How to Write a Simple Franchise Business Plan

Your first question may be: “Why do I even need a franchise business plan?” You may especially be thinking this if you are planning on investing in a highly-recognizable franchise with proven success.

One reason may be that your creditor or financial backer may require one. If they do, then you need to know how to write one that is effective and complete.

And, even if no one else does you still need a plan. You need to know what exactly what you are hoping to accomplish by investing in a franchise, the goals you want to reach, what is involved in investing and operating a franchise, and other things. Your franchise business can be quite simple. As long as you include the following information, along with anything else you might feel is necessary, you should have a comprehensive, well-rounded plan.

Start with a brief introduction, which may include the name and location of the business, your name and contact information, and other information you may feel is pertinent.

Next, provide a complete explanation of the franchise. Include a detailed description, including what products or services are offered. Also provide information on the size of the market you are attempting to reach, and what, if any, competition there may be.

Also take this opportunity to “toot your own horn” a little. Explain how you came to the decision to purchase this particular franchise, or why you feel you should make this investment if you haven’t already. Explain what problems you think you may face during the “start-up” phase, and how you intend to solve them.

You may wonder if this is necessary. If someone else is seeing this plan, then it is. If this plan is strictly for you, you may still enjoy looking at it and remembering how it all got started.

Now, list your employees who will or do hold management positions, and tell why they were chosen. Even if it’s just you right now, go ahead and put that down.

It’s time to explain your marketing and advertising strategy. Tell how you are going or plan to make your business work.“Show the money”. Again, do this even if you are the only one who will be seeing the plan. Make conservative estimates on how much you want or expect the business to make, as well as how much money will be spent on the business.

In this section, you want to state how the franchise was or will be funded, as well as a list of start-up costs. In this way, you will be prepared should unexpected expenses occur.