Franchise Business Plan
You’ve come to the right place to create your business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their franchises.
How To Write a Business Plan For a Franchise & Sample
Below we describe what should be included in each section of a business plan for a franchise and links to a sample of each section:
- Executive Summary – This section provides a high-level overview of your business plan. It should include your company’s mission statement, as well as information on the products or services you offer, your target market, and your franchise’s goals and objectives.
- Company Overview – This section provides an in-depth look at your company, including information on your franchise’s history, ownership structure, and management team. You will also include a copy of your franchise agreement. This agreement will outline the terms and conditions of your franchise relationship, as well as the rights and obligations of both parties.
- Industry Analysis – In this section, you will provide an overview of the industry in which your franchise will operate. You will discuss trends affecting the industry, as well as your target market’s needs and buying habits.
- Customer Analysis – In this section, you will describe your target market and explain how you intend to reach them. You will also provide information on your customers’ needs and buying habits.
- Competitive Analysis – This section will provide an overview of your competition, 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 this section, you will detail your marketing strategy, including your advertising and promotion plans. You will also discuss your pricing strategy and how you intend to position your franchise in the market.
- Operations Plan – This section will provide an overview of your store’s operations, including your store layout, staff, and inventory management. It also includes information on your warehousing and distribution arrangements.
- Management Team – In this section, you will provide information on your management team, their experience, and their roles in the company.
- Financial Plan – This section includes your company’s financial statements, including your income statement, balance sheet, and cash flow statement. It also includes information on how much funding you require and the use of these funds.
Franchise Business Plan FAQs
What Is a Franchise Business Plan?
A business plan is a plan to start and/or grow your franchise. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your business plan using our Franchise Business Plan Template here.
What Are the Main Types of a Franchise?
About any type of business can be franchised. Franchises are categorized according to different factors like investment level, franchisor’s strategy, business operations, and marketing and relationship models. The most common types of franchises are job franchise, product or distribution franchise, business format franchise, investment franchise, and conversion franchise.
What Are the Main Sources of Revenues and Expenses for a Franchise?
The main source of revenue for franchises 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?
Among the most common sources of funding for a franchise 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.