Franchisors may require a business plan from an individual or company applying to purchase and operate a franchise before approval. However, whether or not franchisors or any source officially require a business plan, it is a crucial component in planning for your business’ growth and success.
The process of developing a successful business plan involves planning of your future actions to reach your business goals, and in the case of a franchise business plan, framed in the standards or strict requirements set by the franchisor.
Fortunately, the creation of a business plan for a franchise is often easier than for an independent company. The franchisor will likely provide you with literature and financial information on the company that can be included in your plan. However, as a franchisee, you will need to prove your knowledge and your potential to the franchisor in addition to investors or lenders if you are looking for external financing. For this reason, your plan will need to be developed specifically for your franchise. Readers of the plan will need to establish that the company will succeed. It will define the feasibility and sustainability to keep the business running and, at the same time, meeting the franchise requirements. Lastly, you as the franchisee will need a business plan to establish a roadmap of actions, milestones, and goals for your business venture.
As for a company planning to franchise its business model, it will need a master plan to present to potential franchisees establishing its business system, products and services, business methodology and process, revenue streams, industry analysis and market research and statistics, financial projections, rights and trademarks of the franchise, franchise cost and royalties fees.
Whether a franchisor or a franchisee, our experienced consultants’ team will help you achieve your goal and support your franchise venture. Contact us for more information and to get a quote.