Franchisor Business Plan

Outline who is responsible for what, whether the franchise will have sole or multiple owners and if you’ll be involved in day-to-day operations.Go into more detail about what you’re offering and why you think it’s the right time to put out what your product or service.

Include as much detail as possible about anticipated sales and direct costs like materials and overheads.

Try and give an idea of how much money will be coming in and going out of your business.

When writing your financial projection, you should be conservative.

Outline when the lender can expect the loan to be repaid by using graphs, figures and charts.

Examine current market conditions: whether it’s a growing market, who your competitors are and how future-proof it is.

Remember to include relevant facts and figures as well as referring to expert forecasts. It’s also vital to mention resources you’ll be using to operate your business.Putting one together for a franchise business is different to a standard one though.First of all, you need to be aware of the needs of both the franchisee and the franchisor.Remember to account for cash flow fluctuations like getting materials when you’re setting up versus volume of sales at launch and beyond.Use the appendix for items that will enhance your presentation.Give your reader a brief overview of what your franchise is and how you plan to run it.Use this section to deal with the who’s who of the business and their roles.They’ll give you a franchise disclosure document which has a lot of information to help you write a business plan.It’s worth mentioning that they don’t need to approve your final plan as this could be in violation of governmental and trade requirements.Just note that for legal reasons, your franchisor might not be able to tell you about projected earnings.Base your profit and loss forecast on anticipated sales, taking away direct costs and overheads.


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