business plan di un franchising

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
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

Get microsoft office pro 2019 and windows 11 pro for $46 through july 21.

In addition to your favorite suite of Office apps, you can lock in Windows 11's AI-powered Copilot feature

"It Was Horrifying and Scary": Bar Rescue's Jon Taffer Describes the First Time He Screamed at Someone on Camera

Here's why Jon Taffer first started yelling on TV — and what it can teach every new manager.

How Entrepreneurs Can Apply the 7 Laws of Success to Their Business and Personal Life

Most folks have a hard line between work and life. "It's just business," "I am a different person at work," etc. But what if we brought some of the beauty of the personal into the professional?

The Best Funding Resources for Entrepreneurs With Disabilities

There are numerous options to assist those in need.

Behind the Bread — 10 Fascinating Facts You Need to Know About Jersey Mike's

How old was the franchise founder when he bought the original location of Jersey Mike's? You won't believe the answer.

Don't Miss Your Chance to Get PDF Expert for $80

Simplify annotating and converting PDFs with this discounted subscription for Mac users.

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

Franchise Business Plan

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

We have helped over 10,000 entrepreneurs and business owners with how to create a franchise business plan to start or grow their franchises.

How To Write a Franchise Business Plan & Sample

Below is are links to each section of a franchise business plan example to help you start your own franchise business:

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 business goals and objectives.
Company Overview – This section provides an in-depth look at your company, including information on your franchise’s history, franchise business model, ownership structure, and management team. You will also include a copy of your franchise agreement.
Industry Analysis – In this section, you will provide an overview of the industry in which your franchise will operate.
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 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 – 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 (income statement, balance sheet, and cash flow statement). It also includes information on how much funding you require and the use of these funds.

Next Section: Executive Summary >

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 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?

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.

Where Can I Get a Franchise Business Plan 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.

Franchise Business Plan Template

Franchise business plan.

If you want to start a franchise business or expand your current one, you need a compelling business plan.

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their franchise businesses.

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 include a comprehensive business description of your franchise including the company’s business model, history, and mission statement.
Industry Analysis – In the Industry Analysis, you should provide an overview of the market and trends in the industry that your franchise operates in.
Customer Analysis – The Customer Analysis section should include a description of your target market, their needs and preferences, and how your franchise will fulfill those needs.
Competitive Analysis – The Competitive Analysis section will detail your direct and indirect competitors, highlighting their strengths and weaknesses, and identifying your competitive advantage.
Marketing Plan – The Marketing Plan will include the various marketing strategies that you will implement to attract customers, the marketing channels you will use to reach your target audience, and the projected budget for your marketing efforts.
Operations Plan – In the Operations Plan, you will detail the day-to-day business operations including inventory management, staffing, and customer service procedures.
Management Team – The Management Team section should introduce key team members and their roles in the franchise, highlighting their relevant experience and qualifications.
Financial Plan – In the Financial Plan, you will include the financial details about your franchise business including franchise fees, start-up costs, revenue projections, and financial statements including an income statement, balance sheet, and cash flow statement.
Appendix – The Appendix section will include supplemental documents that are referenced in your business plan including the franchise agreement, franchise disclosure document, complete financial projections, and any other supporting materials.

Next Section: Executive Summary >

Franchise Business Plan FAQs

What is the easiest way to complete my franchise business plan.

Growthink's Ultimate Franchise Business Plan Template allows you to quickly and easily complete your Franchise Business Plan.

Where Can I Download a Franchise Business Plan PDF?

You can download our franchise business plan PDF template . We also have a sample franchise business plan that you can use to write your own plan.

What Is a Franchise Business Plan?

A business plan provides a snapshot of your franchise as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why Do You Need a Business Plan for a Franchise?

If you’re looking to start a franchise or grow your existing franchise you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your franchise in order to improve your chances of success. Your franchise business plan is a living document that should be updated annually as your business grows and changes.

What Are the Sources of Funding for a Franchise?

Franchises are usually funded through small business loans, personal savings, credit card financing and/or angel investors.

What Additional Resources are Available for Prospective Franchisees?

How To Start a Franchise
Top Franchise Opportunities
A Consumer's Guide To Buying a Franchise
Franchise Marketing Strategies

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
10. Appendix
Franchise Business Plan Summary

Start Your Franchise Plan Here

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!

How to create a franchise business plan

If you’re considering the purchase of a franchise, you’re probably exploring financing options. And an essential part of that process is the preparation of a franchise business plan. It’s likely the first thing a lender will ask you for. Take note that even if you’re not seeking outside funding, developing a plan is worthwhile. Here’s a look at what’s involved.

Readily available information and data

Preparing a franchise business plan is a lot easier than preparing a plan for an independent startup business. This is because you have easy access to much of the necessary information. During the sales process, the franchisor typically provides a great deal of verbiage you can use for the narrative sections of the plan. And you can find much of the required financial information in the earnings section of the Franchise Disclosure Document (FDD) .

In addition to the typical sections in any business plan, a franchise business plan will include a section outlining the track record of and support available from the franchise company. You may include items like the franchise company’s sales brochure or FDD as attachments to your plan. This additional information can give lenders a higher degree of confidence in your likelihood of success.

5 sections of the business plan

The format of a typical business plan, whether it’s for an independent business or franchise, usually includes the following 5 sections:

Introduction

This describes the business, including the products or services the business offers, the size and competitive aspect of the market, the operational approach that will be used, and the challenges and risks associated with start-up.

Management section

This section identifies and provides background information about the people in management roles. It might include their resumes or descriptions of relevant prior experience. A franchise business plan also provides information about the franchisor’s direct support staff.

Marketing section

Here you define your target customers and how you plan to attract them to your business. This section explains the business’s competitive advantages and details marketing and advertising plans.

Pro forma financial projections

This section includes income statements, cash flow statements, and balance sheets that project the anticipated financial performance of the business. The statements should specify all material assumptions used to prepare the projections. Prepare these projections on a very conservative basis in case unexpected delays or challenges arise.

Financing needs

Even if you are self-funding the business, always prepare a section related to financing needs. This should include an analysis of all startup costs, including working capital to cover initial marketing plans and operating losses until you reach the projected break-even point. Even if you’re not borrowing from an outside source, the process of developing this section will prepare you for what’s to come in starting up the business.

You should be able to find much of the information you’ll need for the Introduction and Marketing sections on the franchisor’s website. The FDD will help you complete the Financing Needs portion of the report and, if the franchisor publishes a representation of earnings in Item 19 of the FDD , you may be well on your way to completing the Financial Projections section as well.

A helpful and worthwhile process

Some franchise companies require prospective franchisees to start and/or complete their franchise business plan prior to being approved. In any event, it’s a good idea to start thinking about your business plan early on. The process of preparing the plan is helpful in many ways. It forces you to consider options and formalize your projected course of action in the new business. You’ll typically identify questions during this process that may not have otherwise occurred to you. Contact the franchise company to get answers and make sure you have a clear understanding of the franchise prior to making a final decision to proceed.

Remember to update and finalize your business plan after completing the franchisor’s initial training. After training, you’ll have a far greater understanding of aspects like operational and marketing plans for the business. Most franchisors will also provide financial data that you can use to double-check, or even replace, the Financial Projections section of your business plan. Review your entire business plan based on your new knowledge, and you’ll be as prepared as possible to get your new franchise business up and running.

Let’s Get Started

No-Obligation Consultation Request

Yes, I would like to hear more about the free service provided by FranChoice in the United States. I understand that submitting the following form to FranChoice does not create any obligation. A FranChoice consultant will contact me via email and/or phone to have an initial conversation. I will not be asked by anyone at FranChoice to pay anything whatsoever for any services.

Thank you for your interest in the services offered by FranChoice. We will be in touch with you soon.

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 $1,000
Franchises Under $5,000
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

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

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 .

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.

5 Step da seguire per redigere il Business Plan del tuo Franchising

Benvenuto imprenditore,

Sono Enrico Tosco e oggi ti parlerò di un prodotto indicato per due tipologie di imprenditori:

Chi ha un’attività e vorrebbe fare molti cambiamenti;
Chi deve partire da zero per far nascere la sua attività.

Il nome dello strumento di cui sto per parlarti è questo: business plan . Sono certo che ne avrai già sentito parlare, ma ci tengo ad approfondire con te l’argomento.

Cosa puoi trovare all’interno di questo documento?

Come funzionano le proiezioni delle tue entrate e delle tue uscite;
Ipotesi (se la tua attività non è ancora nata);
Dati reali (presi da preventivi, ricerche e statistiche precedenti);
Descrizione dei soci che fanno parte dell’attività;
Analisi della compagine sociale;
Previsioni di mercato;
Descrizione del valore del mercato italiano o della zona in cui intendi operare;
Descrizione dell’attività: cos’è, come funziona e cosa fa.

Noi di Reting ci siamo resi conto che questo strumento (illustrato, spiegato e stra-nominato nei corsi universitari) è assolutamente utile… ma nel mondo del franchising ha molti limiti e adesso ti spiegherò il perché.

Il franchising è un business a matrioska:

Tu sei un franchisor ;
Dai vita a un franchisee (con cui hai un rapporto commerciale che ti permette di guadagnare);
Il tuo franchisee ha uno schema di guadagno, espansione e apertura di nuovi punti vendita.

Il franchising ha bisogno di uno strumento come il business plan , ma deve essere progettato in maniera tale che si possa adattare a questa struttura a matrioska.

Non è solo appannaggio di un mercato specifico ( food, beauty ): un business plan ti serve, prima di tutto, per capire come i competitor e il territorio influenzano la “buona riuscita” del tuo piano di attività.

Tuttavia, le declinazioni di un franchising sono così variegate che un business plan standard risulterebbe riduttivo e limitato .

Nonostante la molteplicità di fonti che ti possono spiegare come scrivere un business plan, nessuno parla mai di franchising e di come impostare questo strumento adattandolo a questa tipologia di investimento.

Immagina una persona che abbia un’idea spaziale e un progetto di vendita fenomenale, ma le mancano i soldi: ne ha solo una piccolissima parte in banca e questa non è sufficiente per trasformare la sua idea in realtà. Come fa a presentarsi davanti a un investitore? Può farlo solo presentando un business plan preciso, chiaro e con degli obiettivi raggiungibili e verificabili.

Vuoi creare un franchising? Se hai un’attività, compila il questionario e ottieni una valutazione gratuita del livello di franchisizzazione della tua attività ovvero ti aiuterà a capire se sei pronto a vendere il tuo format sul mercato del franchising.

Serve un business plan adatto: il franchising plan!

Il “franchising plan” è uno strumento che nasce dall’accumulo del know how di noi di Reting : è un documento che raccoglie su carta tutte le informazioni necessarie al tuo progetto franchising .

All’interno del tuo personale franchising plan troverai:

Come funziona il modello finanziario: conto economico di franchisor e franchisee;
Descrizione dell’attività;
Necessità di parlare agli investitori eventuali o a una banca;
Mappa da utilizzare per le espansioni (se hai già tutto il capitale).

Il franchising plan è molto utile anche a chi desidera avviare la franchisizzazione della propria attività e vuole avere chiaro quale sia l’investimento globale che andrà a fare.

Per spiegarti meglio come funziona il tutto voglio farti un esempio davvero molto semplice: un avvocato generalista può redigere un contratto di franchising , ma prima dovrà studiare la legge di riferimento, analizzare i casi guida…

Recandoti da un avvocato specializzato in questo settore, invece, il prodotto che ne verrà fuori sarà il frutto di anni di esperienza settoriale e, quindi, il tuo documento di planning sarà nettamente superiore a quello di un avvocato generalista: questo è ciò che accade con il franchising plan .

Approfondisci qui: https://www.reting.it/franchising-cose-come-funziona-contratto-ed-elementi-caratteristici/

Le 5 macro-aree del tuo pianificatore di attività

Pensaci, è un’intuizione geniale: creare qualcosa che abbia una sua denominazione e riconoscibilità che riguarda il mondo del franchising e contenga elementi che NON si trovano normalmente in un business plan tradizionale.

Il franchising plan comprende solo ed esclusivamente i dati che servono a un imprenditore per comprendere come e quanto investire per franchisizzare la propria attività.

Analizziamolo nel dettaglio. Il franchising plan è diviso in 5 macro-aree:

Progetto: idea, da dove nasce, perché ritieni sia valida e possa funzionare;
Check stop: analisi di pregi e difetti dell’attività;
Formula di affiliazione previsionale: fee d’ingresso, royalties, mark-up;
Conto economico previsionale per l’affiliato e per il franchisor: investimento e guadagno;
Investimento per il restyling;
Investimento di tempo e denaro per cominciare il progetto;
Costo delle attività del check stop ;
Manuale operativo , estratto;
Preliminare e contratto di affiliazione;
Attività specifiche per il marketing B2A che intercetta l’affiliato;
Budget per avviare il piano di sviluppo su base triennale.

Attento però!

Dopo aver strutturato il franchising plan non significa che tu sia già un franchisor: da questo punto in poi inizierà il tuo processo di investimento per creare il tuo sistema e diventare franchisor .

Perché scegliere un franchising plan e non un tradizionale business plan?

Il franchising plan ti aiuta a ridurre il rischio imprenditoriale perché calcola preventivamente tutti i costi che dovrai sostenere.

Ti faccio un esempio: una persona che conosco ha investito 30 mila euro di suoi risparmi per aprire un’attività, ma è andata in difficoltà perché non riusciva a concludere il progetto con il capitale che aveva investito. Non ha potuto farsi finanziare da investitori e banca perché non aveva un piano e le conseguenze sono state queste:

Ha perso 30 mila euro;
Ha avuto problemi con il padrone del locale e con le ditte che portavano avanti i lavori.

Non programmare significa far aumentare il tuo rischio imprenditoriale e rischiare di perdere molti più soldi di quelli che volevi investire.

Non è un lavoro che l’imprenditore fa solo per sé stesso: devi pensare anche a tutte le persone che coinvolgi nel tuo piano per creare il tuo franchising . Ecco perché ti serve un buon franchising plan: per finalizzare tutti i processi alla riuscita del progetto.

Il franchising plan è un’esclusiva di Reting e ti permette, spendendo dai 5 ai 30 mila euro, di organizzare la tua attività in modo che:

Abbia un respiro internazionale;
Ti permetta di inserire investitori privati;
Ti garantisca un metodo per ottenere finanziamenti;
Ti aiuti a creare un format importante.

Ti serve un progetto giusto, preciso, che metta su carta la tua idea, chiarisca i costi e i dubbi e ti permetta di studiare il tuo mercato in maniera approfondita.

Noi di Reting cercheremo di farti capire cosa può succedere nel corso degli anni e proveremo a eliminare totalmente gli errori e le perdite economiche per farti investire in tranquillità e con consapevolezza.

Questo è il percorso che ti aspetta e Reting può aiutarti a diventare un franchisor senza approcciare questo mondo in maniera avventata: il nostro obiettivo è sempre ricondurti al buon franchising. Ecco perché, se vuoi entrare anche tu in questo settore e se sei curioso di sapere se il tuo punto vendita abbia già tutte le carte in regola per diventare un punto pilota, ti consiglio di affacciarti subito alla finestra del franchising cliccando qui sotto.

Troverai un questionario che ti aiuterà a comprendere i segreti del franchising e a capire se la tua attività possa essere trasformata in un punto pilota, grazie a una consulenza specializzata.

questionario per diventare un franchisor

Altro sul Franchising

How to Start a Franchise

Fast food items. Represents starting a franchise business.

9 min. read

Updated January 5, 2024

Download Now: Free 1-Page Business Plan Template →

Franchising offers a pathway to business ownership that takes advantage of a proven idea and strong brand. You lose some autonomy and control—but get to work from an established playbook, learn from a successful franchisor, and, most notably not have to start a business from scratch .

So, is becoming a franchisee the best way to start a business?

Learn how to choose and start a franchise that fits your interests.

What is a franchise?

A franchise is a business owned by an individual (franchisee) but branded and supervised by a larger company (franchisor). Common examples include Subway, 7-11, and Hilton Hotels.

Purchasing a franchise grants you the right to use a tested business model, pricing, products, and marketing strategies.

Additionally, franchisees gain access to the company’s trademarked materials like logos and slogans—essential for establishing a brand identity.

How to start a franchise

While you get to bypass idea creation , customer validation , and brand development —there are still critical steps unique and similar to starting any other business.

1. Know your budget

There is always an upfront franchise fee, and franchisors often have financial requirements for potential franchisees. For example, some franchisors require franchisees to have a particular net worth.

Review your finances and assets to look for opportunities in line with your price range. Determine how you’ll finance the franchise, whether through personal savings, bank loans, or franchisor financing options.

2. Do your research:

You don’t want to waste time dreaming up your plans to open a specific franchise only to look at the fine print and realize it’s not a good fit.

For example: A Cafe Yumm franchisee must have a net worth of $500,000. If that isn’t where you’re at financially, look elsewhere.

Contact a current franchisee to learn more about the business if you can. What are their perceived pros and cons? What’s it like working with this brand? Are there any significant costs associated with this franchise?

Additionally, you need to check if a franchise is already running in your area. If so, the franchiser may be unlikely to approve another location in such close proximity.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

3. Participate in an interview

A unique aspect of starting a franchise is that it’s not entirely up to you. You have to interview, almost like you’re applying for a job.

The format will depend on which franchiser you choose. The goal will be for you and the franchisor to review the specifics and determine if the franchise is right for you.

Take note of how much support the franchisors offer during setup and if they provide ongoing training.

4. Write a business plan

A benefit of starting a franchise is that many important aspects are well-established. However, you still need a business plan to cover how you will run your business, forecast sales and expenses, and outline employee needs.

Most importantly, you need a thorough market analysis that shows how this franchise will work in your local market. At a minimum, you need to detail who your target customers are and how they relate to or differ from the current franchise customer base. Luckily, most franchises offer assistance with this part of the process.

Check out our business planning hub to learn more about writing a franchise business plan .

5. Choose a suitable franchise location

Selecting a location can be complicated by specific requirements from the franchise owner. Size, setup, and even the atmosphere surrounding the business may limit your options.

Then, you must consider if the location makes sense from a performance standpoint.

Is it going to attract your core customer base?
Is there enough foot traffic?
Is your business easily accessible?

Hopefully, the franchisor will assist in this process. If not, check out our complete guide on selecting a business location for more specific steps.

6. Sign the franchise agreement and review the FDD

Before you sign a binding contract outlining mutual obligations between you and the franchisor—you need to review the Franchise Disclosure Document (FDD) document.

The FDD contains a wealth of information, including:

The franchisor’s background: History, business experience, and any litigation or bankruptcy history.
Financial statements: Provides a clear picture of the franchisor’s financial health.
Initial and ongoing costs: Details about the initial franchise fee, training costs, grand opening costs, royalty fees, and other related expenses.
Training and assistance: Information on the training and support the franchisor will provide.
Franchisee obligations: What is expected of the franchisee in terms of purchasing equipment, maintaining standards, advertising, etc.
Territory: Whether the franchisee will have exclusive rights to a territory and the specifics of any territorial protection.
Trademarks: Information about the franchisor’s trademarks, copyrights, and proprietary information.
Renewal, termination, and transfer: The terms under which the franchise relationship can be renewed, terminated, or transferred.
List of current and former franchisees: Contact information for current franchisees and those who have left the system recently.
Earnings claims: If provided, details about the financial performance of existing units, though not all franchisors include this information.
Restrictions: Details on any restrictions on what can be sold, sourcing and supply, and territory.

Before signing the FDD, review it carefully, preferably with the help of a lawyer .

7. Make your business legal

Aside from the franchise agreement and FDD, additional legal requirements exist to start your franchise.

Set up a business structure: The franchisor may specify which business structure you must use.
Federal and state registrations: At a minimum, you must apply for federal and state tax IDs. However, there may be additional requirements depending on your location.
Business licenses & permits: Depending on the location and nature of the franchise, various local, state, or federal licenses and permits may be required.
Tax registrations: Franchisees must register for appropriate federal, state, and local tax identification numbers and comply with tax obligations.
Insurance requirements: Franchisees often need various insurance coverages, such as liability, property, workers’ compensation, and more, as mandated by law or the franchisor.

8. Stay updated on franchisor policies

Most franchisors provide training programs for new franchisees that cover everything from business operations to customer service.

However, this initial training may not cover everything, and franchisors may update their policies, marketing strategies, or product offerings.

Staying aligned with these changes ensures brand consistency and can impact the franchise’s success.

Dig deeper:

Should you open a franchise or start a business?

If you’re reading this, you’re likely more interested in opening a franchise than starting a new business. To be sure of your decision, let’s weigh the pros and cons of both options.

Things to consider when comparing franchise opportunities

Choosing the right franchise can be as challenging as developing a good business idea. Simplify the process and use these seven factors to help vet and select the right franchise.

History of franchising

Become familiar with how franchising has evolved into the business model it is today.

Common types of franchises

Franchising spans a wide range of industries. While there are countless specific franchise concepts—you can group them into several common categories:

Food and beverage

Establishments that prepare and serve meals and drinks, ranging from quick-service to full-service dining.

Fast-food restaurants (e.g., McDonald’s, Subway)
Sit-down restaurants (e.g., Applebee’s, IHOP)
Coffee shops (e.g., Dunkin’ Donuts)
Ice cream and dessert parlors (e.g., Baskin-Robbins, Dairy Queen)

Businesses that sell goods directly to consumers from physical locations offering a variety of tangible products.

Convenience stores (e.g., 7-Eleven)
Specialty stores (e.g., The UPS Store, GNC)

Franchises providing specialized services to individuals or businesses—emphasizing expertise or personalized care.

Home services (e.g., Molly Maid, Mr. Handyman)
Automotive services (e.g., Jiffy Lube, Midas)
Health and fitness centers (e.g., Anytime Fitness, Gold’s Gym)
Educational services (e.g., Kumon, Sylvan Learning)

Business-to-Business (B2B)

Franchises that cater to other businesses, offering services that enhance business operations or efficiency.

Printing and promotional services (e.g., Minuteman Press, FastSigns)
Professional consulting and coaching (e.g., ActionCOACH)
Commercial cleaning (e.g., Jan-Pro, Coverall)

Real estate

Operate in the property market, assisting in buying, selling, or leasing properties, with a focus on market expertise.

Coldwell Banker

Franchises that provide accommodations for travelers, including hotels and motels, emphasizing comfort and amenities.

Hilton Hotels
Marriott International
Holiday Inn

Personal care

Focus on enhancing appearance and well-being, offering services like grooming, beauty treatments, and wellness.

Hair salons (e.g., Great Clips, Supercuts)
Spas and beauty treatments (e.g., Massage Envy)

Centered around leisure and entertainment, providing venues or services for relaxation and fitness.

Children’s entertainment centers (e.g., Chuck E. Cheese’s)
Fitness and recreational sports centers (e.g., Planet Fitness, Club Pilates)

Cater to niche markets or unique services not covered in other categories, such as specific demographics or specialized needs.

Pet services (e.g., Petland, Dogtopia)
Restoration and disaster recovery services (e.g., SERVPRO)
What franchise should you choose?

It can be quite challenging to choose a franchise since there are over 3,000 different concepts available.

How do you narrow it down to one? Here are three tips:

1. Figure out what you’re good at

While you’re not coming up with a business idea , you can still use the same tactics to identify a winning franchise opportunity. The easiest place to start is by identifying and listing out your skills, strengths, and passions.

Maybe you’re a relationship-builder, an operations expert, or already have experience working with a franchise.

If you’re struggling to identify what you’re good at, consider conducting a SWOT analysis on yourself. This will give you a structured way to assess your strengths, weaknesses, opportunities, and threats.

2. Match your skills to franchise opportunities

Use your skills as a reference when exploring franchise opportunities. Remember, you must be a good match for the franchise owner.

Having industry-specific experience or skills can help sell them on your ability to run their specific type of business.

For instance, if you’re drawn to a commercial cleaning franchise because it’s B2B and aligns with your sales skills.

3. Keep an eye on market trends

Be vigilant about consumer and business trends to ensure your franchise choice is relevant.

Take note of popular opportunities, but don’t jump on them immediately. Do your due diligence and determine if the franchise trend is sustainable and not a fleeting fad.

As always, fall back on market research to understand consumer spending habits. If the franchise category you’re interested in shows customers straying away from known brands—it may not be the right time to jump in.

Start your franchise

Cooking up a brand new business idea has its value, but there’s no reason you can’t piggyback on a time-tested method and reap the benefits—as many franchisees are already doing today.

If you’re interested in buying a franchise to start or run your own business, learn all you can before you buy.

With planning and thoughtful execution, a franchise business can be just as rewarding as any other startup.

Check out our complete guide on starting a business to ensure you’re prepared to open a successful franchise.

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

Table of Contents

How to pick the right attorney for your business

7 Min. Read

How to Pick the Right Attorney for Your Startup

6 Min. Read

How to Tap Into Underserved Markets

3 Min. Read

5 Keys to Keeping Your New Business on Track

How to review and apply customer feedback

How to Make the Most of Customer Feedback

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

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

Canadian Franchise Association
LookforaFranchise.ca

Advice & Tips

The Basic of Creating a Business Plan

Follow these steps to create a detailed plan and set your new business up for success.

by Raavya Bhattacharyya

Regardless of the franchise opportunity you choose, you need to map out your path to success before getting started. A comprehensive business plan holds the key to unlocking the full potential of a franchise and ensures a solid foundation for profitability. It also gives banks, investors, and lenders an idea of the scope and specifications of your project, so they’ll feel more comfortable providing their support. By creating a business plan, you signal that you’re serious and understand the tools you need to succeed.

Here’s what your business plan needs to convey:

There’s a market for your products or services
You and your management team are capable
You have the necessary financial resources
You understand your franchise ownership goals and how you’re going to achieve them
The franchise you’re buying is financially viable and you’ll be able to repay any loans

Components of a Business Plan

A comprehensive business plan is made up of several elements. Here’s a list of items you should include.

Executive summary

The executive summary should describe the franchise you intend to purchase, include the background and track record of the franchisor and other existing franchises, and identify your core market.

Company description and management team profile

You should outline the basics of your business in this section, like its name, location, and type of business. The management team profile should describe your skills and experience, explain why you’re suited to own and operate this franchise, and include the same information for any other members of your management team.

Description of products and services

Here’s where you describe what your business offers. The description of your products or services should include featured benefits, am explanation of how your product or service differs from your competitors, and outline how you will deliver these products and services.

Core market information

This section should describe your core market sector: Who’s your competition? What do they do well? What do they not do well? How are you going to stand out? Is your market trending up or down? Here you can outline your competitors and describe your existing customer base. You can also talk about how much of the market share you expect to cover.

Description of operations

The description of operations should describe where you’ll operate and explain how you’ll produce your products or services. Include information on location, property, facilities, leases, employees, insurance, technology, equipment, and suppliers, which are all crucial details that need to be determined before you get started.

Financial information

Make sure you complete a thorough financial analysis to ensure you have a plan for success. Your financial advisor can be particularly helpful with preparing and itemizing this part of your business plan. The financial section should cover the details of what makes this a financially viable business. You should describe your current financial situation and include monthly budget and cash flow projections/analysis. It should also include a personal net worth statement that lists all of your personal assets and liabilities.

Remember that it often takes months or years for a new business to become profitable. Your business plan should include a comprehensive section on financial requirements, including detailed estimates of all anticipated start-up costs until the projected breakeven point.

Here are some costs to include:

Legal and accounting fees
Marketing costs, including plans, website, print materials, tradeshows, etc.
Inventory purchases
Real estate and/or building and equipment procurement
Working capital reserves to cover operating losses until the business is capable of generating sufficient revenue
Monthly overhead for six to 12 months
Personal living expenses for six to 12 months
Financing costs
Cash flow projections (see sidebar)

What is cash flow forecasting and why is it important to a business plan?

A cash flow forecast outlines the anticipated income and expenses of the franchise. If you’re purchasing a new franchise location, you can determine the expected revenues and costs by doing your due diligence, including talking to the franchisor and other franchisees in the system.

Once you start to get a picture of the numbers, you can do a sensitivity analysis to understand the impact of fluctuating cash flow. Create multiple cash flow scenarios: one based on high sales, one based on low sales, and one in the middle. This helps you determine the targets you need to hit, and the sales required for you to make money.

Along with a complete accounting of cash requirements for the franchise, identify the sources of funding, as well as the relevant financing terms.

Financing for most new franchise companies comes from the owners, supplemented by friends and family members, along with some bank financing. Investors or lenders expect owners to personally assume some of the risk with a solid self-financed capital base of 30 per cent to 50 per cent of the total debt.

Q: How do I choose a name for my franchise business?

A slice of success: the score pizza advantage, recent posts, laser clinics canada and skinstitut launch power serums, cleansing oil, and new branding for the canadian market, a&w’s free root beer day is back on july 6th across canada, a&w unveils a tropical trio of mango passionfruit beverages, calgary northeast franchisee welcomes a fresh vision for real estate, pokerrito set to launch its summer feature menu on june 28.

com

The Franchise Guide :

How To Create A Business Plan

Anyone who's thinking about starting a new business is going to need to create a business plan. Why? Well banks and lenders require one for starters. But also because business plans are one of the crucial foundations for the beginnings of a business. And the franchising industry is no different.

Business plans are smart. They provide a road map to where you want to go and signposts for how you are going to get there. Writing a business plan causes you to consider challenges, risks, and opportunities that will be coming your way.

Because you are choosing to purchase a franchise, your business plan will be a little easier to create than someone who is starting a business from scratch. For example, many franchisors already have business plan templates - or elements of business plans, at the very least--that you can use and adapt. And you'll be able to obtain much of the financial information that's necessary from the Franchise Disclosure Document (FDD).

Basic business plans can be boiled down to five main sections. These are the main things lenders will be looking for.

First up, you'll need a concise and informative introduction section. Here you want to describe the business and the kinds of products or services for sale. You should evaluate your market and territory and include that information here. Analyze your competition. Discuss the operational approach you will take and the challenges and risks you've identified with taking a business into this market.

Second, describe your management approach. Outline your management structure and philosophies. Detail all of the management positions/roles and talk about the individuals who will be serving in these positions. Explain what makes them unique and qualified to excel. Your management team is going to be critical to your franchise's success.

The third section of your business plan should be the marketing plan. Here you want to explain how you're going to reach customers and get them through the doors of your franchise business. Outline all of your marketing and advertising plans. Discuss the value of your products and services and why they offer a unique advantage to your company.

Next, include financial projections. Here is where you'll want to include pro forma financial statements such as income statements, cash flow projections, and balance sheets. The idea is to use this data to point to how you project the business to do once it opens. Your projections should be very conservative and take into account as many variables as possible. Remember, projections are difficult to make--especially in a start-up business--so include as much information as possible in this section.

Finally, include a section that details your financing needs. Here you should provide, in detail, a complete analysis of your start-up costs. Discuss how much capital you will need (and where you plan to get it) to cover your operations from day one until you begin turning a profit. This section is important even if you are not borrowing money.

Creating a business plan forces you to think deeply about the business, analyze numerous options, and formally project a course of action. You'll learn more and you'll understand more about operating a business. And for that, you will be glad you did it.

Back:

Franchise Guides »

Recent Guides The Latest Franchise Guides for Opportunity Seekers
The Franchise Guide An In Depth Analysis of the Franchise Industry
Franchise Buyers Guide The First Steps to Franchise Ownership
Multi-Unit Buyers Guide

Franchise Search »

INDUSTRY: Any Art Automotive Beauty Business Services Childrens Cleaning and Maintenance Construction Education Entertainment Financial Services Fitness Food Franchise Consultants Health and Wellness Home Services Medical Moving and Storage Pet Recreation Retail Senior Care Service Brands Small Business Specialty Staffing Technology Travel Vending

MAX INVESTMENT: Any Over $1,000,000 $1,000,000 $750,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000

LOCATION: Any ----- United States ----- Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming ----- Canada ----- Alberta British Columbia Manitoba New Brunswick Newfoundland Northwest Territories Nova Scotia Ontario Prince Edward Island Quebec Saskatchewan Yukon Territory ----- Other International -----

OPPORTUNITY TYPE: Any Non-Franchised Business Eco-Friendly Essential Business Home Based Multi-Unit Veteran Benefits Women Based

Featured Opportunities

Subscribe to our Newsletters

Franchising.com is produced by Franchise Update Media. Franchise Update Media has its finger on the pulse of franchising with unrivalled audience intelligence and market driven data. No media company understands the franchise landscape deeper than Franchise Update Media.

P.O. Box 20547 San Jose, CA 95160 PH. (408) 402-5681

About | Advertise | Contact

What is Franchising?
Franchising Articles
Franchise Guides
Franchise News
Success Stories
Franchise Videos
Net Worth Calculator
Multi-Unit Franchisees
Open New Units
Top Franchises
Hot Franchises
Featured Franchises
Award Winning Franchises
Trending Franchises
International Franchises
Franchises A-Z
By Industry
By Location
By Investment
By Maturity
Opportunities
Region Guides
Advertising
Conferences
Customer Relations
Human Resources
Local Marketing
Public Relations
Real Estate
Social Media
Wealth Management
Annual Franchise Development Report
Multi-Unit Buyer's Guide
Multi-Unit Franchising Conference
Franchise Customer Experience Conference
Franchise Leadership & Development Conference
Multi-Unit Franchisee Magazine
Franchise Update Magazine
Franchise Development Leadership Report
Franchise Marketing Leadership Report
Multi-Unit Franchisee Customer Experience Report
Multi-Unit Franchisee Employer Report
Multi-Unit Franchisee Real Estate Report
Franchising Express Daily Report
Franchising Express Weekly Featured Franchises
Franchising Express Weekly Report
International Franchise Monthly Report
Multi-Unit Franchisee Service Brands Edition
Multi-Unit Franchisee Weekly Report

How to Create a Franchise Business Plan

What Should a Franchise Business Plan Include?

A business plan is a document that outlines the goals, strategies, and operational plans of a business. In short, it is a roadmap to success . Not only is it an essential tool for an aspiring business owner to get started, but it serves as a benchmark for measuring progress and making adjustments as needed down the road.

If you are planning to purchase a franchise, creating a thorough and effective business plan is essential to your success. Not only will it help you prepare for what lies ahead, but it is also a requirement if you are looking to secure financing. In fact, a well-written business plan can make the difference in whether a lending company approves your loan.

Information You Need to Write a Compelling Business Plan

A business plan is not something you can just jot down in a few minutes. Rather, you will need to spend intentional time compiling information and developing a strategy that will form the blueprint of your business.

Here are several items you should consider including in your franchise business plan:

Relevant work experience
Insights from existing franchisees
Statistics within the industry
Current industry news
Updated data related to local economy
Local marketing tactics
Franchise Disclosure Document (FDD)
Additional franchisor literature
Necessary permits and licenses
Market area map that includes all current and potential competitors

What Should Be Included in a Franchise Business Plan?

Clearly, forming a business plan requires a diligent effort. However, if you are looking to own a franchise business, you won’t need to start from scratch since the franchisor has already compiled much of the information you will need. While you still need to work hard to put together a solid business plan, there are several templates available for guidance. No matter which template you choose, your business plan should include the following sections:

Executive Summary

This section will provide a mission statement for the business and then explain how your business will achieve its goals . Someone should be able to read the executive summary and know the purpose of your business and the potential it has in its given market.

Business Description

The information provided here should be thorough. 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

This section will explain how things will get done in the business . It should outline the structure of the management team and include specific instructions related to the day-to-day operations of the business. Team members should be able to refer to the operations part of the business plan as they aim to implement the business’s strategies.

Market & Industry Analysis

You will need to provide an analysis on the market that you are entering, which includes:

A description of the marketplace
What your competitors are doing
Details that support your specific business strategy

Furthermore, you should also understand the industry along with its risks and opportunities, so that you can build strategies that take advantage of the opportunities while mitigating potential risks.

Competitive Analysis

You shouldn’t start a franchise business with your blinders on. It’s important to know what your competitors are doing and how they are performing . Evaluating your competitors is a way to validate the predictions you have for your business’s performance . By this point, you have probably already gathered all the information you need about your competitors. Ensure that you perform a thorough analysis of this information as it will guide you in your business decisions.

Marketing & Sales Plan

What you include here is dependent on which franchisor you work with since you are obligated to use their sales and marketing tactics. You will want to know the process for targeting new customers and how much flexibility you have to implement your own marketing strategies . You should also provide specific information related to the initial marketing plan and what the ongoing marketing strategy will look like. Finally, it’s important to explain how the franchisor will support you in these efforts .

Financial Plan

This section should thoroughly outline the financial details of your business: where it has been, where it currently is, and where it’s going . The data will include:

Business costs
Current funding for the business
Expected future financial needs

While the actual financial performance of each franchise unit will vary, the Franchise Disclosure Document (FDD) provides information that is helpful for making financial projections.

Item 19 includes the financial performance representations (FPR) for a prospective franchisee
Items 5-7 have helpful financial information related to the initial fees and investment needed

Speaking with existing franchisees is also an integral part of this process.

Pro forma is another part of the financial section, and it includes projections of future expenses and revenues , which you can corroborate with the following business information:

Balance sheet
Profit or loss statement

Perhaps it goes without saying, but be sure to update your business plan if something changes. It is not a document you should finish and then put away to gather dust. It is a valuable resource, and you should use it at every stage in your business if you want to be successful.

Ready to Get Started With Your Franchise Business Plan?

Creating a thoughtful and detailed business plan is key to each step of the franchising process. If you are ready to get started with owning a franchise business, then FranNet is here to help. Our franchise consultants will provide the resources, support, and guidance you need to make an informed buying decision. Schedule a free consultation today!

Mar 17, 2023

Business Ownership , Buying a Franchise , Finance

This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

Franchising 101: How to Business Plan a Franchise

Entering the realm of franchising is a significant step for entrepreneurs. Therefore, determining your course of action with a well-constructed business plan is crucial. You’ll need a roadmap to guide you through the franchising process, allowing you to navigate its challenges and enjoy its rewards. Here, we delve into the core aspects of business planning for franchising to equip you for this entrepreneurial journey.

Understanding Franchising: An Overview

Definition of franchising a business.

A franchised business is centered around a partnership where the franchisee operates under an acknowledged brand’s banner. Thus, they benefit from the franchisor’s well-established systems and processes, diminishing the risks of starting anew. For instance, a franchisee of a coffee shop will have access to a tried-and-true menu, operational protocols, and receive marketing and training assistance. Hence, franchising offers a surer path to entrepreneurship backed by a pre-existing business model.

4 Fundamental Categories of Franchises

When drafting a business plan for your franchise, it’s necessary to carefully consider four crucial categories. The franchise’s history and core business activities, its strengths and weaknesses, your abilities and background, and an analysis of the local market and competition should all be addressed. These four categories facilitate the franchise’s growth and progress, enabling well-informed decision-making and laying out a clear path to success.

Franchising versus Licensing: The Main Differences

Franchising and licensing are distinct entities. While franchising revolves around mirroring an established business model and identity, licensing involves receiving the rights to use intellectual property in exchange for royalties.

For example, a franchisor lends support in areas like product development and marketing, thus enabling a franchisee to capitalize on brand recognition. On the other hand, licensing mainly deals with granting permission to utilize specific intellectual property while leaving operational aspects down to the licensee.

The level of control a franchisee or licensee has differs significantly. The former must follow strict guidelines, while the latter can operate more freely within the set parameters. Pinpointing these differences is an essential step when choosing between franchising and licensing as your entrepreneurial path.

Timeline and Costs: Franchising Your Business

Crafting a full-fledged business plan requires analysis and tailoring of the franchisor’s products, services, processes, and financials to the franchise’s specific locale. A comprehensive business plan should include an assessment of the brand’s strengths and weaknesses, the franchisee’s background and experience, the local market analysis and competition, growth aspirations, management, sales and marketing strategies, and financial projections.

Regularly reviewing your business plan ensures continuous updating and keeps you on target for success.

The Anatomy of a Franchise Business Plan

Ensuring your business is franchise-ready.

Formulating a business plan for your franchise can significantly aid in identifying if the franchise investment is the right path and represents a productive exercise. It’s crucial to include inclusions such as: history and core activities of the brand, its strengths and weaknesses, your qualifications and track record, market analysis, the competition, growth plans, management and personnel strategies, sales and marketing procedures, costing factors, and financial projections.

By maintaining your franchise business plan’s accuracy and relevance, it will ensure that you continue steering your franchise towards success.

Safeguarding Your Business’s Intellectual Property Rights

It is crucial for future success to safeguard the intellectual property rights of your business during franchise planning stages. Registering your trademarks, implementing confidentiality agreements, and other pro-active measures guarantee the legal defense of your brand, logo and specific products or services. Vigilance in protecting your intellectual property rights contributes to securing the future of your franchise.

The Legalities of Franchising: Understanding Key Documents

Preparing the franchise disclosure document (fdd).

The preparation of the Franchise Disclosure Document (FDD) plays a significant part in business planning for your franchise. Resourced from the franchisor, the FDD establishes the foundations for creating your business plan, providing vital details for sections such as company description, financials, market analysis, management structures, and marketing strategies. Remember to draw up a confidentiality agreement to protect sensitive information during review procedures.

Creating an Effective Franchise Agreement

An effective franchise agreement is an essential element in business planning for franchising. It ensures a mutual understanding between the franchisor and franchisee, offering protection to both parties. Incorporation of provisions outlining the franchisor’s rights and obligations, such as operational guidelines, training necessities, and marketing support is essential, as well as clauses for territorial exclusivity to prevent intra-brand competition.

Developing an Operations Manual For Franchisees

The development of an operations manual is vital for facilitating franchisees successfully manage the franchise. This guide essentially ensures uniformity across various locations, providing intricate details on daily operations like customer service protocols, inventory management, and opening and closing procedures.

How and When to Register Your FDD

Registering your Franchise Disclosure Document should occur before marketing or selling the franchise in each respective state. This ensures you align with state laws and regulations related to franchising. The registration process typically involves document submission, awaiting approval, and fees, thus adding time to your planning process.

By registering your FDD in a timely manner, you demonstrate transparency and adherence to regulations, heightening the confidence of potential franchisees.

Creating Your Franchise Sales Strategy

An essential aspect of planning your franchise is to devise an effective sales strategy to captivate would-be investors. Understanding the target market, analyzing market and consumer trends, and identifying unique selling points to differentiate the franchise from competitors, helps to devise an effective strategy.

Additionally, analyzing the chosen territory’s demographics and competition, outlining growth objectives, detailing personnel qualifications, drawing up a comprehensive sales and marketing strategy, costing set-up, and making financial projections for the first few years also form part of the strategy. It is essential to keep your sales strategy updated to keep up with changes in the market and to ensure the smooth progress of your venture.

Assessing the Pros and Cons of Franchising Your Business

Advantages of franchising your business.

Franchising as a business model offers substantial merits. Rapid expansion into new markets, steady income from ongoing royalties and franchise fees, the reduced risk factor, and increased brand recognition are some of the key benefits. Thus, franchising remains an appealing option for business owners aiming to maximize their brand’s profitability and expand their reach.

Challenges and Disadvantages of Franchising

Despite the benefits, there are also drawbacks to franchising. Limitations to flexibility, high initial investment, reliance upon the franchisor for branding and marketing, heavy dependency on franchisor’s success, non-exclusivity, and strict terms and conditions set by the franchisor could negatively impact the franchisee.

Frequently Asked Questions about Franchising

The necessity of franchise registration.

Franchise registration is a legal requirement that protects your business while also providing necessary compliance. Registration brings credibility to your franchise and establishes confidence in potential customers and investors, maintaining consistent quality and satisfaction. It helps to uphold the reputation of your business and prevent unethical practices, fostering a fair trading environment.

Considering Licensing as an Alternative to Franchising

Licensing can serve as a less demanding alternative to franchising, offering opportunities to leverage a reputable brand and business model with less commitment. With licensing, there is increased operational autonomy while benefiting from brand recognition and customer loyalty. Licensing can be attractive to entrepreneurs due to its lower upfront costs and operational flexibility compared to franchising.

It allows one to engage with established brands and their customer base while having more control over business operations.

Vizologi is a revolutionary AI-generated business strategy tool that offers its users access to advanced features to create and refine start-up ideas quickly. It generates limitless business ideas, gains insights on markets and competitors, and automates business plan creation.

+100 Business Book Summaries

We've distilled the wisdom of influential business books for you.

Zero to One by Peter Thiel. The Infinite Game by Simon Sinek. Blue Ocean Strategy by W. Chan. …

Thriving in Small Scale: How to Business Plan a Small Business

10 effective business plan examples you need to see.

A generative AI business strategy tool to create business plans in 1 minute

FREE 7 days trial ‐ Get started in seconds

Generate limitless business ideas, gain insights on markets and competitors, and automate business plan creation

Try it Free

Supercharge Your Business Strategy!

Before you download our exclusive content Subscribe to Vizologi’s FREE newsletter. Join 50k+ innovators shaping success with curated content. No spam, just pure value! @vizologi

Thanks for joining us!

Your exclusive content is on the way to your inbox. Ready to elevate your business with Vizologi?

Home Blog Business Plan Writer How to Franchise a Business: A 9-Step Guide to Expansion Success

How to Franchise a Business: A 9-Step Guide to Expansion Success

Home » How to Franchise a Business: A 9-Step Guide to Expansion Success

Ready To Get Started?

Our team of business consultants can provide you with one-on-one consulting and strategic advisory to launch or grow your business.

SCHEDULE A CONSULTATION

Unlocking the Potential of Your Business
The Importance of a Well-Crafted Business Plan
Managing Change Effectively with a Business Plan Consultant
Implementing Strategic Partnerships with a Business Plan Writer
Boosting Revenue with a Business Plan Writer
Business Plan
Business Plan Writer
Client Press

Expanding a business through franchising can be a lucrative avenue for growth, allowing entrepreneurs to scale their operations while leveraging the resources and efforts of motivated franchisees. However, the process of franchising a business requires careful planning, strategic decision-making, and adherence to legal requirements. In this comprehensive guide, we’ll walk you through the nine essential steps to successfully franchise your business and pave the way for expansion success.

Evaluate Your Business Model: Before diving into franchising, it’s crucial to assess whether your business is suitable for franchising. Evaluate its profitability, uniqueness, scalability, and operational systems. Consider whether your business model can be replicated in different locations while maintaining consistency and quality.

Develop a Solid Business Plan: Engage the expertise of experienced business plan writers or consultants to craft a comprehensive business plan tailored specifically for franchising. Your business plan should outline your franchising objectives, target markets, financial projections, franchise fees, royalty structures, training programs, and ongoing support services.

Establish Legal Framework: Franchising involves complex legal considerations. Seek the guidance of competent legal counsel specializing in franchise law to draft franchise agreements, disclosure documents, and other legal contracts. Ensure compliance with federal and state regulations such as the Federal Trade Commission’s Franchise Rule.

Create Franchise Operations Manuals: Document your business processes, standard operating procedures, and best practices into comprehensive operations manuals. These manuals will serve as invaluable resources for franchisees, guiding them on everything from day-to-day operations to marketing strategies.

Develop Training Programs: Design robust training programs to educate franchisees and their staff on your business model, product offerings, customer service standards, and marketing techniques. Provide ongoing support and resources to ensure franchisees are equipped to succeed.

Identify Target Markets: Conduct thorough market research to identify target markets with high demand for your products or services. Consider demographics, competition, economic indicators, and consumer preferences when selecting franchise locations.

Recruit Qualified Franchisees: Develop criteria for selecting franchisees based on factors such as financial stability, business acumen, alignment with your brand values, and commitment to success. Implement a rigorous screening process to ensure you partner with individuals who are capable of operating successful franchises.

Execute a Marketing Strategy: Implement a comprehensive marketing strategy to attract potential franchisees and generate awareness of your franchise opportunity. Utilize digital marketing channels, industry publications, trade shows, and franchise expos to reach your target audience effectively.

Provide Ongoing Support: Once you’ve onboarded franchisees, provide ongoing support, guidance, and resources to help them succeed. Maintain open lines of communication, facilitate networking opportunities among franchisees, and continuously evaluate and improve your franchise system.

Franchising offers entrepreneurs a powerful pathway to expand their businesses and capitalize on new market opportunities. By following these nine steps and leveraging the expertise of business plan writers, consultants, legal professionals, and marketing specialists, you can navigate the complexities of franchising and position your business for sustainable growth and success.

Author Details

Service Area
Our Clients
Frequently Asks Questions

Services Overview

Business Plan Writers

Investor Presentation

Business Plan Consultants

Bank Business Plan

Immigration

E2 Visa Business Plan

EB-5 Visa Business Plan

L1 Visa Business Plan

Fully Customized Business Plans – No Templates

Schedule free consultation.

Our business plain team is here to help

Shedule Consulation

Our business plan team is here to help

View sample

Check example of our work

Business Plan Consulting

	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

On LegalZoom's Website

Northwest Registered Agent

$39 + State Fees

On Northwest Registered Agent's 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

Best West Virginia Registered Agent Services Of 2024

Best Vermont Registered Agent Services Of 2024

Best Rhode Island Registered Agent Services Of 2024

Best Wisconsin Registered Agent Services Of 2024

Best South Dakota Registered Agent Services Of 2024

B2B Marketing In 2024: The Ultimate 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.

Value of Culinary Education
Financing Your Education
Austin Student Life
Boulder Student Life
Culinary & Pastry Careers
Hospitality Careers
Health & Wellness Careers
Food Entrepreneurship
Success Stories
World of Food & Drink
Recipes & Techniques
Culinary Arts
Baking & Pastry Arts
Blog Search

Financial Aid
Career Services
Online Culinary Arts
Austin Culinary Arts
Boulder Culinary Arts
Online Baking & Pastry Arts
Austin Baking & Pastry Arts
Boulder Baking & Pastry Arts
Plant-Based Culinary Arts
Holistic Nutrition & Wellness
Hospitality & Restaurant Operations Management
Enthusiast Cooking Classes
Find Your Program
Online Programs Overview
Austin Campus Overview
Boulder Campus Overview
Tuition & Fees
Financial Aid Overview
Federal Financial Aid Programs
Scholarships & Grants
GI Bill ® for Military & Veterans
Contact Financial Aid
Admissions Overview
Application Process
Open Houses & Events
Schedule a Tour
Student Housing
New Student Checklist
Military & Veterans
High School Students
International Students
Student Stories
Our Chef Instructors
Farm To Table ® Experience
Accreditations
Vision, Mission, & Core Values
Alumni Profiles
History & Timeline
Request Information
Student Login
(855) 955-7555
Search for:

Restaurant Franchising: A Brief Guide and Opportunities

Thinking about buying a franchise? Turning your restaurant into a franchise powerhouse? Our guide can get you started.

Get the Essential Guide to Starting a Restaurant

Ready to start your own restaurant? Explore budget-friendly restaurant startup concepts, necessary licenses and permits, business planning tips, and more!

Clicking the "Get the Survey Now" button constitutes your express request, and your express written consent, to be contacted by and to receive automated or pre-recorded call, texts, messages and/or emails from via phone, text, and/or emails by Auguste Escoffier School of Culinary Arts at the number(s)/email you provided, regarding furthering your education and enrolling. You understand that these calls , texts, messages and/or emails may be generated using an automated or pre-recorded technology. You are not required to agree to receive automated or pre-recorded calls, texts, messages or emails as a condition of enrolling at Escoffier. You can unsubscribe at any time or request removal of street address, phone number, email address via Escoffier website .

Listen to This Article:

Franchising continues to grow in popularity in the food industry. It can provide opportunities for both successful restaurant owners who want to scale and those interested in becoming food entrepreneurs.

According to a recent Franchising Economic Outlook report by the International Franchise Association, food franchises, especially quick-service dining, are forecasted to continue increasing.

This guide offers valuable information for you to consider whether you’re thinking about buying a franchise or you currently own a restaurant and are looking to expand through franchising.

Person wearing an apron and smiling while standing in front of shelves of bread and baked goods

Purchasing a franchise can fast-track you to restaurant ownership.

What Is a Franchise Restaurant?

A franchise is when an individual purchases the rights to use the name, brand, and business model of a restaurant from the original owner. Examples of franchises are all over the world, from Baskin Robbins and Subway to Starbucks. While the locations look and operate exactly the same, they have different owners operating off the same model. Restaurant franchises can help create a win-win situation for established restaurant owners and those who want to own a restaurant.

A successful restaurant becomes a franchisor when it allows others to buy licenses to operate under its brand name and established business model. This helps the restaurant to expand into new locations without the restaurant owner needing to manage every location. Someone who pays the franchise fee gets a jumpstart on owning a restaurant, including a proven business model, training, and support to help their chance of success with potentially less risk.**

Key Words & Definitions

Franchisor : An established restaurant that licenses its brand and systems to franchisees
Franchisee : The entrepreneur who purchases the franchise license and runs a restaurant under the brand name and business model.
Franchise Fee : The fee that the franchisee pays for the ability to operate a franchise
Initial Investment : Total investment made by the franchisee, including the franchise fee and all other expenses to get the restaurant up and running.
Royalty Fee : Typically, a percentage of gross sales is paid to the franchisor by the franchisee on an ongoing basis.
Franchise Agreement : The legal contract between the franchisee and franchisor.
Operating Manual : Detailed guide and business model the franchisee is to follow.
Franchise Disclosure Document : Federal Trade Commission-mandated form that provides a baseline level of information to potential franchisees.

Inside the Process for Potential Franchisees

So you’re thinking of opening a restaurant? While the idea of owning your own independent restaurant may be appealing, there are many benefits to buying a restaurant franchise to get started.

If McDonald’s is the first thing that comes to mind when you hear “restaurant franchising,” be assured that there are many franchises to consider in the food and drink industry so you can find something that suits your style and taste. If you enjoy French pastries, Le Macaron might grab your attention. Or you could introduce your local community to a taste of England through a franchise of Shelly’s Tea Rooms . From charcuterie boards and bubble tea to Mediterranean dishes, there’s a wide selection of franchises available.

While franchises can come with a hefty price tag upfront, between a proven business model, brand name recognition, and operational support, they can provide a step-by-step guide to help you succeed in the restaurant industry. And with an economic output of over 800 billion U.S. dollars annually, it may be worth looking into if you want to own a restaurant.

Here’s what you need to consider before starting the franchising journey.**

Benefits of Buying a Restaurant Franchise

Brand Recognition : Owning a restaurant with brand recognition and established marketing initiatives can make it easier to succeed than if you start from scratch.
Proven Business Model : A proven business model and framework can help you start without reinventing the wheel.
Training and Support : Training and operational support from the franchisor can assist you in managing the restaurant and its employees.
Reduced Risk : Opening a new location of an existing successful restaurant can potentially reduce the risk of failure compared to starting your own restaurant.

**Note: Auguste Escoffier School of Culinary Arts does not provide financial advice. Always consult with a professional to determine what is best for your situation.

Restaurant worker serving two fast food meals on a tray with a smile.

Franchises can help provide the business model and systems you need to open and operate a restaurant.

Drawbacks of Buying a Restaurant Franchise

Initial Investment : The initial investment and ongoing royalty fees can be expensive if you are just starting.
Less Control : Following the existing brand and business model gives you less control over the menu , branding, and operations.
Location Restrictions : There are limited territory restrictions which vary based on what franchise you purchase. You may not be able to open the franchise in the area you would choose.
Less Creative Freedom : If you’ve dreamt of opening your own restaurant , sticking to the existing business model and menu can be limiting and not look like what you envisioned.

*Information may not reflect every student’s experience. Results and outcomes may be based on several factors, such as geographical region or previous experience.

While restaurant franchising may require a large upfront investment and limited flexibility within how you run the business, it can provide a clear and structured path to owning a restaurant.

For Restaurant Owners Considering Franchising

Has your restaurant concept turned into a success and now you’re dreaming of scaling ? Franchising can be an effective and powerful way to achieve your expansion goals. You can see your restaurant reach new markets while helping provide other food entrepreneurs with the chance to run their own restaurants.

By considering the benefits and hurdles of franchising, you can make an informed decision about whether this is the right growth strategy for your restaurant.

Benefits of Franchising Your Restaurant

Business Expansion : Franchising your restaurant can help you experience rapid business expansion without requiring you to personally manage every new location. The day-to-day tasks of operating each new location don’t fall on your shoulders.
New Revenue Streams : Restaurant franchises can help expand your business revenue by adding new revenue streams, such as royalties and franchise fees.
Increased Brand Awareness : Additional locations in new markets can help increase brand awareness, which may assist in further growth.

Challenges of Franchising Your Restaurant

Additional Tasks on Your To-Do List : Franchising your restaurant brings new tasks to your plate. You’ll need to find the right individuals to become franchisees, which may be a time-consuming process.
Brand Consistency Challenges : Brand consistency is important for the success of each location and this may be difficult to manage with different owners managing and operating on their own. You need to trust and put checks and balances in place to ensure franchisees follow your brand model.
Need for Training and Support Personnel : While you don’t have to run the day-to-day operations of each location, franchisors need to provide training and ongoing support to franchisees. This will require you to take on new tasks or form new roles within your business.

Rapid expansion may be a draw as you look to increase your business revenue, but it’s important to weigh the benefits and challenges before deciding if it’s the right option for you and your restaurant.

Steps to Buying a Restaurant Franchise

Purchasing a franchise may sound easier than starting a food business from scratch, but it’s crucial that you do your due diligence before jumping in with both feet. These steps can help you navigate the process of choosing and buying a franchise.

1. Understand the Opportunity in Front of You

Reading this article is a good starting point as you consider whether buying a franchise is a good option for you. While spending time researching may not sound exciting, it can help you make a wise decision about whether to buy a franchise and, if so, which ones to consider.

Consider your interests and what restaurant chains sound appealing to you. Your options can range from fast food and fine dining restaurants to smoothie shops and bakeries. You’ll also want to consider what general location you’re interested in opening a franchise. There are often limitations based on the specific franchise.

Once you narrow your search by selecting the top franchises that interest you, it’s time to begin researching the details of the franchise agreements. Research the franchise fee, royalty fees, and ongoing support offered by the franchise.

You’ll also want to learn about the franchisee qualifications you will need to have before moving forward. You may find qualifications like net worth requirements and business or management experience.

Person wearing glasses and smiling while looking at a laptop screen.

Researching potential franchise options is the first step to owning a franchise.

2. Explore Financing Options

Access to capital is one of the determining factors for want-to-be franchisees. Before selecting which franchise you want to invest in, determine how much capital you’ll have available. Franchise fees can range from tens of thousands of dollars to millions of dollars.

However, you don’t need to have the total amount of cash available in your bank account to invest in a franchise. There are other options you can try to secure capital, including SBA loans , equipment financing, business lines of credit, and other bank loans.**

In addition to needing funds for the initial franchise fee, you’ll also need to ensure you have funds to cover the operating costs once your franchise location is open. Determining how much you can invest in a franchise will help you determine which options are realistic as you continue to explore the possibilities.

3. Complete Due Diligence

Now that you know the requirements and details of the franchise options that interest you, along with how much money you have to invest, it’s time to select a franchise.

With your chosen franchise opportunity, you should now review the Franchise Disclosure Document (FDD). Franchisors are required by federal and state law to provide this document to prospective franchisees. The document is a standardized document that includes the following items about the franchise.

1. Franchisor’s Background	9. Franchisee’s Obligations	17. Renewal, Termination, Transfer, and Dispute Resolution
2. Business Background	10. Financing	18. Public Figures
3. Litigation History	11. Franchisor’s Assistance, Advertising, Computer Systems, and Training	19. Financial Performance Representations
4. Bankruptcy	12. Territory	20. Outlets and Franchisee Information
5. Initial Fees	13. Trademarks	21. Financial Statements
6. Other Fees	14. Patents, Copyrights, and Proprietary Information	22. Contracts
7. Estimated Initial Investment	15. Obligation to Participate in the Actual Operation of the Franchise Business	23. Receipts
8. Restrictions on Sources of Products and Services	16. Restrictions on What the Franchisee May Sell

The FDD provides important information to help you gain a big-picture view of the business, your responsibilities, and the risks involved. It’s mandated that you receive this document before the sale of the franchise and as part of a 14-day disclosure period. Make notes of any questions you have and ensure you get answers from the franchisor prior to signing a franchise agreement.

It’s also a good idea to talk to existing franchisees to learn more about their experience and ask for advice for getting started. Learning from those who have already walked the path can help you gain a clearer understanding and set realistic expectations.

4. Attend a Discovery Day Event

Discovery Day events give serious and often pre-qualified, prospective franchisees a chance to visit the franchise headquarters and meet with the executive team. This is a chance for franchisors to sell themselves and their opportunity and for franchisees to get their final questions answered while learning more about the business’s culture, values, and operation.

Embrace the opportunity to ask questions about the support provided, the capital requirements, and the company’s values. This is your chance to ensure the franchise aligns with your values and goals.

Person sitting at a table with documents and a laptop passing a folder to another person.

Meeting with the franchise executives during Discovery Day events can help you learn what you need to know before deciding to purchase a franchise.

5. Choose a Location

Each franchise comes with different requirements and limitations on choosing a location for your restaurant. This process can help avoid oversaturating a market, which can help set each franchisee up for success.

Once you understand the selected territory you could work in, you can propose a specific location to the franchisor for approval.

6. Sign a Franchise Agreement

If everything checks out in the FDD and during your discovery day, you can take the next step of signing the franchise agreement. While you may want to try negotiating the franchise fee, you want to work with a franchisor with a strong franchise system set in place, which typically means they don’t negotiate on key pieces of the agreement.

Remember that what’s written in the contract is what will be enforced legally, so ensure that there are no discrepancies between what the franchisor has told you and what’s documented in writing. It can be wise to work with a franchise lawyer who can assist you in reviewing the FDD and agreement to catch any issues you may overlook or be unaware of.†

†Auguste Escoffier School of Culinary Arts does not provide legal advice. Always consult with an attorney before creating a new business entity!

6. Complete Any Necessary Franchise Training

There will likely be required corporate training to help you become an expert on your franchise. This varies from one franchise to the next. Remember that the ultimate success of your franchise restaurant depends on you. While the franchisor provides pieces like the business model, systems, and marketing efforts, embrace the opportunity of owning a restaurant and give it your attention the same way you would if you were starting from scratch.

Top Restaurant Franchises (with Requirements)

To get the ideas flowing, let’s look at some of the top restaurant franchises and their requirements for franchisees. We’ve also included a range of initial franchise fees, including a couple of up-and-comers to help you see the wide range of possibilities that exist in restaurant franchising.

Empty fast food restaurant dining room and counter.

There are a variety of franchise establishments to consider to help you achieve your dream of owning a restaurant.

Investment Range : $1,200,000-$6,600,000
Royalty Fee : 4.5% of gross sales
Financial Requirements : Minimum financial net worth of $1.5 million and $500,000 in liquid assets
https://franchise.ihop.com/en/us

Baskin Robbins

Investment Range : $293,840 – $626,360 (including $25,000 franchise fee)
Continuing Franchise Fee : 5.9%
Continuing Advertising Fee : 5%
Royalty Fees : 2.9% during 1st year, 3.9% during 2nd year, 4.9% during 3rd year
Financial Requirements : Minimum financial net worth of $200,000 and liquidity of $100,000
Capital contributions and financing options may be available
https://www.baskinrobbinsfranchising.com/investment/

Smoothie King

Investment Range : $268,900 – $858,900 (including $30,000 franchise fee)
Operating Fee : 6% of gross sales ($500 monthly minimum)
Marketing Fee : 3% of monthly gross sales
Financial Requirements : Minimum net worth of $300,000 and liquidity of $100,000, a credit score of 700+
https://www.smoothiekingfranchise.com/

Teriyaki Madness

Investment Range : $312,500 – $731,260 (including $45,000 franchise fee)
Royalty Fees : 6% of net sales
Marketing Fund Contribution : 3% of net sales
https://franchise.teriyakimadness.com/

Firehouse Subs

Investment Range : $400,000 – $500,000 (including $20,000 franchise fee)
Royalty Fees : 6% of sales
Marketing Fund Contribution : 3% – 5% of sales
Financial Requirements : Net worth of $300,000+, $150,000 liquid assets
https://www.firehousesubsfranchising.com/

Scooter’s Coffee

Investment Range : $794,000 – $1,341,500 (including $40,000 franchise fee)
Marketing Fund Contribution : 2% of sales
Financial Requirements : Net worth of $500,000+, $250,000 liquid capital
Financial options may be available
https://franchising.scooterscoffee.com/

Nautical Bowls

Investment Range : $100,000 down and all-in investment of $300-400,000
Royalty Fees : 6% of sales (2% goes to the National Marketing Fund)
Financial Requirements : Net worth of $250,000, $75,000 – $100,000 of liquid capital
Veteran Discount : 10%
https://nauticalbowls.com/franchise/

Mooyah Burgers, Fries, & Shakes

Investment Range : $495,918 – $1,168,251 (including $40,000 franchise fee)
Royalty Fees : 6%
Marketing Fee : 3%
Financial Requirements : Net worth of $1.5 million with $500,000 liquidity
Experience : Prior experience with business, franchise, or restaurant operations
https://mooyahfranchise.com/

Becoming a Franchisor (For Restaurant Owners)

Turning your successful restaurant into a replicable business model requires careful planning and execution. The following steps can help you learn more about how to create a robust business model and recruit the right franchisees.

Develop Your Franchise Model

The foundation for franchise success begins with a solidified business model that others can replicate themselves. Below are some steps to help you create this model:

1. Standardize Operations

Begin by identifying your business practices and current operations. You’ll need to document every step in your business, including your recipes, food preparation, inventory management, customer service standards, and employee training. This information will become the operational manual that franchisees can use as a roadmap to success. These documented systems and procedures also help ensure brand consistency at each new location.

2. Develop a Comprehensive Training Program

When you franchise your restaurant, you are responsible for training franchisees and equipping them with the skills they need to operate the restaurant successfully. Create a training program that combines classroom instruction, online training, and hands-on experience and covers everything from operational procedures to financial management .

3. Establish Marketing & Brand Guidelines

It’s important to protect the integrity of your brand as you offer franchise opportunities. Develop a comprehensive marketing guide that franchisees can follow, including approved logos and marketing materials for signage.

You’ll also need to provide clear guidelines for marketing messages, including social media messaging . These guidelines can assist in providing customers with a consistent experience regardless of what franchise location they interact with.

Recruit Franchisees

When you are looking for franchisees, it can be important to find individuals who share your business’s vision and values. These tips can help you attract the right franchise partners.

1. Develop Marketing Materials

Marketing can help you reach a wide audience of potential franchisees. Focus on highlighting the strength of your restaurant brand, what you provide to help franchisees succeed, and the potential profitability. Think about what questions potential franchisees will have and work to address them upfront in your marketing efforts .

Consider marketing through multiple channels, including digital and traditional marketing, to reach your target audience.

2. Create Requirements to Help Qualify Franchisees

Decide what financial requirements you want to establish for franchisees. This can include limits on net assets and a separate requirement for liquid or cash assets. It’s important that franchisees have the financial resources they’ll need to build, open, and operate a location.

You’ll also want to consider what management or business ownership experience you want franchisees to have. You may also want to see a strong work ethic and passion for your brand.

3. Offer Ongoing Resources & Support

Developing a system for strong ongoing support can be a draw for potential franchisees. Build a library of resources they can access, from marketing materials to best practices that can help franchisees work toward success. You may want to have operational specialists or a team of trainers who can guide new franchisees, answer their questions, and oversee the new location long after the franchise agreement is signed.

Consider Hiring a Professional to Help You Franchise

There are professionals who can help you successfully work toward franchising your restaurant. Working with these individuals can help make the process smoother for you.** These individuals can include:

Franchise Consultant : Guides you throughout the entire process, from developing your franchise model to establishing recruiting strategies.
Franchise Attorney : Assists you with the legal aspects of franchising, from drafting your franchise agreement to ensuring you stay compliant with state and federal regulations .
Franchise Marketing Specialists : Creates marketing materials and a plan to help recruit franchisees.
Operations Manual Developer : Assists you with documenting your processes and operations to create the manual for franchisees to follow.
Franchise Sales Broker : Works to help connect you with qualified potential franchisees.
Human Resources Consultant : Assists with developing screenings, recruitment materials, and onboarding procedures.
Accountant : Helps you create financial projections, ongoing royalty calculations, and can help you determine how to structure your franchise fees.

While franchising your restaurant can be a path to business expansion, there are many steps to developing a successful franchise model. The steps above are a general overview of what can be required to turn your restaurant into a franchise. Take time to speak with franchise experts to guide you throughout the process.

Your Next Steps in Food Entrepreneurship

Franchises can place you on the fast-track to restaurant ownership or business expansion, but there are important considerations to make along the way.

As a franchisee, your initial investment can provide step-by-step help and support to get you from the idea phase to opening the doors and welcoming your first customer. But even with the extra guidance, the success of the restaurant still requires your hard work and dedication.

While franchising your business can lead to more rapid expansion, there are important steps to take along the way to help you succeed in the world of restaurant franchising.

Restaurant franchising is just one option to consider if you’re interested in Food Entrepreneurship . Regardless of the path you choose, Auguste Escoffier School of Culinary Arts can help start you on the right foot with the knowledge and skills you need to thrive in the restaurant industry, from Hospitality & Restaurant Operations Management programs to Food Entrepreneurship. Contact Escoffier today to explore how we can help you turn your restaurant dreams into reality!

CHECK OUT THESE ARTICLES NEXT!

How to Start a Restaurant: A Step-By-Step Guide
How to Start a Bakery Business From Home
How to Attract the Best Employees for Your Restaurant

*Information may not reflect every student’s experience. Results and outcomes may be based on several factors, such as geographical region or previous experience. **Note: Auguste Escoffier School of Culinary Arts does not provide financial advice. Always consult with a professional to determine what is best for your situation. †Auguste Escoffier School of Culinary Arts does not provide legal advice. Always consult with an attorney before creating a new business entity!

Latest Articles

What’s an online culinary school success coach and why do you need one.

If you run into challenges during culinary school, a dedicated Success Coach can help support you.

Can You Become a Chef Without Going to Culinary School?

The path to becoming a chef doesn’t look the same for everyone. Find out where culinary school fits in and why you don’t want to skip this important step.

How to Carve a Chicken Like a Professional Chef

Discover how to carve a chicken the way a professional would, allowing you to maximize flavor, minimize waste, and create a stunning presentation.

Subscribe to the King of Chefs Blog

Get the King of Chefs email newsletter delivered to your inbox weekly. You'll get everything you need to know about culinary & pastry careers, food entrepreneurship, financing your culinary education, and more.

The Essential Culinary School Planner & Checklist

We’ve compiled a checklist of all of the essential questions into one handy workbook: Career options, academic plans, financing your education, and more.

Clicking the "Get the Workbook Now" button constitutes your express request, and your express written consent, to be contacted by and to receive automated or pre-recorded call, texts, messages and/or emails from via phone, text, and/or emails by Auguste Escoffier School of Culinary Arts at the number(s)/email you provided, regarding furthering your education and enrolling. You understand that these calls , texts, messages and/or emails may be generated using an automated or pre-recorded technology. You are not required to agree to receive automated or pre-recorded calls, texts, messages or emails as a condition of enrolling at Escoffier. You can unsubscribe at any time or request removal of street address, phone number, email address via Escoffier website .

IMAGES

Business Plan Franchising: 5 step per crearlo
Business plan franchising
Franchise Business Plan
How to make a Franchise Business Plan
Business plan franchising
Business plan franchising

VIDEO

Come redigere un Business Plan per la tua attività
Elaborazione del Business Plan di una startup
Business Plan di un'impresa commerciale
Business Plan di Bidang Kecantikan
La tua attività può diventare un Franchising? #franchising #franchisingbusiness #imprenditorialità
Come rendere un Franchising "Memorabile" (con Michele Franzese)

COMMENTS

How to Write a Franchise Business Plan + Template
How to write a business plan for your franchise. 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 ...
Come creare un business plan: esempio pratico (2024)
Scopri come fare un business plan: esempio e guida passo dopo passo. ... Franchising: (in futuro) vendere l'idea di aprire forni specializzati nella realizzazione di questi prodotti di nicchia a ...
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 & Sample Plan
How To Write a Franchise Business Plan & Sample. Below is are links to each section of a franchise business plan example to help you start your own franchise business: 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 ...
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 ...
Writing A Franchise Business Plan: Ten Key Elements To Consider
Writing a franchise business plan. "Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones and have a strategy in place to set yourself up for ...
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 ...
Developing a Business Plan for Your Franchise: When and How to Do it
You'll identify the challenges ahead and be ready to tackle them. Developing a business plan for a franchise is much easier than for an independent business start-up. You'll have a good deal of information already at your fingertips or readily available. You can find much of the verbiage you'll need for the narrative portions of the ...
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
Contact the franchise company to get answers and make sure you have a clear understanding of the franchise prior to making a final decision to proceed. Remember to update and finalize your business plan after completing the franchisor's initial training. After training, you'll have a far greater understanding of aspects like operational and ...
Creating a Business Plan for Your Franchise
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 ...
Franchise Business Plan Template (2024)
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: List the services: Create a list of the products or services your franchisee will offer.
How to Create a Franchise Business Plan
3. Management Summary. The next part of your franchise business plan should include a listing of the key members of your management team who will be an integral part in the day to day operations. Include as much background information and prior experience as possible for each member focusing on items most relevant to the franchise business.
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.
Developing a Franchise Business Plan: Key Elements to Include
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 ...
Business Plan Franchising: 5 step per crearlo
Serve un business plan adatto: il franchising plan! Il "franchising plan" è uno strumento che nasce dall'accumulo del know how di noi di Reting: è un documento che raccoglie su carta tutte le informazioni necessarie al tuo progetto franchising. All'interno del tuo personale franchising plan troverai:. Come funziona il modello finanziario: conto economico di franchisor e franchisee;
How to Start a Franchise in 8 Steps
1. Know your budget. There is always an upfront franchise fee, and franchisors often have financial requirements for potential franchisees. For example, some franchisors require franchisees to have a particular net worth. Review your finances and assets to look for opportunities in line with your price range.
The Basic of Creating a Business Plan
Components of a Business Plan. A comprehensive business plan is made up of several elements. Here's a list of items you should include. The executive summary should describe the franchise you intend to purchase, include the background and track record of the franchisor and other existing franchises, and identify your core market.
How To Create A Business Plan
Creating a business plan forces you to think deeply about the business, analyze numerous options, and formally project a course of action. You'll learn more and you'll understand more about ...
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.
Franchising 101: How to Business Plan a Franchise
4 Fundamental Categories of Franchises. When drafting a business plan for your franchise, it's necessary to carefully consider four crucial categories. The franchise's history and core business activities, its strengths and weaknesses, your abilities and background, and an analysis of the local market and competition should all be addressed ...
How to Franchise a Business: A 9-Step Guide to Expansion Success
Execute a Marketing Strategy: Implement a comprehensive marketing strategy to attract potential franchisees and generate awareness of your franchise opportunity. Utilize digital marketing channels, industry publications, trade shows, and franchise expos to reach your target audience effectively. Provide Ongoing Support: Once you've onboarded ...
How To Start A Franchise In 8 Steps (2024 Guide)
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 ...
Restaurant Franchising: A Brief Guide and Opportunities
Key Words & Definitions. Franchisor: An established restaurant that licenses its brand and systems to franchisees; Franchisee: The entrepreneur who purchases the franchise license and runs a restaurant under the brand name and business model.; Franchise Fee: The fee that the franchisee pays for the ability to operate a franchise; Initial Investment: Total investment made by the franchisee ...

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

"It Was Horrifying and Scary": Bar Rescue's Jon Taffer Describes the First Time He Screamed at Someone on Camera

How Entrepreneurs Can Apply the 7 Laws of Success to Their Business and Personal Life

The Best Funding Resources for Entrepreneurs With Disabilities

Behind the Bread — 10 Fascinating Facts You Need to Know About Jersey Mike's

Don't Miss Your Chance to Get PDF Expert for $80

Franchise Business Plan Template

Franchise Business Plan

How To Write a Franchise Business Plan & Sample

Franchise Business Plan FAQs

What Are the Main Types of a Franchise?

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

How Do You Get Funding for Your Franchise?

Where Can I Get a Franchise Business Plan PDF?

Franchise Business Plan Template

How to Create a Franchise Business Plan

Franchise Business Plan FAQs

Where Can I Download a Franchise Business Plan PDF?

What Is a Franchise Business Plan?

Why Do You Need a Business Plan for a Franchise?

What Are the Sources of Funding for a Franchise?

What Additional Resources are Available for Prospective Franchisees?

Other Helpful Business Plan Articles & Templates

How to Create a Franchise Business Plan

Market Research

Franchise Concept

Developing a Marketing Strategy

Creating a Financial Plan

Organizational Structure

Developing a Growth Strategy

How to create a franchise business plan

Readily available information and data

5 sections of the business plan

Introduction

Management section

Marketing section

Pro forma financial projections

Financing needs

A helpful and worthwhile process

Let’s Get Started

Start Your Search For A Franchise...

Parts of a Business Plan

Suggested reading:

You have saved info requests

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.

Developing a Franchise Business Plan: Key Elements to Include

Executive Summary: