of each personnel.
Where – The location of everyday operations.
When –The deadlines for completing tasks and goals.
How much – The amount of money required for each department to perform their job.

Your operations plan should be divided into two individual parts, as seen below.

Your daily short-term processes include all the tasks involved in producing goods or services, managing operations, selling, employee management, etc.

Long-term goals are milestones you hope to reach. they might be growing your business, such as introducing new items or retail outlets, meeting particular sales milestones, and meeting other essential business-oriented goals like recruiting more staff, opening additional locations, and so on.

Management Team

When writing a franchise business plan, the management section of a business plan outlines your management team, staff, resources, and how your business ownership is structured.

This part may be easily organized by dividing it into the following points:

Ownership Structure

Internal Management Team

External Management Resources

Human Resources

This section outlines your franchise business’s legal structure. An LLC or a Corp is favored in the franchise business ecosystem.

This section should not only outline who is on your management team but also how each person’s skill set and experiences will contribute to the growth of your franchise business. Ideally, you and/or your team members have direct expertise in the franchise business. If this is the case, highlight your experience and skills.

Think of these external management resources as your internal management team’s backup. Consider forming an advisory board if your team is lacking expertise and experience with franchise business.

An advisory board would consist of 3 to 7 people who would serve as mentors to your franchise business. They would help with strategic direction and strategy advice.

If necessary, search for advisory board members with expertise running franchise business.

Describe all of your company’s external professional advisers, such as accountants, bankers, attorneys, IT experts, business consultants, and/or business coaches.

The final topic to consider in the management area of your franchise business plan is your human resource needs.

Financial Plan

As part of your financial plan in a business plan , you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Financial statements include your income statement, balance sheet, and cash flow statement.

Income Statement

A profit and loss statement is more commonly called an income statement. It shows your revenue and subtracts your expenses to determine whether you were profitable or not.

As you develop your income statement, you need to develop assumptions. Will you serve 50 customers per day or 200? Will sales grow by 2% or 8% per year? Your choice of assumptions will greatly impact your business’s financial forecasts. Conduct as much research as possible in order to ground your assumptions in reality.

Free: Income Statement Template

Create a financial statement for your franchise business by downloading our free income statement templates.

Balance Sheet

While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.

The balance sheet shows your franchise business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:

Assets: Tangible goods with the monetary worth that the company owns.
Liabilities: Debt owing to a company’s creditor.
Equity: The net difference when the total liabilities are subtracted from the total assets.

The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.

Create a pro forma balance sheet for your franchise business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.

Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.

For example, spending $500,000 to build out your franchise will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.

Similarly, if a bank sends you a check for $200,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.

Cash Flow Statement:

Your cash flow statement will help you determine how much money you need to start or grow your franchise business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a franchise business:

Fees for registering a franchise business
Taxes and licenses costs
Business insurance
Payroll or salaries paid to staff
Facility rent and security deposits
Construction / remodeling
Start-up Inventory

Free: Balance Sheet Template

Create a financial statement for your business by downloading our free balance sheet templates.

List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.

Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.

Bonus Tip: Learn what to include in a business plan appendix when writing a business plan.

Summary of the Franchise Business Plan

A franchise business plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the franchise business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your franchise business.

Do you want to Finish Your Franchise Business Plan in less the one day?

Wouldn’t it be nice if your business plan could be completed faster and easier?

With wise business plans Business Plan Template , you can finish your franchise business plan in just 6 hours or less with a 30-Day Money-Back Guarantee!

Also, you can download our 300+ free business plan templates covering a wide range of industries.

OR, we can create your franchise business plan for you

Since 2010, Wise business plans’ MBA professional business plan writers has developed business plans for thousands of companies that have experienced tremendous success.

Download Our Franchise Business Plan Template

We will show you some real-world business plan examples so you may know how to write your own, especially if you are seeking a bank loan or an outside investment and need to use SBA-approved formatting.

Get in Touch

Investor Business Plans
M&A Business Plan
Private Placement
Feasibility Study
Hire a Business Plan Writer
Business Valuation Calculator
Business Plan Examples
Real Estate Business Plan
Business Plan Template
Business Plan Pricing Guide
Business Plan Makeover
SBA Loans, Bank Funding & Business Credit
Finding & Qualifying for Business Grants
Leadership for the New Manager
Content Marketing for Beginners
All About Crowdfunding
EB-5 Regional Centers, A Step-By-Step Guide
Logo Designer
Landing Page
PPC Advertising

Business Entity
Business Licensing
Virtual Assistant
Business Phone
Business Address
E-1 Visa Business Plan
EB1-A Visa Business Plan
EB1-C Visa Business Plan
EB2-NIW Business Plan
H1B Visa Business Plan
O1 Visa Business Plan
Business Brokers
Merger & Acquisition Advisors
Franchisors

Proud Sponsor of

1-800-496-1056

(613) 800-0227

+44 (1549) 409190

+61 (2) 72510077

Accounting & Financial Franchises
Advertising & Marketing Franchises
Automotive Franchises
Business Opportunities
Business Services Franchises
Children's Franchises
Cleaning Franchises
Coffee Franchises
Computer & Internet
Consultant & Business Brokers
Courier Franchises
Employment & Staffing
Entertainment Franchises
Fitness Franchises
Food Franchises
Health & Beauty
Healthcare & Senior Care
Home Based Franchises
Home Services Franchises
Industrial Franchises
Mailing & Shipping
Moving & Storage
Pet Franchises
Photography Franchises
Printer, Copying & Sign Franchises
Real Estate Franchises
Restaurant Franchises
Retail Franchises
Sports Franchises
Tax Franchises
Training Franchises
Travel Franchises
Vending & ATM Franchises
Franchises Under $10,000
Franchises Under $20,000
Franchises Under $30,000
Franchises Under $40,000
Franchises Under $50,000
Franchises Under $60,000
Franchises Under $70,000
Franchises Under $80,000
Franchises Under $90,000
Franchises Under $100,000
Franchises Under $200,000
Franchises Under $300,000
Franchises Under $400,000
Franchises Under $500,000
United States of America
International Franchises
Franchise Directory A-Z
Top Franchises
Hot & Trending Franchises
New Franchises
Low Cost Franchises
Recession Resilient Franchises
Green Franchises
Mobile Franchises
SBA Approved Franchises
Special Financing Offers
Franchises for Veterans
Master Franchises
Franchise Information Center
Ultimate Guide to Franchising
Ultimate Guide to Financing a Franchise
Ultimate Guide to FDDs
FDD Research Hub
Franchise Services
Franchise Direct Blog
Franchise Articles
Franchise Reports
Franchise News
Franchise Success Stories
Testimonials
Franchise Expos and Events
Franchise Videos
Discovery Days
The Franchise Direct Top 100 Global Franchises List
Franchise Direct's Top 100 Franchises 2024
Top 100 Franchises Ranking for 2023
Top 100 Franchises Ranking for 2022
Top 100 Franchises Ranking for 2021
Top 100 Franchises Ranking for 2020
Client Sign in

Start Your Search For A Franchise...

Creating a business plan for your franchise: what to prepare before asking for money.

🕒 Estimated Reading Time: ~8 minutes

Congratulations! You’ve decided that owning a franchise is the right investment for you. You may have even already decided on the type of franchise, and maybe even the franchise brand you are going to pursue.

What’s next? Financing. Securing the funding needed to make your franchise dreams a reality. And unless you are one of the fortunate people that has enough money saved to cover costs, you will likely be seeking a lender to make up the difference between the amount of money you currently have to invest and amount of money needed to open and maintain your franchised business until you 'break even.' (Breaking even is the point in the lifespan of a business where the operation starts turning a profit.)

To convince lenders that you are worthy of their money, the creation of a business plan is crucial. Lenders use a business plan as a guide to assess whether the prospective franchisee is a on a path towards success and profitability.

To approve loans, lenders want to have a clear, straightforward account of the business to be opened, the principals involved, and—perhaps most importantly—perspective on when the borrowed money will likely be repaid.

It's helpful to prepare for the meeting with the lender like a college graduate student would prepare for a thesis defense presentation. In both instances, it is the goal of the person (or people) going into the meeting to have done the adequate level of research necessary to competently back up the stated claims for the desired result (be it the granting of a master's degree to the student or the gaining of a loan for the prospective franchisee).

Important note: the business plan isn’t just for getting money.

Not only does a business plan help in securing funding, it forces you to take a hard look at the investment you are about to make. It gives you a chance to anticipate the challenges that come with opening a business, and temper unrealistic expectations.

As time passes and you move further into franchise ownership, the business plan you’ve created should be updated and utilized as a guide in helping you reach your franchise goals.

Parts of a Business Plan

Creating a business plan doesn't have to be complicated.

There is no standardized length for a business plan, but no lender wants to read a novel-length presentation. The main thing is that the plan is thorough enough to cover all aspects of your individual franchise. You want to give the lender confidence that you are prepared to take on the managing of a business that will turn a profit in a reasonable amount of time.

The key is compiling the proper information to address the reservations of the lenders you will meet with. This is where opening a franchised business offers a notable advantage over an independent business.

The franchise disclosure document (FDD) provided by the franchisor of the system you are investing in contains a great deal of the information needed to complete a business plan.

This information includes the company’s corporate background, a description of the target market, the competitive advantage of the product/service, marketing initiatives, plus the start-up and ongoing costs. Some franchisors even offer assistance to franchisees in the preparation of the plan.

Common parts of a business plan include the following, according to the Small Business Administration (a sample business plan is located at the end of this article):

Company description: A good place to look for the information for this section is Item 1 of the FDD. Provide an overview of the franchise and its history to the lender. You will also provide a brief outline of the franchise’s service/product (more detailed information will be given in the next section).

Service/product description: Describe in detail the service and/or product your franchise will provide to customers. This section can be combined with the company description. Again, Item 1 of the FDD is where you will find much of the information you need for this section. Item 16 will also be helpful in discussing what you will and will not be able to sell as a franchisee of a particular franchise system.

Market analysis: Use this section to prove to the potential lender that you are not jumping into a business venture on a whim. Concentrate on the specific area (market) in which the franchised business will be located. The territory description in the FDD (Item 12) will help you to a point.

Give a brief discussion of the following:

How big is your market?
What kind of people (demographically and financially) make up this market?
Is the market under-served in regards to this service/product?
If there is competition, who are your competitors and what is your competitive advantage?
Discuss what experts are forecasting for the service/product in terms of trends and growth possibilities for your specific market (can include demographic, legislative or environmental factors).

Management structure: This section provides a look at the people who will be responsible for the day-to-day operation of the franchise, particularly you as the owner. Is this venture going to be a sole proprietorship or will there be multiple owners? Explain if you will be involved day-to-day with business operations, or will be acting as an absentee owner.

For yourself and all of the others with an ownership stake, if applicable, detail all business qualifications. Stress any and all experience (even if volunteer) that is relevant to being successful in the future with the franchise operation. Item 15 of the FDD will help with explaining the managerial obligations of the franchisee.

Marketing plan: 'How are you going to get customers?' is the main question you’re answering in this section. Use FDD Item 11 to your advantage here. It provides an overview of the franchisor’s advertising and marketing efforts. Also, it provides a description of the training you will complete before opening. Often marketing and sales courses are part of required training.

Financials: This is the meat of your business plan. In this section, don’t only ask for the money you need. Give the lender the big picture of your financial situation as well. Detail how you are going to obtain the entire initial investment. Often times, a lender will not be financing all of the franchise investment. Are you using a mix of personal savings, loans, credit, etc.?

In addition to the funding request, you will be doing some financial projection. Give a reasonable time frame when the lender can expect full repayment of the loan, and back up that claim with figures. Include graphs and charts detailing the start-up costs, projected profit and loss and projected sales forecast for the franchise.

The franchisor can be of significant help to you in completing this section (via Items 5 and 19 of the FDD, and in direct conversation). However, keep in mind the franchisor is restricted legally about making certain claims about projected earnings. Be conservative with the projections as unexpected delays and unforeseen circumstances do happen.

Appendix: The appendix technically isn’t a part of the business plan, but an additional section to present items that would enhance your presentation. Include items you feel would be necessary to giving the lender a complete picture of you and the franchise you are seeking financing for. Examples include: the resumes of management figures, tax returns, media clippings, etc.

As previously mentioned, the best outside source of information to complete your business plan is the franchisor. No other outlet is going to know that franchise system better.

Additional resources include online sites such as Bplans.com, which offers site visitors a substantial library of sample plans to review, as well as general business websites like the Small Business Administration. Prospective franchisees can also use a professional business plan writer, particularly for the review of a plan before sitting down with the lender.

Confidentiality agreement: Because business plans contain sensitive and confidential information, the content needs to be safeguarded against potential leaks. To do this, you will need to enter into a confidentiality agreement with the parties you allow to review your business plan.

The agreement will bind them not to disclose or reveal any confidential information they receive, without your written permission.

Sample Business Plan Confidentiality Agreement Template

Sample franchise business plan: Please note that the example business plan linked below is a sample of one way to format a business plan. There are several different acceptable formats, and the contents of business plan sections will vary significantly due to factors including the franchise system, the type and amount of loan sought, the franchisee’s background, etc.

Sample Business Plan

You have saved info requests

	You might be using an unsupported or outdated browser. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website.

How To Start A Franchise In 8 Steps (2024 Guide)

Updated: Apr 17, 2024, 12:03pm

How To Start A Franchise In 8 Steps (2024 Guide)

What is a franchise business, common types of franchises, franchise pros and cons, how to start a franchise in 8 steps, frequently asked questions.

Starting a franchise business is similar to starting your own business from the ground up. As a franchisee, you have built-in brand awareness and standard ways of doing things. As an individual location of a larger business, you also have the benefit of a pre-existing customer base. However, there are unintended costs and other things to obtain before you get started. In this article, we’ll cover everything you need to know. Learn how to start a franchise in just eight simple steps.

Featured Partners

ZenBusiness

$0 + State Fees

Varies By State & Package

On ZenBusiness' Website

Northwest Registered Agent

$39 + State Fees

On Northwest Registered Agent's Website

Tailor Brands

$0 + state fee + up to $50 Amazon gift card

Varies by State & Package

On Tailor Brands' Website

$0 + State Fee

On Formations' Website

A franchise business is a business where the owner grants licenses to licensees to operate the business (sell its products, provide services, and more) at a business location. Think of Baskin-Robbins, CrossFit or another business that you’ve seen in multiple cities. Each location is a franchisee with its own management that pays a fee to the franchisor (the owner) to “rent” the brand name.

Here are the main financial elements of starting a franchise:

Franchise purchase fee: This can cost anywhere from $20,000 to $50,000, depending on the license.
Minimum liquid capital: A generally good idea is to have $50,000 to $60,000 for a service-based business, and $75,000 to $100,000 of liquid capital for a facilities-based business.
Franchise royalties: This is a fee you’ll have to continue to pay to operate your business–the royalty fee can be 4% to 12% of your franchise location’s profits.
Additional expenses: Franchise businesses also have expenses such as sourcing a commercial space (if applicable), staffing, and more.

Why Start a Franchise?

Starting a franchise comes with the benefit of starting a business with pre-existing brand recognition, processes and plans. In many ways, a lot of the work is already done for you with a franchise, however, that doesn’t mean that starting a franchise is easy.

Since franchisees have to pay a portion of their profits to the franchisor, you have to add more costs to whatever your budget projections are. You’re also beholden to a brand’s standards, which you’re unable to change too much. This lack of control can be hard for entrepreneurial thinkers.

Food and Drink

The franchise you’ve probably engaged with as a customer the most often is a restaurant or food store. If you have a favorite fast-food restaurant or convenience store to pick up snacks, you might have some fun ideas for a franchise location.

Jersey Mike’s

Business Services

If you’ve been to UPS or any company that lets you get things you need to do business, you’re probably familiar with this kind of franchise business.

Express Employment Professionals
Real Property Management

Health and Fitness

Many successful gyms are franchise businesses. They provide a regular service that people need and can also give a sense of community and consistency for people moving to new cities, especially those that provide group fitness classes.

Healthcare organizations can also be franchises. If you’re interested in providing healthcare services, you can look into companies that provide home nurses or professional consultations.

Planet Fitness
The Vitamin Shoppe
Home Helpers Home Care

Of course, many well-known retail stores across the country are in fact franchises.

Edible Arrangements
Pet Supplies Plus
Apricot Lane Boutique

Franchise businesses are common all over the country. Whatever business you’re interested in, you can probably find a franchise that has successfully created a niche in the market.

Lapels Dry Cleaning
L.A. Bikini

Start an LLC Online Today With ZenBusiness

Click on the state below to get started.

The great advantage of a franchise is not starting from scratch. You have the branding and design concepts ready to go, and you get to focus on the important operational aspects of the business.

The franchisor also has existing vendors so you don’t have to research providers and work out contracts with them. In some cases, you won’t be able to choose your own vendor for a franchise business.

However, the con is that you won’t have as much creative control with the business. If you’re invested in designing your own brand identity and taking control of the product design, a franchise might not be the right choice.

Pros:	Cons:

There are several steps to start a franchise after you decide to pursue this business. From picking to getting a license to securing space, you have to plan this process ahead of time to stick to the franchisor’s standards.

Here’s how to a franchise in 8 steps:

1. Research Franchises

You can find franchise opportunities on websites like Franchise Direct . It categorizes franchises by industry, working from home, and lower cost ones.

These are the key points to keep in mind when you’re picking a franchise opportunity:

Industry fees
Liquid capital needed
Average monthly/yearly revenue
Royalty fees
Marketing fees

2. Evaluate Opportunities

Before you start a franchise business, you should make sure that one doesn’t already exist in the area. Although there are some businesses that can exist throughout a city, such as Dunkin’ Donuts, you want to make sure you’re not setting up a competitive location that could underperform.

3. Evaluate Costs

When you’re looking into starting a franchise business, you’ll have to be on top of a few different costs. In addition to regular business costs such as rent and maintenance, you have to pay a yearly royalty to the franchisor.

Other costs include travel, training with the company and paying some local taxes to start your business.

4. Draft a Business Plan

Even though many aspects of the business are already defined, you’re in charge of the most important aspects of the business. When you write your business plan , you can outline why you would be a strong steward of the business.

It’s also important to explain how you understand the community you wish to serve with your location. You’re the expert and it will be helpful for the franchise overall.

5. Get the Franchise License Agreement

The franchisor has a contract that they provide to franchisees in order to run the business. Before signing, make sure to read it over and understand all of the standards expected of your location. It’s important to know what business standards the franchisor has for franchisees, and make sure you’re comfortable with upholding the business.

6. Form a Business Entity

After you write your business plan, it’s time to form an LLC or corporation to get started. Franchisors require different business entities based on their overall structure. Either way, these businesses mean you can start categorizing your business expenses.

7. Choose Your First Business Space

When you have the business operations in place, it’s time to look for a business headquarters. There are probably guidelines from the franchisor about what kind of space you’ll need in terms of size and setup. If it’s a restaurant, they also probably have specifications about appliances and amenities needed to keep the space in line with the overall brand.

8. Hire Employees

Once you have your agreements and a location in place, you can start looking for employees. The franchisor probably has job descriptions and titles set up already so it’ll be easier to post the job openings and start searching for good employees. The franchise owners might have an internal job posting system as well, in case there are employees at other franchise locations looking to relocate.

Bottom Line

Starting a franchise business can be just as much work as starting a business from scratch. Working with a franchisor gives you the space to focus on important aspects of the business. The big picture is already completed.

Do franchise owners make money?

Although franchisors cannot forecast income, as a franchisee, you can definitely make money. It’s important to assess your costs regularly and make sure you’re spending money effectively, like any business owner.

Are franchise fees paid yearly?

Franchise fees are usually on a monthly basis. The fee is a percentage of your revenue, and the royalties can range from 4% to 12% per year.

How much does the average franchise owner earn per year?

In a study from Franchise Direct , the average franchise owner makes $80,000 a year before tax. However, the range of income is quite large: anywhere from $50,000 to $250,000.

What kinds of franchises are available?

In general, there are three types of franchises available: business, management and product distribution. A business franchise gives you the rights to a business’s trademarked name as well as its processes and tools for selling products. This is the most common kind of franchise. A management franchise allows the person to manage the business, but not necessarily have to deal with its day-to-day operations. A product distribution franchise occurs when a franchisor provides the product, such as clothing, vehicles or drinks, and the franchisee sells them, such as in a store, auto dealership or vending machine.

Best LLC Services
Best Registered Agent Services
Best Trademark Registration Services
Top LegalZoom Competitors
Best Business Loans
Best Business Plan Software
ZenBusiness Review
LegalZoom LLC Review
Northwest Registered Agent Review
Rocket Lawyer Review
Inc. Authority Review
Rocket Lawyer vs. LegalZoom
Bizee Review (Formerly Incfile)
Swyft Filings Review
Harbor Compliance Review
Sole Proprietorship vs. LLC
LLC vs. Corporation
LLC vs. S Corp
LLP vs. LLC
DBA vs. LLC
LegalZoom vs. Incfile
LegalZoom vs. ZenBusiness
LegalZoom vs. Rocket Lawyer
ZenBusiness vs. Incfile
How To Start A Business
How to Set Up an LLC
How to Get a Business License
LLC Operating Agreement Template
501(c)(3) Application Guide
What is a Business License?
What is an LLC?
What is an S Corp?
What is a C Corp?
What is a DBA?
What is a Sole Proprietorship?
What is a Registered Agent?
How to Dissolve an LLC
How to File a DBA
What Are Articles Of Incorporation?
Types Of Business Ownership

What Is SNMP? Simple Network Management Protocol Explained

What Is A Single-Member LLC? Definition, Pros And Cons

What Is Penetration Testing? Definition & Best Practices

What Is Network Access Control (NAC)?

What Is Network Segmentation?

How To Start A Business In Louisiana (2024 Guide)

Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry.

Franchise Fundamentals: A Comprehensive Guide to the Franchise Model

Under the umbrella of The Franchise Business Model, we embark on an insightful journey to uncover the complex yet fascinating world of franchising. This article delves into the core elements that define this business strategy, examining how it blends brand consistency with entrepreneurial spirit to create pathways for expansive business growth and success across various industries.

What is a Franchise Business Model?

The franchise business model is a dynamic approach to business expansion, combining the entrepreneurial drive of a franchisee with the established system and brand of the franchisor. In this model, a franchisor grants the franchisee the right to operate a business under its brand, leveraging the franchisor's trademarks, business strategies, and operational procedures. The franchisee invests in this opportunity, paying an initial fee and ongoing royalties, which affords them access to a proven business model, training, and support systems. This symbiotic relationship allows the franchisee to run an independent business while benefiting from the brand recognition and established customer base of the franchisor. The success of this model is evident in various sectors, ranging from fast food and retail to services, reflecting its versatility and scalability. However, it also demands adherence to the franchisor's guidelines to ensure consistency and quality across all franchise units, preserving the brand's integrity and customer experience.

The Franchisor and Franchisee Relationship

The relationship between a franchisor and a franchisee is pivotal to the success of the franchise business model. This partnership, characterized by mutual dependence and collaboration, is the cornerstone of franchise operations. Understanding the dynamics of this relationship is crucial for both parties involved.

Franchise Model: Franchisor and Franchisee relationship

Roles and Responsibilities

Franchisor: The primary role of the franchisor is to develop and maintain the overall brand and operational system. This includes creating marketing strategies, establishing brand standards, conducting research and development, and providing ongoing support and training to franchisees. The franchisor also ensures quality control across all franchise units to maintain brand integrity.

Franchisee: The franchisee's main responsibility is to manage the day-to-day operations of the franchise according to the franchisor's established guidelines. This involves hiring and training staff, managing finances, adhering to brand standards, and implementing marketing strategies provided by the franchisor. The franchisee acts as the face of the brand at the local level, directly interacting with customers and the community.

Financial Arrangements

In the franchisor-franchisee relationship, financial arrangements play a pivotal role. The franchisor typically charges an initial franchise fee and ongoing royalties, which are a percentage of the franchisee's sales or profits. These fees fund the support services provided by the franchisor, including training, marketing, and business development. Additionally, franchisees may be required to contribute to a national marketing fund. It's crucial for both parties to have clear, transparent financial terms to ensure mutual understanding and profitability.

Compliance and Quality Control

Compliance and quality control are essential to maintain brand integrity and customer satisfaction across all franchise units. The franchisor sets specific operational guidelines and standards that the franchisee must follow. Regular audits and evaluations are conducted to ensure these standards are met. This oversight ensures consistency in customer experience, product quality, and service across all franchise locations, which is fundamental to the brand's reputation and success.

Conflict Resolution

Conflict resolution mechanisms are vital in the franchisor-franchisee relationship to address disagreements or disputes effectively. Open communication channels, mediation processes, and clear contractual terms can help prevent and resolve conflicts. Both parties should strive for a cooperative approach, recognizing that the success of one directly impacts the other. It is beneficial to have predefined procedures for conflict resolution in the franchise agreement to manage disagreements constructively.

Mutual Goals and Success

The relationship between a franchisor and a franchisee is built on the foundation of mutual goals and shared success. The franchisor aims to expand its brand and increase market presence, while the franchisee seeks to run a profitable business. Collaboration, support, and shared objectives are key to achieving these goals. Regular communication, performance reviews, and a focus on collaborative strategies can help align the franchisor's vision with the franchisee's local market insights and operational expertise, leading to collective growth and success.

The franchisor-franchisee relationship is a delicate balance of guidance, independence, mutual respect, and shared objectives. Both parties must work collaboratively towards common goals, with a clear understanding of their roles and responsibilities, to ensure the prosperity and longevity of the franchise business.

What Franchisees Can Expect from Their Franchisor

Entering into a franchise agreement, franchisees can anticipate a range of support and resources from their franchisor. This support is designed to maximize the chances of success for each franchise unit, while maintaining the integrity and consistency of the brand as a whole. Understanding what to expect from a franchisor can help prospective franchisees make informed decisions and set realistic expectations.

Training and Education: Franchisees can expect comprehensive training programs from their franchisor. This often includes initial training on business operations, staff management, customer service, and the specific products or services offered. Ongoing training may also be provided to keep franchisees updated on new developments, products, or changes in business operations.
Operational Support: Franchisors typically provide a detailed operations manual that serves as a blueprint for running the franchise. This manual covers every aspect of the business, from day-to-day operations to employee conduct and customer service standards. Support might also include assistance with business planning, financial management, and operational problem-solving.
Marketing and Advertising: Franchisees can expect to benefit from the franchisor’s national or regional marketing campaigns. This includes brand advertising, promotions, and other marketing initiatives designed to attract customers and build brand recognition. Franchisors may also provide guidance or resources for local marketing efforts, helping franchisees to effectively market their specific location.
Site Selection and Setup: Many franchisors assist with site selection, leveraging their experience and data to identify locations with the best potential for success. Support might extend to the design and setup of the franchise location, ensuring that each site reflects the brand’s image and standards.
Supply Chain Access: Franchisees often have access to the franchisor’s established supply chain, benefiting from bulk purchasing agreements and preferred vendor relationships. This can lead to cost savings and consistency in product or service quality. Franchisors may also provide guidance on inventory management and control.
Ongoing Consultation and Support: Regular support and consultation are typically part of the franchisor’s offering. This can include periodic visits from franchisor representatives, ongoing business reviews, and access to a help desk or support team. This support aims to ensure franchisees are operating effectively and are aligned with the brand’s standards and goals.
Innovation and Development: Franchisees can expect the franchisor to continuously innovate and develop the brand, products, and services. This is crucial for staying competitive in the market. Franchisees benefit from these innovations, which can help attract new customers and retain existing ones.
Community and Network: Franchisees become part of a larger community of fellow franchisees. This network can be a valuable resource for sharing best practices, advice, and support. Franchisors often facilitate networking opportunities through conferences, meetings, or online platforms.

Franchisees can expect a substantial level of support and resources from their franchisor. This includes initial and ongoing training, operational guidance, marketing assistance, supply chain access, and continuous innovation. Such support is essential for the franchisee’s success and contributes significantly to the overall strength and growth of the franchise brand.

Types of Franchise Business Models

The franchise industry offers a diverse range of business models, each catering to different market sectors and investment levels. Understanding the various types of franchise models can help prospective franchisees identify the best fit for their goals, interests, and investment capacity. Here are some of the primary types of franchise business models:

Product Distribution Franchise:

This model is similar to a traditional supplier-dealer relationship. The franchisee is licensed to sell the franchisor’s products. It is commonly seen in industries like automotive (tire manufacturers, car manufacturers), beverage companies, and other product-based sectors.
The focus is more on the product than on the system of doing business, although franchisees may still be required to adhere to certain operational guidelines.

Business Format Franchise:

The most common and identifiable type of franchise, this model involves a deeper relationship between franchisor and franchisee. Franchisees not only sell the franchisor’s products or services but also follow their proven business format and processes.
This model includes comprehensive support from the franchisor, including marketing, branding, training, and systems for running the business. Examples include fast food restaurants, retail stores, and service-based businesses like gyms or cleaning services.

Management Franchise:

In a management franchise, the franchisee primarily focuses on managing the business rather than carrying out day-to-day operations. This model is ideal for individuals with strong management skills.
The franchisee hires staff to perform the service or sell the products while they concentrate on growing the business, managing teams, and developing strategies.

Investment Franchise:

This model requires a significant financial investment from the franchisee, who often acts more as an investor than an operator. The franchisee may hire a management team to run the business.
Investment franchises are common in large-scale businesses like hotel chains or large restaurant brands.

Conversion Franchise:

Conversion franchising involves converting an existing business into a franchise unit. This model allows independent business owners to become part of a larger, well-known brand to leverage their systems, support, and brand recognition.
It is common in sectors like real estate, florists, home services, and other professional services.

Job-Franchise:

Also known as a micro-franchise, this model typically requires a lower investment and is often service-oriented. The franchisee usually works alone or with a small team.
Examples include lawn care, cleaning services, and other home-based business opportunities.

Master Franchise:

In this model, the franchisee, known as a master franchisee, acquires the rights to a specific geographic area and is responsible for recruiting new franchisees in that area.
The master franchisee often provides training, support, and operational guidance to the sub-franchisees in their territory, acting as a mini-franchisor.

Area Developer Franchise:

Similar to the master franchise model, area developers have the right to open and operate a set number of locations within a given area, often over a specified period.
The area developer is responsible for managing each location and ensuring adherence to the franchisor’s standards and practices.

Steps to Start a Franchise

Starting a franchise requires a detailed and structured approach, encompassing various stages from market research to legal compliance and marketing. Here’s a breakdown of the essential steps to start a franchise:

Step 1: Conducting Market Research

This initial step involves gathering and analyzing data to understand the market landscape and identify potential opportunities for your franchise.

Identify Market Needs: Understand the needs and preferences of the target market. Research what products or services are in demand and how your franchise concept can fulfill these needs.
Competitive Analysis: Analyze competitors in the franchise sector you are interested in. Understand their strengths, weaknesses, and market positioning.
Feasibility Study: Conduct a feasibility study to assess the practicality of your franchise concept in the chosen market. This includes evaluating economic, technical, and legal aspects.
Location Analysis: For physical franchises, location is crucial. Research the best locations for visibility, customer access, and potential market size.

Step 2: Developing a Franchise Business Plan

In this phase, you will outline a comprehensive plan that details your franchise's operational, financial, and growth strategies.

Define Business Model: Outline the franchise structure, including details on the operational model, training, support, financial arrangements, and growth strategies.
Financial Projections: Include detailed financial projections covering initial investment, ongoing costs, royalty fees, and break-even analysis.
Franchisor and Franchisee Roles: Clearly define the roles and responsibilities of the franchisor and the franchisees.
Growth Strategy: Develop a clear strategy for scaling the franchise, including target markets, number of units, and timelines.

Step 3: Legal and Regulatory Compliance

This crucial step ensures your franchise adheres to all legal standards and regulatory requirements, setting a solid foundation for lawful operations.

Understand Franchise Laws: Familiarize yourself with the legal requirements for franchising in your country, including any specific laws that govern franchise operations.
Consult Legal Experts: Engage with attorneys who specialize in franchise law to ensure compliance with all legal requirements.
Develop Contracts: Prepare comprehensive franchise agreements detailing the terms of the relationship, rights, and obligations of both franchisor and franchisee.

Step 4: Creating Franchise Disclosure Document (FDD)

Developing the FDD is a key legal requirement, providing prospective franchisees with all necessary information about your franchise.

Draft the FDD: The Franchise Disclosure Document is a legal document that must be provided to prospective franchisees before any agreement is signed. It includes detailed information about the franchise, including business experience, litigation history, initial and ongoing costs, restrictions, and support.
Legal Review: Have the FDD reviewed by a legal expert to ensure it complies with regulatory standards.
Update Regularly: Keep the FDD updated with any changes in the franchise operation, financial condition, or legal requirements.

Step 5: Franchise Marketing and Sales

This stage focuses on strategies for effectively marketing your franchise and recruiting potential franchisees to expand your brand's reach.

Develop Marketing Strategy: Create a comprehensive marketing strategy to attract potential franchisees. This includes digital marketing, franchise expos, and print advertising.
Sales Process: Establish a clear sales process for recruiting franchisees. This includes interviews, background checks, and financial assessments to ensure the suitability of candidates.
Brand Consistency: Ensure that all marketing and sales materials reflect the brand’s values, ethos, and quality standards.
Training for Sales Team: Provide thorough training to your sales team about the franchise model, benefits, and expectations to effectively communicate with potential franchisees.

Advantages of the Franchise Business Model

The franchise business model offers a unique blend of benefits for both franchisors and franchisees, making it a popular choice in various industries. Here are some of the key advantages:

Proven Business Model: Franchises operate on a tried-and-tested business model, reducing the risks associated with starting a new business. Franchisees benefit from the franchisor's experience and established procedures, increasing the likelihood of success.
Brand Recognition: Franchisees gain immediate access to a recognized brand, which can take years to build from scratch. This brand awareness attracts customers and instills trust, providing a competitive edge in the market.
Support and Training: Franchisors offer extensive training and ongoing support to franchisees, covering operational practices, marketing strategies, and management skills. This support is invaluable for entrepreneurs new to the industry.
Economies of Scale: Being part of a larger network allows for economies of scale in purchasing, marketing, and operational expenses. Franchisees can leverage collective buying power, leading to lower costs and increased profitability.
Expansion Opportunities: For franchisors, this model provides an efficient way to expand their business without the high capital investment typically required for opening new locations. It enables rapid growth and market penetration.
Motivated Management: Franchisees, as business owners, are highly motivated to succeed, leading to better-run units and higher overall performance compared to directly managed outlets.
Innovation and Local Adaptation: While maintaining brand consistency, franchisees can also bring in local market insights and innovations, which can be beneficial for the entire franchise system.
Risk Distribution: The franchising model distributes the risks between the franchisor and the franchisees. While the franchisor invests in brand development and support systems, franchisees invest in individual units, spreading the financial risk.

Overall, the franchise business model offers a unique pathway to business ownership with the support of an established brand and system, making it an attractive option for both entrepreneurs and established businesses looking to expand.

Challenges in the Franchise Business Model

While the franchise business model presents numerous advantages, it also comes with its own set of challenges. These hurdles can impact both franchisors and franchisees and understanding them is crucial for anyone considering entering the franchising world. Here are some of the key challenges associated with the franchise business model:

‍ Initial Investment Costs: Starting a franchise often requires a significant initial investment, which can be a barrier for many potential franchisees. This includes franchise fees, start-up costs, and the capital needed to sustain the business until it becomes profitable. ‍
Ongoing Fees and Royalties: Franchisees must pay ongoing fees and royalties to the franchisor, which can be a substantial portion of the revenue. These fees are for the continued use of the brand, support services, and sometimes for national marketing efforts. ‍
Limited Operational Flexibility: Franchisees are required to adhere to the franchisor’s strict operational guidelines and procedures, limiting their ability to make independent decisions or changes to the business model, products, or services. ‍
Dependence on Franchisor's Reputation: The success of a franchise can be closely tied to the franchisor's brand reputation. Any negative publicity or issues at the corporate level can adversely affect individual franchise units. ‍
Market Saturation: In some cases, franchisors may oversaturate a market with too many franchise units, leading to competition among franchisees of the same brand, which can impact profitability. ‍
Territorial Restrictions: Franchise agreements often include territorial restrictions, limiting where franchisees can operate and market their business. This can restrict expansion opportunities and market reach. ‍
Quality and Consistency Challenges: Maintaining quality and consistency across all franchise units can be challenging, especially as the number of franchisees grows. This can impact the overall brand image and customer experience. ‍
Contractual Disputes: Disputes can arise between franchisors and franchisees over contract terms, operational practices, or financial arrangements. Resolving these disputes can be time-consuming and costly. ‍
Exit Difficulties: Exiting a franchise agreement can be complex and challenging. Franchise contracts often have strict conditions and terms for selling or transferring the franchise, and there may be financial penalties for early termination. ‍
Staff Recruitment and Retention: Finding and retaining skilled staff can be challenging for franchisees, particularly in competitive labor markets or industries with high turnover rates.

What Role Does a Franchise Agreement Play in a Franchise Business Model?

The franchise agreement is a critical document in the franchise business model, serving as the legal foundation of the relationship between the franchisor and franchisee. It outlines key aspects vital for the operation and success of the franchise:

Relationship Definition: Establishes the legal basis of the franchisor-franchisee partnership, including support and training responsibilities.
Rights and Obligations: Details the rights granted to the franchisee, such as brand usage, and outlines their obligations like adhering to operational guidelines and fee payments.
Duration and Renewal: Specifies the terms of the agreement and conditions for renewal, allowing both parties to understand and plan for the franchise's longevity.
Territorial Rights: Defines the geographical area for the franchisee's operations, helping prevent market saturation.
Financial Arrangements: Lays out all financial aspects, including initial fees, royalties, and other monetary commitments.
Quality Control: Sets brand standards and quality control measures, ensuring consistency across all franchises.
Training and Support: Outlines the franchisor’s duty to provide initial and ongoing support and training.
Marketing and Advertising: Includes clauses on marketing strategies, detailing both franchisor and franchisee responsibilities.
Dispute Resolution: Provides mechanisms for resolving conflicts between franchisor and franchisee.
Termination Conditions: Explains conditions for ending the franchise agreement, including breaches or failures.
Post-Termination Obligations: Details the franchisee's responsibilities after the agreement ends, such as non-compete clauses and handling proprietary information.

The franchise agreement acts as a comprehensive guide for operational, financial, and legal aspects, ensuring a clear understanding of each party's role in the franchise system.

Final Thoughts

In conclusion, the franchise business model offers a unique blend of entrepreneurial opportunity and structured support, appealing to a wide range of business aspirations. However, it's crucial for both franchisors and franchisees to navigate its complexities with a clear understanding of roles, responsibilities, and the inherent challenges and advantages. By doing so, participants in this model can unlock significant potential for growth, innovation, and sustained success in the dynamic world of franchising.

Javier is an experienced franchise industry professional with a focus on development, operations, and performance. With almost a decade of experience in the industry, he has witnessed both the successes and failures of franchise owners. Javier strongly believes that buying a franchise is not just an investment, but a life-changing event that presents a unique opportunity for personal and professional growth. He enjoys helping aspiring franchise owners navigate the decision-making process and increase their chances of success.

Book A Call & Asses Your Potential

Newly Launched - AI Presentation Maker

Researched by Consultants from Top-Tier Management Companies

AI PPT Maker

Powerpoint Templates

Icon Bundle

Kpi Dashboard

Professional

Business Plans

Swot Analysis

Gantt Chart

Business Proposal

Marketing Plan

Project Management

Business Case

Business Model

Cyber Security

Business PPT

Digital Marketing

Digital Transformation

Human Resources

Product Management

Artificial Intelligence

Company Profile

Acknowledgement PPT

PPT Presentation

Reports Brochures

One Page Pitch

Interview PPT

All Categories

Top 10 Franchise Business Plan Templates with Samples and Examples

Siranjeev Santhanam

The origins of modern-day franchising go all the way back to the Middle Ages, when feudal lords formed partnerships with their vassals, supplying them with land and resources in return for security and protection.

Today, in the world of business, franchises are inescapable. They are everywhere in our current hyper-consumerist market, an almost unstoppable business force. Franchising offers certain strong advantages to businesses, giving ventures of all kinds a chance to tap into broader kinds of brand recognition and establishment names to gain more revenue. Franchises also create value within the consumer market, giving customers consistent and reliable experience across varying domains and regions of operation.

Dive deeper into this subject by reading our other blog discussing twelve templates for a Franchise Business Model. Click here now and read it.

In this blog, we will examine a well-researched, premium business template that can aid any up-and-coming business seeking to establish a powerful franchise. We will offer you a sneak peek of the template, giving you access to ten leading slides from the presentation while discussing what makes this business plan valuable. We’ll also be diving into some related products in this spectrum, allowing you to choose from a diverse and well-curated range of B usiness Plan PPT templates for yourself.

Let’s begin.

Are you in the software business? Click here and check out blog on must-have SaaS Templates now.

Table of contents

Executive summary
Company Overview
Industry analysis
Customer analysis
Competitive analysis
Growth potential analysis
Go-to-marketing analysis
Operational plan
Financial plan
Graphical representation analysis

1) Executive summary

The deck starts off with a well-designed executive summary segment that can serve as a vital template for your organizational process, allowing you to lay out the inner workings of your plan in an elegant and professional manner. For stronger readability and enhanced presentation, it has been divided into core sub-sections, allowing you to create a more eloquent overview of your franchise plan. ‘ quick pitch,’ ‘about the business,’ ‘the company,’ ‘services offered’, and ‘ goals and objectives’ are the foundational headings incorporated into this section, giving you ample room to lay the groundwork for your franchise expansion plan.

Download now

2) Company Overview

Use a professional template to discuss your organization and evaluate the state of your business framework. Accomplish this and more with the aid of our company overview section, which has been curated with a sound insight into the business workings of the day. It has been modeled after the prevailing trends in the current business paradigm and discusses some essential components such as ‘start-up business summary,’ ‘mission and vision statement,’ ‘market gap and absolute solutions associated,’ and lastly, ‘key success factors.’ Build on the core methodologies of your company as you polish, hone, and refine your existing working structures with the aid of all of these components.

3) Industry analysis

Franchises can be a great tool to climb the business hierarchy and get to the top, but without a sound grasp of the market in which one operates and a thorough inspection of the conditions of the industry, it could become a strenuous uphill battle. Our industry analysis section can offer you a clean, insightful view of the current trends in the industry where you operate, giving you the commercial prowess to tailor your approach, restructure your policies, and align with the demands of the industry. This section has been integrated with some much-needed highlights such as ‘market analysis,’ ‘market trends,’ ‘market challenges,’ ‘growth drivers,’ and finally, ‘geographical analysis.’ Launch a more holistic and focused look into the ever-changing needs of the industry, drawing out the essentials of the market through an examination of its trends, growth process, geographical intricacies, and more.

4) Customer analysis

Customers are the bedrock of any successful business, and with large, region-wide franchises, this could be said to be truer than ever. Acquire the tools to gain traction in the market and cultivate a more loyal and invested customer base, all with the thorough customer analysis. In our customer analysis template, you are given access to the following subheadings – target analysis , buyer’s persona , and, lastly, market sizing . Elevate your findings with data-driven rigor using charts, graphs, and all of the other aspects of the presentation to create a more robust, intensive analysis.

5) Competitive analysis

Scan the competitive landscape and make more informed decisions, all with the aid of more sophisticated tools of data and analysis. Our competitive analysis segment gives you the instruments of dissection and evaluation to do just this, creating a more balanced and error-free business environment that boosts your chances of success in the game of franchises. This section of the presentation has been divided into two broad sections – competitive landscape and key attributes and comes with the added benefit of graphs and tables. Use all of the tools in this template to intensively probe the competition and establish a more lasting presence in the market.

6) Growth Potential Analysis

Weaponize the growth potential analysis to test your own strengths and weaknesses and create more conclusive strategies for growth that will take you to the top. This presentation segment has been demarked into two broad sections – SWOT analysis and Porter’s five forces analysis. Both of these analysis models offer sound, compelling frameworks for investigating your organization's growth potential, thereby allowing you to make healthier and more rewarding decisions in the long run.

7) Go-to-Marketing Analysis

Marketing can be the make-or-break moment for most companies seeking to expand and build franchises. With the aid of this template, you can get ahead of the curve on this front, creating more reliable marketing systems and unleashing your corporation's full potential. Harness the full potential of your sales strategy while creating more relevant positioning strategies. Cultivate more market-friendly policies by using the right pricing strategies, and lastly, learn to drive sales with the aid of the sales funnel divulged in the template .

8) Operational Plan

Create masterful strategies as you leverage the right tools to engage in more precise operations. This subsection is dedicated to this front, with the aid of all of the right metrics, information, and data to back up your own self-regulated operational planning. There are two critical subheadings integrated into the slides here in this part of the template, and they are operational framework and operational milestones .

9) Financial plan

Mount a stronger hold over your corporate financial management while creating more efficient channels of oversight and regulation. Do this fruitfully and methodically with our financial plan subsection, which comes with an exhaustive set of tools designed to help large-scale companies implement and manage better financial systems. Some highlights from this part of the template include a financial assumptions , revenue model , breakeven analysis , alongside some other more deserving highlights such as the profit and loss statement , cash flow statement , balance sheet statement , scenario analysis , and lastly, a DCF valuation analysis .

10) Graphical Representation

Using our graphical representation analysis section, you can create in-depth visual illustrations to help you manage, process, and structure your own financial workings, thereby adding more value to your commercial franchise. Some highlights to be mentioned in this area of the template include graphs dedicated to total earnings after the tax business, total gross profit during the first five years of business, a cash flow chart showing the first five years of business, a balance sheet chart for the first five years of business, and more.

This is just a small glimpse into this well-researched, thoroughly made, fifty-two slide presentation, which comes fully equipped with all of the vital needs of franchise-related business models. Download the full presentation now to get your hands on our premium PDF, Word Doc, and XLS files and access more of this high-quality, infographic material.

Now, allow us to guide you through related products in this subject area.

Template 1) Franchisee Business Plan Powerpoint Presentation Slides

This elegantly made, distinct PPT template can help you formulate the right strategies and get ahead when attempting to build a franchise. Some vital components included in this presentation include a management summary, an exit strategy, a competitor analysis, an industry analysis, and more. Download this seventy-eight-page presentation and work your way to the top with the aid of meticulous planning and data-driven protocols.

Template 2) Franchise Business Model Powerpoint Template Bundles

This template, consisting of twenty-five slides, has been incorporated with a vast set of tools, data-gathering techniques, and graphical presentations that can be of great value when attempting to make a successful franchise out of a fledging business. Some highlights to be mentioned among the headlines in these slides are franchise lean business model canvas, franchise business development model with key factors, hotel franchise model canvas, retail franchise model canvas, and more. Get it now.

Template 3) One-Page Business Plan For Successful Restaurant Franchise

Are you in the restaurant business and seeking to evolve your business into a large-scale franchise? We’ve got just the right template to guide you through this process. This one-page infographic template comes with all of the right credentials to help you set up and manage such a rapid operation, with the aid of sound financial tracking metrics, a timeline, and milestones as well. Download this template and weaponize its contents to operate your franchise business with a more well-defined roadmap.

Template 4) One Pager KFC Franchise Business Plan Infographic

(Are you seeking to invest in the real estate business? We’ve created some templates to help guide you through the process. Click here and read it now.)

This one-page infographic can help you build a more sustained business model with the help of stringent planning and meticulous tracking systems. Some subheadings incorporated into the slide are executive summary, vision, mission, target market, our products, financial projections, competitive advantage, and more. The slide can be a sound asset for any business seeking to build franchises in partnership with KFC. To Know more, click on Franchise Business Plan template

FAQs on Franchise Business Plan

How do you write a franchise business plan.

Below are the steps to developing a franchise business plan:

1 – Conduct market research and understand the defining characteristics of the industry that you wish to operate in

2 – Create a brief summation of the business plan and outline the business concept

3 – Cultivate a plan for operations, marketing and for financial management

4 – Invest in the infrastructure and the processes needed for the franchise to be set up and to be incorporated

What are the 4 types of franchise business?

The four primary types of franchise businesses are – product distribution franchises, business format franchises, job franchises, and manufacturing franchises.

[Updated 2023] Top 25 One Page Business Plan PPT Templates
Top 10 Food Truck Business Plan Templates with Examples and Samples (Editable Word Doc, Excel, and PDF Included)
Top 10 Vending Machine Business Plan Templates with Samples and Examples (Editable Word Doc, Excel, and PDF Included)
Top 10 Supermarket Business Plan Templates with Examples and Samples (Editable Word Doc, Excel, and PDF Included)

Liked this blog? Please recommend us

Must-have Landscape Proposal Templates with Samples and Examples

Must-Have Payment Contract Template with Sample and Example

This form is protected by reCAPTCHA - the Google Privacy Policy and Terms of Service apply.

IMAGES

Every Franchise Model Explained In Detail. Find Best One For You In 2020
Franchise Business Model Template
Franchise Business Model Explained
Franchise Business Plan
How to make a Franchise Business Plan
Franchise Business Model

VIDEO

Business Model vs Business Plan
Cinthol Soap Price Scam 🧼❌#shorts #soap #scams
Most Profitable Business? Dr Ujjwal Patni
How price determine quality
How to grow your business with franchisee model
Business plan vs Business Model

COMMENTS

How to Write a Franchise Business Plan + Template
1. Understand your franchise business model. Since the franchisor has already established the company's business model, your business plan should focus on how you can adapt it to be successful in your chosen location. Imagine you're planning to open a fast food restaurant, chain hotel, or convenience store.
Franchise Business Plan Template [Updated 2024]
How to Create a Franchise Business Plan. Below are links to the key elements of a successful franchise business plan: Executive Summary - The Executive Summary provides an overview of your franchise business plan including an introduction to your company, a description of your products or services, and a summary of your financial projections.; Company Overview - The Company Overview should ...
Franchise Business Plan Template (2024)
Writing a franchise business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary ... Product distribution franchise: This franchise model involves the franchisor providing products and franchisees selling them to consumers. Product distribution ...
How to Write a Business Plan for Your Franchise
Start with comprehensive research. Before you can begin writing your franchise business plan, you need to gather information about your franchise business. Research the industry, market trends and ...
Franchise Business Plan Template
Company Overview - This section provides an in-depth business description, including information on your franchise's history, the company's business model, ownership structure, and management team. You will also include a copy of your franchise agreement.
Creating a Franchise Business Plan
Having a concrete plan offers several benefits: Understanding the target market: This involves learning about demographics and the target audience's unique needs. Identifying franchise opportunities: It helps recognize the type of franchise that suits your business model and planning. Aligning with the franchisor: It ensures that franchisees ...
Create A Compelling Franchise Business Plan: Key Elements
Begin your franchise business plan with a compelling executive summary that provides an overview of your franchise concept, target market, and growth potential. Highlight the unique selling points of your franchise and emphasize the benefits for franchisees. This section should grab the reader's attention and set the stage for the rest of the ...
Writing A Franchise Business Plan: Ten Key Elements To Consider
For a prospective franchisee looking to invest in a tried and tested business model with systems and processes already in place, writing a business plan might seem a waste of time and energy. But ...
Sample Franchise Business Plan
Market experts project continued growth in the franchise industry, with an expected annual growth rate of around 2-3%. This growth can be attributed to factors such as consumer demand for convenient and familiar brands, as well as the appeal of franchising as a lower-risk option for aspiring business owners.
Crafting an Effective Franchise Business Plan: A Step-by-Step ...
Step 2: Tailor Your Plan to Reflect the Franchise Model Make sure your plan aligns with the franchisor's brand and requirements. Incorporate the franchisor's proven business model, branding ...
Franchise Business Plan: How to Effectively Write One
A franchise business plan incorporates elements specific to the franchise model. This includes details about franchise fees, royalty payments, marketing and advertising support from the franchisor, training and operational guidelines provided by the franchisor, and the rights and obligations of both the franchisee and franchisor.
Franchise Business Plans
But like any successful business, you'll need a business plan to get it up and running, as well as get approval to be a franchisee. Luckily you can easily put yours together with one of our franchise sample plans. Download one today and become part of your favorite brand's business journey. Explore our library of Franchise Business Plan ...
How to Write a Franchise Business Plan
Business management and organisational structure: this section will contain details of the leadership and management of your franchise business as well as a brief outline of what skills, knowledge and experience each person brings to the table. Financing projections/financial plan: this is possibly the hardest but most important section to prepare because it will undertake number crunching ...
Franchise Business Plan Example Presentation
A franchise business plan increases the likelihood of a new franchisor and the franchise's success by twofold. Secondly, Businesses operate since they stick to a well-defined and well-executed strategy. Over 543,000 new firms start in the United States every month, yet only 7 out of 10 survive after two years, while 5 out of 10 survive after ...
How Do I Write a Business Plan for a Franchise?
When writing a business plan for a franchise, you should include the following: Executive Summary: Describe the franchise's model and list successes that it has achieved. For example, you might include how locations have exceeded $1 million in average gross sales when writing a plan for Nékter Juice Bar.
How to Create a Franchise Business Plan
Creating a Financial Plan. It is one of the most important elements of your business plan, especially if you want to be considered a proper candidate for financing. Typically, financial information is presented in Item 19 of the FDD. Here you find a review of franchise units' financial performance. However, bear in mind that possible profits ...
How To Create A Franchise Business Plan
Craft success with our guide on "How to create a franchise business plan." Navigate the essential steps to build a solid foundation for your franchise journey. Skip to content. Your Franchise Fit. Schedule A Free 15 - Minute Call; 352-307-1000 [email protected]
Franchise Business Plan Template
The estimated number of total franchises in 2021 was 774,965 with a total number of employees at 8,192,600, and an output of $787.7 billion. The total GDP size of the franchise economy in 2021 was $474.2 billion. The growth projections for franchises in 2022 stand at 2.2%.
How to Create a Franchise Business Plan
Your company description should include: A brief overview of the franchise you'd like to open. The history of the franchise business you want to buy. Another other important information about the company you'll be buying a franchise from. You don't want to go too in-depth with your company description.
Creating a Business Plan for Your Franchise
Include items you feel would be necessary to giving the lender a complete picture of you and the franchise you are seeking financing for. Examples include: the resumes of management figures, tax returns, media clippings, etc. The best outside source of information to complete your business plan is the franchisor.
How To Start A Franchise In 8 Steps (2024 Guide)
Franchise purchase fee: This can cost anywhere from $20,000 to $50,000, depending on the license. Minimum liquid capital: A generally good idea is to have $50,000 to $60,000 for a service-based ...
Franchise Fundamentals: A Comprehensive Guide to the Franchise Model
Proven Business Model: Franchises operate on a tried-and-tested business model, reducing the risks associated with starting a new business.Franchisees benefit from the franchisor's experience and established procedures, increasing the likelihood of success. Brand Recognition: Franchisees gain immediate access to a recognized brand, which can take years to build from scratch.
Top 10 Franchise Business Plan Templates with Samples and Examples
Some highlights to be mentioned among the headlines in these slides are franchise lean business model canvas, franchise business development model with key factors, hotel franchise model canvas, retail franchise model canvas, and more. Get it now. Download now . Template 3) One-Page Business Plan For Successful Restaurant Franchise
How to Create a Franchise Business Plan
Fortunately, Item 1 in the Franchise Disclosure Document (FDD) will give an overview and history of the franchise you are seeking to buy. Furthermore, you should include details related to products and services, market and competition, business operations, and the potential challenges your business might face. Operations & Management Summary.
Write your business plan
A good business plan guides you through each stage of starting and managing your business. You'll use your business plan as a roadmap for how to structure, run, and grow your new business. It's a way to think through the key elements of your business. Business plans can help you get funding or bring on new business partners.

Franchise Business Plan

How to Write a Franchise Business plan?

1. Executive Summary

2. Business Overview

3. Market Analysis

4. Products And Services

5. Sales And Marketing Strategies

6. Operations Plan

7. Management Team

8. Financial Plan

9. Appendix

Related Posts

Wholesale Business Plan

Car Dealership Business Plan

400+ Business Plans Template Example

Best AI Tools for Small Businesses

Decide Effective Business Location for Business

Pricing Strategies to Attract Customers

How to get funding for your franchise business?

Where to find business plan writers for your franchise business?

What is the easiest way to write your franchise business plan?

Plan your business in the shortest time possible

Create a great Business Plan with great price.

How to Write a Business Plan for Your Franchise This vital step can make the difference between success or failure in the franchise world.

Start with comprehensive research

Define your business concept and target market

Develop a financial plan

Outline your marketing and sales strategy

Develop an operations plan

Create a management team and personnel plan

Create an executive summary

Get started by outlining your business plan

A business plan will help you succeed

Editor's Pick Red Arrow

Most Popular Red Arrow

This Trend Is Threatening the Entire Housing Market — And It's Becoming Impossible to Overlook

Young People Earning More Than $200,000 a Year Are Fleeing 1 U.S. State — and Flocking to 2 Others

How To Start a Youtube Channel: Step-by-Step Guide

Nvidia CEO Jensen Huang Lost $10 Billion in 1 Day

Document Circulating on the Internet Claims Taylor Swift and Travis Kelce Have a Breakup PR Plan. Here's Why That's Smart Business.

Franchise Business Plan Template

How To Write a Franchise Business Plan & Sample

Free Franchise Business Plan Template PDF

Franchise Business Plan FAQs

What Are the Main Sources of Revenues and Expenses for a Franchise Business?

How Do You Get Funding for Your Franchise Business?

Developing a Franchise Business Plan: Key Elements to Include

Executive Summary:

Franchise Concept and Market Analysis:

Franchisee Support and Training:

Financial Projections:

Marketing and Advertising Strategy:

Operations and Systems:

Legal and Compliance:

Recent Posts

Recent Comments

Sample Franchise Business Plan

Franchise Business Plan Example – BrandExpand Ventures

Target Customers

Customer Needs

Competitive Advantages

Products and Services

Promotions Plan

Key Operational Processes

Samuel Adams, President

Financial Plan

Financial Statements

Income Statement

Cash Flow Statement

Franchise Business Plan Example PDF

How to Finish Your Franchise Business Plan in 1 Day!

There's No Place Like HFC ™

Franchise Business Plan: How to Effectively Write One

How is a Franchise Plan Different?

When Should I Write My Franchise Business Plan?

How to Craft an Effective Franchise Business Plan

How Franchisors Can Help

Franchising with Home Franchise Concepts

Contact Home Franchise Concepts Today

Share This Post With Others!