What Is Different About the Franchise Business Plan?

The franchise business plan is different from a typical business plan.  Items 6, 7, and 8 below are unique to a franchise business plan.

Sample Franchise Business Plan Outline:

A business plan typically contains at least the following sections:

1. A mission statement

2. Keys to success

3. Market and competitive analysis

4. A financial forecast, including a pro-forma statement, break even analysis

5. An outline of the resources you have available to ensure you can fund the startup phase.

6. A discussion of how the franchise supports your business plan goals

7. An outline of the management team. By extension, you may consider the operations support team of the franchise as part of your management team. BE VERY CAREFUL to get a CLEAR statement of what the franchise's obligations are. DO NOT assume you will get one bit more support than is described in the FDD. Consider any help beyond what is in the FDD to be a bonus and a positive statement about your franchise organization.

8. A discussion of the history of the franchise.  How has its market power helped franchisees succeed?  Is the franchisor profitable?  Can it afford to support its brand for the long run?  In what was has it helped franchisees succeed in the past?

9. What is the SBA loan portfolio success rate with this franchise?  What cost factors should a franchisee expect, and what will the breakeven be in your likely situation, given local real estate and labor costs?