Without knowledge of the seven essential components, it might be difficult to create a franchise business plan from the beginning. Therefore, you can establish your franchise business and submit a finance application by utilising the appropriate components. So, do you want to know how to make a franchise business plan to suit your business requirements?
Read on to know more.
7 Essentials On how to create a Franchise Business Plan
#1. Executive Business Summary
An overview or summary of the crucial data you are providing in your franchise business plan will serve as the first section of your document.
The executive summary section should address the following issues because it will describe your company:
- What kind of need, service, or product does your firm meet?
- Is your company distinct?
- How will you guarantee the success of your business?
- What abilities do you have that will assist the company’s success?
The reader’s first impression of you, your company, as well as your business plan will reach by the executive summary. Your elevator speech is put across in writing here.
It should succinctly describe your company and also all it offers in a way that sets your idea apart.
To present your business strategy, the executive summary is put as an individual document. It should only make references to information from your company plan and also speak in terms that your intended audience would understand.
#2. Business Synopsis
Your company’s operations are the highlights in the franchise business plan’s section on the business description. Your statement here should be as follows:
Structure, mission statement, timeline, and outlook for the company.
You don’t have to include specific financial information, but you should present a general summary of your sector, financial forecasts, and pertinent business information.
In your business description, you should state your company’s objectives. You have the chance to discuss your company’s short- and long-term goals with the reader in the business description.
Make sure your company’s objectives are practical and quantifiable. Define your terms precisely. Thus, to communicate your goals, use precise language and time frames.
#3. Competitive Analytics
Any franchise business plan also includes a part of competitor analysis. Finding your direct and indirect competitors is necessary, and a thorough study can assist you to grasp your comparative advantages and disadvantages with them.
You should perform the following to get a thorough research of your business’s rivals:
- Pick ten direct as well as indirect rivals to contrast.
- Investigate the company’s marketing strategies and product specifications.
- Then contrast the information gathered with your own.
Understanding your competition through a competitive analysis enables you to create a successful franchise business strategy and attracts possible investors.
#4. Marketing & Sales Planning
The strategy your company will use to create and sustain a clientele and market demand is the highlight in this area of your franchise business plan. Give a thorough explanation of your advertising strategy, present advertising, and supporting research.
You can use the specific details provided in Item 11 of the FDD, or Franchise Disclosure Document, which is the information from the mandatory franchise training.
#5. Business Management & Operations
The plan your company has for creating and sustaining a clientele and a market for your goods or services is highlighted in this section. Give a thorough explanation of your advertising strategy, present advertising, and supporting research.
The franchise business plan’s operation and management part focuses on how your company is run daily. It stresses the duties and tasks of the franchise owner while also covering business operations.
#6. Funding Planning
Any facts and numbers previously in your business plan, including your executive summary, become highlight and expand upon in the financial data section.
This paragraph offers:
- Hard figures for your company’s expenses
- Current resources
- Future funding is anticipated to be required.
#7. Creating the Proforma
The financial statistics part and the pro forma are comparable. The three primary accounting statements, however, are the subject of more attention in this section.
- financial statement
- the money flow
- the revenue and the loss
Creating a Successful Business Plan for your franchise
The writing of a business plan is essential if you want to persuade lenders that you are deserving of their funding. Lenders evaluate if a potential franchisee is right for success and profitability using the business plan as a guide.
A business plan not only aids in obtaining finance, but also compels you to carefully consider the investment you are about to make. It gives you the ability to foresee the difficulties associated with starting a business and manage your expectations.
Franchise business plan outline
The following are typical components of a business plan:
- Company description which includes an overview of the history, products and services of the company and key partners in the business.
- Details about the products and also services your company provides.
- Market analysis about where the franchise will do well.
- Roles & responsibilities of who will carry out the day-to-day activities of the business.
- A strategic marketing plan which includes an overview of the advertisement and promotional activities
- Give the investor an insight into your financial status.
Franchise Business Plan Examples
To make things easier for you to understand, you can view below the image which is an example of how to make a franchise business plan as well as all the contents it requires as stated above.
Franchise Business Plan Sample PDF
The franchise business plan is a core document to understand what you want to do. So how to prepare a business plan and what is the objective is part of the document.
- How you will do it?
- How long it will take?
- how much does it cost to franchise your business?
- How will the payback happen?
Thus, it is a strategy document which will elaborate your entire journey into franchising and will be a forecast of how the entire business will pan out.
Furthermore, it provides absolute clarity in terms of what is the capital and other resources that would be required to execute your franchising. The time that it will take and also specific goals set within those timelines.
A franchise business plan is also of great use when it comes to dealing with investors. Banks and other private investors study this plan in detail and determine your net worth.
For a franchisee who is interested in your business, this business plan is created to understand what your business profile is.
- What types of franchisees would be suitable?
- What is your net worth?
- How much you could afford
- What is the risk you could take?
However, the main point here is that this plan is primarily a blueprint for your internal use. It is to be shared with franchisees only in cases where both parties deem it necessary.
What is generally shared with the franchises is a Franchise Proposal PPT or a Franchise Package Template that is built specifically for prospecting franchisees.
FAQs – How to make a Franchise Business Plan
Q.1. Do I need a business plan for a franchise?
In short, a business plan is necessary if you want to launch a franchise or expand an existing one. You can increase your chances of success by using a business plan to plan the expansion of your franchise and also to raise money if you need to.
Q.2. What is a franchising plan?
You may track your progress towards your expansion goals and objectives with the aid of a franchise business plan, which will also help you concentrate on them. To manage your milestones, make sure your strategy, tactics, and also execution activities are all in focus.
Creating a Franchise Model out of your already successful business can be a daunting exercise. More often than not, business owners have a vague idea in their heads of how to franchise a business or how to operate their franchise.
However, they are all dots in different places and will need to be connected. You must use an experienced consultant to help you create a franchise business plan for your business.
With their expertise, they should help you join all the dots and also unravel a lot of blind spots as well.
Furthermore, our experts at Sparkleminds can help you make your business plan in a detailed and professional manner. Call Us Now and we will be delighted to get you started with franchising your business.