How To Write A Business Plan For Your Franchise


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How to Write a Business Plan for Your Franchise

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You are determined to become a franchisee. You might think it’s time to call the franchisor, tell them you’re interested and get funding from your local bank, right? Wrong.

If you are considering buying a franchise, you will need to write a detailed 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 scary? May be. But this is an important and necessary step in starting your own business. In addition, becoming a franchisee means that the franchisor will provide some strategies, plans, and general business information, with some minor modifications for your specific market.

Here’s how to get started.


RELATED: Considering Owning a Franchise? Start now and take this quiz to find yours individual list of franchises that suit your lifestyle, interests and budget.

Start with comprehensive research

Before you can start writing your franchise business plan, you need to gather information about your franchise business. Study the industry, market trends and competitors in the field. You should also use a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of the business.

Then study the history, vision, mission and values ​​of the franchisor. This will help you understand the franchisor’s expectations and see if your goals are in line with the brand. You may have already done a lot of research when narrowing down your franchise choices.

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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 provided by your franchisor. However, be sure to set it up properly for your specific location and audience.

Develop a financial plan

A financial plan is an important component of your franchise business plan. It should include details of your start-up costs, ongoing expenses, revenue projections, and profitability.

You should also share cash flows, balance sheets, and income statements here. With the help of these documents, you can easily identify gaps in your business and develop strategies to address them.


Related: 10 tips to go from employee to boss, from franchisees who made it

Outline your marketing and sales strategy

You can take advantage of your franchisor in terms of 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.

In terms of sales strategy, include your pricing strategy, sales team structure, and sales goals tailored to your area.

Develop a plan of operations

Your operational plan should include details of your day-to-day work, staffing requirements, and supplier relationships. You must also specify any technology and equipment needs, stock management and quality control procedures, some of which may be dictated by your franchisor.

Create a management team and HR plan

Your management team and HR plan should detail the leadership structure of your business, the roles and responsibilities of each team member, and the qualifications and experience required for each position.

You must also develop a staffing plan that will include your hiring strategy, employee benefits, and training and development programs.

Connected: 4 biggest myths about franchising

Create an Executive Resume

A summary is literally a summary of your business plan that will provide all the information you need to someone who only has a few minutes to review your business plan. It should summarize the key points of your franchise business plan and research.

Start with a business plan

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

  • Executive Summary: This section provides a brief overview of your business, your mission, goals, and target market.
  • Company Description: This section contains additional information about your business, such as what you do or sell, your company’s 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 your management and staffing plan.
  • Financial plan: This section forecasts the financial performance of your business, i.e. your revenues, expenses, and profits.
  • Application: This section includes supporting documents such as financial statements, marketing materials, and legal documents.

Related: 10 tips to go from employee to boss, from franchisees who made it

A business plan will help you succeed

Writing a franchise business plan is an important step towards becoming a successful franchisee. This requires a comprehensive study, a well-defined business concept, a sound financial plan, a strong marketing and sales strategy, a detailed operations plan, and a competent management team.

Remember, this is a living document, so be sure to update it regularly as your business grows and changes. This ensures that your plan always reflects the current state of your business.

Develop a business plan logically and seek help from an expert or your franchisor if needed. Then you go to get a loan, finish your applications and open your doors!

Connected: Is franchising right for you? Ask yourself these 9 questions to find out.


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