Sample Franchise Business Plan

An effective franchise business plan provides a thorough evaluation of your business and its viability from both the franchisorís and the franchiseeís perspective. While a sample franchise business plan may be helpful, it will likely be limited in its use since every business and industry is unique. However there are common elements that will be included in most sample business plan.

Franchise Business Plan & Key Financial Information

Sample Franchise Business PlanA sample franchise business plan utilizes the key financial information from the business modeling and incorporates the franchise model that will be incorporated into the franchise disclosure document (FDD). A benchmark analysis of similar franchisors is a key component in the franchise business plan should include information about other franchisors number of locations, investment level, franchise fee, royalty, advertising fees, territory size and other key financial criteria. This analysis should also summarize the unique proposition offered by your competitors as well as your competitive advantages.

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The financial information from the pro-forma of your business as well as the information from the competitor analysis are both necessary to create the pro-forma for a "typical franchisee". This "typical franchisee" is the basis for the revenue projections for the franchisor as new locations are opened and the franchise fees and royalties come on line as new locations are opened. This all flows through to a five year pro-forma for the franchisor and franchisee to provide the financial overview of the franchise business.

The Franchisor Business Plan - A Summary of Decisions

Unlike a typical business plan, the franchisor business plan deals strictly with the franchisor company and how the franchise model has been created. The plan will provide a summary of the decisions that have been made in setting up the key components of the franchise company that are included as part of the Franchise Disclosure Document (FDD). The following area should be addressed in the franchise business plan.

FDD Details

  • Company background
  • Franchise sales projections
  • Ideal franchisee profile
  • Exclusive territory
  • Type of franchises offered
  • Training and support plan
  • Franchise fee modeling
  • Royalty analysis
  • Franchise competitor analysis

Financial Modeling

  • Initial Franchisee Investment
  • Franchisee Pro-forma
  • Franchisor Pro-forma
  • Franchisor staffing projections

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