How to Write a Franchise Plan

by Ethan Pendleton; Updated September 26, 2017
Before you can sell your sandwiches via a franchise, you have to have a business plan in place.

Opening a franchise can be a great way to establish yourself in business. Instead of trying to introduce consumers to a brand, a franchise allows you to build on the success of one that is already established and popular. Before you can open the doors, however, you need to prove to the parent company (and likely a bank) that you have a successful plan in mind for the operation of your franchise. After writing a solid franchise plan, you’ll likely be in position for approval by both of those offices.

Step 1

Examine some sample franchise plans before you write your own. While much of the information will not be applicable, you’ll get an idea of what your prospective franchisor wants to see. For example, Bplans.com features a business plan written to help the reader earn an athletic shoe store franchise.

Step 2

Split your franchise business plan into different sections. These specific sections will depend on the information requested by the parent business, but the Small Business Administration recommends that you include, among other sections, an executive summary, a market analysis, a marketing plan and funding request.

Step 3

Create an introduction that provides an overview of the entire business. Jeff Elgin, writing in Entrepreneur Magazine, advises including a description of your approach to the franchise opportunity, why you feel you will be successful and your plan for overcoming the inherent risk when you start any business. Part of this disclosure is an honest analysis of the competition. For example, a pasta franchisor wants to know if there are already numerous Italian restaurants in your area.

Step 4

Describe the personnel who will be leading your nascent franchise. If you’re hoping to open a fast-food franchise, you don’t need to introduce every single worker. But you'll need to demonstrate the qualifications of your management team and what makes you confident you can join them in establishing a successful franchise.

Step 5

Provide financial pro formas--your financial projections detailing revenue and expenses. This section allows your franchisor to get an idea of how much money you expect to make, both for yourself and for them.

Step 6

Finish your franchise plan with an appendix in which you include unabridged documents that add credibility to your application. For example, if you’ve run a successful franchise before, you should definitely mention that experience in your management section. The appendix is also where you should add copies of financial documents for that business.

About the Author

Ethan Pendleton is a teacher and writer in Columbus, Ohio. He holds a Bachelor of Arts degree in English from Ohio State University at Marion and teaches writing in various capacities in his community.

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