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Planning the Franchise Business Plan
The world of franchising bestows an unprecedented number of advantages
to the individual. Whether you intend to expand your small business
with a franchise network, or whether you are merely intrigued by the
notion of becoming part of an already established franchise system,
the success and growth possibilities are endless.
However, in order to achieve this success and growth (as the franchisee
or the franchisor), the created business plan must reflect components
relating to both the franchisee and the franchisor. While this
can be slightly tricky, it remains as one of the most essential facets
of creating a triumphant franchise. Since a franchise business plan
differs from a conventional start-up business plan in the manner of
combining the ingredients of franchisee and franchisor, most are at
a loss when it comes to its creation. Seeking the assistance of a
qualified legal professional or a franchise consultant is suggested
(check out Franchise Opportunities' Consulting/Law
section for some capable recommendations), and when you are crafting
such a business plan, be sure to keep these eight basic sections in
mind.
- Abstract:
The abstract in your franchise business plan is significantly
briefer than a typical executive summary. When drafting this section,
remember that it should resemble, both in length and purpose,
a prologue.
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Business Summary:
This summary retrieves the omitted subjects of a conventional
executive summary and then combines them with elements of the
traditional company description. So you see, within these two
initial facets of your business plan, although nothing is left
out (compared to a traditional business plan), things are rearranged.
- Franchise Overview:
The "Franchise Overview" replaces the typical industry
analysis.
- The Market:
The treatments of the market and the competition as well, combine
here to form the market section.
- Marketing Plan:
Marketing and sales strategies are conventionally included together
within the "marketing plan." Marketing plays a somewhat
larger role when pertaining to a franchise, since customer recognition
and brand name acknowledgement are pivotal in the success of a
franchise.
- Management Qualifications:
This section is essentially the same as in customary business
plans, as it depicts and illustrates your proposed management
staff and your operational framework.
- Financial Pro Formas:
This too is a traditional section. Its intent is to group together
your financial projections for the first year, as well as an inclusion
of your projections for the future, typically for a range of three
to five years.
- Exhibits:
This is the final section of your franchise business plan. It
is here that you place supporting documents needed to evaluate
the plan itself - either in the capacity of supporting information
in the prior sections or to provide supplemental information not
covered. If you have lots of exhibits, consider weaving them into
the sections where they apply.
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