Congratulations! You have finally decided to make your business into a franchise. But what is the next step? Remember, all businesses to grow need to have a strong business plan in place, which helps your growth be profitable and grow in a smooth way. Before we get into understanding the basic key elements of a Franchise Business Plan, let us look at some of the Successful Franchise Business Plan Samples.
1. Preschool Franchise Business Plan Sample
The plan includes information on the preschool’s location, the franchise you’ve chosen, your budget, your preschool’s policies, the standards for hiring employees, and many other crucial details. The good news is that everything is handled for your preschool with the franchisor’s ongoing support and direction.
2. Restaurant Franchise Business Plan Sample
If you’re starting a restaurant, your business plan must consider the special requirements and services it will offer.
3. Construction Franchise Business Plan Sample
A successful construction business plan should include:
- Create a system to generate a ton of client leads and project opportunities.
- Create a quick-bidding estimating team.
- Create a system for following up to negotiate and close sales.
- Establish Project Management Procedures to Maintain Consistent Efficiency
- Create Your Field Team and Provide Amazing Results on Every Project
Creating an effective Franchise Business Plan – 8 basic elements to generating a perfect Franchise Business Plan Sample.
Remember, the business strategy isn’t just about raising capital.
In addition to helping you secure financing, a business plan makes you think carefully about the investment you are about to make. It enables you to control your expectations and also anticipate the challenges of beginning a business.
As time passes and you gain experience as a franchise owner, you should update your business plan and utilize it as a guide to help you achieve your franchise goals.
Also, creating a perfect business plan doesn’t always have to be complicated.
8 Elements of a Franchise Business Plan are as below
1. The Executive Summary
An overview or summary of the crucial data you are supplying in your franchise business plan will serve as the first section of your document.
Because it will describe your business, the executive summary section should address the following:
- What sort of need, service, or good does your business fulfil?
- Is your business unique?
- How will you ensure your company’s success?
- What skills do you possess that will help the business succeed?
The reader’s first impression of you, your company, and your business plan will be formed by the executive summary. It is a written version of your executive summary. It should succinctly describe your company and all it offers in a way that sets your idea apart.
Give the lender a rundown of the franchise’s background. Also, you will include a brief description of the franchise’s service or item (more detailed information will be given in the next section).
2. Company information
Give the lender a rundown of the franchise’s background. Also, you will include a brief description of the franchise’s service or item (more detailed information will be given in the next section).
3. Describe your product or service
Give clients a detailed description of the service or product your franchise will offer. The corporate description and also this part can be combined.
4. Market Research
Show the possible lender in this part that you are not entering a business endeavor impulsively by using the information provided. Thus, focus on the particular region (market) where the franchised business will be situated.
Talk about the following briefly:
- What size of your market?
- Who, in terms of both money and demographics, makes up this market?
- Is the market for this service/product underserved?
- In the event that there is competition, who are your rivals, and what sets you apart from them?
- Explain the trends and growth prospects that experts foresee for the service or product in your niche market (which can include demographic, legislative, or environmental factors).
5. Organisational structure
This section looks at the individuals who will be in charge of running the franchise on a daily basis, especially you as the owner. Whether this company will have multiple owners or operate as a sole proprietorship.
Specify whether you’ll be an active participant in day-to-day business operations or a passive owner.
Provide all business credentials for you as well as anyone else who has an ownership stake, if appropriate. Emphasize any and all expertise (even volunteer experience) that is necessary for future franchise operating success.
6. Marketing strategy
The major query you address in this part is, “How are you going to obtain customers?” It provides an overview of the franchisor’s marketing efforts. It also outlines the instructions you will receive prior to opening. Often, required training includes seminars in sales and marketing..
7. Financials
The core of your company plan is this. Don’t just ask for the money you require in this part. Also, provide the lender a broad overview of your financial condition. Explain your strategy for recovering the entire initial investment. Often, a lender won’t pay the entire franchise investment cost. Are you using a combination of your own money and loans, credit, etc.?
8. Appendix
The appendix, while technically not a part of the business plan, is a separate section where you can include materials that will improve your presentation. Add whatever information you think the lender needs to know about you and the franchise for which you are applying for financing. Resumes for managerial staff, tax returns, news pieces, etc. are some examples.
We have now understood the key elements of a franchise business plan, now let us take an example.
Example: Subway Franchise Business Plan Sample
If you are looking to start a franchise business in India, you need to understand how a business plan works. When planning to start a subway franchise in India, you need to ask yourself these questions first:
- Do you have the knowledge necessary to open a Subway sandwich shop?
- What’s the yearly income of a Subway owner?
Now let us get into the Subway Franchise Business Plan Example.
- Executive Summary of Subway Franchise
- Products that Subway deals in
- Subways Vision
- Subways Mission
- SWOT analysis – to identify key areas to target in order to achieve set goals
- Strength or Workforce as it may be called
- Weaknesses (if any)
- Opportunities they are offering
- Always be prepared for any uncertain threats, like natural calamities which cannot be predicted.
- Targeted Market
- Sales Projections annually.
- Marketing & Sales provisions
- What differentiates us from our rivals is our USP.
Therefore, you can use this as a template and the data from your feasibility study to create a plan that will help your company expand and remain stable.
Today, the recession has started hitting the economy and it won’t be too long before it hits hard. If you have a strong franchise business plan in place, it will allow investors to easily maneuver towards choosing your business as a franchise. Click here to know about some such sectors.
How To Create a Franchise Business Plan Sample PDF?
A franchise business plan is an essential tool for determining your goals. Hence, the document includes information on how to create a business plan as well as what its purpose is.
- How will you go about it?
- How much time will it take?
- What is the cost of franchising your company?
- How will the return payback be met?
This makes it a strategy document that will outline your complete franchising experience and serve as a projection of how the entire company will develop.
Also, it gives complete clarity regarding the amount of money and other resources needed to carry out your franchising. the duration required and the precise objectives stated within those time frames.
A franchise business plan is quite helpful when dealing with investors as well. This plan is carefully examined by banks and also other private investors who calculate your net worth.
This business plan is made so a franchisee who is considering your enterprise may comprehend what your enterprise’s profile is.
- What kinds of franchisees are ideal?
- How much money do you have?
- what you could afford to spend
- What is the potential risk you face?
The essential thing to remember is this strategy is mostly useful internally. Only when both parties think it necessary should it be disclosed to franchisees.
FAQs
Q.1. What is the outline of a Franchise Business Plan?
An executive summary, an explanation of your products and services, a marketing as well as sales strategy, operational details, financial predictions, and an appendix are common components of a classic business plan.
Q.2 Why do you need a Franchise Business Plan?
If you want to convince lenders that you deserve their money, you must write a business plan. Lenders use the business plan as a benchmark to determine whether a prospective franchisee is likely to be successful and also profitable.
Q.3. Why create a business strategy in the first place?
A company plan’s principal objective is to outline your future goals. These plans should specify the steps your company will take to reach each goal or milestone. By creating a path to your objectives, you can decide on your company’s focus and also seek growth.
Conclusion,
It can be challenging to develop a franchise model for your already successful company. Business owners frequently have a hazy picture of how to franchise a business or run a franchise in their minds.
They will connect because they are all isolated dots. You must get the aid of a qualified consultant to assist you in developing a franchise business plan for your enterprise.
They ought to be able to aid you to connect the gaps as well as reveal several blind spots thanks to their knowledge.
Also, our professionals at Sparkleminds can assist you in creating a thorough and competent business plan. Furthermore, give us a call right now, and we’ll be happy to help you begin the franchising process for your company.
