Please Update Your Browser

For security reasons and for an enhanced browsing experience, we recommend you update your browser to either Google Chrome , Firefox or Internet Explorer .

view through conversion

  • Franchise Information
  • Franchise Articles

Creating a Business Plan for Your Franchise: What to Prepare Before Asking for Money

by Franchise Direct

🕒 Estimated Reading Time: ~8 minutes

Creating a Business Plan for Your Franchise

Congratulations! You’ve decided that owning a franchise is the right investment for you. You may have even already decided on the type of franchise, and maybe even the franchise brand you are going to pursue.

What’s next? Financing. Securing the funding needed to make your franchise dreams a reality. And unless you are one of the fortunate people that has enough money saved to cover costs, you will likely be seeking a lender to make up the difference between the amount of money you currently have to invest and amount of money needed to open and maintain your franchised business until you 'break even.' (Breaking even is the point in the lifespan of a business where the operation starts turning a profit.)

To convince lenders that you are worthy of their money, the creation of a business plan is crucial. Lenders use a business plan as a guide to assess whether the prospective franchisee is a on a path towards success and profitability.

To approve loans, lenders want to have a clear, straightforward account of the business to be opened, the principals involved, and—perhaps most importantly—perspective on when the borrowed money will likely be repaid.

It's helpful to prepare for the meeting with the lender like a college graduate student would prepare for a thesis defense presentation. In both instances, it is the goal of the person (or people) going into the meeting to have done the adequate level of research necessary to competently back up the stated claims for the desired result (be it the granting of a master's degree to the student or the gaining of a loan for the prospective franchisee).

Lenders use a business plan as a guide

Important note: the business plan isn’t just for getting money.

Not only does a business plan help in securing funding, it forces you to take a hard look at the investment you are about to make. It gives you a chance to anticipate the challenges that come with opening a business, and temper unrealistic expectations.

As time passes and you move further into franchise ownership, the business plan you’ve created should be updated and utilized as a guide in helping you reach your franchise goals.

Parts of a Business Plan

Creating a business plan doesn't have to be complicated.

There is no standardized length for a business plan, but no lender wants to read a novel-length presentation. The main thing is that the plan is thorough enough to cover all aspects of your individual franchise. You want to give the lender confidence that you are prepared to take on the managing of a business that will turn a profit in a reasonable amount of time.

The key is compiling the proper information to address the reservations of the lenders you will meet with. This is where opening a franchised business offers a notable advantage over an independent business.

The franchise disclosure document (FDD) provided by the franchisor of the system you are investing in contains a great deal of the information needed to complete a business plan.

This information includes the company’s corporate background, a description of the target market, the competitive advantage of the product/service, marketing initiatives, plus the start-up and ongoing costs. Some franchisors even offer assistance to franchisees in the preparation of the plan.

Common parts of a business plan include the following, according to the Small Business Administration  (a sample business plan is located at the end of this article):

Company description: A good place to look for the information for this section is Item 1 of the FDD. Provide an overview of the franchise and its history to the lender. You will also provide a brief outline of the franchise’s service/product (more detailed information will be given in the next section).

Service/product description: Describe in detail the service and/or product your franchise will provide to customers. This section can be combined with the company description. Again, Item 1 of the FDD is where you will find much of the information you need for this section. Item 16 will also be helpful in discussing what you will and will not be able to sell as a franchisee of a particular franchise system.

Common parts of a business plan include

Market analysis: Use this section to prove to the potential lender that you are not jumping into a business venture on a whim. Concentrate on the specific area (market) in which the franchised business will be located. The territory description in the FDD (Item 12) will help you to a point.

Give a brief discussion of the following:

  • How big is your market?
  • What kind of people (demographically and financially) make up this market?
  • Is the market under-served in regards to this service/product?
  • If there is competition, who are your competitors and what is your competitive advantage?
  • Discuss what experts are forecasting for the service/product in terms of trends and growth possibilities for your specific market (can include demographic, legislative or environmental factors).

Management structure: This section provides a look at the people who will be responsible for the day-to-day operation of the franchise, particularly you as the owner. Is this venture going to be a sole proprietorship or will there be multiple owners? Explain if you will be involved day-to-day with business operations, or will be acting as an absentee owner.

For yourself and all of the others with an ownership stake, if applicable, detail all business qualifications. Stress any and all experience (even if volunteer) that is relevant to being successful in the future with the franchise operation. Item 15 of the FDD will help with explaining the managerial obligations of the franchisee.

Marketing plan: 'How are you going to get customers?' is the main question you’re answering in this section. Use FDD Item 11 to your advantage here. It provides an overview of the franchisor’s advertising and marketing efforts. Also, it provides a description of the training you will complete before opening. Often marketing and sales courses are part of required training.

Financials: This is the meat of your business plan. In this section, don’t only ask for the money you need. Give the lender the big picture of your financial situation as well. Detail how you are going to obtain the entire initial investment. Often times, a lender will not be financing all of the franchise investment. Are you using a mix of personal savings, loans, credit, etc.?

In addition to the funding request, you will be doing some financial projection. Give a reasonable time frame when the lender can expect full repayment of the loan, and back up that claim with figures. Include graphs and charts detailing the start-up costs, projected profit and loss and projected sales forecast for the franchise.

The franchisor can be of significant help to you in completing this section (via Items 5 and 19 of the FDD, and in direct conversation). However, keep in mind the franchisor is restricted legally about making certain claims about projected earnings. Be conservative with the projections as unexpected delays and unforeseen circumstances do happen.

Appendix: The appendix technically isn’t a part of the business plan, but an additional section to present items that would enhance your presentation. 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 resumes of management figures, tax returns, media clippings, etc.

The best outside source of information to complete your business plan is the franchisor

As previously mentioned, the best outside source of information to complete your business plan is the franchisor. No other outlet is going to know that franchise system better. 

Additional resources include online sites such as Bplans.com, which offers site visitors a substantial library of sample plans to review, as well as general business websites like the Small Business Administration. Prospective franchisees can also use a professional business plan writer, particularly for the review of a plan before sitting down with the lender.

Confidentiality agreement: Because business plans contain sensitive and confidential information, the content needs to be safeguarded against potential leaks. To do this, you will need to enter into a confidentiality agreement with the parties you allow to review your business plan.

The agreement will bind them not to disclose or reveal any confidential information they receive, without your written permission.

Sample Business Plan Confidentiality Agreement Template

Sample franchise business plan: Please note that the example business plan linked below is a sample of one way to format a business plan. There are several different acceptable formats, and the contents of business plan sections will vary significantly due to factors including the franchise system, the type and amount of loan sought, the franchisee’s background, etc.

Sample Business Plan

Suggested reading:

  • The Ultimate Guide to Franchising
  • What is Franchising?
  • The Benefits of Franchising
  • Choosing the Most Profitable Franchise for You
  • 11 Key Steps in Opening a Franchise
  • Franchises vs. Business Opportunities
  • The Cost to Start a Franchise and Financing Options
  • Basics of the Franchise Disclosure Document (FDD)
  • Creating a Business Plan for Your Franchise
  • Completing and Signing a Franchise Agreement

Information Center

  • Ultimate Guide to Franchising
  • Ultimate Guide to Financing a Franchise
  • Ultimate Guide to FDDs
  • FDD Research Hub
  • Franchise News
  • Franchise Reports
  • Franchise Videos
  • Franchise Direct Blog
  • Franchise Success Stories
  • Franchise Exhibitions and Shows
  • Franchise Regulations and Government Action
  • FAQ About Franchising
  • Financing a Franchise
  • Food Franchising
  • Franchise Association News
  • Franchise Company Updates
  • Franchise Costs
  • Franchise Direct News and Notes
  • Franchise Direct Top 100 Global Franchises
  • Franchise Glossary
  • Franchising Your Independent Business
  • General Franchising Industry News
  • Green Franchise Businesses
  • Guide to Buying a Franchise
  • Home-Based Franchises
  • Information for Franchisees
  • International Franchising
  • Introduction to Franchising
  • Market Trends and Stats About Franchising
  • Franchise Marketing
  • Military Veteran Franchise Information
  • Minorities in Franchising
  • Retirees and Franchising
  • Sports and Franchising
  • Women in Franchising
  • Young Entrepreneurs
  • Top 100 Articles
  • February, 2024
  • January, 2024
  • December, 2023
  • November, 2023
  • October, 2023
  • September, 2023
  • August, 2023
  • April, 2023
  • March, 2023
  • February, 2023
  • January, 2023

Sign up here to get the latest franchise opportunity updates and more delivered directly to your inbox. Be the first to know!

Thanks for sharing your details, we’ll be in touch shortly

  • Popular Searches
  • Franchise Opportunities
  • Terms & Disclaimer
  • Privacy Policy

bbb

Don't Miss Out!

Complete Step 2 to receive your complete franchise information.

PlanBuildr Logo

Franchise Business Plan Template

Written by Dave Lavinsky

Franchise Business Plan Outline

  • Franchise Business Plan Home
  • 1. Executive Summary
  • 2. Company Overview
  • 3. Industry Analysis
  • 4. Customer Analysis
  • 5. Competitive Analysis
  • 6. Marketing Plan
  • 7. Operations Plan
  • 8. Management Team
  • 9. Financial Plan

Start Your Franchise Plan Here

Franchise Business Plan

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

We have helped over 10,000 entrepreneurs and business owners with how to create a franchise business plan to start or grow their franchises.

How To Write a Franchise Business Plan & Sample

Below is are links to each section of a franchise business plan example to help you start your own franchise business:

  • Executive Summary – This section provides a high-level overview of your business plan. It should include your company’s mission statement, as well as information on the products or services you offer, your target market, and your business goals and objectives.
  • Company Overview – This section provides an in-depth look at your company, including information on your franchise’s history, franchise business model, ownership structure, and management team. You will also include a copy of your franchise agreement.
  • Industry Analysis – In this section, you will provide an overview of the industry in which your franchise will operate.
  • Customer Analysis – In this section, you will describe your target market and explain how you intend to reach them. You will also provide information on your customers’ needs and buying habits.
  • Competitive Analysis – This section will provide an overview of your competition, including their strengths and weaknesses. It will also discuss your competitive advantage and how you intend to differentiate your franchise from the competition.
  • Marketing Plan – In this section, you will detail your marketing strategy, including your marketing initiatives and promotion plans. You will also discuss your pricing strategy and how you intend to position your own business in the market.
  • Operations Plan – This section will provide an overview of your store’s operations, including your store layout, staff, and inventory management.
  • Management Team – In this section, you will provide information on your management team, their experience, and their roles in the company.
  • Financial Plan – This section includes your company’s financial statements (income statement, balance sheet, and cash flow statement). It also includes information on how much funding you require and the use of these funds.

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 a business franchise 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 franchising business 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 for franchise businesses.

This is true for a business plan for a franchise restaurant, a business plan for franchise store, or any other franchise business plans.

Where Can I Get a Franchise Business Plan PDF?

You can download our free franchise business plan template PDF here . This is a sample franchise business plan template you can use in PDF format.

How to Write a Franchise Business Plan + Template

A collage of burgers, fries, soda, and coffee cups laid out in multiple rows.

Elon Glucklich

8 min. read

Updated February 7, 2024

Free Download:  Sample Franchise Sandwich Shop Business Plan Template

Owning a franchise is an excellent way for business owners to gain instant brand recognition. 

By paying a franchise fee, you can own a fast-food restaurant like McDonald’s, Subway, or Kentucky Fried Chicken, a 7-Eleven convenience store, a gym chain, or even a hotel like a Marriott or Hilton. 

For franchises with fees between $25,000 and $100,000, recent research indicates that the 5-year business failure rate is about 5 percent , just one-tenth of the overall business failure rate. Put simply, you have a much higher chance of success opening a franchise than a traditional business.

But getting a proven brand name doesn’t guarantee success. You’ll need to ensure you understand the franchise’s business model and expectations. 

Plus, you need to determine if there’s a big enough market for your business to be successful, what potential customers expect from businesses like yours, and how many competitors you’ll face.

Fortunately, answering these questions are all part of writing a comprehensive business plan . Here are the steps to writing a franchise business plan that shows your business’s unique value—while answering critical financial and operational questions your franchisor or lender will want to know.

Ready to write your plan? Check out our selection of franchise business plan examples to inspire your own.

  • Why you need a business plan for your franchise business

Writing a detailed business plan is crucial for two reasons. 

First , it demonstrates to the franchisor that you understand how their business operates. 

Since the company sets your prices , controls your product inventory, and will likely tell you what marketing tactics you can use—the business plan puts in writing that you understand how their rules and guidelines affect your business.

Second , the plan also organizes all of your expectations, assumptions, and research about your business into one document that serves as a roadmap for success:

  • Business objectives
  • Franchisor requirements
  • Funding needs
  • Financial goals
  • Growth strategies

Brought to you by

LivePlan Logo

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

How to write a business plan for your franchise 

1. understand your franchise business model.

Since the franchisor has already established the company’s business model, your business plan should focus on how you can adapt it to be successful in your chosen location .

Imagine you’re planning to open a fast food restaurant, chain hotel, or convenience store. How do these kinds of businesses operate successfully? Consider the business models of each:

Fast food restaurant: Standard menu, streamlined kitchen operations, marketing strategy leaning heavily on national advertising campaigns.

Hotel: Efficient room turnovers, maintaining cleanliness and amenities that the brand promises.

Convenience store: High foot traffic, quick inventory turnover, and flexible operating hours.

Each case presents different business dynamics – and considerations for your business plan. You should be able to show in your plan that you understand the revenue streams and direct costs of running this type of business, and what your customer acquisition costs might be.

2. Conduct a market and location analysis

Buying into a franchise gives you some marketing advantages. You have a widely recognized brand to attract customers, access to promotional materials, and maybe even some information about customer buying patterns from your franchisor.

But operating a franchise doesn’t take away the heavy lifting of market research . Each franchise has to consider local factors that could affect its profitability.

A good starting point is to conduct a SWOT analysis , documenting the strengths, weaknesses, opportunities, and threats facing your business. Here are some other key elements to consider:

Demographic study

  • Employment status

Understanding the demographics of the people most likely to visit your business could help you set operating hours or decide who to target with promotions.

Competitor analysis

  • Identify your competitors
  • Compare your product or service offerings with theirs
  • Compare price points
  • Compare marketing strategies
  • Define the competitive advantage of your business

Don’t just look at direct competitors that are similar to your franchise. If you’re opening a 24-hour 7-Eleven, you should also look at supermarkets, drugstores, or food delivery services in your area.

Geographic analysis

  • Neighborhood characteristics
  • Population trends

A chain restaurant in a busy downtown probably has different customers and peak times than the same restaurant in a shopping center near a residential area. So it’s essential to understand the characteristics of the neighborhood you’re operating in.

Consumer behavior patterns

  • Technology use

Understand what drives consumers interested in your business to make the choices they do. This is where you will want to do online research and, ideally, go out and talk to potential customers.

Franchise-specific research

You should also answer questions about the competitive positioning of the franchise – and franchises as a whole – in your area.

  • How do similar franchises perform in your area?
  • What is the brand perception of the franchise you intend to start?
  • Is there a large enough market in the area for your franchise?
  • What non-franchise options are available? What are the advantages or disadvantages for customers who shop there instead?

Be sure to examine what potential customers discuss on social media platforms and online message boards like Reddit to understand what they expect from businesses like yours.

3. Highlight your unique value proposition within the franchise

Even though you’re buying into a proven business model , you’ll still face competition. Your business plan gives you a chance to put on paper what gives you a competitive advantage. 

In the case of a franchise business , your franchisor may be the most important stakeholder to read your business plan. So the plan is to show them you can run a successful business under their name.

Maybe the 7-Eleven convenience store you want to open is in a location with a lot of foot traffic and no larger grocery stores nearby. Or maybe your restaurant offers late-night delivery in an area with few alternatives. 

By outlining your unique value proposition in your business plan—you can align your individual strengths and market opportunities with your franchisor’s proven business model.

Backing up your unique value proposition with any data or information about customers will be especially important if you’re operating in a crowded market with lots of competition.

4. Do your own financial projections and scenarios

The franchisor may provide some guidance, but this is your business.

That means your business plan should include the same financial details and projections as if you were starting a business from scratch. Your financial plan should include:

Start-up costs : The initial investment required to get your franchise off the ground. This should include the franchise fee, the cost of equipment, initial inventory, license fees, and any expenses related to your location.

Ongoing fees and operational costs: These are costs that recur monthly or annually. They include fixed costs like franchise royalties, lease payments, and staff salaries, and variable costs like utilities, inventory, maintenance costs, and marketing expenses.

Revenue projections : Detail how much revenue you expect to bring in monthly. Forecast revenues out into the future, and don’t be afraid to make projections several years out. 

Remember, good financial forecasts are meant to be adjusted as real numbers come in, and comparing your projections with actuals over time can help you make better business decisions.

Break-even analysis : This is where you calculate how long it will take for your franchise unit to cover its initial investment and start making a profit. Knowing your break-even point is essential not just for you but also for lenders.

5. Create an operational plan

Even though the franchise provides the business model, you must ensure it runs smoothly daily. Your business plan should provide a clear operational plan that outlines :

Staffing needs 

You should be specific about the staffing level your business needs . You’ll need cashiers, cooks, and delivery drivers if you’re running a fast-food franchise. List the skills and experience needed for each role, and outline your plans for training new hires.

Inventory management

While a franchise agreement might take some of the pressure off of sourcing your inventory, it’s still your responsibility to develop processes for managing it. 

You’ll need to understand if there are seasonal trends in your business, how often various products are returned, how long an item can sit on your shelves, and a variety of other factors that affect how much of a product you should order and when you should order it.

Quality control

Since you’re operating under a franchise agreement, you must comply with the standards the franchisor sets out for operating their business. Detail the quality control procedures you’ll put in place to meet those standards. 

Also, take some time in the business plan to address how you’ll stay compliant with local, state, and federal laws and the franchise’s policies.

6. Review and adjust your business plan

The business plan for your franchise should not be a static document . Market conditions evolve, consumer demands change, and new competitors emerge. Additionally, Franchisors often update their business models, add new products, or change their marketing strategies.

You may also be expected to periodically share financial reports or general updates about your business with the franchisor. (LivePlan lets you create and share visually engaging, professional reports using information from your business plan.)

Either way, your plan should outline how you’ll account for market shifts or franchise changes in your operations. Just as important, you should make it a habit to review your business plan periodically – many business owners review their plans quarterly or even monthly, especially when starting out. 

That way, they can adapt the plan as their business evolves.

  • Download your free sample business plan for a franchise business

If you need help getting your franchise business started, check out one of our free sample franchise business plans . You can download this document in Word form and customize it to get you started on your own business plan. 

It’s just one of 550+ sample business plans we’ve made available to download.

You can also review our step-by-step guide on how to write a business plan for a detailed look at how to write specific sections of a traditional business plan.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Content Author: Elon Glucklich

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

Check out LivePlan

Table of Contents

  • How to write a business plan for your franchise 

Related Articles

business plan for a franchise example

6 Min. Read

Artist business plan

business plan for a franchise example

15 Min. Read

Outpatient medical practice business plan

business plan for a franchise example

10 Min. Read

Clothing boutique business plan

business plan for a franchise example

9 Min. Read

Services business plan

The LivePlan Newsletter

Become a smarter, more strategic entrepreneur.

Your first monthly newsetter will be delivered soon..

Unsubscribe anytime. Privacy policy .

Garrett's Bike Shop

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

LivePlan pitch example

Discover the world’s #1 plan building software

business plan for a franchise example

Growthink logo white

Sample Franchise Business Plan

Growthink.com Franchise Business Plan Template

Writing a business plan is a crucial step in starting a franchise business. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring franchise business owners, having access to a sample franchise business plan can be especially helpful in providing direction and gaining insight into how to draft their own franchise business plan.

Download our Ultimate Franchise Business Plan Template

Having a thorough business plan in place is critical for any successful franchise venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A franchise business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The franchise business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your franchise as Growthink’s Ultimate Franchise Business Plan Template , but it can help you write a franchise business plan of your own.

Example – BrandExpand Ventures

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team.

Welcome to BrandExpand Ventures, our new franchise based in the vibrant community of Louisville, KY. We stand out as a beacon for local businesses by providing high-quality franchise services unmatched in the area. Our offerings are comprehensive, designed to empower our franchisees through the use of our established brand, efficient operating systems, extensive training, and robust marketing support. We also ensure the success of our partners by granting exclusive territories, eliminating internal competition within our network. Our location in Louisville not only reflects our commitment to serving the local community but also positions us strategically to understand and leverage unique market dynamics. With a foundation built on the rich experience of our founder and a commitment to excellence, BrandExpand Ventures is on a path to becoming a leader in the franchise industry.

Since our inception on January 5, 2024, BrandExpand Ventures has achieved significant milestones that underscore our commitment to building a robust and reputable franchise business. These accomplishments include the creation of a distinctive logo that aligns with our brand’s values, the careful selection of our company name to resonate with our mission and target audience, and finding an ideal location in Louisville, KY, to serve our community directly. These steps, though just the beginning, are indicative of our dedication to excellence and set the stage for our future success in the franchise industry.

The franchise industry in the United States is a burgeoning market with an estimated value of over $800 billion, offering diverse opportunities across various sectors. Expected to grow annually by 2-3%, the industry’s expansion is driven by consumer demand for familiar brands and the appeal of franchising as a comparatively lower-risk venture. Recent trends, such as the surge in health and wellness concepts and technology-driven business models, align well with BrandExpand Ventures’ innovative service offerings. Positioned in Louisville, KY, we are primed to tap into the growing demand for unique and customer-centric franchise opportunities, setting a solid foundation for success in this competitive landscape.

Our primary customer base includes local residents of Louisville, KY, seeking reliable services that cater to their daily needs and preferences. BrandExpand Ventures is committed to understanding and meeting the unique requirements of this community. Additionally, we target small and medium-sized businesses within the area, providing specialized services to help them streamline operations and enhance their customer experience. By also catering to tourists and visitors, we aim to create a diverse and sustainable customer base, contributing to our franchise’s growth and the local economy.

Our main competitors include Duck Donuts, known for its customizable donuts, Bruegger’s Bagels, offering fresh, high-quality bagels and breakfast options, and Tee24, a driving range and practice facility for golf enthusiasts. Despite the strengths of these competitors, BrandExpand Ventures distinguishes itself through superior franchise services, innovative business models, and a strong support system for our franchisees. Our strategic location in Louisville, KY, along with our focus on tailoring services to the local market, positions us advantageously to secure a significant market share and outperform our competitors.

BrandExpand Ventures offers a compelling suite of services, including brand name and trademarks, operational systems, training and support, marketing and advertising assistance, and exclusive territories. With competitive pricing for these services, we provide a solid foundation for entrepreneurs to succeed in the franchise industry. Our promotional strategies focus on online marketing, including social media campaigns and email marketing, to engage potential customers effectively. Additionally, local SEO, community events, partnerships, a referral program, and exceptional customer service will play crucial roles in building brand awareness and loyalty in Louisville, KY. These efforts are designed to attract and retain a strong, loyal customer base and ensure long-term success.

To guarantee the success of BrandExpand Ventures, our operational focus includes managing inventory, conducting daily financial transactions, implementing quality control measures, continuous staff training, and utilizing effective marketing strategies. We also prioritize communication with franchise headquarters, monitoring customer feedback, maintaining a welcoming store environment, ensuring compliance with regulations, and optimizing operations through technology. Our upcoming milestones include securing a prime location, obtaining necessary permits, building out the franchise location, developing a local marketing strategy, hiring and training staff, launching our business, establishing operational efficiencies, building a loyal customer base, reaching a significant revenue milestone, and evaluating scalability options.

Leading BrandExpand Ventures is Samuel Adams, our President, who brings a wealth of entrepreneurial experience and a proven track record in the franchise industry. His skills in operations, leadership, and strategic planning are invaluable to guiding our company towards sustained growth and innovation. Under Adams’ direction, BrandExpand Ventures is poised to achieve its mission and set new standards in the franchise sector.

Welcome to BrandExpand Ventures, a new franchise serving the vibrant community of Louisville, KY. As a local franchise business, we pride ourselves on filling the void left by the absence of high-quality local franchise businesses in the area. At BrandExpand Ventures, we’re more than just a name; we’re a partner in your business journey, dedicated to providing unparalleled franchise services that set our clients up for success.

At the core of BrandExpand Ventures are our comprehensive offerings designed to empower our franchisees. Our services cover everything from leveraging our established brand name and trademarks, implementing efficient operating systems and processes, to providing extensive training and support. Furthermore, we understand the importance of a strong market presence, which is why we offer robust marketing and advertising support to ensure our franchisees stand out. Additionally, we grant exclusive territories, ensuring our partners can operate without direct competition from fellow franchisees within the BrandExpand network.

Based in the heart of Louisville, KY, BrandExpand Ventures is strategically positioned to serve and support the local business community. Our roots in Louisville not only allow us to understand the unique market dynamics but also enable us to forge strong connections with the people and other businesses in the area.

Our journey to becoming a leading franchise business is built on a solid foundation. With a founder who brings valuable experience from running a successful franchise business and a commitment to offering superior franchise services compared to our competitors, BrandExpand Ventures is uniquely qualified to succeed. Our understanding of the franchise landscape, combined with our innovative approach to business, positions us as a formidable force in the industry.

Since our establishment on January 5, 2024, as a Sole Proprietorship, BrandExpand Ventures has hit several key milestones. We’ve poured our creativity and business acumen into designing a distinctive logo that embodies our brand’s values and vision. Additionally, developing our company name was a thoughtful process, ensuring it resonates with our mission and appeals to our target audience. Finding an ideal location was another significant achievement, allowing us to set our roots in Louisville, KY, and start serving our community directly. These accomplishments, though just the beginning, mark our commitment to building a robust and reputable franchise business.

The franchise industry in the United States is thriving, with an estimated market size of over $800 billion. This industry encompasses a wide range of sectors, from fast food restaurants to fitness centers to cleaning services, providing opportunities for entrepreneurs to invest in established brands and proven business models.

Market experts project continued growth in the franchise industry, with an expected annual growth rate of around 2-3%. This growth can be attributed to factors such as consumer demand for convenient and familiar brands, as well as the appeal of franchising as a lower-risk option for aspiring business owners. As more Americans seek the independence of business ownership without the uncertainty of starting from scratch, franchises offer a compelling solution.

Recent trends in the franchise industry, such as the increase in health and wellness concepts and the rise of technology-driven business models, bode well for BrandExpand Ventures. With a focus on providing innovative services to customers in Louisville, KY, BrandExpand Ventures is poised to capitalize on the growing demand for unique and customer-centric franchise offerings. By staying ahead of industry trends and delivering exceptional value to their target market, BrandExpand Ventures is well-positioned for success in the competitive franchise landscape.

Below is a description of our target customers and their core needs.

Target Customers

BrandExpand Ventures will target local residents as its primary customer base. These residents are seeking reliable and consistent services that cater to their daily needs and preferences. The focus will be on understanding the local community’s unique requirements and tailoring services to meet these effectively.

In addition to local residents, BrandExpand Ventures will also serve small and medium-sized businesses within the Louisville community. These businesses often look for partnerships and services that can help them streamline operations and enhance their customer experience. By offering specialized services catered to these business needs, BrandExpand Ventures will position itself as an invaluable partner within the local business ecosystem.

Furthermore, BrandExpand Ventures will tailor its offerings to attract tourists and visitors to the area. By providing services that cater to the needs and expectations of those visiting Louisville, the franchise will not only expand its customer base but also contribute to the local economy’s growth. This strategy is expected to create a diverse and sustainable customer base for BrandExpand Ventures.

Customer Needs

BrandExpand Ventures meets the rising demand for high-quality franchise services among residents who seek exceptional experiences. Customers can expect not just standard offerings but an emphasis on excellence that distinguishes BrandExpand from competitors. This commitment to quality ensures that every interaction and service provided exceeds customer expectations, fostering loyalty and satisfaction.

In addition to quality, BrandExpand Ventures understands the importance of personalized service. Each client receives tailored advice and solutions that align with their specific needs and goals. This personal touch not only enhances the customer experience but also builds a strong, trusting relationship between the brand and its clientele.

BrandExpand Ventures also recognizes the need for innovation in the franchise industry. Customers can access the latest trends and opportunities, ensuring they are always at the forefront of the market. This approach not only attracts forward-thinking entrepreneurs but also secures a competitive edge in a dynamic business environment.

BrandExpand Ventures’s competitors include the following companies:

Duck Donuts is a popular franchise known for its made-to-order donuts. They offer a wide variety of toppings and flavors, allowing customers to customize their donut experience. Price points at Duck Donuts are competitive, with options ranging from single donuts to larger dozen and bucket deals that cater to both individual indulgence and group treats. Duck Donuts has seen substantial growth, with revenues bolstered by both in-store sales and a strong emphasis on catering and special events. The brand operates locations across multiple states, demonstrating a broad geographic service area that appeals to a wide customer segment, including families, young professionals, and students seeking a unique, customizable snack option. Key strengths of Duck Donuts include its customizable product offering and a strong, recognizable brand. However, its reliance on a single product line could be seen as a weakness, limiting its appeal to a broader audience seeking more diverse menu options.

Bruegger’s Bagels offers a wide variety of bagels, breakfast, and lunch options, including sandwiches, salads, and soups. Their price points are designed to appeal to customers looking for a quick, affordable meal without compromising on quality. Bruegger’s has built a reputation for offering fresh, high-quality bagels baked in-store daily, which has become a significant revenue driver. The company operates numerous locations across the United States, serving a diverse customer segment that includes busy professionals, students, and families looking for a quick-service breakfast or lunch option. Bruegger’s Bagels serves multiple geographies, from urban centers to suburban communities, ensuring a broad market reach. Key strengths include a strong focus on product quality and freshness, as well as a diverse menu that appeals to a wide range of dietary preferences. However, Bruegger’s faces the challenge of competing with other fast-casual dining options and the need to continually innovate to keep their menu fresh and appealing to customers.

Tee24 – Driving Range & Practice Facility offers a unique blend of sports and entertainment, providing customers with high-quality golfing practice facilities and driving ranges. Their pricing strategy caters to both casual and serious golfers, with options ranging from single bucket purchases to membership packages that offer unlimited access. Revenues at Tee24 are driven by a combination of service fees, memberships, and sales from its pro shop, which offers golfing equipment and apparel. The facility is strategically located to attract customers from a wide geographic area, including Louisville, KY, and surrounding regions. The customer segment includes golf enthusiasts of all skill levels, from beginners to advanced players, as well as families and corporate groups seeking recreational activities. Tee24’s key strengths lie in its high-quality facilities and the ability to offer a year-round golfing experience, regardless of weather conditions. However, its key weakness could be the niche market it serves, limiting its appeal to non-golfers and those with no interest in the sport.

Competitive Advantages

As a leading business in the franchise industry, our approach at BrandExpand Ventures sets us apart from the competition. We pride ourselves on offering superior franchise services, a claim that is backed by our commitment to innovation, customer satisfaction, and an unmatched support system for our franchisees. Our unique business model is designed to foster growth and success for both our brand and the entrepreneurs we partner with. By focusing on comprehensive training programs, ongoing support, and leveraging the latest technology, we ensure that our franchisees have all the tools they need to thrive. This dedication to excellence not only enhances our competitiveness but also establishes a strong foundation for our franchisees to build upon.

Moreover, our strategic location in the heart of Louisville, KY, provides us with a distinct competitive advantage. The vibrant local economy and supportive community atmosphere create an ideal environment for franchise businesses to prosper. We capitalize on these local dynamics by tailoring our services and offerings to meet the specific needs of the Louisville market, enabling us to connect more effectively with customers and secure a significant market share. Additionally, our focus on innovation extends to marketing strategies and customer engagement, ensuring that we stay ahead of industry trends and continue to offer value that exceeds expectations. This forward-thinking approach positions BrandExpand Ventures as a leader in the franchise sector, ready to empower entrepreneurs and bring exceptional services to our community.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

BrandExpand Ventures emerges as a dynamic player in the franchise industry, offering a comprehensive suite of services designed to empower entrepreneurs and businesses aiming for expansion. At the heart of its offerings is the provision of Brand Name and Trademarks, a critical asset for businesses seeking to establish a strong market presence. Clients can expect to invest an average of $5,000 for the rights to operate under the BrandExpand Ventures umbrella, gaining instant recognition and credibility in their market.

Another cornerstone service is the development and sharing of Operating Systems and Processes. This service is tailored to streamline business operations, ensuring efficiency and consistency across the board. For an average price of $2,500, clients gain access to a proven framework for managing their day-to-day operations, significantly reducing the learning curve and operational risks associated with new business ventures.

Understanding the importance of human capital in the success of any franchise, BrandExpand Ventures places a high emphasis on Training and Support. For an average cost of $3,000, franchisees receive in-depth training programs covering all aspects of the business, from operational to customer service excellence. This is complemented by ongoing support to ensure franchisees can navigate challenges and capitalize on opportunities effectively.

Marketing and Advertising Support is another critical service offered, designed to help franchises attract and retain customers. With an average investment of $4,000, clients benefit from expertly crafted marketing strategies and materials, ensuring their business stands out in a competitive marketplace. This support extends to both digital and traditional advertising channels, maximizing reach and impact.

Finally, Exclusive Territories are a valuable asset offered by BrandExpand Ventures, ensuring franchisees can operate without direct competition from the same brand within a designated area. This exclusivity is available for an average price of $10,000, providing a clear path to market dominance in their local area.

In summary, BrandExpand Ventures presents a compelling value proposition for entrepreneurs looking to leverage the power of franchising. With a focus on brand strength, operational excellence, comprehensive training, marketing support, and territorial exclusivity, it offers a solid foundation for business success. Each of these services is priced competitively, ensuring clients can access the tools and resources needed to thrive in today’s dynamic business environment.

Promotions Plan

BrandExpand Ventures embarks on a strategic promotional journey to captivate and engage customers in Louisville, KY. The cornerstone of their promotional efforts lies in leveraging online marketing, a powerful tool that ensures widespread visibility and engagement. Through meticulously crafted social media campaigns, BrandExpand Ventures will reach potential customers on platforms where they spend a considerable amount of their time. Engaging content, paired with targeted ads, will drive traffic to their website and physical locations, effectively converting online interest into real-world patronage.

Moreover, BrandExpand Ventures will harness the power of email marketing. By building a robust email list, they will keep their audience informed and engaged with regular updates, exclusive offers, and valuable content tailored to their interests and needs. This direct line of communication will foster a sense of community and loyalty among their customer base.

Understanding the significant impact of local SEO, BrandExpand Ventures will optimize their online presence to ensure they appear at the top of search results when potential customers in Louisville search for relevant services. This will not only increase visibility but also drive higher quality traffic to their website, significantly enhancing the likelihood of conversion.

In addition to online marketing efforts, BrandExpand Ventures will engage in community events and partnerships. Participating in local events, sponsoring community activities, and collaborating with other local businesses will build brand awareness and establish a strong, positive presence within the community. This approach not only attracts new customers but also reinforces loyalty among existing ones.

To complement these efforts, BrandExpand Ventures will implement a referral program. Encouraging satisfied customers to refer friends and family by offering them incentives will create a powerful word-of-mouth marketing channel that can significantly amplify their reach and credibility.

Lastly, exceptional customer service will be a pivotal promotional method. By ensuring that every customer interaction is positive, BrandExpand Ventures will foster an environment where customers feel valued and appreciated. This will not only encourage repeat business but will also lead to positive reviews and recommendations, further enhancing their reputation and appeal.

In conclusion, BrandExpand Ventures will utilize a comprehensive blend of online marketing, community engagement, referral programs, and outstanding customer service to attract and retain customers in Louisville, KY. These strategic promotional efforts will establish a strong, loyal customer base and set the stage for long-term success.

Our Operations Plan details:

  • The key day-to-day processes that our business performs to serve our customers
  • The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of BrandExpand Ventures, there are several key day-to-day operational processes that we will perform.

  • Monitor and manage inventory levels to ensure that we always have the necessary products in stock to meet customer demand without overstocking.
  • Conduct daily financial transactions accurately, including processing sales, managing expenses, and ensuring all financial activities are recorded for future analysis and tax purposes.
  • Implement stringent quality control measures to ensure that all products and services meet the high standards our customers expect from us.
  • Engage in continuous staff training and development to ensure our team members are knowledgeable, efficient, and capable of delivering exceptional customer service.
  • Utilize effective marketing strategies to attract new customers and retain existing ones, including social media marketing, email campaigns, and local advertising.
  • Regularly communicate with the franchise headquarters to stay updated on any changes in operational procedures, marketing strategies, or product offerings.
  • Monitor customer feedback through various channels, such as online reviews and in-person comments, to identify areas for improvement and implement changes accordingly.
  • Maintain a clean and welcoming store environment that encourages customers to return.
  • Ensure compliance with all local, state, and federal regulations that affect our operations, including health and safety standards.
  • Optimize operational processes through the use of technology, such as inventory management software and customer relationship management (CRM) systems, to increase efficiency and reduce errors.

BrandExpand Ventures expects to complete the following milestones in the coming months in order to ensure its success:

  • Secure a prime location in Louisville, KY : Identifying and securing a lease or purchase for a prime location that is accessible and appealing to our target market. This also involves ensuring the site matches our brand’s image and operational needs.
  • Obtain necessary permits and licenses : Completing all legal requirements including health, safety, and business operation permits. This also includes any specific franchise operation licenses that are necessary to legally operate in Louisville, KY.
  • Build out and customize the franchise location : Conducting renovations and outfitting the franchise location to meet BrandExpand’s brand standards and operational requirements. This includes both the customer-facing areas and the back-end operational spaces.
  • Develop and implement a local marketing strategy : Crafting a marketing plan that includes pre-launch buzz, grand opening promotions, and ongoing marketing efforts to build brand awareness and attract customers in the Louisville area.
  • Hire and train staff : Recruiting a team that aligns with the brand’s culture and values, and providing comprehensive training to ensure high levels of service and operational efficiency from day one.
  • Launch our franchise business : Officially opening the doors to customers with a well-publicized grand opening event. This marks the transition from the planning and preparation phase to operational business.
  • Establish operational efficiencies : Fine-tuning operations to manage costs effectively, ensuring a smooth customer experience, and maintaining quality control across all aspects of the business.
  • Build a loyal customer base : Implementing customer relationship management (CRM) strategies to retain customers, encourage repeat business, and generate positive word-of-mouth.
  • Get to $15,000/month in revenue : Achieving this revenue milestone to prove the business model’s viability in the local market and setting the stage for further growth and possibly future expansion.
  • Evaluate and plan for scalability : Assessing the business’s performance and potential for scaling up operations or opening additional locations in Louisville, KY, or beyond, based on demand, operational capacity, and financial health.

BrandExpand Ventures management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Samuel Adams, President

With a robust track record of entrepreneurial success, Samuel Adams brings a wealth of experience to BrandExpand Ventures as its President. Adams has previously demonstrated his business acumen by efficiently running a franchise business, where he honed his skills in operations, leadership, and strategic planning. His expertise in scaling businesses and driving operational excellence makes him an invaluable asset to BrandExpand Ventures. Adams’ proven ability to lead businesses to success positions him as a cornerstone of the management team, guiding the company towards achieving its mission of sustainable growth and innovation.

Financial Plan

BrandExpand Ventures requires $297,000 in funding to achieve our growth objectives. This funding will be allocated towards capital investments such as location buildout, furniture, equipment, and technology, as well as non-capital investments including working capital, initial rent, staff salaries, marketing, supplies, and insurance. With this financial plan in place, we are confident in our ability to reach our goals and establish a successful franchise in Louisville, KY.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Franchise Business Plan Example PDF

Download our Franchise Business Plan PDF here. This is a free franchise business plan example to help you get started on your own franchise plan.  

How to Finish Your Franchise Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your franchise business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Growthink logo white

Examples logo

Franchise Business Plan

Franchise Business Plan Examples

What is your initial plan when you have just franchised a business? Most people would find it absurd to immediately prepare a business plan for their franchise. Many would think that when you franchise, the franchisor would provide them the business plan apart from other elements necessary to operate the business. However, that is not the case. The task of creating a business plan for your franchise heavily falls on you. You have to note that developing a franchise business plan is not necessarily similar to the business plan of independent businesses.

  • 9+ Business Plan Profit and Loss Template Examples
  • 8+ Management Consulting Business Plan Examples

It is much simpler because, most likely, the franchisor can provide the answers to most of the questions that your business plan is seeking to address. Hence, creating a franchise business plan does not really require tough brainstorming, planning, and preparation. Although you still need to be specific in your goals as a franchise, the franchisor can provide you the information regarding your target market, the suitable location for your business, and many other basic information.You may also see  advertising and marketing business plan examples .

Franchise Marketing Plan Template

franchise marketing plan template

  • Google Docs

Size: A4, US

Do not be too overwhelmed with the thought of creating a successful business plan and instead focus on what you can do and what you can ask from your franchisor. Moreover, the examples of franchise business plan displayed below can surely help you in your start-up.

Banking Franchise Business Plan Example

banking franchise business plan example1

Size: 2.6 MB

Basics in Franchise Business Plan Example

basics in franchise business plan example1

Size: 279.5 KB

Company Franchise Business Plan Example

company franchise business plan example1

Franchise Definition

By the book, a franchise is a method of parceling out goods or service. It is a type of business where the franchisee agrees to pay certain fees as well as follow certain business franchise rules in order to acquire the right to sell the goods or services of the franchisor, the company who established the company. The franchisee can also benefit from its business methods, trade secrets, goodwill, professional training, as well as operating assistance.You may also see company plan examples .

Popular Franchises

As we all know, many people love franchising business because the franchisor does not need to do hands-on on the operations because it has a lot of franchisees who can do the actual selling. Although they can operate a business on their own, they do not bear the hassle of opening branches to the different parts of the world. In fact, it is the franchisee’s task to disseminate the business in different areas.You may also see  restaurant operational plan examples

On the other hand, it would be less bothersome for the franchisees to open up a business when they do franchising because they already have the basic requirements for a start-up from the franchisor. They only need to pay the fees, get some professional training, and adhere to the rules and immediately operate. The risk of losing is also low.You may also see  business proposal letter examples

Hence, no wonder why there are a lot of franchising businesses today which are evidenced by the following companies:

1. McDonald’s

3. Burger King

4. Pizza Hut

5. 7 Eleven

6. Marriott International

8. Dunkin’ Donuts

9. InterContinental Hotels and Resorts

10. SUBWAY®

11. Baskin-Robbins

12. Domino’s Pizza

13. Taco Bell

14. Ace Hardware Corporation

15. Jani-King Commercial Cleaning Services

16. Wyndham Hotels and Resorts

18. Carrefour

19. Europcar

20. Choice Hotels

Comprehensive Franchise Business Plan Example

comprehensive franchise business plan example1

Size: 3.4 MB

Detailed Franchise Business Plan Example

detailed franchise business plan example1

Size: 179.5 KB

Entrepreneurship Business Plan Example

entrepreneurship business plan example1

Size: 147.7 KB

Elements of a Franchise

A franchise, for it to operate legally, consists of the following three elements: trademark, fee, and control or assistance.

Under the trademark of the franchisor, the franchisee must operate his business in providing goods or services. For example, when you are franchising Ace Hardware Corporation, you do not need to make your own company name as you are adopting the company name of the franchisor. Hence, in your operations, you must bear the name Ace Hardware Corporation.You may also see  restaurant strategic plan examples

There are certain franchise fees associated to the franchise which is a requirement and a condition for you to obtain the franchise and begin the operation. While the franchise fees are payment for the trademark and other benefits that a franchisee acquire from the franchisor, some franchisors would use the fee to aid in the start-up materials and tools of the franchisee.

Control or Assistance

Another element of a franchise is that, although the franchisee is running the business through his or her own operations, the franchisee is still subject to various requirements that are imposed by the franchisor. These include requirements regarding the location of the business, the design of the site as well as the appearance of the store, hours of operation, sales methods, marketing, as well as management systems.You may also see  business plan guidelines examples

Key Considerations

If you are still new to franchise, you need to know and understand the basics in franchising for you to easily perform franchising operations. There are some points to consider when you are in a franchise business, and these are as follows:

1. Business Suitability

One of the critical factors that you must consider is the suitability of your business. This includes your personal aims, your objectives, as well as your ability and will to manage this type of business—franchising.

2. Benefits

Another thing that you must consider in franchising is the benefit that you can acquire from the franchise. Although most of the franchise have a low risk of not being profitable, there are some franchise that would provide you very less returns.You may also see  tutoring business plan examples

3. The Downside

You must also consider the downside of franchising. For the franchisor, he or she must carefully assess the franchisee regarding the ways they can be trained and controlled. For the franchisee, he or she must scrutinize the legitimacy of the business.

4. Franchisor’s Life

Know that if you are a franchisor, it is your responsibility to manage the initial period of the franchise as well as to train the franchisee. He or she must also ensure to keep the franchisee interested in their business through launching and introducing new products and services.You may also see  farm business plan examples

5. Corporate Image

Franchisees can benefit from a strong corporate image of the franchisor. The franchisor must be legal and registered, and if the franchisor has a trademark, it must be registered with the Patent Office.

6. Legal Agreement

There must be an agreement signed before the commencement of the franchise or start of the franchise operations. There must also be an agreement as to who will shoulder the legal costs, whether it may be the franchisor or the franchisee. For this, you might want to take a look at franchise agreements .

7. Financial Matters

Another important consideration is the financial aspect of the franchisor. The franchisee would normally expect that there is transparency in the financial statements of the franchisor and that the accounting records involve positive amounts.

The franchise products or services must be carefully tested in the market with a pilot franchise and an independent franchisee for a certain period of time, usually over a minimum of twelve months to ensure that the franchise is not a failure.You may also see risk plan examples .

9. Operating Areas

In order to find the optimum area of the franchise, where it is conducive to the target market, a research must be carried out to define a certain location that will support the business based on the number of people, number of households, number of businesses, number of cars, etc. You might also be interested in rental property business plan .

10. Franchise Package

The franchise must provide the franchisor the benefit of the franchise even at the commencement of the franchise through providing a package of a fair amount of initial stock, training, manuals, accounting system, and other necessities for a start-up. For reference, you can check out tech startup business plans .

11. Brand Security

As has been said above, the patent or trademark of the franchisor must be registered with the Patent Office. This will cover the protection for the business name and the logo of the business . This will also ensure the franchisee that the business he or she is into is not only credible but also safe and secured.

12. Company Structure

The structure of the company who serves as a franchisor must also be taken into consideration. This will enable the franchisee to understand more about the business that he or she is into.You may also see  convenience store business plan examples

Franchising Business Plan Fundamentals

franchising business plan fundamentals1

Size: 217.1 KB

Sefa Franchise Business Plan Outline Checklist Example

sefa franchise business plan outline checklist example1

Size: 160.6 KB

Short Franchise Business Plan Example

short franchise business plan example1

Size: 21.6 KB

Soup and Salad Franchise Restaurant Business Plan Example

soup and salad franchise restaurant business plan example1

Size: 1.4 MB

Sections of a Franchise Business Plan

If you have already started in your franchise, one of the first things that you must have is a business plan . Although you might think that the resources and basic provided by the franchisor is enough, well, it is really not. You must have your own business plan that will detail your plans as well as the detailed steps in achieving those plans.

In your business plan, you must include these important section for it to be comprehensive and detailed:

1. Operational Plan

In your operational plan , it must contain information demonstrating your understanding of the nature of the business, the products and services for sales, the systems and methods used in selling, as well as the processes engaged to operate the business.

Operational plan is important in order to demonstrate how the business is executed. Also include your ways in interacting the customers, the delivery of the products or services, the systems for communication, execution timetables, among others.

2. Marketing Plan

In this section of your business plan, you must illustrate the company’s blueprint in order to create interest not only in the company but also its products. Normally, the franchisor would provide you advertising materials for your marketing. However, you may also need to develop additional advertising materials that better suits in the area where you are doing business.

The importance of marketing plan is that it is used to map out how to engage the market and sustain customer flow. You must include in your marketing plan the description of your target market, the channels for communication, marketing strategies, and many other plans related to marketing.

3. Management Plan

In your management plan, you must include the management—the people who set the strategies, oversee and execute, allocate the resources, and make the decisions—as well as the company’s vision and philosophy. Normally, the franchisor already has this in their company documents, but you can contribute in enhancing and improving their management plan through creating your own relevant management plan. This is integrating your own vision for your franchise to the management plan that they have already created.

This is important because it provides evidence of competency and management systems. Hence, relevant sections from the franchise management manual, tactical positions, strategic principles, and prevailing business models must also be included in this section of your business plan.

4. Financial Plan

Your financial plan is your method of proving how your operations can make money in doing what it is supposed to do. You may include in your plan the financial successes of other franchises and of the franchisor’s own operations. This is to demonstrate your anticipated success in your franchise.

A financial plan is important in order to show the key elements of the company’s operation. Hence, it is recommended that you will include in your financial plan your operational budget, the funds that you need and expect to raise of borrow, as well as the anticipated costs and revenues in the form of projections.

If you are contemplating on venturing into franchise business, it is better that you start immediately and enjoy the benefits from your franchise. The earlier, the better. Remember, a franchising business provides lesser risk and you are assured of the return, especially when you are franchising a business that already established its name in the industry, for example, McDonald’s.You may also see lean business plan examples .

So what are you waiting for? Make the wise decision now, and use the examples of franchise business plan provided above to help you in your start-up. If you got to start some time, why not now?

business plan for a franchise example

AI Generator

Text prompt

  • Instructive
  • Professional

10 Examples of Public speaking

20 Examples of Gas lighting

Small Business UK

Small Business UK

Advice and Ideas for UK Small Businesses and SMEs

business plan for a franchise example

Writing a franchise business plan: 11 things you need to include

business plan for a franchise example

List these key points in your franchise business plan

Avatar photo

A business plan is essential when you're starting a franchise. Here, we take a look at the essential information you need to include.

Writing a business plan is essential for any entrepreneur.

Putting one together for a franchise business is different to a standard one though.

First of all, you need to be aware of the needs of both the franchisee and the franchisor. When you have signed the franchise agreement , the franchisor will give you vital info like start-up and running costs as well as a marketing plan and related materials.

Your franchisor can also help you write your business plan as they’ve likely helped other franchisees with theirs. They’ll give you a franchise disclosure document which has a lot of information to help you write a business plan. It’s worth mentioning that they don’t need to approve your final plan as this could be in violation of governmental and trade requirements.

“Your franchisor can help you write your business plan”

For some extra help, have a word with other franchisees about how they created their business plans and if you’re looking to finance your business, chat with an accountant.

There’s no set length for a business plan – but the more concise it is, the better.

Introduction

Give your reader a brief overview of what your franchise is and how you plan to run it.

Business structure

Use this section to deal with the who’s who of the business and their roles.

Outline who is responsible for what, whether the franchise will have sole or multiple owners and if you’ll be involved in day-to-day operations.

What your product or service is

Go into more detail about what you’re offering and why you think it’s the right time to put out what your product or service.

Market analysis

Examine current market conditions: whether it’s a growing market, who your competitors are and how future-proof it is. Remember to include relevant facts and figures as well as referring to expert forecasts.

business plan for a franchise example

Cite your sources of supply, labour and materials. It’s also vital to mention resources you’ll be using to operate your business.

  • What you have and what you need to acquire
  • Critical procedures and sensitive issues along with possible alternatives
  • Current premises and future requirements
  • Your health and safety policies

Marketing plan

Run through your marketing objectives, such as number of sales or market share as well as where your product will be positioned in terms of things like price and quality.

You should also cover planned marketing communications, how the product will be distributed/sold, what your customer care policy will be and how said policy will work.

Decide on the best premises for your business needs with your franchisor in advance. Consider location, business growth, running costs and uniform business rates as well as insurance and planning consent.

Financing

Are you looking at financing? If so, how much and where will the money come from?

Highlight your ‘break even’ sales figure shown as percentage of anticipated sales.

You’ll also need to include the amount of money you’ll need to take out of your business to live on.

When writing your financial projection, you should be conservative. Outline when the lender can expect the loan to be repaid by using graphs, figures and charts. Just note that for legal reasons, your franchisor might not be able to tell you about projected earnings.

Profit and loss forecast

Base your profit and loss forecast on anticipated sales, taking away direct costs and overheads. Include as much detail as possible about anticipated sales and direct costs like materials and overheads.

Cash flow model

Try and give an idea of how much money will be coming in and going out of your business. Remember to account for cash flow fluctuations like getting materials when you’re setting up versus volume of sales at launch and beyond.

Use the appendix for items that will enhance your presentation. Include things you feel would be necessary – CVs of key management personnel, tax returns, media clippings – important nuggets like that.

Keeping your business plan up-to-date

Remember to continually update your business plan so that it reflects the developing needs of your business. At the very least, it should be updated when something in your business changes.

“At the very least, your plan should be updated when something in your business changes”

If you’re in need of some guidance on building your non-franchise business plan , head over here.

See also: What is a franchise?

Avatar photo

Anna Jordan

Anna is Senior Reporter, covering topics affecting SMEs such as grant funding, managing employees and the day-to-day running of a business. More by Anna Jordan

Related Topics

Related stories.

business plan for a franchise example

Investing in a franchise

A guide to franchise agreements

If you have decided to go down the franchise route, you need to be sure that the contract you are signing suits your plans and doesn't tie you in to anything unexpected.

business plan for a franchise example

Why it’s never too late to set up a franchise operation

Rik Hellewell, franchising expert and founder of Ovenu, on the advantages of setting up a franchise in your fifties or even later

Rik Hellewell

business plan for a franchise example

Setting up a franchise vs growing a business organically

Franchising expert Rik Hellewell discusses the advantages of setting up a franchise compared to growing a business organically – and shares his tips on why franchising can be the ideal way to expand in business

business plan for a franchise example

What franchise support should you get from a franchisor?

Tim Harris, managing director at ChipsAway and Ovenclean, part of Franchise Brands, explains what you should expect from a franchisor during your business journey.

Partner Content

business plan for a franchise example

Selling a franchise: the considerations

In association with BusinessesForSale.com, we take a look at the considerations you need to make when selling your franchise business.

Jo Thornley

Franchise Consulting Logo | FranchiseCoach

The 7 Key Elements Of An Effective Franchise Business Plan

  • Adam Goldman
  • May 12, 2020

Franchise Business Plan | Franchise Coach

Whether you are purchasing a franchise business or expanding your current one, finances will always play a major role. To secure financing from lenders, it is necessary to prepare a franchise business plan .

However, it’s essential to have a solid understanding of the seven key elements in order to create effective franchise business plans.

A franchise business plan is not only a written document that narrates the core details of your independent 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, including franchise fees. It’s crucial to address any pending request, ensuring a smooth and transparent process in the development and execution of your franchise strategy in your business plan.

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

Next Section, 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 . The materials provided to you can help you start writing your franchise business plan outline. In many cases, franchisors will guide their franchisees in the writing process.

Next section, when you create a concise franchise business plan template could lead to getting a financial source to start a franchise or grow your existing franchise. So, let’s begin by knowing the elements you’ll need.

1. Franchise Business Plan: Executive Summary

  • Which service, product, or need, does your business serve?
  • Is your business unique?
  • How will you ensure your company’s success?
  • Is your personal savings enough to invest a business?
  • What skills do you possess that will help the business excel?

The first part of your franchise business plan outline is the overview or summary of the essential information you are providing in your new franchise business or current one.

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

Business plans’ executive summary is the readers’ first impression of your franchises. It is a written version of your business pitch. It should clearly define your franchises 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 template. It should only reference material that you’ve provided and use appropriate language for your target audience.

2. Franchise Business Plan: Business Description

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

  • company’s structure,
  • mission statement,
  • and future projections.

While you don’t need to provide detailed financial data, you should include an overview of your industry, financial projections, personal savings, tax returns, and relevant business facts in your business plan.

Next section, you should include company goals in the business description of your franchise business plan. 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 . Learn from other franchisees, and avoid ambiguous terms on your franchise business plan template. Use specific language and time frames to precisely explain what you plan to achieve.

3 . Franchise Business Plan: Competitive Analysis

Franchise Business Plan (Competitive Analysis) | FranchiseCoach

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 in your business plan, you need to do the following:

  • Select ten direct and indirect competitors to compare.
  • Conduct research about their marketing efforts and product features.
  • Then compare the gathered details to yours.

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

Next section, 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 .

So how to write a marketing plan and sales plan or your franchise business plan outline? Here are some steps to follow when creating these plans:

1. Define your target audience

Perform a market analysis to identify the specific demographic or customer segment that you should focus on with your marketing and sales plans. This will help you tailor your messaging and tactics to appeal to your ideal customer in your business plan.

2. Set marketing goals

Establish specific, measurable marketing goals that align with your franchise business plan template objectives. For example, you might set a goal to increase website traffic by a certain percentage or generate a certain number of leads through a marketing campaign.

3. Develop a marketing strategy

Outline the tactics you’ll use in your business plan to reach your target audience and achieve your marketing goals. This might include digital marketing, social media advertising, email marketing, content marketing, or other tactics.

4. Create a sales strategy

Determine how you’ll sell your franchise product or service to your target audience in your business plan. This includes setting up a sales team, developing a sales process, or leveraging existing relationships to generate leads. 

5. Identify key performance indicators (KPIs)

Define the metrics you’ll use in your business plan to measure the success of your marketing and sales efforts. This includes metrics such as conversion rates, cost per lead, or revenue generated from marketing campaigns.

6. Set a budget

Determine the personal savings you’ll need or plan to execute for the marketing and sales of your franchise businesses in your business plan. This might include allocating funds for advertising, marketing technology, or sales personnel.

Take the time to develop a thoughtful and comprehensive franchise business plan template that reflects your unique business and target audience.

5. Franchise Business Plan: Operations and Management

The operation and management section of your franchise business plan template focuses on the daily operations and activities of your existing franchise businesses. 

It encompasses not only the core business operations but also highlights the specific responsibilities and tasks, with a particular emphasis on your role as the owner in your business plan.

As you consider the ownership structure for this venture in your business plan, it is important to determine whether it will be a sole proprietorship with you as the sole owner, or if there will be multiple owners involved.

This section of your franchise business plan 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 businesses, Item 15 of the FDD will explain more.

6 . Financial Plan

Other Franchise Costs | FranchiseCoach

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

  • hard numbers for your business costs, including your franchise fees, initial costs, etc.
  • current funding,
  • and expected funding necessary in the future.

To obtain more information when starting a franchise business plan template with a franchisor, you may refer to the Franchise Disclosure Document ( FDD ).

7. Franchise Business Plan: Pro Forma

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

  • the balance sheet
  • the cash flow
  • and the profit or loss

You can create your pro forma in four steps in your business plan:

1. Create a chart of accounts.

2. Calculate your business projected earnings.

3. Create financial projections

4. Estimate cash flows

Consider speaking with the right person, such as an accountant or financial advisor to verify your estimates and validate your proposal to lenders.

Keep your Franchise Business Plan Updated!

Keeping franchise business plans updated is essential to ensure that they remain relevant and effective in guiding your franchise businesses’ growth and success.

Here are some steps to help you keep your franchise business plan up to date:

Regularly Review Financial Performance

Continuously monitor and analyze your franchise businesses’ financial performance. Compare actual financial results with the projections outlined in your business plan. Identify any discrepancies and assess the reasons behind them. Adjust your financial projection and strategy accordingly.

Customer Feedback and Market Research

Collect and analyze customer feedback through surveys, reviews, and direct interactions in your business plan. Use this feedback to improve franchise businesses’ products, services, and customer experience. Incorporate the insights gained from market research into your business plan to refine your strategies.

Assess and Adapt Marketing Strategies

Review your marketing and advertising strategies regularly in your business plan. Evaluate the effectiveness of different marketing channels and campaigns. Adjust your marketing plan based on what is working best to reach your target audience and achieve your goals.

Evaluate Operational Efficiency

Continuously assess your franchise’s operational processes and efficiency. Look for ways to streamline operations, reduce costs, and improve productivity. Update your operations plan in the franchise business plan to reflect any changes or enhancements.

Revisit and Revise Goals

Periodically review and reassess your short-term and long-term goals. Are they still aligned with your vision for the franchise? Adjust your goals as necessary and update your business plan with these revisions.

Seek Professional Assistance

Consider working with a franchise consultant or business advisor who specializes in franchise operations. They can provide expert insights and help you update your business plan outline effectively.

In conclusion, beyond relying solely on your personal savings, there exist multiple avenues to secure funding, such as bank financing, Small Business Administration (SBA) loans, franchise fees, franchisor programs, and various lending sources in your business plan.

To furnish lenders with a comprehensive understanding of both yourself and the franchise opportunity you aim to finance in your business plan, it is imperative to include essential elements such as management resumes, tax returns, media clippings, and other pertinent documentation.

By addressing these requirements proactively of your franchise business plan , you can expedite the financing process, minimizing delays in launching your franchise.

It’s worth noting that many franchisors mandate prospective franchisees to submit a franchise-specific business plan template as part of their application process. Therefore, it is advisable to ensure your plan aligns seamlessly with their stipulated requirements and guidelines.

To learn more about franchise businesses, talk to a franchise consultant .

Recent Posts

How to combat ageism in the workplace, top home service franchise opportunities in the us today, entrepreneurship through acquisition: mbas ditch corporate ladders for ownership, is laundromat franchise profitable – explained, is donut franchise profitable – explained, small franchise business: finding opportunities, change your life, © copyright 2023 franchisecoach.net all rights reserved., privacy policy.

wisebusinessplans logo

  • Customer Reviews
  • Net 30 Account
  • Wise Services
  • Steps & Timeline
  • Work at a Glance
  • Market Research at a Glance
  • Business Plan Writing Services
  • Bank Business Plan
  • Investor Business Plan
  • Franchise Business Plan
  • Cannabis Business Plan
  • Strategic Business Plan
  • Corporate Business Plan
  • Merge and Acquisition Business Plan (M&A)
  • Private Placement Memorandums (PPM)
  • Sample Business Plans
  • Professional Feasibility Study
  • PowerPoint Presentations
  • Pitch Deck Presentation Services
  • Business Plan Printing
  • Market Research
  • L-1 Business Plan
  • E-2 Business Plan
  • EB-5 Business Plan
  • EB-5 Regional Centers
  • Immigration Attorneys
  • Nonprofit Business Plan
  • Exit Business Planning
  • Business Planning
  • Business Formation
  • Business License
  • Business Website
  • Business Branding
  • Business Bank Account
  • Digital Marketing
  • Business Funding Resources
  • Small Business Loans
  • Venture Capital
  • Net 30 Apply

Wise Business plans logo

  • Frequently Asked Questions
  • Business Credit Cards
  • Talk to Us 1-800-496-1056

Franchise Business Plan Template

Whether you want to start your own franchise business or expand an existing one, you need a business plan. the following franchise business plan template lets you know what elements you need to include in a successful franchise business plan., fill the form to download business plan templates.

To ensure your franchise business success in this highly competitive market, you need a properly structured franchise business plan. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their franchise businesses. Using the following franchise business plan template, you can put together an effective business plan.

Things to Know Before Writing a Franchise Business Plan

The franchise business industry has two primary agents; franchisor and franchisee. A franchisor is the business system/brand owner, and a franchisee is an entity that rents the business system/brand name against a fixed initial fee and royalty. 

A franchise business plan is popular in many industries. Popular franchise systems are fast food chains like McDonald’s, KFC, Subway, etc. You can find a franchise opportunities in many industries. 

A franchisee operates a business location under the guidelines of the franchisor. You have little freedom to experiment with new things. 

The FDD, or Franchise Disclosure Document, is the legal contract between a franchisor and a franchisee. FDD has details of the rights and responsibilities of the two parties. This is generally a lengthy document. You need to understand it before you buy a franchise. 

The franchise industry is growing fast. As International Franchise Association (IFA) reports, 2022 is the year of opportunity for franchises. 

The estimated number of total franchises in 2021 was 774,965 with a total number of employees at 8,192,600, and an output of $787.7 billion. 

The total GDP size of the franchise economy in 2021 was $474.2 billion. The growth projections for franchises in 2022 stand at 2.2%. 

These are the top industries with the most number of franchises. 

  • Quick Service Restaurants (188,402 franchises)
  • Retail Food, Products, and Services (162,579 franchises)
  • Personal Services (114,012 franchises)
  • Business Services (99,296 franchises)
  • Commercial & Residential Services (75,678 franchises)

Key Success Factors for Franchise Business

A franchise business has different dynamics as you are selling an established brand to a market with a demand for that brand’s products or services. 

We have identified these five factors that play a crucial role in making a franchise successful. 

  • A Loyal Customer Base for the franchisor brand makes sure you’ll have enough demand to successfully run your franchise business 
  • A Clear Market Position . This means that you are selling products where there is a need and where the brand fulfills that need. 
  • Franchisor Business Operating Expertise : When a franchisor has business expertise, chances are they will better lead the industry and develop the market for the brand 
  • Established Brand Name : Running a McDonald’s franchise is far more profiting than a Huddle House
  • Ability to Control Stock: When franchisees can control stock locally, they can meet increased demand, control costs, and reduce waste. 

Need a Business Plan Writer For Your Franchise Business?

Hire us Now!

What is a Franchise Business Plan?

A franchise business plan is a roadmap for starting and growing your franchise business. Your business plan outlines your business concept, identifies your target customers, presents your marketing strategy, and details your financial projections.

Any bank or investor you approach will require a franchise business plan, so putting one together will be critical to securing funding.

In short, writing a business plan can help you succeed if you’re thinking of starting a franchise business or pitching to investors or venture capitalists.

Franchise business plan

Why You Need a Franchise Business Plan

Franchise business plans can be used to gain interest from potential investors or to secure loans from banks. They are also helpful to you as the owner. A franchise business plan allows you to thoroughly analyze every aspect of your potential business.

A solid, detailed plan gives you a clear path to follow, forces you to examine the viability of a franchise business idea, and may help you better understand your company’s finances and competition.

A franchise business with a plan grows 30% faster than the rest. On the other side, if we look at the fast-growing companies, 71% of them have a business plan .

A franchise business plan is a living document that should be updated annually as your company grows and changes.

Free: Franchise Business Plan Examples

Do you need help creating a franchise business plan? Check out these six free, proven franchise business plan examples from different industries to help you write your own.

Funding Sources for Franchise Business

Conventional Banks and Credit Unions

You can get a loan from banks, credit unions, or other financial institutions. Getting such a loan for a franchise business depends on many factors including turnover, credit history, and expected revenue of the business. 

SBA regularly offers loans, grants, and lifelines for small businesses. Keep an eye on the 7(a) program that is aimed at small businesses in the early stages. 

Business Partners 

A franchise business is a high investment business. Consider adding business partners to create a money pool big enough for the business needs.

Retirement Funds 

If you have retirement funds available, you can use retirement funds or 401k for starting a franchise. 

Securities-Backed Line of Credit

if you have an investment portfolio, you can get a line of credit against those securities. These securities will serve as loan collateral. 

Equipment, Machinery, and Furniture Lease

You can get franchise machinery, vehicles, computers, furniture, and other equipment at lease. If you get an equipment lease, you may also get a buyout for $1 when the lease term ends. 

Looking to Build Business Credit for Your Franchise?

A franchise business’ success is partially determined by its supply chain. We can help you purchase goods and services on Net 30 terms. Create a net 30 account with us and start building your business credit. 

How to Write a Franchise Business Plan

To write a franchise business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a franchise business plan, or you can just download our proven  sample business plans  to get a better idea.

Free Franchise Business Plan Template in PDF and Word

Download our franchise business plan template in PDF and Word here.

Executive Summary

The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.

It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.

Tell them what kind of franchise business you have and what stage you’re in; for example, are you a startup, do you have a franchise already that you want to expand, or do you have a lot of franchise businesses?

Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.

  • Provide a high-level overview of the franchise industry
  • The name, location, and mission of your franchise company
  • A description of your franchise business, including management, advisors, and a brief history
  • Discuss the type of franchise business you are operating, Give an overview of your target customers., and how your company differs from competitors in the industry
  • Create a marketing plan that describes your company’s marketing strategies, sales, and partnership plans.
  • And give an overview of your financial plan

Check out these executive summary examples to help you write a perfect one for your franchise business plan.

Free: Franchise Business Plan Executive Summary Examples

An executive summary is the most important part of your franchise business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.

Company Analysis

  • Company summary: Your company analysis will describe the type of franchise business you are running and its future goals. The type of franchise business you might be focused on  (for example,  Quick Service Restaurants, Retail Food, Products, and Services, Personal Services, Business Services, or Commercial & Residential Services)
  • Company history: When and why did you start your franchise business?
  • What milestones have you achieved so far? Your milestones could include served 100th customer, new fleet purchase, etc.
  • Legal structure and ownership: Do you have S-Corp status? Is it an LLC ? A sole proprietorship ? Describe your legal structure.
  • Mission statement: An overview of your franchise company’s guiding principles. Learn how to write a perfect mission statement .

Industry Analysis

The franchise business plan’s research section will most likely be the most time-consuming. Here, you will elaborate on how you will fit into the existing franchise market.

Since your research findings should serve as a sound confirmation of the conclusions you have outlined thus far, they will demonstrate your understanding of the industry and market.

Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.

  • Give a quick overview of the franchise industry. Define the franchise business in terms of size (in dollars), historical background, service region, and products.
  • Examine previous trends and growth patterns in the franchise industry.
  • Identify the market’s major competitors.
  • Age, gender, and general lifestyle of the targeted market
  • Determine the factors that have an impact on the franchise industry. These might include government regulatory rules and other businesses’ competitive activities.
  • Using research data, the industry forecast expected growth over the next five to ten years. Predictions should be made for both the long and short term.
  • Describe how your franchise business intends to position itself in the industry. Concentrate on how your franchise business can benefit from opportunities highlighted in the industry.

Looking For Business Plan Writing Service For Your Franchise?

Hire Wise Business Plans Now

Customer Analysis

The first condition for franchise business is to identify its target customers clearly. Different franchise business have different customers. 

The customer analysis section is an important part of any franchise business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how your franchise items will meet those requirements.

Customer analysis may be divided into two parts: psychosocial profiles (why your franchise items suits a customer’s lifestyle) and demographic profiles (descriptions of a customer’s demographic qualities).

With regards to demographics, include information about the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers have.

The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better you can attract and retain customers. 

Competitor Analysis

It is necessary to do a competitor analysis. Because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:

  • Identify the strength and weakness of your franchise business competition.
  • Search for opportunities to distinguish your franchise from competitors.

The first step is to determine who your direct and indirect competitors are.

The direct competition consists of other franchise businesses that offer the same goods or services to the same audience. 

Your indirect competitors are other options that customers have to purchase from you that aren’t direct competitors.

Among indirect competitors are the business selling similar product or service. For example, if you have McDonalds’ franchise, someone selling Chinese or Italian food is your indirect competitor. 

Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your franchise business— but keep an eye on the indirect competition as well, just in case.

Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.

You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:

  • Prices – Are they offering cheaper products or services than you and other competitors, what value do buyers get for that price?
  • Quality – Are they offering premium quality? What is the perceived worth in the eyes of the customers?
  • Customer service – How they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
  • Reputation — The sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers

The final section of your competitive analysis should include a list of your areas of competitive advantage. For example, how will you offer better value at competitive prices for the target market.

Consider how you will outperform your competitors and include them in this portion of your  franchise business plan.

Free: SWOT Analysis Examples

Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.

Marketing Plan

Creating a marketing plan for a franchise business involves identifying the target demographic and finding the goods and services that suit their preferences.

As part of your marketing plan for a franchise business, you should include:

Pricing and Product Strategy

Your franchise business must offer goods or products that are different from those of your competitors. Research what your competitors offer and how they price their offer. 

Placing and Promotions

Place explains the location you’ll chose for your franchise and the reasons of the selection.

Promoting your franchise business is the final part of your marketing plan. In this step, you document how you will drive customers to purchase your goods or services. A few marketing methods you could consider are:

  • Marketing on social media
  • Web Marketing
  • Organize events
  • Local Newspaper and TV ads
  • Banners and Bill boards 
  • Local Radio Ads 

You should also think about your franchise company’s Unique Selling Proposition (USP), which should explain why clients should choose you over other franchise businesses. Ensure that your USP is reflected in your marketing.

Pro Tips: Learn how to create a marketing plan in a business plan .

Operations Plan

While the previous sections of your franchise business plan described your goals, your operations plan discusses how you will achieve them.

An operations plan section in a business plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.

Your operational plan should be able to answer the following questions:

  • Who – Personnel in charge of completing specific tasks.
  • What – A breakdown of the responsibilities of each personnel.
  • Where – The location of everyday operations.
  • When –The deadlines for completing tasks and goals.
  • How much – The amount of money required for each department to perform their job.

Your operations plan should be divided into two individual parts, as seen below.

Your daily short-term processes include all the tasks involved in producing goods or services, managing operations, selling, employee management, etc. 

Long-term goals are milestones you hope to reach. they might be growing your business, such as introducing new items or retail outlets, meeting particular sales milestones, and meeting other essential business-oriented goals like recruiting more staff, opening additional locations, and so on.

Management Team

When writing a franchise business plan, the management section of a business plan outlines your management team, staff, resources, and how your business ownership is structured.

This part may be easily organized by dividing it into the following points:

Ownership Structure

Internal Management Team

External Management Resources

Human Resources

This section outlines your franchise business’s legal structure. An LLC or a Corp is favored in the franchise business ecosystem. 

This section should not only outline who is on your management team but also how each person’s skill set and experiences will contribute to the growth of your franchise business. Ideally, you and/or your team members have direct expertise in the franchise business. If this is the case, highlight your experience and skills.

Think of these external management resources as your internal management team’s backup. Consider forming an advisory board if your team is lacking expertise and experience with franchise business.

An advisory board would consist of 3 to 7 people who would serve as mentors to your franchise business. They would help with strategic direction and strategy advice.

If necessary, search for advisory board members with expertise running franchise business.

Describe all of your company’s external professional advisers, such as accountants, bankers, attorneys, IT experts, business consultants, and/or business coaches. 

The final topic to consider in the management area of your franchise business plan is your human resource needs.

Financial Plan

As part of your financial plan in a business plan , you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Financial statements include your income statement, balance sheet, and cash flow statement.

Income Statement

A profit and loss statement is more commonly called an income statement. It shows your revenue and subtracts your expenses to determine whether you were profitable or not.

As you develop your income statement, you need to develop assumptions. Will you serve 50 customers per day or 200? Will sales grow by 2% or 8% per year? Your choice of assumptions will greatly impact your business’s financial forecasts. Conduct as much research as possible in order to ground your assumptions in reality.

Free: Income Statement Template

Create a financial statement for your franchise business by downloading our free income statement templates.

Balance Sheet

While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.

The balance sheet shows your franchise business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:

  • Assets: Tangible goods with the monetary worth that the company owns.
  • Liabilities: Debt owing to a company’s creditor.
  • Equity: The net difference when the total liabilities are subtracted from the total assets.

The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.

Create a pro forma balance sheet for your franchise business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.

Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.

For example, spending $500,000 to build out your franchise will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.

Similarly, if a bank sends you a check for $200,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.

Cash Flow Statement:

Your cash flow statement will help you determine how much money you need to start or grow your franchise business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a franchise business:

  • Fees for registering a franchise business
  • Taxes and licenses costs
  • Business insurance
  • Payroll or salaries paid to staff
  • Facility rent and security deposits
  • Construction / remodeling
  • Start-up Inventory

Free: Balance Sheet Template

Create a financial statement for your business by downloading our free balance sheet templates.

List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.

Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.

Bonus Tip: Learn what to include in a business plan appendix when writing a business plan.

Summary of the Franchise Business Plan

A franchise business plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the franchise business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your franchise business.

Do you want to Finish Your Franchise Business Plan in less the one day?

Wouldn’t it be nice if your business plan could be completed faster and easier?

With wise business plans Business Plan Template , you can finish your franchise business plan in just 6 hours or less with a 30-Day Money-Back Guarantee!

Also, you can download our 300+ free business plan templates covering a wide range of industries.

OR, we can create your franchise business plan for you

Since 2010, Wise business plans’ MBA professional business plan writers has developed business plans for thousands of companies that have experienced tremendous success.

Download Our Franchise Business Plan Template

We will show you some real-world business plan examples so you may know how to write your own, especially if you are seeking a bank loan or an outside investment and need to use SBA-approved formatting.

Get in Touch

Contact us today for a free consultation, quick links.

Made in USA

  • Investor Business Plans
  • M&A Business Plan
  • Private Placement
  • Feasibility Study
  • Hire a Business Plan Writer
  • Business Valuation Calculator
  • Business Plan Examples
  • Real Estate Business Plan
  • Business Plan Template
  • Business Plan Pricing Guide
  • Business Plan Makeover
  • SBA Loans, Bank Funding & Business Credit
  • Finding & Qualifying for Business Grants
  • Leadership for the New Manager
  • Content Marketing for Beginners
  • All About Crowdfunding
  • EB-5 Regional Centers, A Step-By-Step Guide
  • Logo Designer
  • Landing Page
  • PPC Advertising

Wise Business Plan New Logo White

  • Business Entity
  • Business Licensing
  • Virtual Assistant
  • Business Phone
  • Business Address
  • E-1 Visa Business Plan
  • EB1-A Visa Business Plan
  • EB1-C Visa Business Plan
  • EB2-NIW Business Plan
  • H1B Visa Business Plan
  • O1 Visa Business Plan
  • Business Brokers
  • Merger & Acquisition Advisors
  • Franchisors

Proud Sponsor of

  • 1-800-496-1056

US flag

  • (613) 800-0227

Canada flag

  • +44 (1549) 409190

UK flag

  • +61 (2) 72510077

Australia flag

  • Starting a Business
  • Growing a Business
  • Business News
  • Science & Technology
  • Money & Finance
  • Subscribers For Subscribers
  • ELN Write for Entrepreneur
  • Store Entrepreneur Store
  • Spotlight Spotlight
  • United States
  • Asia Pacific
  • Middle East
  • South Africa

Copyright © 2024 Entrepreneur Media, LLC All rights reserved. Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media LLC

JUST RELEASED: View the 2024 Franchise 500 Ranking

Writing the Franchise Business Plan The 5 main elements every franchise business plan should have

By Jeff Elgin • Sep 5, 2005

Opinions expressed by Entrepreneur contributors are their own.

One of the most important exercises to go through in the startup of any business is the creation of a business plan, and this is just as true with franchised businesses as with any other. The discipline of preparing the business plan forces you to anticipate and think through a number of questions about the challenges you'll face and the expectations you have for your new business. The creation of your business plan is also essential if you need financing from any third-party source, since this is probably the first document any such financing source will ask you for.

In a franchise business, you'll probably find that the preparation of the business plan is substantially easier than for any other type of independent business startup. The franchisor typically has a great deal of verbiage readily available to include in the narrative portions of the business plan, and also includes much of the financial information you'll need in the Uniform Franchise Offering Circular (UFOC) disclosure document.

By way of background, there are a number of sections included in a typical business plan, whether franchise or other. The main sections include:

  • Introduction. A complete description of the business, including an identification of the product or service involved, the size and competitive nature of the market for the business, a description of the operational approach used to take the business to market, and the challenges and risks associated with the business startup.
  • Management. A description of the key management roles in the new business, including naming the persons who will fill the roles and providing background information on these people, such as resumes stressing prior experience relevant to success in the new business.
  • Marketing. Explanation of how you're going to attract customers for the new business. This includes an explanation of the competitive advantages the new business would enjoy, an examination of the value equation related to the product or service as it relates to potential customers and, of course, detailed marketing and advertising plans for the business.
  • Pro Forma Financial Projections. Income statements, cash flow statements and balance sheets that project the anticipated financial performance of the business when it begins operation. The statements should include extensive notes concerning all material assumptions used to prepare the projections. These projections should always be prepared on a very conservative basis, since it's not possible to project the unexpected delays or challenges that always seem to happen on any new business startup.
  • Financing Needs. Regardless of the source of funding for the new business (even if all funding is coming from your savings), you should always prepare a section of the business plan related to financing needs. This section involves a complete analysis of all startup costs related to the new business, including sufficient working capital to cover initial marketing plans and operating losses until the projected breakeven point for the business. The process of carefully detailing this information, even if you're not borrowing anything from an outside source, will better prepare you for whatever might happen as you get the business set up and operating.

Again, one of the advantages of a franchise business , in relation to creating a business plan, is that most of this information is readily available from the franchise company. You'll usually find that the franchise company's brochure or website contains sufficient information to complete much of the narrative called for in sections 1 and 3 above. You'll also find that the UFOC contains much of the information to complete section 5 above and, if the franchisor publishes an earnings claim in Item 19 of the UFOC, you may be well on your way to completing section 4 above as well.

Sometimes franchise companies require prospective franchisees to begin work and/or substantially complete their business plans prior to being approved as new franchisees in the system. Whether the company requires this or not, it's not a bad idea. The process of actually creating a business plan will force you to consider options and formalize your projected course of action in the new business. You'll typically identify a number of questions during this process that you can refer to the franchise company to make sure you have a clear understanding of the franchise startup prior to making a final decision to proceed with the franchise.

As a final note on this process, keep in mind that your business plan must be updated and fully finalized after completing the franchisor's initial training for new franchisees. Regardless of how much research you do prior to becoming a new franchisee, you will almost certainly have a far greater understanding of factors like operational and marketing plans for the business after completing initial training. Most franchisors will also have pro forma financial models prepared that you can use to double check, or even replace, the ones you initially developed for the financial projection section of your business plan. Take the time after completing initial training to carefully review your entire business plan based on your new knowledge, and you'll be as prepared as possible for your new franchise business to be off and running successfully.

Jeff Elgin has almost 20 years of experience franchising, both as a franchisee and a senior franchise company executive. He's currently the CEO of FranChoice Inc. , a company that provides free consulting to consumers looking for a franchise that best meets their needs.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick Red Arrow

  • This Black Founder Was Denied a Business Loan and Set Out to Prove the 'Gatekeepers' Wrong. He's Made More Than $500,000 So Far — But It's Just the Beginning.
  • I Tried 3 AI Headshot Generators and There Was a Clear Winner
  • Lock These Are the Highest-Paying Side Hustles for a Single Day of Work
  • An Outpost of a Popular Buffet Chain Has Racked Up Tens of Millions of Views on Social Media. Here's How It Keeps Going Viral .
  • Lock I Biohacked My Way to Better Mood, Sleep and Job Performance — and You Can, Too. Here's How.
  • SMART Goals May Be Holding You Back — Try This Effective Goal-Setting Technique Instead

Related Topics Red Arrow

Most popular red arrow, recruiting firm breaks silence after leaked job listing asks for 'white' candidates only: 'legal action has been initiated'.

Arthur Grand Technologies is an IT staffing firm based in Dallas, Texas.

Create Visually Appealing Social Posts, Ad Banners and More With a Creatrio Pro Lifetime Subscription, on Sale for $49.99

With more than 2,000 templates to work from, no design experience is necessary.

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

10 Simple, Productive Activities You Can Do When You Aren't Motivated to Work

Quick note: This article is birthed out of the urge to do something productive when I am not in a working mood. It can also inspire you on simple yet productive things to do when you're not motivated to work.

She Wrote An 'Escape Plan' to Quit Her Job and Move to an Island. Now She's There Generating Nearly $300,000 A Year

"My detailed, step-by-step plan on how I would quit my job and move to a Caribbean island."

Here Are 3 Strategies Startup Founders Can Use to Approach High-Impact Disputes

The $7 billion "buy now, pay later" startup Klarna recently faced a public board spat. Here are three strategies to approach conflict within a business.

Successfully copied link

comscore

Creating a business plan for your franchise

Creating a business plan for your franchise

If it seems like new Starbucks locations are popping up faster than weeds in your backyard, there’s a sound reason behind it. Successful franchises rapidly expand their reach because they begin with an effective business plan and focus on growth.

Related: Franchise development—what you need to know

Creating a business plan is the necessary first step for any business owners who want to bring a franchise into a new market. Well-crafted franchise business plans are the equivalent of an elevator pitch. Business owners can use them to convince others to invest the capital they need to hit the ground running. Lenders also require a business plan before they will sign off on any loans to a prospective franchise owner.

Creating your franchise business plan

A typical business plan includes four main sections. You can touch on these sections in an executive summary, then break down the details in each individual section. Each section functions like a signpost on the roadmap you’re drawing for your new business to reach its goals. Here’s an overview of those four sections and what they should include.

Business description

The purpose for this section is basically self-explanatory. It offers basic and essential information on the franchise itself. For example, it describes the products and services your business offers. You can also identify your customers and how your business will help them.

You should evaluate the market where you wish to set up shop and include information about it in this section. This includes an analysis of your direct competitors, identifiable challenges or risks that come with doing business in that market, and a breakdown of your target demographic. Discuss how you will approach and manage each of these factors within your business operations.

Your business plan needs to detail your company’s management structure and any related core values or philosophies. Which positions will be responsible for managing day-to-day operations? Who will fill these positions? What qualifications and skills are required for each position? How will you hire and train the necessary personnel? What salaries and benefits will you offer to these employees?

Discuss the individuals who will be filling management and leadership roles on your team. Explain—in depth—what makes those particular individuals qualified to succeed in those roles. Franchising is only as successful as the management team doing the work behind the scenes, and the people reading your business plan will look over this section carefully.

A new business can only succeed if it uses the right formula to reach potential customers and turn them into real customers. This is where your marketing plan comes into play. Your business plan should detail how you will reach customers and convince them to walk through your door.

Doing thorough market analysis is critical in this part of your overall planning. You need to identify your customers, assess their needs, and determine how your business will fulfill those needs. How will this data shape your pricing? What is your potential market share? Outline how you will market your business to reach that target demographic.

Financial projections

It takes a significant investment of capital to get any business off the ground, and franchises are no exception. Investors and lenders will be most concerned about turning a profit. They don’t want to sink funding into a business that will end up folding like a paper airplane at the first sign of trouble.

Your plan should outline a realistic budget that includes both startup costs and operating costs. These financial projections should cover your cash-on-hand, franchise purchasing fees, startup costs and operational costs. The budget should cover operational costs over a three- to six-month period.

Discuss how much capital you’ll need to cover these costs until your business turns a profit. You also need to demonstrate the accounting and inventory control systems your franchise will use. Include income statements, cash flow projections, and data sheets to project how your business will do once it opens its doors. Financial projections should be conservative and take into account as many variables as possible.

Getting to work

There are many great resources available to help you structure your business plan so that it conveys the message you intend with confidence. Franchise business plan templates can help you see what works best and how to put your vision into the right words. You can pick from assorted stock images, fonts, colors and other design elements to make it visually appealing and reflect your franchise’s brand voice.

If you’re not a professional designer,  Lucidpress  can help you start out on the right foot. We offer plenty of templates suited to meet your business document needs. Our intuitive online editor makes it easy to design traditional printed documents or embrace the virtual realm with interactive digital documents. Check out our  template gallery  for a dose of inspiration, then sign up for a free Lucidpress account to take one for a test drive.

Your brand matters. If you’re ready to build your franchise brand into a consistent, compelling force that drives your business, this guide will show you how to get started.

Get the latest from marq.

Artificial Intelligence Design Tool

Artificial Intelligence Design Tool Statistics & Trends in 2023

The Brand Enablement Playbook

The Brand Enablement Playbook

Group Therapy E5

Group Therapy E5- The power of your brand story

business plan for a franchise example

  • United States
  • United Kingdom

How to start a franchise

12 steps to franchising a business..

Avatar

In this guide

How to start a franchise business

How to buy a franchise with no money, buying a franchise vs. starting a business, bottom line, frequently asked questions.

Small business resources

Small business guides

Business formation

Opening a franchise allows you to flex your entrepreneurial skills without starting from scratch. You get a proven business model while still being your own boss. However, the startup fees can be pricey, and you must sign a contract committing to the franchisor’s playbook.

Starting a franchise can take three to four months from your initial research to the final purchase, according to the Small Business Administration (SBA) (1) .1 After you’ve signed the contract, it could take another two to six months until you’re ready to welcome customers.

That said, running your own franchise can be rewarding — and lucrative. These 12 steps can help guide you from conception to opening day.

1. List your top companies or businesses

When putting together a list of franchises you’d like to own, start by thinking about your favorite businesses. Consider your strengths, weaknesses and passions against what you think could make you money.

Franchises are available in nearly every industry:

  • Business services
  • Convenience stores
  • Real estate
  • Educational and learning
  • Entertainment
  • Specialty retailers
  • Travel agents
  • Health and fitness
  • Home healthcare

2. Research the franchise market

You can gather information about market conditions in your area, including demand and predictions for economic growth, through the SBA, the Census Bureau and private market firms to help you choose which franchise to open.

Take advantage of the resources at your local Small Business Development Center or a business school at a nearby college or university.

People who already own franchises can be invaluable resources. Ask about their experience and whether the process was worth it.

3. Evaluate investment and franchise costs

After you’ve pinpointed a market, research and compare the costs associated with your top picks. Franchise costs vary widely depending on the industry and business you choose to invest in, not to mention where you live or plan to do business. (2)

Note that some franchise owners — called franchisors — require a minimum net worth for franchisees.

When calculating the cost of starting your chosen franchise, look beyond upfront fees to costs that come with everyday business ownership.

4. Request a franchise disclosure statement

Reach out to the franchisor for a copy of its franchise disclosure document (FDD), which contains detailed legal information about its franchise group, along with financial data like the average gross revenue of its locations.

Sometimes you can find FDDs available for free from online databases around the web. Just make sure you obtain the most recent version, as franchisors release a new FDD every year.

Also, consider the retention rates for your chosen franchise. A retention rate is the percentage of locations that close each year. Section 20 of the FDD breaks down closures by state, so you can see how many have closed in your area compared to those in operation.

What else can I find in the franchise disclosure document?

An FDD covers more than 20 elements of buying a franchise, such as fee requirements, estimated initial investments and performance and revenue details.

It’s the legal information a franchisor is required to disclose to you, the franchisee, as part of due diligence before you invest.

The franchisor must provide you with the FDD at least 14 days before you sign a contract, though it’s a good idea to request a copy for your initial research. You can typically download a PDF of the FDD, though some franchisors might send you a hard copy.

5. Consider forming an LLC or corporation

Purchasing a franchise as a limited liability company (LLC) or corporation, rather than as a sole proprietor , provides financial and legal protection of your personal assets.

As an LLC or corporation, you aren’t held personally accountable for debt incurred by the franchise. If you remain a sole proprietor, you’re legally indistinguishable from your business — so you must cover business debt out of pocket, if necessary.

The same goes for lawsuits. As an LLC or corporation, your personal assets are covered if someone decides to sue your franchise.

6. Write a comprehensive business plan

A good business plan can help you analyze costs, predict sales and estimate profits before signing an agreement. Research what to expect in the months and years ahead to gather the information you need to take the next step — or pause if you’re not ready.

A successful business plan typically includes eight key components:

  • Executive summary
  • Company description
  • Market research
  • Organization structure
  • Product research
  • Financial analysis and funding needs
  • Financial projections

A business plan is necessary if you plan to apply for funding. Lenders want to see a viable plan for turning a profit and sustaining your business over the long haul, as it helps them evaluate if you’ll repay.

7. Get the financing you need.

If you don’t have the initial investment costs at the ready, you may need outside financing to launch or run your franchise. Many banks, the SBA and franchise-specific lenders offer financial help for would-be franchisees.

Other options include crowdfunding or lenders based entirely online. Online lenders like Kiva and Bluevine tend to leverage technology for more streamlined or automated approval processes. You could also use an online business marketplace like Lendio or Fundera to compare a network of funding options in one spot.

Some franchisors, like the UPS Store, Chem-Dry Carpet Cleaning and Cruise Planners, offer financing assistance, either through in-house programs or partnerships with third-party lenders. For example, Cruise Planners finances 50% of your franchise costs over the first 12 months, while Chem-Dry offers in-house financing for the initial licensing fee. This information is available in section 10 of the FDD.

8. Apply for the franchise and an interview

How you apply depends on the franchise you choose. For example, McDonald’s allows you to fill out an application online, while Chick-fil-A requires an expression of interest form to get the ball rolling.

Plan to attend interviews with the company, which allows time to parse through important details and determine if you’re a match for the franchise.

Expect questions that cover your plans, experience, finances and support, including your:

  • Goals, timeline and territory
  • Previous franchise and industry experience
  • Reasons for choosing the industry and franchise
  • Personal support system
  • Financial capital and business plan
  • Leadership experience
  • An exit strategy

9. Review and sign the franchise contract or agreement

If after your interview you and the franchisor decide it’s a good match, it’s time for the paperwork. You’re required to complete a franchise contract, which is a binding legal document that details:

  • Location and territory
  • Equipment and operations
  • Royalties and ongoing fees
  • Advertising and marketing
  • Trademarks, patents and signage
  • Training and ongoing support
  • Quality control and insurance
  • Dispute resolution
  • Renewal rights
  • Termination and cancellation policies
  • Exit strategies

Franchise contracts come with terms of five to 20 years. At the term’s end, you can often choose whether to renew the contract or discontinue your franchise.

At contract signing, you’ll likely need to also pay any upfront fees or initial investment expenses. Talk with the franchisor about preferred payment methods so you’re prepared.

10. Comply with state and local permit requirements

Most state and local governments require you to obtain licenses before launching your franchise — including health permits, occupational licenses, tax registrations and business licenses — or face fees.

While most states require the franchisor to apply for business licensing, a handful of states require a franchisee to register:

  • Connecticut
  • North Dakota
  • Rhode Island

You may also need to register for a license on a county or city level. Your franchisor should be able to help you anticipate permits required for your area and navigate the legal requirements. The SBA also provides information about franchise licenses that depend on your industry and state.

11. Build your location and assemble your team

The franchisor provides you with the essential elements of preparing your space — like signage, blueprints, fixtures and general decor — but you’re in charge of hiring contractors for the construction work.

You’re also responsible for hiring and training employees . Most franchisors provide training resources for franchisees, even sending a representative to help bring everyone up to speed about company branding, culture and expectations.

12. Stage a grand opening

In the days and weeks leading up to opening day, generate an awareness of your brand within the surrounding community. Most franchisors provide a marketing game plan and might even send a corporate team to help with your grand opening.

When preparing for your big day, a few tips can help make it a success:

  • Choose a date with high traffic to attract as many people as possible.
  • Send press releases to local media and advertise to your market.
  • Invite friends, family and city officials.
  • Decorate the store to attract attention and generate a festive feeling.
  • Organize exciting activities on opening day, like door prizes or giveaways.

If you’re short on cash, you aren’t disqualified from starting a franchise — but you’re going to need to explore funding and financing to get from planning to opening day.

  • Small business loan . Available amounts for small business loans range from $5,000 to $5 million, and rates start at around 5%.
  • Personal loan for business . A personal loan typically comes with fewer requirements. However, they often max out at $50,000, and expect rates from 4% to 36%.
  • SBA loan . Loans from the Small Business Administration (SBA) are known for low interest rates, but strict requirements and a lengthy application.
  • Home equity loan or HELOC . Consider borrowing against the equity in your home as a home equity loan or line of credit . But, because your financing is tied to your home, you risk losing your property.
  • Rollovers for business startups . A rollover for business startups — or ROBS — allows you to invest retirement funds into your business without paying taxes, fees or interest. However, this puts your retirement at risk.
  • Business partnership . Partners can assume part of the financial risk if you can’t fund the business alone. However, while you split the funding, you also split the profit.

When deciding between buying a franchise and starting your own business from scratch, a major difference is the initial investment compared to the ongoing fees. Buying a franchise usually costs more upfront, while the expense of starting your own business varies widely but is typically cheaper in the beginning. (3)

How important is autonomy to you? With a franchise, you’re buying into an existing business with limited control, as you’ll need to follow strict branding, marketing and legal guidelines. Starting your own business, on the other hand, offers more creative freedom. But, that comes with the challenge of building a customer base from nothing.

Overall, buying a franchise means you’re part of a proven system with more restrictions, but also with the benefit of brand recognition and corporate support. A new business means you’re building everything from the ground up, with more risk but also more freedom.

Case study : Opening a Critter Control franchise

Let’s say you want to open a Critter Control franchise in San Jose, California — a city with a population of about 1 million people. At an average of $582,828 gross revenue for that market, according to Critter Control, here’s what you could reasonably expect.

To estimate your profits in the first year of opening, you’d subtract the franchise fee, initial investment, operating costs and royalties from the average gross revenue.

Average gross revenue – (franchise fee + estimated initial investment) – operating costs – royalties

= First-year profit

$582,828 – ($70,100 + $116,550) – $326,384 – $46,626

Using this equation, you can expect to pocket about $23,168 after your first year in business. Because the franchise fee and initial investment are one-time fees, you should be able to make more money in the following year — some $209,818, assuming your average gross revenue stays about the same. As the business grows — and your gross sales increase — your profit is expected to increase over time, barring unforeseen circumstances in the market and industry.

Starting a franchise might be the right choice if you’ve got a solid game plan for raising funds and like the idea of following a tried-and-true business model. But if you’re still on the fence or want to research other options, browse our small business guides to starting, buying or growing a business.

How much money do you need to start a franchise?

The cost of buying a franchise depends on various factors, such as the location and industry. A restaurant in New York will cost significantly more than one in a small town — even just for the real estate alone. Startup costs can range from $10,000 to $5 million, with the average falling between $100,000 and $300,000, according to APD.2

How profitable is owning a franchise?

The profitability of a franchise varies significantly based on the brand’s strength, industry, startup costs and other factors. Data from 2017 shows that for food and beverage franchises, the median annual income is around $70,000 for two years or more in business and around $50,000 for startups. Only 34 percent earned more than $100,000, while many earned much less, according to a survey by the Franchise Business Review.3

How do franchise owners get paid?

Franchise owners and franchisors profit from the business’ success. Franchisors earn income through the royalties and fees paid by their franchisees, while franchise owners generate income from the net profits of sales and services, which is the remaining revenue after deducting overhead expenses. These overhead expenses include the cost of equipment, inventory, staffing and maintenance of a physical location, including utilities like electricity and internet.

  • “How long does it take to start a franchise?,” US Small Business Administration, September 6, 2018
  • “Franchise startup costs,” ADP
  • “How much do franchise owners make and is it profitable?,” Franchise Business Review, October 6, 2018

business plan for a franchise example

Holly Jennings

Holly Jennings is an editor and updates writer at Finder, working with writers across all niches to deliver quality content to readers. She’s edited hundreds of financial articles ranging from credit cards to investments. With empathy at heart, she especially enjoys content that breaks down complex financial situations into easy-to-understand information. Prior to her role at Finder, she collaborated with dozens of small businesses to maximize the reach and impact of their blog posts, website copy and other content. In her spare time, she is an award-winning author for Penguin Random House, writing about virtual reality worlds, magical girls and lasers that go pew-pew.

More guides on Finder

Analysis of data on how much the average employed American spends working from an office full-time and hybrid.

Compare the key differences in investment options, contribution limits and tax advantages between Roth IRAs and savings accounts.

Compare the key differences in investment options, contribution limits and tax advantages between brokerage accounts and Roth IRAs.

Check out our picks for the brokers with the best cash sweep rates on uninvested cash.

How to avoid taxes and penalties when you move funds from one retirement account to another.

A step-by-step guide on how to choose a financial adviser.

A property management software and account designed for landlords.

Looking to fund your business? Discover the best strategies for getting the funding you need from banks and online lenders, investors and more.

From budgeting to taking advantage of cashback rewards, use these five tips to help you manage your money.

Navigate your business taxes with these forms, deadlines and filing tips for small businesses.

Ask an Expert

Click here to cancel reply.

How likely would you be to recommend finder to a friend or colleague?

Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.

Advertiser Disclosure

finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.

SlideTeam

Researched by Consultants from Top-Tier Management Companies

Banner Image

Powerpoint Templates

Icon Bundle

Kpi Dashboard

Professional

Business Plans

Swot Analysis

Gantt Chart

Business Proposal

Marketing Plan

Project Management

Business Case

Business Model

Cyber Security

Business PPT

Digital Marketing

Digital Transformation

Human Resources

Product Management

Artificial Intelligence

Company Profile

Acknowledgement PPT

PPT Presentation

Reports Brochures

One Page Pitch

Interview PPT

All Categories

Top 10 Franchise Business Plan Templates with Samples and Examples

Top 10 Franchise Business Plan Templates with Samples and Examples

Siranjeev Santhanam

author-user

The origins of modern-day franchising go all the way back to the Middle Ages, when feudal lords formed partnerships with their vassals, supplying them with land and resources in return for security and protection.

Today, in the world of business, franchises are inescapable. They are everywhere in our current hyper-consumerist market, an almost unstoppable business force. Franchising offers certain strong advantages to businesses, giving ventures of all kinds a chance to tap into broader kinds of brand recognition and establishment names to gain more revenue. Franchises also create value within the consumer market, giving customers consistent and reliable experience across varying domains and regions of operation.

Dive deeper into this subject by reading our other blog discussing twelve templates for a Franchise Business Model.  Click here now and read it.

In this blog, we will examine a well-researched, premium business template that can aid any up-and-coming business seeking to establish a powerful franchise. We will offer you a sneak peek of the template, giving you access to ten leading slides from the presentation while discussing what makes this business plan valuable. We’ll also be diving into some related products in this spectrum, allowing you to choose from a diverse and well-curated range of B usiness Plan  PPT templates for yourself.

Let’s begin.

Are you in the software business? Click here and check out blog on must-have SaaS Templates now.

Table of contents 

  • Executive summary
  • Company Overview
  • Industry analysis  
  • Customer analysis
  • Competitive analysis
  • Growth potential analysis
  • Go-to-marketing analysis
  • Operational plan
  • Financial plan
  • Graphical representation analysis

1) Executive summary

The deck starts off with a well-designed executive summary segment that can serve as a vital template for your organizational process, allowing you to lay out the inner workings of your plan in an elegant and professional manner. For stronger readability and enhanced presentation, it has been divided into core sub-sections, allowing you to create a more eloquent overview of your franchise plan. ‘ quick pitch,’ ‘about the business,’ ‘the company,’ ‘services offered’, and ‘ goals and objectives’ are the foundational headings incorporated into this section, giving you ample room to lay the groundwork for your franchise expansion plan.

Executive Summary

Download now

2) Company Overview

Use a professional template to discuss your organization and evaluate the state of your business framework. Accomplish this and more with the aid of our company overview section, which has been curated with a sound insight into the business workings of the day. It has been modeled after the prevailing trends in the current business paradigm and discusses some essential components such  as ‘start-up business summary,’ ‘mission and vision statement,’ ‘market gap and absolute solutions associated,’ and lastly, ‘key success factors.’ Build on the core methodologies of your company as you polish, hone, and refine your existing working structures with the aid of all of these components.

Company Overview

3) Industry analysis

Franchises can be a great tool to climb the business hierarchy and get to the top, but without a sound grasp of the market in which one operates and a thorough inspection of the conditions of the industry, it could become a strenuous uphill battle. Our industry analysis section can offer you a clean, insightful view of the current trends in the industry where you operate, giving you the commercial prowess to tailor your approach, restructure your policies, and align with the demands of the industry. This section has been integrated with some much-needed highlights such as ‘market analysis,’ ‘market trends,’ ‘market challenges,’ ‘growth drivers,’ and finally, ‘geographical analysis.’ Launch a more holistic and focused look into the ever-changing needs of the industry, drawing out the essentials of the market through an examination of its trends, growth process, geographical intricacies, and more.

Industry analysis

4) Customer analysis

Customers are the bedrock of any successful business, and with large, region-wide franchises, this could be said to be truer than ever. Acquire the tools to gain traction in the market and cultivate a more loyal and invested customer base, all with the thorough customer analysis. In our customer analysis template, you are given access to the following subheadings – target analysis , buyer’s persona , and, lastly, market sizing . Elevate your findings with data-driven rigor using charts, graphs, and all of the other aspects of the presentation to create a more robust, intensive analysis.

Customer analysis

5) Competitive analysis

Scan the competitive landscape and make more informed decisions, all with the aid of more sophisticated tools of data and analysis. Our competitive analysis segment gives you the instruments of dissection and evaluation to do just this, creating a more balanced and error-free business environment that boosts your chances of success in the game of franchises. This section of the presentation has been divided into two broad sections – competitive landscape and key attributes and comes with the added benefit of graphs and tables. Use all of the tools in this template to intensively probe the competition and establish a more lasting presence in the market.

Competitive analysis

6) Growth Potential Analysis

Weaponize the growth potential analysis to test your own strengths and weaknesses and create more conclusive strategies for growth that will take you to the top. This presentation segment has been demarked into two broad sections – SWOT analysis and Porter’s five forces analysis. Both of these analysis models offer sound, compelling frameworks for investigating your organization's growth potential, thereby allowing you to make healthier and more rewarding decisions in the long run.

Growth Potential Analysis

7) Go-to-Marketing Analysis

Marketing can be the make-or-break moment for most companies seeking to expand and build franchises. With the aid of this template, you can get ahead of the curve on this front, creating more reliable marketing systems and unleashing your corporation's full potential. Harness the full potential of your sales strategy while creating more relevant positioning strategies. Cultivate more market-friendly policies by using the right pricing strategies, and lastly, learn to drive sales with the aid of the sales funnel divulged in the template .

Go-to-Marketing Analysis

8) Operational Plan

Create masterful strategies as you leverage the right tools to engage in more precise operations. This subsection is dedicated to this front, with the aid of all of the right metrics, information, and data to back up your own self-regulated operational planning. There are two critical subheadings integrated into the slides here in this part of the template, and they are operational framework and operational milestones .

Operational Plan

9) Financial plan

Mount a stronger hold over your corporate financial management while creating more efficient channels of oversight and regulation. Do this fruitfully and methodically with our financial plan subsection, which comes with an exhaustive set of tools designed to help large-scale companies implement and manage better financial systems. Some highlights from this part of the template include a financial assumptions , revenue model , breakeven analysis , alongside some other more deserving highlights such as the profit and loss statement , cash flow statement , balance sheet statement , scenario analysis , and lastly, a DCF valuation analysis .

Financial plan

10) Graphical Representation

Using our graphical representation analysis section, you can create in-depth visual illustrations to help you manage, process, and structure your own financial workings, thereby adding more value to your commercial franchise. Some highlights to be mentioned in this area of the template include graphs dedicated to total earnings after the tax business, total gross profit during the first five years of business, a cash flow chart showing the first five years of business, a balance sheet chart for the first five years of business, and more.

Graphical Representation

This is just a small glimpse into this well-researched, thoroughly made, fifty-two slide presentation, which comes fully equipped with all of the vital needs of franchise-related business models. Download the full presentation now to get your hands on our premium PDF, Word Doc, and XLS files and access more of this high-quality, infographic material.

Now, allow us to guide you through related products in this subject area.

Related Products:

Template 1) Franchisee Business Plan Powerpoint Presentation Slides

This elegantly made, distinct PPT template can help you formulate the right strategies and get ahead when attempting to build a franchise. Some vital components included in this presentation include a management summary, an exit strategy, a competitor analysis, an industry analysis, and more. Download this seventy-eight-page presentation and work your way to the top with the aid of meticulous planning and data-driven protocols.

Franchisee Business Plan

Template 2) Franchise Business Model Powerpoint Template Bundles

This template, consisting of twenty-five slides, has been incorporated with a vast set of tools, data-gathering techniques, and graphical presentations that can be of great value when attempting to make a successful franchise out of a fledging business. Some highlights to be mentioned among the headlines in these slides are franchise lean business model canvas, franchise business development model with key factors, hotel franchise model canvas, retail franchise model canvas, and more. Get it now.

Franchise Business Model

Template 3) One-Page Business Plan For Successful Restaurant Franchise

Are you in the restaurant business and seeking to evolve your business into a large-scale franchise? We’ve got just the right template to guide you through this process. This one-page infographic template comes with all of the right credentials to help you set up and manage such a rapid operation, with the aid of sound financial tracking metrics, a timeline, and milestones as well. Download this template and weaponize its contents to operate your franchise business with a more well-defined roadmap.

One page business plan for successful restaurant franchise

Template 4) One Pager KFC Franchise Business Plan Infographic

(Are you seeking to invest in the real estate business? We’ve created some templates to help guide you through the process. Click here and read it now.)

This one-page infographic can help you build a more sustained business model with the help of stringent planning and meticulous tracking systems. Some subheadings incorporated into the slide are executive summary, vision, mission, target market, our products, financial projections, competitive advantage, and more. The slide can be a sound asset for any business seeking to build franchises in partnership with KFC. To Know more, click on Franchise Business Plan template

One Pager KFC Franchise Business Plan

FAQs on Franchise Business Plan

How do you write a franchise business plan.

Below are the steps to developing a franchise business plan: 

1 – Conduct market research and understand the defining characteristics of the industry that you wish to operate in

2 – Create a brief summation of the business plan and outline the business concept

3 – Cultivate a plan for operations, marketing and for financial management 

4 – Invest in the infrastructure and the processes needed for the franchise to be set up and to be incorporated 

What are the 4 types of franchise business?

The four primary types of franchise businesses are – product distribution franchises, business format franchises, job franchises, and manufacturing franchises.

Related posts:

  • [Updated 2023] Top 25 One Page Business Plan PPT Templates
  • Top 10 Food Truck Business Plan Templates with Examples and Samples (Editable Word Doc, Excel, and PDF Included)
  • Top 10 Vending Machine Business Plan Templates with Samples and Examples (Editable Word Doc, Excel, and PDF Included)
  • Top 10 Supermarket Business Plan Templates with Examples and Samples ​​(Editable Word Doc, Excel, and PDF Included)

Liked this blog? Please recommend us

business plan for a franchise example

Must-have Landscape Proposal Templates with Samples and Examples

Must-Have Payment Contract Template with Sample and Example

Must-Have Payment Contract Template with Sample and Example

This form is protected by reCAPTCHA - the Google Privacy Policy and Terms of Service apply.

digital_revolution_powerpoint_presentation_slides_Slide01

Digital revolution powerpoint presentation slides

sales_funnel_results_presentation_layouts_Slide01

Sales funnel results presentation layouts

3d_men_joinning_circular_jigsaw_puzzles_ppt_graphics_icons_Slide01

3d men joinning circular jigsaw puzzles ppt graphics icons

Business Strategic Planning Template For Organizations Powerpoint Presentation Slides

Business Strategic Planning Template For Organizations Powerpoint Presentation Slides

Future plan powerpoint template slide

Future plan powerpoint template slide

project_management_team_powerpoint_presentation_slides_Slide01

Project Management Team Powerpoint Presentation Slides

Brand marketing powerpoint presentation slides

Brand marketing powerpoint presentation slides

Launching a new service powerpoint presentation with slides go to market

Launching a new service powerpoint presentation with slides go to market

agenda_powerpoint_slide_show_Slide01

Agenda powerpoint slide show

Four key metrics donut chart with percentage

Four key metrics donut chart with percentage

Engineering and technology ppt inspiration example introduction continuous process improvement

Engineering and technology ppt inspiration example introduction continuous process improvement

Meet our team representing in circular format

Meet our team representing in circular format

Google Reviews

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

Upmetrics

Business Planning

  • Financial Forecasting

AI Assistance

See how upmetrics works  →, strategic planning, entrepreneurs & small business, accelerators & incubators, business consultants & advisors, educators & business schools, students & scholars.

  • Sample Plans

Business Plan Course

Small business tools.

  • Strategic Canvas Templates

E-books, Guides & More

  • WHY UPMETRICS?

Customers Success Stories

  • Business Plan Builder
  • Canvas Modeling
  • Product Tour
  • Business Consultants and Advisors
  • Entrepreneurs And Small Businesses
  • Accelerators & Incubators
  • Educators & Business Schools
  • Students & Scholars
  • Sample Business Plans
  • business plan course
  • E-Books, Guides & More
  • Success Stories
  • Food, Beverage & Restaurant

Food Franchise Business Plan

trustpilot reviews

If you are planning to start a new food franchise in your town, the first thing you will need is a business plan. Use our food franchise business plan example created using upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new food franchise business, spend as much time as you can reading through some examples of food and restaurant business plans .

Reading some sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample food franchise business plan for you to get a good idea about how a perfect food franchise business plan should look like and what details you will need to include in your stunning business plan.

Food Franchise Business Plan Outline

This is the standard food franchise business plan outline which will cover all important sections that you should include in your business plan.

  • Introduction
  • A BON Fide Enterprise
  • Marginal Enterprise
  • Irrevocable Commitment
  • Doctors Associates, Inc.
  • Company Values
  • Business Model
  • Keys to Success
  • Summary Operating Forecast
  • All Day Value — includes the famous $5 foot long and the $3 Six-Inch Select
  • Featured Products
  • All Sandwiches
  • Fresh Fit Choices
  • Fresh Fit For Kidz
  • Sides, Drinks, Extras
  • The Subway Old Cut
  • The Subway PM Sub
  • The WM Meer
  • Demographic Trends
  • Health Consciousness
  • Convenience
  • Lithe Rock, AR Demographics
  • Operating Policies
  • Operating Philosophy
  • Strict Inventory Controls
  • Purchasing Cost Controls
  • Recipe a Portion Controls
  • Sanitation a Food Handling
  • Management’s Role
  • Software a Systems
  • Money a Profit Management
  • Hiring the Best
  • Training for Excellence
  • Retaining the Best
  • Staff Turnover / Training Costs
  • Target Market
  • Market Positioning a Branding
  • National Advertising
  • Local Marketing
  • Grand Opening Budget
  • Competitive Landscape
  • Direct Competitors
  • History and Structure
  • Professional Services
  • Tarek El Amarani
  • Staffing a Compensation
  • External Issues
  • Pre-Ownership Expenses
  • Revenue Assumptions
  • Direct Costs
  • Income Statement
  • Balance Sheet
  • Cash Flow Statement

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

business plan for a franchise example

After getting started with Upmetrics , you can copy this food franchise business plan example into your business plan and modify the required information and download your food franchise business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

Download a sample food franchise business plan

Need help writing your business plan from scratch? Here you go;  download our free food franchise business plan pdf  to start.

It’s a modern business plan template specifically designed for your food franchise business. Use the example business plan as a guide for writing your own.

Related Posts

Restaurant Business Plan

Restaurant Business Plan

Cloud Kitchen Business Plan

Cloud Kitchen Business Plan

Business Plan Presentation Complete Guide

Business Plan Presentation Complete Guide

AI Tools for Business Plan Creation

AI Tools for Business Plan Creation

About the Author

business plan for a franchise example

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Upmetrics logo

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

trustpilot reviews

Popular Templates

bpb AI Feature Image

Create a great Business Plan with great price.

  • 400+ Business plan templates & examples
  • AI Assistance & step by step guidance
  • 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Download Food Franchise Business Plan

franchise deck logo

Are looking for custom service?

  • Franchise Templates
  • Franchise Buying Guides
  • Best Franchises BEST FRANCHISES TO BUY in 2024 in the UNITED STATES
  • Food Franchise Opportunities
  • Education Franchises
  • Health and Wellness Franchises
  • Services Franchises
  • How to Franchise
  • Franchising Software
  • Franchise Marketing
  • Franchise Legal

Franchise Business Plan Example Presentation

Franchise Business plan

The first and most fundamental principle of franchising, Franchising prosperity doesn’t quite develop by chance. A franchise business plan increases the likelihood of a new franchisor and the franchise’s success by twofold.

Secondly, Businesses operate since they stick to a well-defined and well-executed strategy.

Over 543,000 new firms start in the United States every month, yet only 7 out of 10 survive after two years , while 5 out of 10 survive after five years. 

Surprisingly, over 70% of organizations that survive for five years follow a strategic business strategy.

The finest strategies begin with a particular goal and then establish objectives and techniques to help you achieve it.You should identify a few franchise-specific points in your business plan to franchise.

What is a franchise business plan? 

A business plan is a roadmap that outlines a company’s primary business operations, objectives, and strategies for achieving those objectives. 

When starting a franchise business, it is important to have a plan. This document will outline your goals, strategies and tactics for your business. 

Moreover, this business plan serves as a guide to help you stay on track and meet your desired results.

Lastly.a few key components in your franchise business plan, and below is a brief overview of each section

Components of a franchise model business plan

  • Company Overview and Purpose of franchise
  • Mission and Vision statement
  • Company’s organizational structure
  • Industry Analysis
  • Market research and planning
  • Business Operations
  • Franchise Marketing plan
  • Structure of franchise management and support
  • Franchise Financial Plan
  • Franchise Development Plan

1. Company Overview and Purpose of franchise

The franchisor, its products and services, opportunities, risks, strategies, target market, competition, competitive advantage, and franchisor’s strengths and weakness is analyzed.

Above all,the executive summary of your business plan could be the most crucial component. 

However, Call it the ‘elevator pitch.’

business plan for a franchise example

Therefore,The executive summary should never be longer than two pages, and if it will condense to one page, that’s even better.

To sum up,I would suggest a one-page or one-slide overview of the company and industry. You can download the template on a company overview or a comprehensive franchise business plan.

2. Vision Statement

Firstly,Your company’s culture is defined by a vision and mission statement. 

Secondly,the vision and mission statement will explain the company’s primary motivations for being in business and define the boundaries of its operations.

The vision statement reflects your concept regarding the franchisor and system, customers, vendors, profitability, professionalism, community, and the workers.

In addition,it contains franchise ambitions and the regions or cities they intend to expand their franchise business .  

business plan for a franchise example

3. Company’s organizational structure

The organizational structure and hierarchy give the reader knowledge regarding the company.

Also, it contains whether and when the company was bought out by the creators.Subsequently with current funding such as stock ownership, mortgages, loans, overdrafts, and debentures. 

Write on notable achievements you’ve made as well as any challenges you’ve faced and overcome—the management of the company and their previous experiences and accomplishments. 

4. Background and analysis of the industry

The industry analysis and background part, second only to the executive summary, is the one that gets the most attention. 

Secondly,you must recognize your market, competitors, and market position for your organization to have proper guidance.

When comparing an organization and its goods & services to competitors, use infographics for clarification and analysis. 

Lastly, I recommend to use Canva ,a tool to prepare images and infographics for your franchise business plan and your marketing campaign.

By answering the following questions, define the industry in which you work:

  • How big is the business? The reader will be interested in knowing the industry’s size or expansion.
  • Do a few large enterprises dominate the market, or is it divided among many smaller shops?
  • Who are your primary competitors, leading companies, franchisors, and suppliers in the industry?
  • Is there a big range of possible clients in the industry, or do a few people responsible for a substantial percentage of income?
  • What variables are critical to your industry’s success?
  • What laws, environmental developments, and commercial developments will have an impact on your sector?
  • Based on published projections, what do the industry’s rapid expansion and profile look like?

5. Market research and planning

You discuss your customer profile, market volume, industry developments, present and future competition, and the kind of location you require. It demonstrates to the potential franchisee that you are familiar with the industry you will be working in.

Market research should include

  • Market size and Market share of the franchisor or its micro industry.
  • Type of Market
  • Market Share Analysis
  • Hybrid market
  • Current Business Formats of these markets
  • Demand and Supply-side drivers contribute to the growth of the market segment.
  • Franchise Readiness and Feasibility analysis
  • Ideal Franchisee Profile
  • Franchise Financial Facts 
  • Franchising Models selected among COCO, FOCO, COFO or FOFO models
  • Different Expansion formats
  • Unit Franchise format
  • Master and Sub franchise format
  • Area Franchise format
  • Multi-unit Franchise format
  • Type of business model suitable
  • Business Format Franchising or Product-based franchising

6. Business operations

In any business, employees are the most valuable asset. Firstly,you detail your staffing plans for hiring and paying employees and the training programmes you or the franchisee will give in this area.

Additionally, addresses having the necessary products and materials to sell to the wider populace and run the business. The Operations plan includes concerns with your vendors, such as how they will deliver to you and how you will sell to them.

Also, enlighten yourself on your well-written franchise operational manual , which contains standards for franchisees to follow when operating your franchise. 

7. Franchise Marketing plan

business plan for a franchise example

Every investor, lender, bank and member of management wants to know how you plan to bring in new clients for your franchise. You define the entire franchise system’s marketing strategy, along with any neighbourhood and localized marketing tactics, in this area. 

Brand recognition, brand building initiatives , and franchise growth marketing strategy should focus on the market strategy. 

Make it clear to the reader how you plan to launch your business. Finally, you’ll take care of the pricing specifics. 

8. Structure of franchise management and support

Summarize the day-to-day administration necessary to drive the organization, and provide background details about your supervisors if you know who they are. Specify the volume and sort of employees you’ll need to hire, as well as your wage and benefit plans as well as your staff retention strategies.

Prepare your franchise support documents like :

  • Escalation Matrix
  • Franchise startup checklist
  • A Franchise Suggestion format
  • The Franchise non-disclosure/non compete agreement
  • Vendor checklist and purchase formats 
  • Brand kit: Brand logos and brand graphics. Use definition and process.

To sum up, describe the position and responsibilities of your franchise manager , who will be in charge of selling your franchise and providing daily support to franchisees to ensure that business operations operate smoothly. 

9. Financial planning for franchise business 

Firstly, How much money will you need to get your business off the ground?

Secondly, Is it possible that the business will require additional funds in the future?

Franchise Business plan

Give a five-year profit and loss forecast as well as a cash flow analysis. Examine the number of sales needed to break even and create a profit in detail.

Franchise Financial plan includes the fees projected profit and loss statement for franchisees. The franchisor shares this franchise document with the franchisee before signing the franchise. The franchisee will examine and cross-check the financial terms and conditions with the franchise disclosure document.

10. Franchise Development Plan 

To start with,you must include a full description of the “hows” in the business plan in addition to the “whats” of day-to-day operations. 

Secondly,What modifications do you expect to make to meet the plan if your company is already up and running?

To summarize,How much will such changes cost, and when do you plan to repay those costs? Figure out how much money you’ll need when you open and how long it will take to break even and make a profit if you’re beginning a business.

The franchisor must have a franchise sales plan that aligns with their franchise expansion and location strategy and schedules. 

11. Appendix

The appendix is where you can give the reader printouts of your tax records, business and industry publications, information about the community you’ll be servicing, and any other material that will assist them to comprehend the firm.

Writing a business plan may seem daunting, but it is essential to expand your business.

In short,you should enjoy the task of writing your business plan, and if not, you may lack the discipline required to run your own company.

Franchise business plan example

Starting a franchise can be a great way to own your own business with less risk than starting from scratch. It can also be a lucrative way to own a business, with some franchises earning over a million dollars in revenue annually.

However, there are a few key things to consider when starting a franchise. First, you will need to create a detailed business plan.

This plan should include an overview of the franchise, its target market, and how you plan to compete in that market. Likewise, you also include a section on financials, including your estimated startup costs and your projected income and expenses.

You can download our , franchise business plan template from our downloads page on the website.

business plan for a franchise example

Franchise proposal sample doc

A franchise proposal is a document,which is to request the approval of a franchising opportunity from the head office or board of directors. 

The proposal should be well-written and organized to make it easy for the head office to understand. 

Most importantly,be concise and provide all the necessary information to make an informed decision.

The following is a sample franchise proposal is pitch deck to potential franchisee.

business plan for a franchise example

Conclusion: Get You Franchise business Plan example

You should have a solid business strategy in place if you want to expand your company effectively. Instead of paying for advisory services, you can construct your business plan with the help of the following points.

Expand your business now with the help of Franchise Deck and profit from developing a franchise business plan. 

Give us a chance to sail with you on your franchising journey. The first milestone of the franchise business model is the franchise business plan. 

The franchise business plan comprises a franchise expansion strategy to decide why, how, when and where to franchise your business.

The franchise model business plan template and customized franchise plan include the franchise strategic plan, franchise proposal sample doc is part of franchise marketing kit.

Do you have any more innovative business plans? Share your plans with us to assist you in improving them, and give us your feedback on the same.

' src=

A highly successful franchisor is dedicated to its brand. Running a franchise requires a strong drive and motivation for success. Hence a franchise business plan can help an entrepreneur achieve his/her goals in the right way.

' src=

A standard business plan usually consists of-an govt summary, an overview of your services, thorough market and business research, a marketing and sales technique, operational particulars, financial projections, and an appendix.

' src=

ranchise business plans are essential for long-term success in the franchise industry. A comprehensive plan should include research into the target market, potential competitors, and the costs associated with the business. A business plan should also outline the legal requirements for setting up a franchise in the chosen market. A well-crafted franchise business plan should include detailed information about the franchise’s products and services, as well as the marketing strategy. It is important to include financial projections for the franchise business in the plan, including estimated startup costs and expected revenues.

' src=

A franchise business plan should also provide information on the franchisee’s responsibilities and the franchisor’s expectations. A key component of the business plan is a competitive analysis, which will enable the franchise to assess its competitive position in the market. It is also important to include a risk management plan in the franchise business plan to identify and mitigate potential risks to the business. A detailed operational plan should be included in the franchise business plan, which should outline the day-to-day operations of the franchise. The franchise business plan should include a clear vision and mission statement to guide the franchisee’s decisions.

' src=

A franchise business plan should also include a section on customer service, outlining the standards and policies that will be in place. A franchise business plan should also include a section on employee training and development, as well as procedures for hiring and managing employees. The franchise business plan should include strategies for managing inventory and controlling costs. The franchise business plan should also include a section on financial management, including budgeting and forecasting. Finally, the franchise business plan should include a section on exit strategies, outlining how the franchise will be exited and the possible outcomes.

' src=

How will your online business run day-to-day? The operations part describes the required requirements for your small business to run easily.

' src=

this is franchise business plan,

incase you need help with online business plan,email me a t [email protected]

Leave A Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

Related Posts

Buy a franchise with no money

Buying a Franchise with Little to No Money

EverLine Coatings Franchise

EverLine Coatings Franchise Cost Profit Reviews

The Boiling Crab Franchise

The Boiling Crab Franchise Cost Profit Reviews

Monkey Bizness Franchise

Monkey Bizness Franchise Cost Profit Reviews

Franchisors grow their franchise business strategically, and franchises make more profits, franchise services.

© 2022 • Franchise Deck • Powered by WordPress

SharpSheets

Plumbing & HVAC Business Plan PDF Example

Avatar photo

  • February 23, 2024
  • Business Plan

the business plan template for a plumbing & HVAC business

Creating a comprehensive business plan is crucial for launching and running a successful plumbing & HVAC business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your plumbing & HVAC business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a plumbing & HVAC business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your plumbing & HVAC business concept into reality. Let’s dive in!

Our plumbing & HVAC business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines our company’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

  • Executive Summary: Offers an overview of your plumbing & HVAC service’s concept, market analysis, management, and financial strategy.
  • Services & Prices: Lists the range of plumbing and HVAC services offered, including installation, maintenance, repairs, emergency response, and eco-friendly solutions, with a clear pricing structure.
  • Key Stats: Shares industry size, growth trends, and relevant statistics for the plumbing and HVAC market.
  • Key Trends: Highlights recent trends in the industry, such as the demand for smart, automated solutions, and the rise in energy-efficient systems.
  • Key Competitors: Analyzes main competitors in your area and differentiates your service in terms of responsiveness, expertise, and sustainable solutions.
  • SWOT: Strengths, weaknesses, opportunities, and threats analysis tailored to your plumbing & HVAC service.
  • Marketing Plan: Specifies marketing strategies to promote your services, including digital advertising, local trade shows, and customer referral programs.
  • Timeline : Key milestones and objectives from the initial setup to the first year of operations, detailing steps such as market analysis, legal setup, facility preparation, and launch marketing activities.
  • Management: Information on the management team, highlighting their expertise in plumbing and HVAC services, business operations, and development.
  • Financial Plan: Projects the 5-year financial performance of the plumbing & HVAC service, including revenue targets, profit and loss statements, fundraising needs, cash flow projections, and balance sheet forecasts.

the business plan template for a plumbing & HVAC business

Plumbing & HVAC Business Plan

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary serves as an introduction to your plumbing & HVAC service business plan, offering a succinct overview of your company and its offerings. It should highlight your market positioning, the comprehensive range of plumbing and HVAC services provided, its location, capacity, and a brief on daily operations. 

This section should also delve into how your plumbing & HVAC services will assimilate into the local market, including an analysis of the number of direct competitors in the vicinity, identifying who they are, alongside your company’s unique selling points that set it apart from these competitors. 

Moreover, it should include details about the management and founding team, outlining their roles and contributions to the company’s success. Additionally, a summary of your financial projections, including anticipated revenue and profits over the next five years, should be included here to give a clear view of your company’s financial strategy.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Plumbing&HVAC Business Plan executive summary1

Dive deeper into Executive Summary

Business Overview

For a plumbing & HVAC service, the business overview section can be effectively organized into 1 main section:

Services & Prices

Detail the range of services offered, from routine maintenance and repairs to installations of new systems, including specialized services like energy-efficient upgrades, smart home integrations, or custom solutions for complex systems. Outline your pricing model, ensuring it reflects the value and quality of services provided and aligns with the market you’re targeting. Highlight any service packages, annual maintenance contracts, or loyalty discounts that offer added value to your clients, encouraging long-term relationships and customer loyalty.

Make sure to cover here _ Services & Prices

business plan for a franchise example

Market Overview

Industry size & growth.

In the Market Overview of your Plumbing & HVAC service business plan, begin by analyzing the size of the Plumbing & HVAC industry and its growth potential. This analysis is vital for grasping the market’s breadth and pinpointing expansion opportunities.

Key Market Trends

Move on to discuss recent trends in the market, such as the growing consumer demand for energy-efficient systems, smart home integration, and high-quality indoor air services. For instance, highlight the need for services that offer customized solutions for energy conservation and the increasing popularity of eco-friendly and sustainable HVAC systems.

Key Competitors

Next, evaluate the competitive landscape, which encompasses a variety of providers, from high-end, specialized service providers to more budget-conscious options, as well as DIY home improvement trends. For instance, underline what sets your service apart, be it superior customer support, a broad spectrum of services, or expertise in advanced technologies like geothermal heating systems or smart HVAC controls. This section will aid in clarifying the demand for plumbing & HVAC services, the competitive scenario, and how your service is well-suited to prosper in this dynamic industry.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Plumbing&HVAC Business Plan market overview

Dive deeper into Key competitors

SWOT Analysis

First, conduct a SWOT analysis for your Plumbing & HVAC service, identifying Strengths (such as certified technicians and comprehensive service offerings), Weaknesses (including potential scheduling challenges or market saturation), Opportunities (for instance, the growing demand for eco-friendly and smart home solutions), and Threats (like regulatory changes or economic shifts that may impact household spending on home maintenance).

Marketing Plan

Next, formulate a marketing strategy that outlines methods to attract and retain customers through targeted advertising campaigns, promotional service packages, a robust online presence with helpful DIY tips, and participation in local community events or home shows.

Finally, draft a detailed timeline that sets out key milestones for your Plumbing & HVAC service’s launch, marketing initiatives, customer base expansion, and goals for service diversification or geographic growth, ensuring the business progresses with clear objectives and measurable targets.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Plumbing&HVAC Business Plan strategy

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the plumbing & HVAC business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the plumbing & HVAC business toward its financial and operational goals.

For your plumbing & HVAC business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Plumbing&HVAC Business Plan management

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your plumbing & HVAC business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your plumbing & HVAC business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Plumbing&HVAC Business Plan financial plan

Privacy Overview

  • Auto Insurance Best Car Insurance Cheapest Car Insurance Compare Car Insurance Quotes Best Car Insurance For Young Drivers Best Auto & Home Bundles Cheapest Cars To Insure
  • Home Insurance Best Home Insurance Best Renters Insurance Cheapest Homeowners Insurance Types Of Homeowners Insurance
  • Life Insurance Best Life Insurance Best Term Life Insurance Best Senior Life Insurance Best Whole Life Insurance Best No Exam Life Insurance
  • Pet Insurance Best Pet Insurance Cheap Pet Insurance Pet Insurance Costs Compare Pet Insurance Quotes
  • Travel Insurance Best Travel Insurance Cancel For Any Reason Travel Insurance Best Cruise Travel Insurance Best Senior Travel Insurance
  • Health Insurance Best Health Insurance Plans Best Affordable Health Insurance Best Dental Insurance Best Vision Insurance Best Disability Insurance
  • Credit Cards Best Credit Cards 2024 Best Balance Transfer Credit Cards Best Rewards Credit Cards Best Cash Back Credit Cards Best Travel Rewards Credit Cards Best 0% APR Credit Cards Best Business Credit Cards Best Credit Cards for Startups Best Credit Cards For Bad Credit Best Cards for Students without Credit
  • Credit Card Reviews Chase Sapphire Preferred Wells Fargo Active Cash® Chase Sapphire Reserve Citi Double Cash Citi Diamond Preferred Chase Ink Business Unlimited American Express Blue Business Plus
  • Credit Card by Issuer Best Chase Credit Cards Best American Express Credit Cards Best Bank of America Credit Cards Best Visa Credit Cards
  • Credit Score Best Credit Monitoring Services Best Identity Theft Protection
  • CDs Best CD Rates Best No Penalty CDs Best Jumbo CD Rates Best 3 Month CD Rates Best 6 Month CD Rates Best 9 Month CD Rates Best 1 Year CD Rates Best 2 Year CD Rates Best 5 Year CD Rates
  • Checking Best High-Yield Checking Accounts Best Checking Accounts Best No Fee Checking Accounts Best Teen Checking Accounts Best Student Checking Accounts Best Joint Checking Accounts Best Business Checking Accounts Best Free Checking Accounts
  • Savings Best High-Yield Savings Accounts Best Free No-Fee Savings Accounts Simple Savings Calculator Monthly Budget Calculator: 50/30/20
  • Mortgages Best Mortgage Lenders Best Online Mortgage Lenders Current Mortgage Rates Best HELOC Rates Best Mortgage Refinance Lenders Best Home Equity Loan Lenders Best VA Mortgage Lenders Mortgage Refinance Rates Mortgage Interest Rate Forecast
  • Personal Loans Best Personal Loans Best Debt Consolidation Loans Best Emergency Loans Best Home Improvement Loans Best Bad Credit Loans Best Installment Loans For Bad Credit Best Personal Loans For Fair Credit Best Low Interest Personal Loans
  • Student Loans Best Student Loans Best Student Loan Refinance Best Student Loans for Bad or No Credit Best Low-Interest Student Loans
  • Business Loans Best Business Loans Best Business Lines of Credit Apply For A Business Loan Business Loan vs. Business Line Of Credit What Is An SBA Loan?
  • Investing Best Online Brokers Top 10 Cryptocurrencies Best Low-Risk Investments Best Cheap Stocks To Buy Now Best S&P 500 Index Funds Best Stocks For Beginners How To Make Money From Investing In Stocks
  • Retirement Best Gold IRAs Best Investments for a Roth IRA Best Bitcoin IRAs Protecting Your 401(k) In a Recession Types of IRAs Roth vs Traditional IRA How To Open A Roth IRA
  • Business Formation Best LLC Services Best Registered Agent Services How To Start An LLC How To Start A Business
  • Web Design & Hosting Best Website Builders Best E-commerce Platforms Best Domain Registrar
  • HR & Payroll Best Payroll Software Best HR Software Best HRIS Systems Best Recruiting Software Best Applicant Tracking Systems
  • Payment Processing Best Credit Card Processing Companies Best POS Systems Best Merchant Services Best Credit Card Readers How To Accept Credit Cards
  • More Business Solutions Best VPNs Best VoIP Services Best Project Management Software Best CRM Software Best Accounting Software
  • Manage Topics
  • Investigations
  • Visual Explainers
  • Newsletters
  • Abortion news
  • Coronavirus
  • Climate Change
  • Vertical Storytelling
  • Corrections Policy
  • College Football
  • High School Sports
  • H.S. Sports Awards
  • Sports Betting
  • College Basketball (M)
  • College Basketball (W)
  • For The Win
  • Sports Pulse
  • Weekly Pulse
  • Buy Tickets
  • Sports Seriously
  • Sports+ States
  • Celebrities
  • Entertainment This!
  • Celebrity Deaths
  • American Influencer Awards
  • Women of the Century
  • Problem Solved
  • Personal Finance
  • Small Business
  • Consumer Recalls
  • Video Games
  • Product Reviews
  • Destinations
  • Airline News
  • Experience America
  • Today's Debate
  • Suzette Hackney
  • Policing the USA
  • Meet the Editorial Board
  • How to Submit Content
  • Hidden Common Ground
  • Race in America

Personal Loans

Best Personal Loans

Auto Insurance

Best Auto Insurance

Best High-Yields Savings Accounts

CREDIT CARDS

Best Credit Cards

Advertiser Disclosure

Blueprint is an independent, advertising-supported comparison service focused on helping readers make smarter decisions. We receive compensation from the companies that advertise on Blueprint which may impact how and where products appear on this site. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Blueprint. Blueprint does not include all companies, products or offers that may be available to you within the market. A list of selected affiliate partners is available here .

What is a DBA? Everything you need to know

Alana Rudder

Alana Rudder

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Updated 1:53 p.m. UTC Oct. 24, 2023

  • path]:fill-[#49619B]" alt="Facebook" width="18" height="18" viewBox="0 0 18 18" fill="none" xmlns="http://www.w3.org/2000/svg">
  • path]:fill-[#202020]" alt="Email" width="19" height="14" viewBox="0 0 19 14" fill="none" xmlns="http://www.w3.org/2000/svg">

Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy .

Featured Image

Hispanolistic, Getty Images

Short for “doing business as,” a DBA is a legal alias for your company. It is often used to name a new product line or brand, adopt an acquired business’ name, set up shop in a different state or open a bank account before official business formation. In this article, we go over what a DBA is, how to determine whether you need one, the pros and cons of having a DBA and how to register one. 

What does DBA mean?

A DBA stands for “doing business as.” Also known as a fictitious name, assumed name or trade name, it is a nickname for your business, explains Rachel Brenke , a business consultant and intellectual property lawyer in Fredericksburg, Virginia.

“It doesn’t create a separate legal entity, but provides a different name for the public to associate with your business,” says Brenke. 

Featured LLC service offers

Zenbusiness.

business plan for a franchise example

Via ZenBusiness’ website

Free version available

Lowest published package price

business plan for a franchise example

Via LegalZoom’s website

Northwest Registered Agent

business plan for a franchise example

Via Northwest’s website

When do you need a DBA for your business? 

You need to file a DBA whenever you want to use a different business name from the one you used to legally form your business. A DBA doesn’t offer the same legal protections as forming a legal entity, such as an LLC, for your company, However, it can be a tool for rebranding your company, expanding to a state where your business name is already in use or offering new services or products that aren’t associated with your registered name.

Here’s when to use a DBA according to the business type:

DBAs for LLCs, S corps and C corps

For LLCs, S corps and C corp businesses, a DBA may be useful if your company wants to conduct business under a different name than the one registered, says Brenke. For instance, you may have used your own name to form your LLC (i.e., Sarah Smith Writes) but would like a name that better describes your current products or services (Marketing Toolkit LLC, for example). You can file a DBA with a name that achieves this goal.

Along the same lines, if you want to create a website for your company and your business before forming your LLC, S corp or C corp, you can file for a DBA and create a website and branding that align with your legal nickname. Already-built branding can help the success of your LLC, S corp or C corp once it formally launches.

Other instances in which LLCs, S corps and C corps use DBAs include when they are: 

  • Launching a new product line. 
  • Setting up shop in another state in which their legal business name is already being used. 
  • Rebranding to reflect a new business direction. 

DBA for sole proprietorships and partnerships

If your business is structured as a sole proprietorship, a DBA lets you use a name other than your personal name. Further, if you don’t want the public to know you’re running a one-person business or don’t want others to know the names of your business partners, a legal alias can help.

For instance, the name of a law firm might include the last names and first initials of each partner. A DBA offers a veil of identity protection by enabling the firm to operate under a different name. This also can help position its partnership for a rebranding if they’re expanding their service offerings. 

DBA for franchises

For franchises, a DBA allows the franchisee to use the franchiser’s brand name, Brenke points out. “At the same time, the legal name of the business remains under the franchisee’s established entity,” she says. 

Here’s how it works: When franchisees start businesses in your franchise’s name, they set up their own LLCs. Each LLC initially has a name that’s different from your company’s name. To do business under your name for their respective franchise locations, each franchisee would need to file for a DBA for your business name. 

DBA pros and cons

  • Can offer an updated name that better describes evolving products or services. 
  • Enables operating multiple businesses under one entity.
  • Protects privacy of business partners.
  • Offers no business liability protection. 
  • Requires periodic renewal, often for a fee. 
  • Provides little exclusivity of use.

Advantages of a DBA

Many advantages come with a DBA. First, for many reasons, businesses use DBAs to designate a name that more accurately represents their businesses. 

For example, you can operate under a name that is more marketing-friendly, represents a new product line or better describes evolving business activities than your legal business name. If you operate a sole proprietorship or your LLC includes your personal name, an alternative DBA name adds identity protection while also perhaps better reflecting your products or services.

By opting for a DBA, you also don’t need to set up a separate business entity for each of your businesses or brands, a process that can be time-consuming and costly. Instead, you can operate several businesses under one company. For example, you may assign a DBA to each new brand in your portfolio.

Disadvantages of a DBA

In some circumstances, however, it is a good idea to forgo the convenience of a DBA and either trademark a name or form a new business entity.

For example, a DBA doesn’t protect your personal assets. In the event you’re sued, your personal assets aren’t separated from your business assets like they would be if you form an LLC or another business structure. For this reason, sole proprietorships might enjoy more protection if they choose an LLC rather than a DBA.

“A misunderstanding [about DBAs] is thinking that having a DBA provides legal protection,” says Brenke. “Unfortunately, it doesn’t provide any shield against liabilities or debts of the business.”

Another downside of a DBA is that it doesn’t legally protect your name to be used exclusively by you. A company in another county or state can use the same name. If you want legal protections nationwide, you must trademark your company name. If you’d like legal name protection within your state, form a new LLC or another business structure.

For assistance forming an LLC or trademarking your name, read our best LLC services guide . 

How to register a DBA in 7 steps

The steps to register a DBA depend on the state where you’re filing, but here is the general process: 

1. Choose your location

In most cases, you should file a DBA in the state or county where you do business. However, you are allowed to file your DBA in another location if it makes sense to do so. For example, you may file in another state if you plan to expand your business to a state other than where you normally operate, such as when you are opening a new franchise location. 

2. Check name availability

Before you file a DBA form, check whether the name is available for use. However, unlike naming an LLC or other formal business structure, multiple companies within one state can use the same DBA and most states don’t impose word restrictions for DBAs, allowing more flexibility in choosing your name. 

Still, you cannot use a name that is trademarked since a trademarked name is federally protected from infringement. The U.S. Patent and Trademark Office offers a tool that lets you see whether a chosen DBA is already trademarked. 

In addition, for effective branding purposes, it is recommended that your DBA be different from other company names being used in the state where you do business. One exception is if you bought a franchised business and need to do business under the name of the original franchise. 

3. Find the appropriate form  

Do an online search to find out where to file a DBA (or assumed name) within your state. Depending on where your company is located, you might need to file a DBA at the county or state level through one of these offices:

  • Secretary of state. 
  • Department of state. 
  • Department of revenue or other state tax entity. 
  • County clerk. 
  • Another office or state agency.

A DBA filing form also goes by different names in different states. In the state of New York, for example, it’s known as a “certificate of assumed name.” In California, it’s called a “fictitious business name statement.”

Finally, some states provide different DBA forms for different business structures. For example, in Virginia, if you have a LLC, S corp, C corp or other formal business structure, you must fill out a Certificate of Assumed or Fictitious Name – Business Conducted by Entity form. If, however, you are an individual filing for a DBA, you must fill out Virginia’s Certificate of Assumed or Fictitious Name – Business Conducted by an Individual form. 

4. Submit the form and associated fee

While each DBA filing form might ask for slightly different information, you typically can expect to provide the following:

  • The legal name of your business. 
  • The DBA name. 
  • Your employer identification number (EIN) or state ID number. 
  • The street address of your principal business.
  • The state where your business was formed. 
  • The counties where you plan to do business. 
  • The name and address of the person filing the DBA.
  • The signature of a responsible party representing your business. This might be you, a member of your LLC or a business partner.

Where you need to file your DBA might be different depending on your business type. For instance, if you’re filing in Tennessee and you operate a corporation, limited partnership or LLC, you file with the secretary of state. In Michigan, you must file an assumed name form with the Department of Licensing and Regulatory Affairs, while in Texas, you must file with the county clerk in each county where the name will be used or with the secretary of state, depending on the business type.

In many states, you can submit a DBA filing online. When you do, you’ll receive confirmation that you submitted your form and it has been accepted. Some states also let you mail your form. In turn, you receive a hard copy of your DBA certificate. 

When you file, you also must pay filing fees. This cost varies by state. For example, filing for a DBA in Virginia costs $10, while filing in Texas costs $25. You may also need to pay additional fees for each county in which you do business. Each state has different rules, so check your state’s official state government page for more information. 

5. Fulfill the publication requirement

Some states, such as Illinois, require you to publish a newspaper notice of your DBA filing for three to four consecutive weeks in the county where you filed your DBA certificate. Deadlines for fulfilling this requirement vary by state. Once you’ve published your announcement, you may need to file a proof of publication form. This follow-up step is often free.

Many states publish a list of approved newspapers where you can publish your announcement. Newspapers charge a DBA announcement fee. Such fees vary by publication. For example, the Los Angeles, California county clerk’s office offers a list of approved newspapers where DBAs can be announced, complete with fees for each one. Fees range from $35 to $575 per published announcement, with most fees remaining under $120.

“Some business owners might fail to publicize their DBA, which is a requirement in some jurisdictions,” says Brenke. “It’s always recommended to seek legal counsel when registering a DBA to make sure all the bases are covered.” 

6. Use your DBA as you like

Once your DBA is approved, you can incorporate it into different parts of your business, such as: 

  • Writing contracts and signing agreements with your DBA. 
  • Opening a business bank account with your DBA. 
  • Opening a business credit card with your DBA.
  • Operating a franchise location under your DBA name.  

7. Renew your DBA filing

After you initially file your DBA, remember to renew it so it remains active. Some states require renewal every year, while others require renewal every few years. In Utah, for example, a DBA expires every three years. In South Dakota, you’re required to renew your DBA every five years.

There’s also usually a renewal fee, often for every business name you’re renewing. For example, in California, you are required to renew DBAs every five years with the county clerk. The filing fee is $26, plus $5 for any other DBA names needing to be renewed.

DBA filing cost

The cost for filing a DBA varies by state, county and city. The cost may also vary depending on business type. Typically, the cost to file ranges from $5 to $100. Other state and county fees may also apply. Filing fees for additional names usually are less than $10 each. 

Other fees that may apply include announcing your DBA in a county newspaper and renewing your DBA periodically. The fee for this step varies widely by publication and location, with some offering announcement publication for as low as $5 and others offering the same service for $100 to $600. In addition, to maintain your DBA, you often must pay renewal fees of around $25 every two to five years.

DBA examples

Here are a few examples of DBA use cases: 

Franchise 

Bob operates an LLC in the food and beverage industry. He decides to expand his business by buying a franchise restaurant. However, his LLC does not share the name of the franchise. He files for and receives a DBA of the franchise name. The new restaurant then is owned by his LLC but operates under the required franchise name, giving him the name recognition he needs for immediate success of his new restaurant. 

Offering expansion

Cat Holdings Unlimited is structured as an LLC. The business sells a wide array of cat treats, cat foods and cat care items, but it would like to start selling dog desserts. To do so in a way that makes sense to customers, it files a DBA as “Doggone Desserts,” then markets the new product line using the DBA name.

Sole proprietorship

Laurie would like to start working from home as a graphic designer and plans to create an LLC business structure. However, until she can go through the LLC process, her sole proprietorship does not have a name that reflects her services yet shields her personal name. She files for and receives the DBA name “Graphic Creations.” This lets her market her services using this name via a website and social media presence. 

When Laurie files to form her LLC, she names it Graphic Creations LLC. Her already-established reputation under the Graphic Creations name gives her a head start on business success. 

Frequently asked questions (FAQs)

A trade name is the same as a DBA. It is a name for conducting business that differs from your own name or the legal business name you registered. A DBA also might be called a fictitious name or assumed name.

Your DBA is not necessarily connected to your EIN. Your EIN identifies your business and the legal name that was registered at its formation. In turn, your DBA is connected to and represents your business. So, when you operate under your DBA, you can use the EIN of your business entity together with your DBA. For example, you can provide your DBA and EIN to open a bank account under your DBA name.

However, some sole proprietorships don’t have an EIN but do have a DBA. In that case, your DBA does not have an EIN connected to it.

DBAs do expire, but the expiration date varies by state. Some states require an annual renewal while others don’t require DBA renewals for 10 years. For example, in California, a fictitious business name expires five years from the date it’s filed with the county clerk. In Missouri, you also need to renew your DBA after five years and are required to renew it within the six months prior to the DBA’s expiration date.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Jackie Lam

Jackie Lam has covered personal finance for nearly a decade. Her work has appeared in TIME, CNET, BuzzFeed, Salon.com, Forbes Advisor, and others. As an AFC® financial coach and educator, she is committed to helping self-employed creatives and artists with their money.

Alana is the deputy editor for USA Today Blueprint's small business team. She has served as a technology and marketing SME for countless businesses, from startups to leading tech firms — including Adobe and Workfusion. She has zealously shared her expertise with small businesses — including via Forbes Advisor and Fit Small Business — to help them compete for market share. She covers technologies pertaining to payroll and payment processing, online security, customer relationship management, accounting, human resources, marketing, project management, resource planning, customer data management and how small businesses can use process automation, AI and ML to more easily meet their goals. Alana has an MBA from Excelsior University.

How to start a small business: A step-by-step guide

How to start a small business: A step-by-step guide

Business Eric Rosenberg

IMAGES

  1. 9+ Franchise Business Plan Examples

    business plan for a franchise example

  2. Franchise Business Plan

    business plan for a franchise example

  3. Business Plan Templates

    business plan for a franchise example

  4. 9+ Franchise Business Plan Examples

    business plan for a franchise example

  5. 9+ Franchise Business Plan Examples

    business plan for a franchise example

  6. 9+ Franchise Business Plan Examples

    business plan for a franchise example

VIDEO

  1. Business plan franchise

  2. Grocery SuperMarket Franchise

  3. New Franchise Business Ideas

  4. What are the 4 franchise models? || Franchise Business Model Types in India #businessadvice #shorts

  5. BUSINESS PLAN PREPARATION ll Business plan presentation discussion ll How to make business plan

  6. Guide to Buying a Franchise: Before You Sign the Franchise Agreement

COMMENTS

  1. How to Write a Business Plan for Your Franchise

    By Clarissa Buch Zilberman • May 8, 2023 You're set on becoming a franchisee. You may think it's time to call a franchisor, tell them you're interested, and get funding from your local bank, right?...

  2. Franchise Business Plan Template [Updated 2025]

    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.

  3. Creating a Business Plan for Your Franchise: What to Prepare Before

    Parts of a Business Plan Creating a business plan doesn't have to be complicated. There is no standardized length for a business plan, but no lender wants to read a novel-length presentation. The main thing is that the plan is thorough enough to cover all aspects of your individual franchise.

  4. Franchise Business Plan Template

    Below is are links to each section of a franchise business plan example to help you start your own franchise business: Executive Summary - This section provides a high-level overview of your business plan.

  5. How to Write a Franchise Business Plan + Template

    Check out our selection of franchise business plan examples to inspire your own. Why you need a business plan for your franchise business Writing a detailed business plan is crucial for two reasons. First, it demonstrates to the franchisor that you understand how their business operates.

  6. Creating a Franchise Business Plan

    13 minute read Creating a Franchise Business Plan: A Blueprint for Success Share this page The BizBuySell Team Starting a franchise is exciting. But, you may be asking, where does one begin? As with any significant undertaking, one of the most significant first steps is drafting a comprehensive plan.

  7. Writing A Franchise Business Plan: Ten Key Elements To Consider

    Writing a franchise business plan getty "Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones and have a strategy in place to set...

  8. Sample Franchise Business Plan

    The franchise business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your franchise as Growthink's Ultimate Franchise Business Plan Template, but it can help you write a franchise business plan of your own. Example - BrandExpand Ventures Table of Contents

  9. Franchise Business Plan

    9+ Franchise Business Plan Examples - PDF What is your initial plan when you have just franchised a business? Most people would find it absurd to immediately prepare a business plan for their franchise.

  10. Franchise Business Plan Template (2024)

    Download Template Create a Business Plan You've finally decided to own a franchise business. Excellent. Entering a marketplace full of competitors and big industry names might seem overwhelming. However, a well-crafted business plan can provide a roadmap to success. Are you looking to start writing a business plan for your franchise business?

  11. How Do I Write a Business Plan for a Franchise?

    When writing a business plan for a franchise, you should include the following: Executive Summary: Describe the franchise's model and list successes that it has achieved. For example, you might include how locations have exceeded $1 million in average gross sales when writing a plan for Nékter Juice Bar.

  12. Writing a franchise business plan: 11 things you need to include

    Highlight your 'break even' sales figure shown as percentage of anticipated sales. You'll also need to include the amount of money you'll need to take out of your business to live on. When writing your financial projection, you should be conservative. Outline when the lender can expect the loan to be repaid by using graphs, figures and ...

  13. Franchise Business Plan

    Franchise Business Plan Template: Free Resource. Typically you'll see around nine sections in your business plan. These sections are: Executive Summary. This is a description of the business model. For a franchisee, this is where you can incorporate information about the proven business process you're buying into.

  14. Write your business plan

    Executive summary Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company's leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing.

  15. Franchise Business Plan: Use The 7 Key Elements

    Establish specific, measurable marketing goals that align with your franchise business plan template objectives. For example, you might set a goal to increase website traffic by a certain percentage or generate a certain number of leads through a marketing campaign. 3. Develop a marketing strategy.

  16. Franchise Business Plan Template

    Quick Service Restaurants (188,402 franchises) Retail Food, Products, and Services (162,579 franchises) Personal Services (114,012 franchises) Business Services (99,296 franchises) Commercial & Residential Services (75,678 franchises) Key Success Factors for Franchise Business

  17. Writing the Franchise Business Plan

    The process of actually creating a business plan will force you to consider options and formalize your projected course of action in the new business. You'll typically identify a number of ...

  18. Creating a business plan for your franchise

    Your plan should outline a realistic budget that includes both startup costs and operating costs. These financial projections should cover your cash-on-hand, franchise purchasing fees, startup costs and operational costs. The budget should cover operational costs over a three- to six-month period. Discuss how much capital you'll need to cover ...

  19. How to Start a Franchise: A 12-Step Guide

    6. Write a comprehensive business plan. A good business plan can help you analyze costs, predict sales and estimate profits before signing an agreement. Research what to expect in the months and years ahead to gather the information you need to take the next step — or pause if you're not ready. A successful business plan typically includes ...

  20. Franchise Business Plan Example

    Franchise Business Plan Example By Franchise InformationJuly 22, 2021 Franchise examples can come in a lot of shapes and sizes. Some come with complete turnkey solutions—sometimes including strict franchise agreements that dictate pricing, uniforms, and even employee conduct.

  21. Top 10 Franchise Business Plan Templates with Samples and Examples

    2 - Create a brief summation of the business plan and outline the business concept. 3 - Cultivate a plan for operations, marketing and for financial management. 4 - Invest in the infrastructure and the processes needed for the franchise to be set up and to be incorporated.

  22. Food Franchise Business Plan: Guide & Template (2024)

    Create a Business Plan If you are planning to start a new food franchise in your town, the first thing you will need is a business plan. Use our food franchise business plan example created using upmetrics business plan software to start writing your business plan in no time.

  23. Franchise Business Plan Example Presentation

    A franchise business plan increases the likelihood of a new franchisor and the franchise's success by twofold. Secondly, Businesses operate since they stick to a well-defined and well-executed strategy. Over 543,000 new firms start in the United States every month, yet only 7 out of 10 survive after two years, while 5 out of 10 survive after ...

  24. Simple Business Plan Template (2024)

    This section of your simple business plan template explores how to structure and operate your business. Details include the type of business organization your startup will take, roles and ...

  25. Restaurant Business Plan PDF Example

    Whether you're an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your restaurant concept into reality. Let's dive in! The Plan. Our restaurant business plan is structured to cover all essential aspects needed for a comprehensive strategy.

  26. Plumbing & HVAC Business Plan PDF Example

    Whether you're an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your plumbing & HVAC business concept into reality. Let's dive in! The Plan. Our plumbing & HVAC business plan is structured to cover all essential aspects needed for a comprehensive ...

  27. What Is A DBA? Everything You Need To Know

    For example, you may file in another state if you plan to expand your business to a state other than where you normally operate, such as when you are opening a new franchise location.

  28. PDF City of Chicago

    City of Chicago

  29. Dolphins Get Clarity on Cost of Business

    The one logical candidate on whom the Dolphins would place the franchise or transition tag is defensive tackle Christian Wilkins, and it's going to cost either $22.1 million or $18.5 million.