How to Make a Franchise Business Plan in 2021?
Creating a business plan for your franchise is a critical step in the buying process, as with starting any new business. It helps you think about and prepare for the challenges you may face, this plan will outline the expectations of your new business. Most lenders will require you to show them a business plan if you are looking to secure financing for your new franchise.
By the franchisor versus developing a business plan for a startup from scratch, the good news is that a lot of the legwork will have already been done for you. You need to be found in the franchisor’s Franchise Disclosure Document, Most of the financial information. We outline the top six sections that should be included, there are a variety of templates available for developing a business plan but there is still work to be done:
1. Executive Summary
It should describe your business’s purpose and goals, The Executive Summary portion of your franchise business plan. List your objectives Begin with a short description of your product or service. Within the marketplace how are you fulfilling a hole? Achieve its goals given the market and competition and Outline how your business will succeed.
2. Business Description
It will be a thorough description of the franchise business, the next part of your business plan. The FDD provides a history of the franchise and overviews .an overview of the market and competition, a rundown of the products and/or services offered an explanation of the operations process for delivering goods to the consumer. It should also be included in this section a summary of the risks and challenges.
3. Management Summary
Who will be an integral part of the day-to-day operations, the next part of your franchise business plan should include a listing of the key members of your management team.
4. Sales and Marketing
Sales and marketing tactics are largely dictated by the franchisor, in franchising. Include an explanation of the marketing and advertising support offered to you by the franchisor, you will need to research their process for targeting new customers. About your new location, how will they get the word out? Do they provide what types of ongoing advertising campaigns?
5. Financial Projections
owned units but keep in mind that profitability can vary from unit to unit, Item 19 of the FDD outlines the financial performance of both franchised and franchisor. Sales volume and management, many variables go into predicting profits for an individual franchise location including geography.
6. Financial Needs
A profit and loss statement (P&L), your financial plan should include three key items balance sheet and a cash flow statement. A lot of the information you need for this section can also be found in the FDD. Ask the franchisor about any other costs that could possibly arise during your first year of operation, it’s important to research any ongoing fees and royalties that may be required of you as well.
