Buying a franchise business plan

The Complete Franchise Business Plan What's the big difference between a traditional start-up business plan and a start-up franchise plan? Rule Essentially, the latter must combine components of both the franchisee and the franchisor.

Buying a franchise business plan

Share on Facebook The process of buying a franchise that meets your sales and investment goals starts with creating a business plan.

buying a franchise business plan

While a franchise business plan differs somewhat from a traditional business plan, it helps you decide if the business is a good idea in the first place. The plan also helps you determine how much money is needed to invest in the business while listing strategies and requirements needed to operate, manage and market the business so it becomes profitable.

Some franchisors help you select a site and provide training on how to operate the business according to their standards. Ask the franchisor to explain any restrictions on sales areas or the goods or services you sell. Learn about their requirements for operating the business, because some franchisors limit you to using certain accounting systems or certain vendors for buying supplies, which may raise your cost of doing business.

Parts of a Business Plan

Main Elements Franchise business plans start with an abstract, rather than the typical executive summary. The abstract briefly explains what the business is all about and why you want to join the franchise.

The other elements of your business plan include a franchise overview that replaces the industry analysis found in traditional business plans. Other sections provide a detailed analysis of local competitors.

Another element of the plan needs to explain the qualifications your management team brings to the business. Some franchisors offer sales and marketing assistance as one of the benefits of buying the franchise from them, so review their marketing plan first. Review any co-op advertising funds you can contribute to.

The cost of buying into the franchise is just one aspect. You also need to lease or buy a property and make changes to existing structures or construct a new building. Then, you need to buy equipment, supplies and franchise inventory.

You also need to hire and pay employees. To determine these costs and how much working capital you need to get started, develop profit and loss statements for a few years to help determine if the business still seems like a profitable idea.If you are thinking of buying into a franchise, you must review the business plan with an eye toward learning whether there will be enough revenue to reward both you and the franchisor.

Franchise businesses provide the benefit of tried-and-tested business plans and national or global marketing support by the franchise organization. However, the local nature of each individual.

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.

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.

What’s Provided

An accountant can help you understand the franchisor’s financial statements, develop a business plan, assess any earnings projections and the assumptions they’re based on, and help you pick a franchise system that is best suited to . How to prepare a business plan for a franchise The Business Plan explains what you hope to do, how much money you need to do it with and how you propose to pay the money back.

Your plan will include a Profit Forecast and Cash Flow Model.

Creating a Business Plan for Your Franchise |