How to create a business plan for a franchise?

Your franchise will only be successful if you create a successful business plan. This won’t only serve you when it comes to getting financing, but it will be a kind of guide detailing all the steps to take if you want your business to reach its goals.

We simply need to look at franchise business such as McDonald’s which have achieved great success in the world of franchising, precisely because they were able to write a revolutionary business plan.

Don’t even know where to begin in writing it? Here you will find the information you need.

Find out how to create your franchise business plan: step by step

First, we need to understand the difference between a traditional business plan and a franchise-specific business plan.  The latter must bring together the key elements of this business model, which are the franchisee and the franchisor.

Initial keys

In the business plan introduction we find basic and essential information about our business model:

A complete description of the type of franchise

The next section of the business plan should be a description of the company that is as detailed as possible, which is known as the business summary.

This description must include, at the very least, the following details:

Administration Area

You should dedicate a section of your business plan to defining the Administration area. Let’s talk about the team that makes up the franchise and what their roles are, what experience they have, and any other information that could be relevant.

Marketing Plan

In the franchise business plan there is another section that we cannot forget: we must go into detail on how to attract customers.

Costs and expenses

Another section of the business plan must be dedicated to the costs and expenses of the entity. This way we know how much we might need in order to know if we will need additional funding.

It’ll help us understand the entity’s financing needs to know if the related costs will be covered until there are profits, or if we’ll have to go into debt to keep our business moving forward.

Important: In drafting this section, it is essential that you have a bit of foresight, as there could be incidents or difficulties that could complicate the proper functioning of the business.

Tips for creating your business plan

In addition to the previous steps, you should also consider the following:

With these steps and tips, you should be able to start creating your business plan.

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