business plan sample for franchise

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

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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.

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Creating a business plan for your franchise: what to prepare before asking for money.

🕒 Estimated Reading Time: ~8 minutes

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).

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.

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.

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

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The 7 Key Elements Of An Effective Franchise Business Plan

• Adam Goldman
• May 12, 2020

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.

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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

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

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 .

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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.

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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.

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Franchise Business Plan Template [Updated 2024]

Business Plan for Franchises

Franchise businesses are great in that they have much higher success rates than starting a business from scratch.

If you want to start a franchise or expand your current one, you need a business plan.

The following business plan template gives you the key elements to include in a winning plan for your franchise business. It can be used to create a franchise restaurant business plan, a store franchise business plan, a startup business franchise or any other type of franchise business plan. In addition to this template, all franchise business plans should also include market research to help support the business opportunity and help craft your marketing plan and financial projections.

You can download the franchise business plan template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of a business plan to help you with how to create a franchise business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan Click below to see each section of our free franchise business plan template. You can also click here to get our franchise business plan sample pdf .

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Franchise Business Plan Outline

How to Create a Franchise Business Plan

A business plan is a document that outlines the goals, strategies, and operational plans of a business. In short, it is a roadmap to success . Not only is it an essential tool for an aspiring business owner to get started, but it serves as a benchmark for measuring progress and making adjustments as needed down the road.  

If you are planning to purchase a franchise, creating a thorough and effective business plan is essential to your success. Not only will it help you prepare for what lies ahead, but it is also a requirement if you are looking to secure financing. In fact, a well-written business plan can make the difference in whether a lending company approves your loan.    

Information You Need to Write a Compelling Business Plan  

A business plan is not something you can just jot down in a few minutes. Rather, you will need to spend intentional time compiling information and developing a strategy that will form the blueprint of your business. 

Here are several items you should consider including in your franchise business plan: 

• Relevant work experience
• Insights from existing franchisees 
• Statistics within the industry 
• Current industry news 
• Updated data related to local economy 
• Local marketing tactics  
• Franchise Disclosure Document (FDD) 
• Additional franchisor literature 
• Necessary permits and licenses 
• Market area map that includes all current and potential competitors

What Should Be Included in a Franchise Business Plan?  

Clearly, forming a business plan requires a diligent effort. However, if you are looking to own a franchise business, you won’t need to start from scratch since the franchisor has already compiled much of the information you will need. While you still need to work hard to put together a solid business plan, there are several templates available for guidance. No matter which template you choose, your business plan should include the following sections: 

Executive Summary 

This section will provide a mission statement for the business and then explain how your business will achieve its goals . Someone should be able to read the executive summary and know the purpose of your business and the potential it has in its given market. 

Business Description

The information provided here should be thorough. Fortunately, Item 1 in the Franchise Disclosure Document (FDD) will give an overview and history of the franchise you are seeking to buy . Furthermore, you should include details related to products and services, market and competition, business operations, and the potential challenges your business might face. 

Operations & Management Summary

This section will explain how things will get done in the business . It should outline the structure of the management team and include specific instructions related to the day-to-day operations of the business. Team members should be able to refer to the operations part of the business plan as they aim to implement the business’s strategies. 

Market & Industry Analysis

You will need to provide an analysis on the market that you are entering, which includes: 

• A description of the marketplace
• What your competitors are doing
• Details that support your specific business strategy

Furthermore, you should also understand the industry along with its risks and opportunities, so that you can build strategies that take advantage of the opportunities while mitigating potential risks.

Competitive Analysis

You shouldn’t start a franchise business with your blinders on. It’s important to know what your competitors are doing and how they are performing . Evaluating your competitors is a way to validate the predictions you have for your business’s performance . By this point, you have probably already gathered all the information you need about your competitors. Ensure that you perform a thorough analysis of this information as it will guide you in your business decisions.  

Marketing & Sales Plan

What you include here is dependent on which franchisor you work with since you are obligated to use their sales and marketing tactics. You will want to know the process for targeting new customers and how much flexibility you have to implement your own marketing strategies . You should also provide specific information related to the initial marketing plan and what the ongoing marketing strategy will look like. Finally, it’s important to explain how the franchisor will support you in these efforts .

Financial Plan

This section should thoroughly outline the financial details of your business: where it has been, where it currently is, and where it’s going . The data will include: 

• Business costs 
• Current funding for the business 
• Expected future financial needs  

While the actual financial performance of each franchise unit will vary, the Franchise Disclosure Document (FDD) provides information that is helpful for making financial projections. 

• Item 19 includes the financial performance representations (FPR) for a prospective franchisee 
• Items 5-7 have helpful financial information related to the initial fees and investment needed

Speaking with existing franchisees is also an integral part of this process. 

Pro forma is another part of the financial section, and it includes projections of future expenses and revenues , which you can corroborate with the following business information:  

• Balance sheet
• Profit or loss statement 

Perhaps it goes without saying, but be sure to update your business plan if something changes. It is not a document you should finish and then put away to gather dust. It is a valuable resource, and you should use it at every stage in your business if you want to be successful.  

Ready to Get Started With Your Franchise Business Plan?  

Creating a thoughtful and detailed business plan is key to each step of the franchising process. If you are ready to get started with owning a franchise business, then FranNet is here to help. Our franchise consultants will provide the resources, support, and guidance you need to make an informed buying decision. Schedule a free consultation today! 

Mar 17, 2023

Business Ownership , Buying a Franchise , Finance

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Coffee Shop Franchise Business Plan

Start your own coffee shop franchise business plan

JavaHub Café

Value proposition.

JavaHub Café will offer an exceptional range of specialty coffees, teas, and light meals within a warm and welcoming atmosphere, leveraging a brand that stands for quality, community, and sustainability.

The Problem

Coffee shops are common, but not all offer a unique and engaging experience that emphasizes both quality and community. Consumers are looking for places that offer more than just a cup of coffee.

The Solution

JavaHub Café goes beyond beverages. Our franchise model includes community outreach programs, live music evenings, and sustainability initiatives like compostable cups and direct-trade coffee sourcing.

Target Market

Our primary customers are coffee enthusiasts aged 20 to 45, who value not only quality coffee but also a socially responsible and community-oriented establishment.

Competitors & Differentiation

Current alternatives.

• Generic coffee chains
• Independent coffee shops
• Fast-food chains offering coffee

The JavaHub Café franchise is part of a recognized brand with a loyal customer base, a robust supply chain, and strong corporate marketing support. Its differentiator is its triple focus on quality, community, and sustainability.

Funding Needs

A typical JavaHub Café franchise requires an initial investment of $300,000, which covers franchise fees, initial inventory, store fit-out, and marketing.

Sales Channels

• In-store sales
• JavaHub Café App for pre-orders and delivery
• Catering services for corporate and community events

Marketing Activities

• Social media advertising
• Local sponsorships and community events
• Loyalty programs and seasonal promotions

Financial Projections

2023: $450,000

2024: $550,000

2025: $650,000

Expenses/Costs:

2023: $350,000

2024: $380,000

2025: $400,000

2023: $100,000

2024: $170,000

2025: $250,000

• Franchise agreement signed – June 2023
• Location finalized – August 2023
• Store opening – December 2023
• Break-even – June 2024
• Second location considered – 2025

Team and Key Roles

• Franchisee (Owner/Operator)
• Store Manager
• Kitchen Staff

Partnerships & Resources

• JavaHub Corporate: For brand guidance, supply chain management, and marketing.
• Local suppliers: For sourcing baked goods and other localized offerings.
• Community Organizations: For event partnerships and sponsorships.

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Franchise Business Plan

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

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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

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Basics in Franchise Business Plan Example

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Company Franchise Business Plan Example

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

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Detailed Franchise Business Plan Example

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Entrepreneurship Business Plan Example

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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

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Sefa Franchise Business Plan Outline Checklist Example

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Short Franchise Business Plan Example

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Soup and Salad Franchise Restaurant Business Plan Example

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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?

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Food Franchise 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.

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

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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.

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New franchisees: rely on franchise support to adopt an entrepreneurial mindset.

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Paul Flick is the CEO of Premium Service Brands , a leader in home services franchise opportunities.

Franchise support helps new entrepreneurs overcome the challenges they encounter when they leave the structure of the corporate world behind and chart a new course for success.

Small businesses form the foundation of the American economy. There are about 33.2 million small businesses in the U.S., and 806,270 of them are franchises. The franchise business model enables new entrepreneurs to launch a business with a proven track record, brand recognition, training and ongoing support. For an initial investment and regular royalty fees, franchisees get a turnkey business to launch in their community.

A study from GOBankingRates found that 42% of Americans have considered starting a business, and a LendingTree survey found that 55% of Gen-Z and Millennials have a side hustle. But exiting the structured environment of the corporate world can be daunting. Having a network of franchisees to rely on for support can help streamline the process and put you on a path toward success.

I launched my first franchise business, 360° Painting, in 2005. Today, it has approximately 136 locations across North America. But the brand’s success did not happen overnight, and I encountered setbacks on my entrepreneurial journey.

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During my tenure in franchising, I’ve worked with countless new business owners. The top challenge I see them face is the transition from employee to owner. In the corporate world, employees have a defined structure and deliverables. Each day, you have a plan and someone overseeing your work. One of the perks of business ownership is the ability to chart a new course, but adjusting to the freedom can be challenging. You still need to get up every day and drive your business forward.

Here are some essential steps franchisees should take to overcome the hurdles of becoming a new business owner.

• Establish a business owner mentality: New franchisees often work both on the business and in the business. It’s important to think strategically to scale your business and delegate to handle day-to-day operations. Creating a business plan, setting clear goals and adopting a positive attitude can put you on the fast track to success.

• Choose the right franchise: A franchisor should be invested in your success. Ensure you’re partnering with a company that shares your vision and values. I recommend that every new business owner attend Discovery Day to meet the franchise support team and executive leaders. Being able to observe the corporate team in action can give you insights into how the company addresses concerns and supports its franchise owners. It's also important to conduct validation. Talk to franchise owners to learn about their experiences working with the franchise support staff. Find out the initial challenges they faced as new business owners and how they were able to find a path forward.

• Lean on your support system: One of the hallmarks of the franchise business model is the availability of a robust training and ongoing support system. Most franchisors offer initial training and guidance to get started. They stay up to date with industry trends and marketing strategies so you can focus on strategic growth. If one of our franchisees is struggling, PSB will send a professional from our support staff to their territory to provide on-site guidance and support, which can be invaluable for first-time business owners.

Even if you turn to franchising to launch a business, you’ll inevitably encounter other challenges. Franchisees face many of the same problems as independent operators, such as hiring and retention, funding and customer lead generation. Offering customers an in-demand service and relying on the support and training of an established brand can streamline your entrepreneurial journey and put you on track to achieve self-sufficiency and financial freedom.

Premium Service Brands is now the franchisor of nine home service brands, including 360° Painting; nurturing the determination and drive of our franchise owners enabled my company to become a driving force in the home services industry.

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