business plan format franchise

Franchise Business Plan Template

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

Below are links to each section of your franchise business plan template:

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 here . This is a business plan template you can use in PDF format.

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?

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.

FRANCHISE BUSINESS PLAN OUTLINE

Start Your Franchise Plan Here

Franchise Business Plan Template

Business Plan Outline

Start Your Franchise Plan Here

Franchise Business Plan

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

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their franchises.

How To Write a Business Plan For a Franchise & Sample

Below we describe what should be included in each section of a business plan for a franchise and links to a sample of each section:

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 franchises 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 franchise 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.

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How to create a franchise business plan, by suzanne musial.

Posted : August 8, 2017

Category : How To

As with starting any new business, creating a business plan for your franchise is a critical step in the buying process. This plan will outline the expectations of your new business as well as help you think about and prepare for the challenges you may face. And if you are looking to secure financing for your new franchise, most lenders will require you to show them a business plan.

The good news is that a lot of the legwork will have already been done for you by the franchisor versus developing a business plan for a startup from scratch. Most of the financial information you will need can be found in the franchisor’s Franchise Disclosure Document (FDD). But there is still work to be done. There are a variety of templates available for developing a business plan, but here we outline the top six sections that should be included:

1. Executive Summary

The Executive Summary portion of your franchise business plan should describe your business’s purpose and goals. Begin with a short description of your product or service and list your objectives. How are you fulfilling a hole within the marketplace? What is the growth potential? Outline how your business will succeed and achieve its goals given the market and competition.

2. Business Description

The next part of your business plan will be a thorough description of the franchise business. Item 1 of the FDD provides an overview and history of the franchise. A rundown of the products and/or services offered, an overview of the market and competition, an explanation of the operations process for delivering goods to the consumer, and a summary of the risks and challenges should also be included in this section.

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.

4. Sales and Marketing

In franchising, sales and marketing tactics are largely dictated by the franchisor. You will need to research their process for targeting new customers and include an explanation of the marketing and advertising support offered to you by the franchisor. How will they get the word out about your new location? What types of ongoing advertising campaigns do they provide? Talk to the franchisor about how much leeway individual franchisees have in local marketing and advertising and include a plan for your specific unit to show how you will drive customers to your business.

5. Financial Projections

Item 19 of the FDD outlines the financial performance of both franchised and franchisor-owned units but keep in mind that profitability can vary from unit to unit. Many variables go into predicting profits for an individual franchise location including geography, sales volume and management. Look to the franchisor to help guide you based on similar units and talk to other franchisees. Remember, it’s better to err on the conservative side when making financial projections.

6. Financial Needs

Your financial plan should include three key items: a profit and loss statement (P&L), balance sheet and cash flow statement. A lot of the information you need for this section can also be found in the FDD including Items 5-7 which list startup costs and estimated initial investment. It’s important to research any ongoing fees and royalties that may be required of you as well, and ask the franchisor about any other costs that could possibly arise during your first year of operation. How much operating cash will you need to have on hand? How long before your location is projected to turn a profit? All of this information should be analyzed and included in your business plan to ensure you have enough capital to successfully launch your business.

There is no exact formula for developing your franchise business plan but these key elements are fundamental. Remember that your business plan is essentially a sales document and should demonstrate how and why your business will be successful.

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The World's Leading Business Plan Template Directory

Franchise Business Plan Template [Updated 2023]

Business plan for franchises.

Franchise businesses are great in that they have much higher success rates than starting a business from scratch.

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

The following business plan template gives you the key elements to include in a winning plan for your franchise business.

You can download the franchise business plan template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of your business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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7 Key Elements of a Franchise Business Plan

Franchise Business Plan | Franchise Coach

Creating a franchise business plan from scratch can be crucial without knowing the seven key elements. Using the right components can help you start your franchise business and apply for funding.

A business plan is not only a written document that narrates the core detail of your business but also has a list of your objectives. It also includes the operations, the marketing strategy for growing your business, as well as the financial projections.

For you to learn more, this post will introduce the seven elements needed when writing franchise business plans. So even without a business degree, you can write a convincing one.

After learning the parts you need to include in your written plan, you are now ready to get funded, start your business, and grow. So let’s get started by knowing these 7 franchise business plan elements.

What are the 7 Elements of a Successful Franchise Business Plan

After signing the franchise agreement , your franchisor will give you the marketing plan and other start-up information . Those materials provided to you can help you start writing your franchise business plan. Your franchisor can be an extra help in the writing process as well.

When you create a concise one could lead to getting a source to finance your business . So, let’s begin by knowing the elements you’ll need.

1. Executive Summary

You will start your franchise business plan with an overview or summary of the essential information you are providing in your franchise business plan.

As it will explain your business, the executive summary section should answer the following questions:

The executive summary is the reader’s first impression of you , your business, and your business plan. It is a written version of your business pitch. It should clearly define your business and everything it has to offer in a way that distinguishes your concept.

The executive summary should read as a separate document to introduce your business plan. It should only reference material that you’ve provided in the business plan and use appropriate language for your target audience.

2. Business Description

The business description section of the franchise business plan summarizes your business. This section should contain your:

While you don’t need to provide detailed financial data, you should include an overview of your industry, fiscal projections, and relevant business facts.

You should include company goals in your business description. The business description is your opportunity to share short and long-term objectives for your business with your reader.

Make sure your business goals are reasonable and quantifiable . Avoid ambiguous terms. Use specific language and time frames to precisely explain what you plan to achieve.

3. Competitive Analysis

A competitive analysis section is also included in any franchise business plans. It involves determining your competitors, both direct and indirect, and your deep research will help you understand your weaknesses and strengths vs. them.

To have a handful analysis of your competitors in the business, you need to do the following:

Gaining an understanding of your competitors through your competitive analysis helps you develop an effective strategy for the success of your franchise business and helps you get potential funders.

4. Marketing Plan and Sales Plan

This section of your franchise business plan highlights your business’s strategy for building and maintaining a customer base and demand for your business. Thoroughly explain how you plan to advertise, your current advertising, and the research behind your strategy.

You can use the information from the required franchise training, which is the detailed information stated in Item 11 of the FDD or Franchise Disclosure Document.

5. Operations and Management

This section highlights your business’s strategy for building and maintaining a customer base and demand for your business. Thoroughly explain how you plan to advertise, your current advertising, and the research behind your strategy.

The operation and management section of your franchise business plan highlights the day-to-day operation of your business. It covers not only the business operations but emphasizes the responsibilities and tasks of the franchise owner.

This section also includes the company’s staffing, logistics, and solutions to potential problems that could occur in the operation of your business. To know further details about your obligation as manager of your franchise business, Item 15 of the FDD will explain more.

6. Financial Plan

The financial data portion of your business plan should reflect and expand upon any facts and figures previously mentioned in your business plan, including your executive summary. This section provides:

If you’re starting your business with a franchisor, you can reference your Franchise Disclosure Document for this information.

7. Pro Forma

The pro forma is similar to the financial data section. But this section focuses more on the three main accounting statements, which are:

You can create your pro forma in four steps:

1. Create a chart of accounts.

2. Calculate your business projected income.

3. Project your liabilities and cost.

4. Estimate cash flows

Consider speaking with an accountant or financial advisor to verify your estimates and validate your proposal to lenders.

A franchise business plan is a critical piece in accessing capital.

Apart from your personal savings, you can get funding for your franchise business plan through these sources:

Read the “ Franchise Financing: The 3 Best Options ” blog to learn more.

In order to fulfill well-written franchise business plans, you should provide the required information for each section. And you are more likely to receive the capital you need for your start-up franchise business.

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Do you have a favorite brand that you’d love to be a part of? You may want to consider opening a franchise. But like any successful business, you’ll need a business plan to get it up and running, as well as get approval to be a franchisee. Luckily you can easily put yours together with one of our franchise sample plans. Download one today and become part of your favorite brand’s business journey.

If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.

Plan, fund, and grow.

Easily write a business plan, secure funding, and gain insights.

Achieve your business funding goals with a proven plan format.

Franchise Business Plans

Home » Services » Franchise Business Plan Preparation

Planning to Invest in a Franchise?

Many entrepreneurs who decide to purchase a franchise are surprised to learn that, in many cases, they will need to present a business plan to someone well before they open the doors to customers.

For example, many franchisors require an individual applying to purchase and operate a franchise to submit a business plan before the franchise will be awarded.

Entrepreneurs who require external financing for expenditures such as franchise fees, tenant improvements, start-up expenses, and other working capital requirements will find that investors and lenders will almost always ask for a business plan.

And, lastly, you will need a franchise business plan for the same reasons franchisors and lenders require one: you need to know where you are going and how you are going to get there. You need a roadmap that will take you to a sustainable, successful business.

We Can Prepare Your Franchise Business Plan

Cayenne Consulting works with you to develop a business plan that will demonstrate just why you are the right person to own and operate the franchise. The franchise business plan will show that you have the requisite skills, talent, background, experience, and resources to successfully start and grow a business that provides real products and services to the community. The franchise business plan must be as professional as you intend for the business to be. Make no mistake, it must represent you.

Your business plan will likely be 15-25 pages in length and include informative charts, tables, images, and graphs that will aid in giving the reader a better understanding of the business. At a minimum, your franchise business plan must include:

You can scroll through a sample of a franchise business plan below.

Sample Franchisee Business Plan

Have a look inside a typical franchisee business plan:

Cayenne’s Franchise Business Planning Credentials & Relevant Experience

Several of our consultants have extensive experience in developing business plans for franchisees and franchisors. Here is a brief summary of just some of that work:

We’ve even prepared a business plan for a franchisor that used the business plan to raise over $1 billion to change the company’s business model from franchised stores to company-owned stores. We are not able to mention the name due to the confidentiality of the transaction but most people have heard of the company.

Why Choose Cayenne? Nine Great Reasons!

Save Money - Really!

We’re not cheap, but about half of our clients came to us after a business plan prepared by a less qualified business plan consultant did not work out. Why not get it right the first time and save money?

Ongoing Support

We don’t stop when the business plan is complete. We have a talented team ready to help you implement it as well, either on a retained basis as interim members of your founding team or on a project basis, as needed.

Fully Customized

Some business plan writers charge extremely low fees because they have a cookie-cutter, assembly-line approach. You get what you pay for. We work from scratch to represent your unique vision, not somebody else’s.

Work With True Experts

We’ve walked in your shoes and we understand what you’re going through. Many of us have advanced degrees from institutions like Harvard , Wharton , Berkeley , Cornell , Columbia , Stanford , Yale , Dartmouth , and Chicago .

Develop a Winning Strategy

Most so-called “business plan consultants” take whatever you tell them and type it into software. We go much deeper and help develop a viable strategy for success, which we then express in a compelling business plan.

Get it Right the First Time

Funding is a binary event: either you succeed or you fail . If you fail, most investors won’t give you a second chance. Learn about the pros and cons of various approaches to developing business plans .

No Salespeople

Deal directly with a senior business plan consultant from Day One – not a commissioned salesperson who will hand you off to a junior writer. Personal relationships matter, and you need to know exactly who you’re dealing with.

Get Investors To Notice

Most entrepreneurs can’t get investors to return their calls. A majority of our clients secure meetings with potential funders. Our team’s efforts have contributed to over $4.3 billion in financing!

Avoid Costly Mistakes

We know what works, and, more importantly, what doesn’t. A single mistake can get render your plan unfundable. We wrote the original and often-cited article on Why Business Plans Don’t Get Funded .

Tips for Franchisees

Here are some great tips* that every franchisee should follow:

* Source: https://www.inc.com/

Tips for a Great Franchisee Business Plan

Here are some business plan tips for franchisees:

Buying a branded franchise is a proven, effective way to become an entrepreneur. Make no mistake, the cost of becoming a franchisee is often more than creating an independent business from scratch, but buying into a franchise eliminates a lot of the upfront work and risk. It is up to you to weigh the costs and benefits. Whether you are buying a franchise or going independent, develop a great business plan to give yourself a head start.

The Good and Bad of Buying an Existing Franchise

Many entrepreneurs don’t understand that business people who wish to purchase a franchise do not have to buy the franchise from the franchisor. There are thousands of people in the U.S. and around the world who have purchased and managed a franchise and, in many cases, multiple franchises, and now for one reason or another…

How to Choose, Buy, and Operate a Successful Franchise

Decision 1: Should you Buy a Franchise or Go Indie? You may have read our post Franchise or Indie? where we considered the advantages of buying a franchise as well as the advantages of going independent. You have decided, after weighing your choices, that buying a franchise is the right option for you. You are…

Is a Franchise Right for You?

Owning a business is full of decisions, beginning with whether you should start an independent business or purchase a proven business concept, commonly known as a franchise. There are pros and cons to both approaches. Both will require a commitment of time and money. Both come with risks. So which is right for you? Knowing…

You May Need a Franchise Financial Forecast If…

Suppose you’re considering buying a franchise and you’re facing any of the following situations: You need to source funds for your project. Your franchisor is asking you for a financial plan. The SBA wants to see your numbers. Your bank wants to know if you can pay off the equipment loan. Your landlord wants to…

Do Your Homework Before Buying That Franchise

A recent issue of The Wall Street Journal ran a special advertising feature written by Julie Bennett and titled The Future for Emerging Brands. It was targeted at companies that might want to franchise their concepts as well as franchisees who might benefit by buying a smaller, newer, or lesser-known franchise than one of the…

Franchise or Indie?

We received an inquiry recently from a prospective entrepreneur who needed a business plan to submit to Subway in order to be approved to be a franchisee. We told him that we had done a number of business plans for the same audience and purpose and that we would be happy to help him. Interestingly,…

Meet Our Franchise Business Plan Specialists

Jimmy Lewin

Charlie Kickham, MBA

Paul Fiorello

Learn more about our franchise business planning services.

If you'd like an assessment of your needs and a fee estimate, please let us know how to reach you:

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COMMENTS

Creating a Business Plan for Your Franchise: What to Prepare
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
Franchise Business Plan Template [Updated 2022]
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
Franchise Business Plan Template & Sample Plan
Franchise Business Plan Template · 1. Executive Summary · 2. Company Overview · 3. Industry Analysis · 4. Customer Analysis · 5. Competitive Analysis · 6. Marketing
How to Create a Franchise Business Plan
1. Executive Summary. The Executive Summary portion of your franchise business plan should describe your business's purpose and goals. · 2.
Franchise Business Plan Template [Updated 2023]
Business Plan for Franchises ... Franchise businesses are great in that they have much higher success rates than starting a business from scratch.
9+ Franchise Business Plan Examples
9+ Franchise Business Plan Examples – PDF · 1. McDonald's · 2. KFC · 3. Burger King · 4. Pizza Hut · 5. 7 Eleven · 6. Marriott International · 7. RE/MAX · 8. Dunkin'
Franchise Business Plan: Use The 7 Key Elements
What are the 7 Elements of a Successful Franchise Business Plan · 1. Executive Summary · 2. Business Description · 3. Competitive Analysis · 4. Marketing Plan and
Franchise Business Plans
But like any successful business, you'll need a business plan to get it up and running, as well as get approval to be a franchisee. Luckily you can easily put
Preparing a Franchisee Business Plan
Business plan preparation · Determine, evaluate and provide resources · Site selection and approval · Site design, signage and zoning approvals · Site preparation
Franchise Business Plans
We Can Prepare Your Franchise Business Plan · An Executive Summary · A company/business description · A description of the company's products and/or services · A