franchise strategy in business plan

How to Write a Franchise Business Plan + Template

Elon Glucklich

8 min. read

Updated February 7, 2024

Free Download:  Sample Franchise Sandwich Shop Business Plan Template

Owning a franchise is an excellent way for business owners to gain instant brand recognition. 

By paying a franchise fee, you can own a fast-food restaurant like McDonald’s, Subway, or Kentucky Fried Chicken, a 7-Eleven convenience store, a gym chain, or even a hotel like a Marriott or Hilton. 

For franchises with fees between $25,000 and $100,000, recent research indicates that the 5-year business failure rate is about 5 percent , just one-tenth of the overall business failure rate. Put simply, you have a much higher chance of success opening a franchise than a traditional business.

But getting a proven brand name doesn’t guarantee success. You’ll need to ensure you understand the franchise’s business model and expectations. 

Plus, you need to determine if there’s a big enough market for your business to be successful, what potential customers expect from businesses like yours, and how many competitors you’ll face.

Fortunately, answering these questions are all part of writing a comprehensive business plan . Here are the steps to writing a franchise business plan that shows your business’s unique value—while answering critical financial and operational questions your franchisor or lender will want to know.

Ready to write your plan? Check out our selection of franchise business plan examples to inspire your own.

• Why you need a business plan for your franchise business

Writing a detailed business plan is crucial for two reasons. 

First , it demonstrates to the franchisor that you understand how their business operates. 

Since the company sets your prices , controls your product inventory, and will likely tell you what marketing tactics you can use—the business plan puts in writing that you understand how their rules and guidelines affect your business.

Second , the plan also organizes all of your expectations, assumptions, and research about your business into one document that serves as a roadmap for success:

• Business objectives
• Franchisor requirements
• Funding needs
• Financial goals
• Growth strategies

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How to write a business plan for your franchise 

1. understand your franchise business model.

Since the franchisor has already established the company’s business model, your business plan should focus on how you can adapt it to be successful in your chosen location .

Imagine you’re planning to open a fast food restaurant, chain hotel, or convenience store. How do these kinds of businesses operate successfully? Consider the business models of each:

Fast food restaurant: Standard menu, streamlined kitchen operations, marketing strategy leaning heavily on national advertising campaigns.

Hotel: Efficient room turnovers, maintaining cleanliness and amenities that the brand promises.

Convenience store: High foot traffic, quick inventory turnover, and flexible operating hours.

Each case presents different business dynamics – and considerations for your business plan. You should be able to show in your plan that you understand the revenue streams and direct costs of running this type of business, and what your customer acquisition costs might be.

2. Conduct a market and location analysis

Buying into a franchise gives you some marketing advantages. You have a widely recognized brand to attract customers, access to promotional materials, and maybe even some information about customer buying patterns from your franchisor.

But operating a franchise doesn’t take away the heavy lifting of market research . Each franchise has to consider local factors that could affect its profitability.

A good starting point is to conduct a SWOT analysis , documenting the strengths, weaknesses, opportunities, and threats facing your business. Here are some other key elements to consider:

Demographic study

• Employment status

Understanding the demographics of the people most likely to visit your business could help you set operating hours or decide who to target with promotions.

Competitor analysis

• Identify your competitors
• Compare your product or service offerings with theirs
• Compare price points
• Compare marketing strategies
• Define the competitive advantage of your business

Don’t just look at direct competitors that are similar to your franchise. If you’re opening a 24-hour 7-Eleven, you should also look at supermarkets, drugstores, or food delivery services in your area.

Geographic analysis

• Neighborhood characteristics
• Population trends

A chain restaurant in a busy downtown probably has different customers and peak times than the same restaurant in a shopping center near a residential area. So it’s essential to understand the characteristics of the neighborhood you’re operating in.

Consumer behavior patterns

• Technology use

Understand what drives consumers interested in your business to make the choices they do. This is where you will want to do online research and, ideally, go out and talk to potential customers.

Franchise-specific research

You should also answer questions about the competitive positioning of the franchise – and franchises as a whole – in your area.

• How do similar franchises perform in your area?
• What is the brand perception of the franchise you intend to start?
• Is there a large enough market in the area for your franchise?
• What non-franchise options are available? What are the advantages or disadvantages for customers who shop there instead?

Be sure to examine what potential customers discuss on social media platforms and online message boards like Reddit to understand what they expect from businesses like yours.

3. Highlight your unique value proposition within the franchise

Even though you’re buying into a proven business model , you’ll still face competition. Your business plan gives you a chance to put on paper what gives you a competitive advantage. 

In the case of a franchise business , your franchisor may be the most important stakeholder to read your business plan. So the plan is to show them you can run a successful business under their name.

Maybe the 7-Eleven convenience store you want to open is in a location with a lot of foot traffic and no larger grocery stores nearby. Or maybe your restaurant offers late-night delivery in an area with few alternatives. 

By outlining your unique value proposition in your business plan—you can align your individual strengths and market opportunities with your franchisor’s proven business model.

Backing up your unique value proposition with any data or information about customers will be especially important if you’re operating in a crowded market with lots of competition.

4. Do your own financial projections and scenarios

The franchisor may provide some guidance, but this is your business.

That means your business plan should include the same financial details and projections as if you were starting a business from scratch. Your financial plan should include:

Start-up costs : The initial investment required to get your franchise off the ground. This should include the franchise fee, the cost of equipment, initial inventory, license fees, and any expenses related to your location.

Ongoing fees and operational costs: These are costs that recur monthly or annually. They include fixed costs like franchise royalties, lease payments, and staff salaries, and variable costs like utilities, inventory, maintenance costs, and marketing expenses.

Revenue projections : Detail how much revenue you expect to bring in monthly. Forecast revenues out into the future, and don’t be afraid to make projections several years out. 

Remember, good financial forecasts are meant to be adjusted as real numbers come in, and comparing your projections with actuals over time can help you make better business decisions.

Break-even analysis : This is where you calculate how long it will take for your franchise unit to cover its initial investment and start making a profit. Knowing your break-even point is essential not just for you but also for lenders.

5. Create an operational plan

Even though the franchise provides the business model, you must ensure it runs smoothly daily. Your business plan should provide a clear operational plan that outlines :

Staffing needs 

You should be specific about the staffing level your business needs . You’ll need cashiers, cooks, and delivery drivers if you’re running a fast-food franchise. List the skills and experience needed for each role, and outline your plans for training new hires.

Inventory management

While a franchise agreement might take some of the pressure off of sourcing your inventory, it’s still your responsibility to develop processes for managing it. 

You’ll need to understand if there are seasonal trends in your business, how often various products are returned, how long an item can sit on your shelves, and a variety of other factors that affect how much of a product you should order and when you should order it.

Quality control

Since you’re operating under a franchise agreement, you must comply with the standards the franchisor sets out for operating their business. Detail the quality control procedures you’ll put in place to meet those standards. 

Also, take some time in the business plan to address how you’ll stay compliant with local, state, and federal laws and the franchise’s policies.

6. Review and adjust your business plan

The business plan for your franchise should not be a static document . Market conditions evolve, consumer demands change, and new competitors emerge. Additionally, Franchisors often update their business models, add new products, or change their marketing strategies.

You may also be expected to periodically share financial reports or general updates about your business with the franchisor. (LivePlan lets you create and share visually engaging, professional reports using information from your business plan.)

Either way, your plan should outline how you’ll account for market shifts or franchise changes in your operations. Just as important, you should make it a habit to review your business plan periodically – many business owners review their plans quarterly or even monthly, especially when starting out. 

That way, they can adapt the plan as their business evolves.

• Download your free sample business plan for a franchise business

If you need help getting your franchise business started, check out one of our free sample franchise business plans . You can download this document in Word form and customize it to get you started on your own business plan. 

It’s just one of 550+ sample business plans we’ve made available to download.

You can also review our step-by-step guide on how to write a business plan for a detailed look at how to write specific sections of a traditional business plan.

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

Table of Contents

• How to write a business plan for your franchise 

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Franchising Strategy: Strategic Business Plan Development

Aug 27, 2021 | How to start a franchise

Thriving franchises tend to share some aspects, including well-designed franchising strategies and business plans. Get more information on how to develop your own Strategic Business Plan , and find out how to lay the foundation for a potential franchise.

Find out how “one size fits all” can be a recipe for disaster for possible franchisors, and discover the techniques for ensuring that you build a solid franchise with the needed structure to help them attract customers and grow.

This look at business plans and strategies for franchises help to give you the tools to possibly start your own franchise conversion process.

All too often, inadequate planning and development of a franchise business structure before offering franchises is reason why newcomers to franchising will fail.

The importance of a Strategic Business Plan

Sometimes, they will just ask their lawyer for input.  But while good franchise lawyers are invaluable when it comes to legal issues, they are unlikely to have the business experience, education, or expertise to develop sophisticated cash flow models and the organizational development plans that should accompany them.  Instead, they must provide their input based on “what they have seen” in the marketplace.  In fact, many franchisors will make the mistake of simply copying the franchise structure of their competitors when entering into the complex world of franchising.  The rationale is that “if it worked for them, it should work for me.”

The problems with this approach are threefold.

First , this approach assumes that the new franchisor’s franchise offering should be similar to the offerings of their competitors.  Unfortunately, “me too” is not a strategy.  Often, it is a recipe for disaster.  A new franchisor must distinguish itself from their competitors in order to attract a franchise buyer who has a choice between them and their more established rival.  This difference can come in the form of the consumer offer, franchise marketing, franchisee support and training, or franchise structure.  And all of these will have implications for the way in which the franchise offer is crafted.

Second,  this approach assumes that even if a similar strategy is implemented, that the resources of both organizations are similar.  Every organization comes to franchising from a different starting point – with different strengths and weaknesses.  Competing with an established franchisor by going head-to-head in an area of their strengths can be a huge mistake.

Third,  this approach assumes that a new franchisor’s competitors did it right in the first place.  What if they simply made decisions at random?  Often, it may take years for a franchisor to realize that an early decision is resulting in diminished profitability.

A mistake of a  single percentage point on a franchise royalty can easily cost you millions of dollars.   How?

Consider the following example:

A franchisor expects that the average unit revenues of their prospective franchisees will be $500,000 and hopes to sell 100 franchises in the first year.  But instead of charging a 6% royalty, they opted for 5%.

It does not seem like a big mistake, when accounting for a single franchisee.  It simply means that the franchisor will make $5,000 less in royalty revenues.  But in franchising, we are talking about growth on steroids, and this mistake might be multiplied 100 times or more.  And, since there are no expenses associated with this $5,000, this mistake comes right off the bottom line.

So do the math:

And an incorrect royalty is only one of a number of different business decisions that a new franchisor will make early in the process that could impact long-term profitability.  Just a few of the many others include:

• Advertising fees
• Technology fees
• Product margins
• Type of franchise offered (individual, area development, area representative, etc.)
• Organizational structure
• Compensation structure
• Geographic growth strategy
• Territorial rights provided to franchisees
• Reservations of rights for the franchisor

In order to best position new franchisors for success, the iFranchise Group will often take a six-step approach to the development of your franchising strategy and business plan:

• Initial discovery – we immerse ourselves in your business and organizational structure to better understand how you should position the concept.
• Competitive benchmarking – we then gain a detailed understanding of the business decisions made by your competitors, understand competitive strengths and weaknesses, and how to best position the concept against them.
• Organizational gap analysis – we gain an understanding of your internal capabilities, your needs to fill certain “gaps” when delivering services to your franchisees, and the resources you can call on to do so, in order to plan your organizational development.
• Initial strategy development – we use your goals and your unique strengths and weaknesses to develop a preliminary franchise structure, subject to further financial analysis.
• Financial modeling – we then develop a complex cash flow model (often 16 pages or more) that allows us to test various business decisions for both the franchisee and the franchisor simultaneously.
• Financial sensitivity analysis – we then test various alternative scenarios to determine the impact that each might have on both the franchisee and the franchisor before making the recommendations that will allow you to finalize your business decisions.

By following the steps outlined above, the business structure and franchising strategy that we ultimately recommend for our clients is based not only on best-practices in franchising and within the client’s industry, but also on a close examination of our client’s culture, goals, business economics, and the resources available to implement a franchise program.

To learn more about how this franchising strategy and business planning process can help provide you with your best chance of success in franchising,  contact us . Email us at  [email protected] , or call one of our consultants at  708-957-2300.   And be sure to  request our free video on How to Franchise Your Business  – which will go into greater detail on this important topic.

About The Author

Franchise Word Team

Is a seasoned franchise consultant and business strategist with a knack for uncovering lucrative franchise opportunities. With a rich network within the franchising community and a keen eye on market trends. We are trusted guide for entrepreneurs seeking top franchise opportunities. Providing timely updates on trends across various sectors including restaurants, fitness, retail, healthcare, and more. Franchise Word aims to help you make informed, profitable decisions in the evolving world of franchising.

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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.

Ready to Be Your Own Boss?

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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Developing a Franchise Business Plan: Key Elements to Include

Aug 15, 2023 | Blog

When embarking on the franchising journey, a well-crafted business plan is essential to guide your expansion and attract potential franchisees. A comprehensive franchise business plan outlines your vision, market analysis, financial projections, and operational considerations. In this article, we will explore the key elements to include in your franchise business plan and provide tips for creating a compelling document that captures the attention of potential franchisees.

Executive Summary:

Begin your franchise business plan with a compelling executive summary that provides an overview of your franchise concept, target market, and growth potential. Highlight the unique selling points of your franchise and emphasize the benefits for franchisees. This section should grab the reader’s attention and set the stage for the rest of the plan.

Franchise Concept and Market Analysis:

Detail your franchise concept, including your brand’s unique value proposition, target market, and competitive landscape. Conduct a thorough market analysis to identify your ideal customer profile, market trends, and potential demand for your franchise. This section should demonstrate your understanding of the market and why your franchise stands out among competitors.

Franchisee Support and Training:

Outline the support and training programs you will provide to franchisees. Describe the initial training process, ongoing support, and any resources or tools available to help franchisees succeed. Highlight your experience in franchising and how you will assist franchisees in achieving their goals.

Financial Projections:

Include detailed financial projections that outline your franchise’s potential revenue, expenses, and profitability. Provide a breakdown of the initial investment required, including franchise fees, equipment costs, and working capital. Project future sales and expenses based on market analysis, industry benchmarks, and historical data. This section should demonstrate the financial viability of your franchise opportunity.

Marketing and Advertising Strategy:

Detail your marketing and advertising strategy to attract potential franchisees and support franchisees’ growth. Identify the target audience, channels, and tactics you will use to generate brand awareness and drive sales . Discuss how you will support franchisees in local marketing efforts and provide marketing materials, campaigns, and digital strategies to help them succeed.

Operations and Systems:

Describe the operational aspects of your franchise, including your business model, supply chain management, quality control processes, and technology systems. Explain how you will ensure consistency across franchise locations and maintain high operational standards. Highlight any proprietary systems, software, or processes that set your franchise apart.

Legal and Compliance:

Address the legal and compliance requirements of franchising, including franchise disclosure documents , franchise agreements, and regulatory obligations. Ensure your franchise business plan reflects your commitment to all legal and industry regulations. Consider consulting with legal professionals experienced in franchising to ensure compliance and mitigate any potential risks.

Tips for Creating a Compelling Business Plan:

• Clearly articulate your unique value proposition and competitive advantage.
• Use data and market research to support your claims and projections.
• Include visual elements such as charts, graphs, and images to enhance readability.
• Keep the document concise, focused, and well-organized.
• Use a professional tone and language to convey credibility and expertise.
• Tailor the plan to address the needs and interests of potential franchisees.

Developing a comprehensive franchise business plan is a critical step in attracting potential franchisees and guiding the growth of your franchise. By including key elements such as market analysis, financial projections, operational considerations, and a compelling executive summary, you can present a clear and enticing vision to potential franchise partners.

Remember to continuously update and refine your business plan as your franchise evolves and new opportunities arise. With a well-crafted business plan, you are better positioned to attract and engage franchisees who share your passion and vision for success.

If you need assistance developing a franchise business plan or want expert guidance in the franchising process, contact Accurate Franchising, Inc today . Our team of experienced consultants is ready to help you achieve your franchising goals.

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Franchise Business Plan Template

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

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their franchise businesses.

Below are links to each section of your franchise business plan template:

Next Section: Executive Summary >

Franchise Business Plan FAQs

What is the easiest way to complete my franchise business plan.

Growthink's Ultimate Franchise Business Plan Template allows you to quickly and easily complete your Franchise Business Plan.

Where Can I Download a Franchise Business Plan PDF?

You can download our franchise business plan PDF template here . This is a business plan template that will help you with how to create a franchise business plan in PDF format.

What Is a Franchise Business Plan?

A business plan provides a snapshot of your franchise as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why Do You Need a Business Plan for a Franchise?

If you’re looking to start a franchise or grow your existing franchise you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your franchise in order to improve your chances of success.    Your franchise business plan is a living document that should be updated annually as your business grows and changes.

What Are the Sources of Funding for a Franchise?

Franchises are usually funded through small business loans, personal savings, credit card financing and/or angel investors.

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
• 10. Appendix
• Franchise Business Plan Summary

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Learn About Strategic Franchise Business Plan Development from the Franchise Consulting Experts

Franchising strategy: strategic business plan development.

All too often, inadequate planning and development of a franchise business structure before offering franchises is reason why newcomers to franchising will fail.

Sometimes, they will just ask their lawyer for input.  But while good franchise lawyers are invaluable when it comes to legal issues, they are unlikely to have the business experience, education, or expertise to develop sophisticated cash flow models and the organizational development plans that should accompany them.  Instead, they must provide their input based on “what they have seen” in the marketplace.  In fact, many franchisors will make the mistake of simply copying the franchise structure of their competitors when entering into the complex world of franchising.  The rationale is that “if it worked for them, it should work for me.”

The problems with this approach are threefold.

1. You Must Distinguish Your Franchise From Competitors

This approach assumes that the new franchisor’s franchise offering should be similar to the offerings of their competitors.  Unfortunately, “copycat” is not a strategy.  Often, it is a recipe for disaster.  A new franchisor must distinguish itself from their competitors in order to attract a franchise buyer who has a choice between them and their more established rival.  This difference can come in the form of the consumer offer, franchise marketing, franchisee support and training, or franchise structure.  And all of these will have implications for the way in which the franchise offer is crafted.

2. It’s Risky to Compete With an Established Franchise Brand

This approach assumes that even if a similar strategy is implemented, that the resources of both organizations are similar.  Every organization comes to franchising from a different starting point – with different strengths and weaknesses.  Competing with an established franchisor by going head-to-head in an area of their strengths can be a huge mistake.

3. You May Be Adopting a Failing Strategy for Your Franchise Brand

This approach assumes that a new franchisor’s competitors did it right in the first place.  What if they simply made decisions at random?  Often, it may take years for a franchisor to realize that an early decision is resulting in diminished profitability.

A mistake of a single percentage point on a franchise royalty can easily cost you millions of dollars.   How?

Consider the following example:

A franchisor expects that the average unit revenues of their prospective franchisees will be $500,000 and hopes to sell 100 franchises in the first year.  But instead of charging a 6% royalty, they opted for 5%.

It does not seem like a big mistake, when accounting for a single franchisee.  It simply means that the franchisor will make $5,000 less in royalty revenues.  But in franchising, we are talking about growth on steroids, and this mistake might be multiplied 100 times or more.  And, since there are no expenses associated with this $5,000, this mistake comes right off the bottom line.

So do the math:

$5,000 in annual lost royalties multiplied by 100 franchisees =  $500,000 Multiplied times a 10 year franchise term (or longer) =   $5,000,000 Lost enterprise value assuming 10X earnings multiple at exit = $5,000,000 TOTAL LOSS  = $10,000,000 And an incorrect royalty is only one of a number of different business decisions that a new franchisor will make early in the process that could impact long-term profitability.  Just a few of the many others include:

• Advertising fees
• Technology fees
• Product margins
• Type of franchise offered (individual, area development, area representative, etc.)
• Organizational structure
• Compensation structure
• Geographic growth strategy
• Territorial rights provided to franchisees
• Reservations of rights for the franchisor

Six-Step Approach to Franchise Strategy and Business Plan Development

In order to best position new franchisors for success, iFranchise Group will often take a six-step approach to the development of your franchising strategy and business plan:

1. Initial Discovery

We immerse ourselves in your business and organizational structure to better understand how you should position the concept.

2. Competitive Benchmarking

We gain a detailed understanding of the business decisions made by your competitors, understand competitive strengths and weaknesses, and how to best position the concept against them.

3. Organizational Gap Analysis

We gain an understanding of your internal capabilities, your needs to fill certain “gaps” when delivering services to your franchisees, and the resources you can call on to do so, in order to plan your organizational development.

4. Initial Strategy Development

We use your goals and your unique strengths and weaknesses to develop a preliminary franchise structure, subject to further financial analysis.

5. Financial Modeling

We then develop a complex cash flow model (often 16 pages or more) that allows us to test various business decisions for both the franchisee and the franchisor simultaneously.

6. Financial Sensitivity Analysis

We then test various alternative scenarios to determine the impact that each might have on both the franchisee and the franchisor before making the recommendations that will allow you to finalize your business decisions.

By following the steps outlined above, the business structure and franchising strategy that we ultimately recommend for our clients is based not only on best practices in franchising and within the client’s industry, but also on a close examination of our client’s culture, goals, business economics, and the resources available to implement a franchise program.

To learn more about how this franchising strategy and business planning process can help provide you with your best chance of success in franchising, contact us . Email us at [email protected] , or call one of our franchise consultants at 708-957-2300.  And be sure to request our free video on How to Franchise Your Business – which will go into greater detail on this important topic.

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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

Start Your Franchise Plan Here

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.

How To's

7 key elements of a good franchise business plan.

Writing a business plan is essential for any entrepreneur. However, creating one for a franchise business is different from another business type. You have to be aware of the needs of the franchisee and the franchisor. Once you have signed the franchise agreement , the franchisor will provide you with a marketing plan and other related materials. Below are the seven essential elements of a successful franchise business plan.

1. Executive Summary

This section summarizes the entire franchise business plan, including the key points and objectives. As it explains your business, the executive summary should answer these questions:

• Which product, service, or need does your business provide? 
• Is your business unique? 
• How will you guarantee your company’s success? 
• What skills do you possess that will help you achieve your objectives?

As the first part of the plan, it should leave a positive impression of you and your business to your readers. In short, it’s a written version of your business pitch. That said, the executive summary section should clearly define your business and lay down everything that makes your business proposition unique. 

2. Franchise Description

The following section presents the description of the franchise business model. This section should contain the following:

• Company Structure
• Mission Statement
• Fiscal Projections

Although you don’t need to provide detailed financial data, you should include an overview of your business, financial projections, and critical business facts. Likewise, you should share the goals and objectives for your business with your readers. Ensure your business goals are quantifiable and avoid vague terms that will only confuse your readers.

3. Market Analysis

The third section provides a detailed analysis of the industry and market trends. To analyze your competitors in the business, you need to do the following steps:

• Select ten direct and indirect competitors for comparison.
• Research their marketing strategies and product features.
• Compare the gathered details to business data. 

4. Marketing Strategy

You should also write a detailed marketing plan that includes market research, marketing goals, pricing strategies, advertising activities, and sales forecasts. This section will discuss your plan for implementing the said strategies and activities. You can use the information from the franchise training or the detailed information stated in Item 11 of the Franchise Disclosure Document .

5. Operations and Management

This section highlights your business’s strategy for maintaining a customer base and demand for your franchise business. You need to explain how you plan to advertise, your current advertising, and the background of your strategy. It also highlights the daily operation of your business. It covers the business operations and emphasizes the franchise owner’s responsibilities and tasks. This section also includes the company’s staffing, logistics, and solutions to potential challenges during the business operation. 

6. Financial Plan

The financial plan includes projected revenue, expenses, profits, and cash flow for the first few years of the franchise operation. If you’re starting your business with a franchisor, you can reference your Franchise Disclosure Document for this information. 

7. Pro Forma

You should also add a pro forma that focuses more on the three main accounting statements, such as the balance sheet, cash flow, and profit of loss. You can create your pro forma by following these steps:

• Create a chart of accounts.
• Calculate your business projected income.
• Project your liabilities and cost.
• Estimate cash flows

Consider talking to an accountant or financial advisor to confirm your estimates and validate your proposal to lenders or investors. 

Appendix (Optional)

Technically, the appendix is separate from the business plan but an additional section to present items that would enhance your document. Include items necessary to give the lender or investor a complete view of your franchise business. For example, you can include the resumes of management team members, tax returns, media clippings, etc.

A franchise business plan is a critical piece in accessing capital. A well-crafted business plan helps the franchise to clearly define the objectives, strategies, and techniques for a successful business operation. Also, this document allows entrepreneurs to identify potential risks and challenges associated with the franchise operation. It provides methods for mitigating or managing those risks. More importantly, this plan helps reduce the possibility of financial losses or other adverse outcomes for the franchisee. We hope this guide will inspire you to start drafting a detailed plan for the franchise business you have in mind now.  

Remember to continually update your business plan to reflect your business’s developing needs. At the minimum, it should be updated when something in your business changes.

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The Rise of Paris Banh Mi Franchise

Are you gearing up for a new business in 2024? Forget the next big tech start-up -the latest trend in town might be a perfectly toasted baguette. Take Paris Banh Mi Cafe and Bakery, for instance. This Vietnamese sandwich shop is rapidly growing, with locations popping up from coast to coast, from California to Florida. 

But what’s the secret behind their success? Explore why the Paris Banh Mi franchise has snowballed in the last two years and be inspired to start your own business .  

About Paris Banh Mi

The French baguette was introduced in Vietnam in the mid-19th century when the country was still a part of French Indochina. In the 1950s, Saigon saw the birth of a unique Vietnamese sandwich, “bánh mì,” which quickly became a favorite food of a large part of the population.

The story of Paris Banh Mi started in Orlando, Florida, at 1021 E Colonial Drive in 2019. Hien Tran and Doan Nguyen , a married couple passionate about food, opened the first Paris Banh Mi location. Their concept was simple: bring the delicious flavors of Vietnamese banh mi sandwiches, traditionally baguettes filled with savory meats and pickled vegetables, to a broader audience. 

The customers quickly fell in love with the fresh ingredients, bold flavors, and convenient fast-casual setting. Now,  Paris Banh Mi Cafe and Bakery promises to bring their customers the best “Baguette Banh Mi” taste.

In just two years, the laid-back cafe and bakery in Florida multiplied into a chain of stores in the  county. Today, Paris Banh Mi is serving customers in 46 locations all across the USA . The company plans to expand to 100+ locations by 2026. 

Each Paris Banh Mi Cafe and Bakery has a clean and spacious dining area, fast service, friendly staff, and a selection of delicious food and pastries. Take a peek at some of their mouth-watering baguette sandwiches filled with authentic Vietnamese ingredients.

Source: Paris Banh Mi website

For those craving something sweet, the bakery indulges you with a variety of French pastries. Check out their sandwiches, pastries, and beverages on the Paris Banh Mi Cafe and Bakery menu page.

Why Own a Paris Banh Mi Franchise

Paris Banh Mi is a franchised quick-service restaurant offering exciting opportunities for aspiring business owners. Many nail salon owners and aspiring entrepreneurs are switching to buying a Paris Banh Mi franchise. The main reasons why they love Paris are:

• It opens a great opportunity and is more profitable. 
• Seamless franchising process and fewer things to worry about
• Required low capital to open
• Higher end-of-year profits

The benefits extend beyond operational efficiency. Paris Banh Mi boasts a surprisingly low-cost entry point compared to other franchises. 

The initial franchise fee is manageable at $60,000. The total investment for opening a Paris Banh Mi can range from $200,000 to $500,000. This amount reflects the option to acquire a pre-existing, equipped location (second generation) for a lower investment cost or a complete build-out from scratch option. 

Regardless of the chosen route, the investment is significantly lower than that of building a business from the ground up, making Paris Banh Mi an attractive option for many entrepreneurs.

Licensing Information

Owning a Paris Banh Mi franchise is not just about delicious food! The company is looking for dedicated individuals who can run their restaurant full-time. They will provide a multi-day training program for new franchisees. In addition, Paris Banh Mi offers ongoing support for franchisees, guiding them to make informed decisions and thrive in this exciting industry.

You’re a good fit for a Paris Banh Mi Cafe Bakery franchise if you are: 

• Passionate about food, especially fresh baguettes and pastries
• A self-starter with a proven track record in business
• Financially responsible with a focus on results
• Ready to fully commit to building the Paris Banh Mi brand

If you have what it takes, don’t hesitate to contact them through the franchise hotlines on their franchise opportunities page . 

Buying a restaurant franchise is one of the most attractive routes in the world of franchising. Paris Banh Mi makes owning your own business a lot easier. Forget the high costs and headaches of starting from scratch. Their low investment and comprehensive training program mean you can be your own boss with a delicious product.  If you are ready to take a bite out of success, contact Paris Banh Mi today!

Chick-fil-A Franchising Opportunities in 2024

Buying a franchise from Chick-fil-A is an excellent money-making and healthy option. The fast-food chain has been serving hungry consumers the most delicious chicken sandwiches unmatched by other fast-food restaurants. Buying a Chick-fil-A franchise means investing in a good business and your future. It also lets you continue the culture behind the popular food chain. Here are Chick-fil-A franchising opportunities that will give you entrepreneurial freedom in 2024. 

Company Overview

Founded in 1946 by Truett Cathy, Chick-fil-A is deemed one of the longest-running chicken sandwich chains in the United States. The founder opened his first chain in Hapeville, Georgia, and has become a favorite soul food for many. Truett had worked in restaurants seven times a week and knew the importance of rest. That’s why he vowed to close Chick-fil-A every Sunday. He values rest and worship, so he sets aside one day of the week for his employees—a practice that Chick-fil-A still upholds today. 

Chick-fil-A also selects franchisees that uphold their values and passion. The company takes great care in selecting who they do business with, which includes getting to know candidates through a lengthy and intensive selection process. The founder’s vision is to influence the people and communities they serve. Chick-fil-A also seeks franchise candidates in Puerto Rico, Canada, and the United States. 

Chick-Fil-A candidates are required to show personal financial integrity and stewardship. They also need to have proven experience in leadership and a strong business acumen. Chick-fil-A ensures that candidates showcase entrepreneurial spirit, a strong character, and a growth mindset. This is to uphold the vision and values that Truett started in 1946. 

Franchise Training Details

• The initial on-site training programs last three to four weeks. However, the duration and actual location of the training will vary. 
• The training program primarily covers operational aspects, such as food preparation, service, customer relations, accounting, communications, purchasing, planning, maintenance, policies, management styles, and marketing. 
• The franchisor may require franchisees to attend various conferences and seminars occasionally. This is on top of the initial training program.
• The franchisor may also offer various programs that operators can use in advertising products or hiring staff, which aren’t stipulated in the Franchise Agreement. 

Franchise Territory

• The franchisor will grant franchisees one Chick-fil-A restaurant at the franchisor’s designated location. 
• Franchisees will not get exclusive or protected territory, so they may face competition from other operators. 

Franchise Obligations and Conditions

• Franchisees must devote their time and effort 100% to operating their Chick-fil-A restaurant. 
• The franchisor only allows franchisees to sell products approved by Chick-fil-A. This also applies to franchisees with a Chick-fil-A-associated food truck. 

Franchise Term and Renewal

The franchise term expires on early December 31, the year the agreement is signed or whatever the lease expiration is. Franchisees may apply for one-year extensions unless written notice is given 30 days before the franchise term expires. 

Financial Assistance

• The franchisor designates locations, leases, and subleases the store’s premises to franchisees. The lease and sublease terms will vary depending on the type of Chick-fil-A restaurant and location. 
• The franchisor also engages in concession agreements that oversee the utilization of non-traditional satellite unit locations with the proprietors or administrators of said satellite unit spaces.
• The franchisor offers extended payment periods for specific pre-opening costs stipulated in the Franchise Agreement. Additionally, the franchisor leases equipment to operators, charging a monthly rental fee based on the fair market rental value established by Chick-fil-A using its singular and exclusive business judgment. It’s important to note that neither the franchisor nor any affiliated entities provide any financing arrangements to operators, either directly or indirectly.

Did You Know?

Here are some fun facts about Chick-fil-A you need to know!

• Did you know that Chick-fil-A only uses peanut oil for frying? That’s what makes the chicken its unique flavor! Chick-fil-A is also the single most significant purchaser of peanut oil in the United States. They also believe peanut oil is a healthier option.
• The best Chick-fil-A promotional gig was the “First 100,” where the first 100 customers inside a new Chick-fil-A restaurant would get free chicken for a year. 
• Did you know that the founder, Truett Cathy, invented the chicken sandwich? He worked for a restaurant in Atlanta, and the newly delivered chicken breasts were too big to serve as airline food. He turned this into a meal for the staff. 
• You can get a free ice cream cone by walking up to the counter and trading your toy when ordering the kid’s meal. 

Franchise Cost

Your investment.

Here are the Chick-fil-A franchise costs:

If you’re looking for another investment opportunity, visit Franchise How’s website for more information. 

Zoom Sewer and Drain Cleaning Franchise Cost

Taking care of your home’s plumbing system is an essential part of being a homeowner. However, not everyone has the skill and patience to do it, and so franchises such as Zoom Sewer and Drain Cleaning are some of the most lucrative. Here’s what you need to know if you’re thinking of getting it:

Franchise Description

Zoom Sewer and Drain Cleaning provides drain cleaning, maintenance, sewer inspections, repair and replacement services for residential and commercial customers. The business began in 1995 and had been franchising since 2013. They have their headquarters in Norristown, Pennsylvania, and Zoom Franchise Company, LLC is the franchisor.

Training for the franchisee’s principal owner and personnel will be provided by the franchisor or its representatives and agents. Before starting your franchise, Zoom Sewer and Drain Cleaning will require you to complete their training program. It comes in two phases:

• Phase 1: 2 to 3 days training at the Franchise Business
• Phase2: 2 to 3 days in Norristown, PA

The franchisor may also require you to attend additional training during the length of your term agreement. The franchisor is planning to hold a 2 to 3-day national Zoom Fest yearly. This will be held in Norristown, PA, or any location it designates. They will require franchisees to attend, but their managers will be welcome.

The franchisor will designate a protected territory where the franchisees will operate their business. Before signing any Franchise Agreement, both the franchisor and the franchisee will agree on a geographic territory. 

The franchisor will base the protected territory on contiguous zip codes that will consist of approximately 500,000 individuals. This will be based on the most recent U.S. Census data at the time of signing the franchise agreement. This means that as long as the deal is taking effect, the franchisor or its affiliates will not locate, operate, or grant a franchise for another Zoom Sewer and Drain Cleaning business within the protected territory.

Obligations

The franchisor requires the franchisee or its principal owner to exert every effort to take responsibility for the management of the business. They will do this on a daily basis unless they agree on an alternate arrangement. With the franchisor’s discretion, the franchisee can hire a manager to handle the operations of the business.

Franchisors will also require you to sell products and services that have their approval. On the other hand, franchisees aren’t allowed to sell unauthorized products or services in compliance with the franchise agreement. Franchisees are also not allowed to solicit business outside of the protected territory. They are, however, permitted to serve customers outside of the protected territory as written in the FDD.

Term of Agreement

The initial franchise will take ten years after the signing of the agreement. You can renew the contract for another ten years, for four times, if you continue to meet the requirements.

Zoom Sewer and Drain Cleaning doesn’t offer direct or indirect financial assistance to its franchisees. In addition, they will not guarantee a franchisee’s note, lease, or obligation.

Get to know more about Zoom Sewer and Drain Cleaning before you get that franchise. Here are some facts about the business:

• They have very little competition in the niche. Most of their competitors are independent plumbers and contractors
• According to the company’s co-founder and COO, Ellen Rohr, this is a recession-resistant business, and the Covid-19 pandemic has proven this
• They have a reported $12 million in revenue with 53 employees and 15 franchisees 

The table below shows the estimated cost of a Zoom Sewer and Drain Cleaning franchise. Take note that these numbers may change without any prior notice.

Other Costs

For other franchising information, check out more articles here at Franchise How !

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Franchise Business Plan

You’ve finally decided to own a franchise business. Excellent. Entering a marketplace full of competitors and big industry names might seem overwhelming. However, a well-crafted business plan can provide a roadmap to success.

Are you looking to start writing a business plan for your franchise business? Creating a business plan is essential to starting, growing, and securing funding for your business. So we have prepared a franchise business plan template to help you start writing yours.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Franchise Business plan?

Writing a franchise business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your product or services:, management team:, financial highlights:, call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on your business’s details, you’ll need different elements in your business overview. Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

Product distribution franchise

Management franchise, business format franchise.

• Company structure of your business , whether it is a sole proprietorship, partnership or something else.
• Location of your business and why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market your business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

• Use various sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan.

4. Products And Services

The product and services section of a franchise business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the services:

• Create a list of the products or services your franchisee will offer. For example, if you own a fast-food franchise, you may include a menu description, pricing strategy, and specific services like takeaway, home delivery, drive-through facility, etc.
• Describe each service: Provide a detailed description of what it entails, the time required, and the qualifications of the professionals who will provide it. For example, a Visual Merchandiser is responsible for creating attractive and effective displays in a clothing franchisee.

Emphasize safety and quality:

Overall, a business plan’s product and services section should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Develop your unique selling proposition (USP):

Marketing strategies:, sales strategies:, customer retention:.

Overall, your business plan’s sales and marketing strategies section should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

Hiring plan:

Operational process:.

• For example, McDonald’s has strict SOPs covering everything, including strict procedures for cooking, assembling, and packaging food, handling customers, and maintaining a clean environment.

Equipment & Technology:

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the operations. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe your franchisee’s key personnel and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections and provide supporting evidence for your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your franchise business should only include relevant and essential information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This franchise business plan sample will provide an idea for writing a successful franchise plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready franchise business plan to impress your audience, download our franchise business plan pdf .

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Frequently asked questions, why do you need a franchise business plan.

A business plan is an essential tool for anyone looking to start or run a successful franchise company. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your franchise business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your franchise business.

How to get funding for your franchise business?

There are several ways to get funding for your franchise business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.
• Small business grants – there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your franchise business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your franchise business plan and outline your vision as you have in your mind.

What is the easiest way to write your franchise business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any franchise business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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10 Proven Strategies for Franchise Growth

In this blog post, we’ll guide you through 10 proven strategies for franchise growth. Providing valuable insights and best practices that will help you unlock your franchise’s full potential. Let’s get started!

Key Takeaways

Assess franchise potential for growth through performance metrics, market presence, and scalability.

Create a unique selling proposition (USP) with consistent branding elements to build a strong brand identity.

Develop effective support systems, budget for growth, and embrace technology & innovation to drive successful expansion into new markets.

Assessing Your Franchise’s Potential for Growth

Prior to starting your franchise growth journey, evaluating your franchise’s potential for growth is fundamental especially for emerging franchisors. By analyzing performance metrics, market presence, and the scalability of your business model, you can identify areas for improvement and develop a strategic plan for growth. This will ensure that your expansion efforts are effective and sustainable, leading to long-term success for your franchise.

Analyzing Performance Metrics

Analyzing key performance indicators (KPIs) like sales, NPS, and franchisee performance is a fundamental step toward determining your franchise’s success and pinpointing areas for improvement. By measuring and monitoring these KPIs, you can gain valuable insights into:

The strengths and weaknesses of your franchise system

The effectiveness of your marketing and sales strategies

The satisfaction levels of your customers

The performance of your franchisees

These insights will allow you to make informed decisions about your expansion efforts. Allowing you to take proactive steps to improve the overall performance of your franchise.

Keep in mind, knowing your current performance is a prerequisite for establishing realistic goals and securing franchise success.

Market Presence and Demand

Assessing your franchise’s market presence and demand is a pivotal move in recognizing opportunities for expansion. A strong market presence and high demand for your products or services will help attract customers. In turn creating a recognizable brand identity, ultimately leading to increased sales and profits for your business.

To increase market presence and demand, focus on developing a unique selling proposition (USP). Creating consistent branding elements, and providing exceptional customer service. By understanding the needs of your target market and effectively meeting those needs, you’ll position your franchise for long-term growth.

Scalability of Business Model

For successful franchise growth, having a scalable business model is indispensable. Scalability allows your franchise to accommodate growth, high demand, and increased workloads while maintaining performance and efficiency. To assess the scalability of your business model, consider whether your franchise can deliver consistent quality products and services in higher demand and maintain customer satisfaction.

By ensuring your established business model is scalable and based on a proven business model, you, as a business owner, will be better prepared to expand your franchise business and achieve long-term success with a solid business concept.

Building a Strong Brand Identity

A strong brand identity is essential for franchise growth, as it helps to build customer trust and loyalty, and sets your franchise apart from competitors. By creating a unique selling proposition (USP) and implementing consistent branding elements. You can establish a powerful brand identity that resonates with your target audience and drives growth.

We’ll delve into the process of building a robust brand identity for your franchise.

Creating a Unique Selling Proposition (USP)

Formulating a USP plays a critical role in setting your franchise apart from competitors and resonating with your target audience. A USP is a unique benefit or feature that sets your business apart from others in the market. To create a compelling USP, conduct research on your competitors, understand your target audience, and identify the unique aspects of your franchise that set it apart. By establishing a USP, you’ll be better positioned to attract customers and achieve franchise success. For example, if your closest competitor does not open on Sunday or has reduced hours – could this be an opportunity to capture customers? I did this years ago when I was the only oil change franchise open on a Sunday.

Implementing Consistent Branding Elements

Creating a unified brand identity through consistent branding is key to establishing customer trust and loyalty. Making sure your franchise is easily recognizable and relatable to customers. To implement consistent branding elements, you should:

Develop a unified logo

Choose a consistent color palette

Select a consistent font

Ensure all franchise locations adhere to the same branding guidelines.

By maintaining consistent branding across all franchise locations, you’ll strengthen your brand identity and drive growth.

Establishing Effective Support Systems

As a franchisor, you bear the responsibility of equipping your franchisees with the necessary support for their success. By offering comprehensive training programs and marketing and advertising assistance, you can help your franchisees deliver exceptional customer service, maintain brand consistency, and ultimately drive growth.

We’ll delve deeper into the essential aspects of creating effective support systems for your franchise.

Offering Comprehensive Training Programs

Supplying your franchisees with extensive training and resources is pivotal to their success and upholding brand standards. Comprehensive training programs should cover topics such as operations, customer service, marketing and be tailored to the specific needs of your franchisees.

By ensuring your franchise owners have the knowledge and skills needed to operate their businesses effectively. You’ll set them up for success and contribute to the overall growth of your franchise.

Providing Marketing and Advertising Assistance

Assisting your franchisees with marketing and advertising efforts is essential for attracting customers and driving growth. By providing promotional materials, marketing resources, and advertising support, you can help your franchisees effectively reach their target audience and increase sales.

Additionally, by maintaining consistent branding and messaging across all marketing and advertising efforts. You’ll reinforce your brand identity and build customer trust and loyalty.

Attracting the Right Franchisees

Attracting the right franchisees is crucial for the success and growth of your franchise. By developing a franchisee profile and utilizing multiple recruitment channels, you can target the most suitable candidates and set your franchise up for long-term success.

We’ll examine the process of how to sell franchises by attracting the right franchisees for your business, including the importance of a well-structured franchise agreement for a successful franchise owner and effective franchise sales strategies.

Developing a Franchisee Profile

Crafting a profile that embodies your ideal franchisee is instrumental in pinpointing the best-suited candidates for your franchise. Consider the traits and qualities that you believe are necessary for success, such as:

financial stability

a strong work ethic

By having a clear understanding of the characteristics you’re looking for in prospective franchisees, you’ll be better equipped to recruit the right individuals to drive your franchise’s growth.

Utilizing Multiple Recruitment Channels

To reach a wider audience of potential franchisees, it’s important to use various recruitment channels, such as online platforms and franchise brokers. By leveraging different channels, you can increase your brand visibility and create more opportunities for expansion. Keep in mind that finding the right franchisees is critical for your franchise’s long-term success, so be sure to invest time and resources in your recruitment efforts.

Expanding into New Markets

Entering new markets is an exciting opportunity for franchise growth. By conducting market research and adapting to local market conditions, you can identify untapped opportunities and expand by finding the ideal franchise location.

We will examine the successful strategies for expanding into new markets.

Conducting Market Research

Prior to venturing into new markets, conducting market research to uncover growth opportunities and evaluate competition is vital. Market research can provide valuable insights into consumer preferences, market trends, and competitor analysis, helping you understand the potential of a new market and develop effective strategies for entering it.

By thoroughly researching potential markets, you’ll be better prepared to make informed decisions about your expansion efforts and maximize your chances of success.

Adapting to Local Market Conditions

When expanding into new markets, it’s important to adapt your franchise offering to suit local market conditions and preferences, while maintaining brand consistency. This may involve customizing your products or services, adjusting your pricing strategy, or tailoring your marketing and advertising campaigns to the local area.

By understanding and adapting to local market conditions, you’ll increase your chances of success in new markets and contribute to the overall growth of your franchise.

Enhancing Customer Experience

A positive customer experience is key to the success of any franchise. By implementing customer feedback mechanisms and continuously innovating your offerings. You can enhance your customer experience, drive satisfaction, and fuel your franchise’s growth.

We will delve into methods to enhance the excellent customer service experience in your franchise, focusing on both new and existing customers.

Implementing Customer Feedback Mechanisms

Collecting and scrutinizing customer feedback is crucial to spotting areas of improvement and enhancing customer satisfaction. By implementing customer feedback mechanisms, such as surveys, feedback forms, and customer reviews, you can gain valuable insights into your customers’ needs and preferences. Use this information to make data-driven decisions and adjustments to your products, services, and overall customer experience, ultimately driving growth for your franchise. If you don’t have a measurement tool in place a Google search will bring up companies like Qualtrics .

Innovating and Updating Offerings

Continually updating and innovating your products and services is key to maintaining competitiveness and meeting customer needs. By staying ahead of industry trends and incorporating customer feedback. You can ensure that your franchise remains relevant and appealing to your target audience. As a result, you’ll attract new customers, retain existing ones, and drive growth for your franchise.

Financial Planning and Management

Effective financial planning and management are essential for the success and growth of your franchise. By budgeting for growth and monitoring franchisee performance, you can ensure the profitability of your franchise and identify areas for improvement.

We’ll investigate the significance of financial planning and management for your franchise’s prosperity.

Budgeting for Growth

Formulating a financial plan that accommodates expansion costs and backs your growth objectives is vital for your franchise’s prosperity. By accurately estimating income, identifying expenses, and establishing realistic goals based on your organization’s financial position, you can allocate resources effectively and drive growth.

Remember, budgeting for growth is crucial for ensuring your franchise can meet its financial obligations, such as franchise fees, and remain profitable.

Monitoring Franchisee Performance

Keeping a tab on your franchisees’ financial performance is key to guaranteeing profitability and spotting areas for improvement. By keeping a close eye on franchisee performance, you can provide feedback and support as needed, helping your franchisees achieve their financial objectives and contribute to the overall growth of your franchise. In turn, you’ll foster long-term success for both your franchisees and your brand.

Embracing Technology and Innovation

In today’s fast-paced business landscape, embracing technology and innovation is essential for staying competitive and driving franchise growth. By implementing efficient systems and staying ahead of industry trends, you can streamline operations, improve customer experience, and fuel your franchise’s expansion.

We’ll look into the significance of technology and innovation for your franchise’s success.

Implementing Efficient Systems

Embracing technology and systems that optimize operations and enhance efficiency throughout your franchise network is critical for your franchise’s expansion. By implementing efficient systems, such as automated processes, cloud-based solutions, and customer relationship management (CRM) software, you can enhance productivity, reduce costs, and better serve your customers.

Embracing technology and innovation will not only improve your franchise’s performance but also contribute to its long-term success.

Staying Ahead of Industry Trends

Keeping abreast of industry trends and innovations is essential to retain a competitive edge and propel your franchise’s growth. By keeping up with the latest developments in your industry, you can identify opportunities for expansion, adapt your offerings to meet changing customer needs, and make informed decisions about your franchise’s future.

Remember, staying ahead of industry trends is essential for your franchise’s long-term success and growth.

Importance of Strategy

Recognizing the importance of strategy is crucial for the success of any franchise. By setting goals, adjusting your strategy as needed, and reviewing your strategic plan annually, you can ensure your franchise remains focused and agile, adapting to changes in the market and overcoming unforeseen challenges.

We’ll delve into the importance of strategy in realizing franchise growth.

Set Goals & Adjust

Laying down clear goals and objectives for your franchise is critical in propelling growth and keeping your organization on course. By setting measurable goals and adjusting your strategy as needed, you can remain agile and responsive to changing circumstances, maximizing your chances of success.

Remember, it’s important to regularly evaluate your progress and make adjustments as necessary to achieve your desired outcomes.

Review Annually

Regularly reviewing and updating your strategic plan is crucial for ensuring your franchise stays agile and responds effectively to changes in the market or unforeseen challenges. By reassessing your goals and objectives annually, you can identify areas for improvement, adapt your strategy to shifting market conditions, and ensure your franchise remains focused on its growth objectives.

Remember, a well-crafted strategy is essential for your franchise’s long-term success.

In conclusion, achieving franchise growth requires a combination of strategic planning, effective support systems, and a strong brand identity. By assessing your franchise’s potential for growth, building a strong brand identity, establishing effective support systems, attracting the right franchisees, expanding into new markets, enhancing customer experience, managing finances effectively, and embracing technology and innovation, you can unlock your franchise’s full potential and achieve long-term success. Remember, the key to successful franchise growth lies in your ability to adapt, learn, and evolve with the ever-changing business landscape.

FAQ’s

Question: What are the key factors to consider when assessing my franchise’s potential for growth?

Analyzing performance metrics, evaluating market presence and demand, and assessing the scalability of your business model are crucial factors to consider when assessing your franchise’s potential for growth.

Question: How can I build a strong brand identity for my franchise?

Creating a unique selling proposition (USP) and implementing consistent branding elements can help you build a strong brand identity that resonates with your target audience and drives growth.

Question: What can I do to provide effective support systems for my franchisees?

Offering comprehensive training programs and marketing and advertising assistance can help your franchisees deliver exceptional customer service, maintain brand consistency, and drive growth.

Question: How can I ensure successful expansion into new markets?

Conducting market research and adapting to local market conditions are essential for successful expansion into new markets.

Question: What role does technology and innovation play in franchise growth?

Embracing technology and innovation can help streamline operations, improve customer experience, and fuel your franchise’s expansion.

• Franchise Operation Management Strategies
• Strategy vs. Operations Strategy
• Types of Franchise Business Growth Strategies
• Unlocking Success with a Winning Franchise Strategy
• 7 Proven Strategies for Franchise Business Growth

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Franchise Business Plan Example Presentation

The first and most fundamental principle of franchising, Franchising prosperity doesn’t quite develop by chance. A franchise business plan increases the likelihood of a new franchisor and the franchise’s success by twofold.

Secondly, Businesses operate since they stick to a well-defined and well-executed strategy.

Over 543,000 new firms start in the United States every month, yet only 7 out of 10 survive after two years , while 5 out of 10 survive after five years. 

Surprisingly, over 70% of organizations that survive for five years follow a strategic business strategy.

The finest strategies begin with a particular goal and then establish objectives and techniques to help you achieve it.You should identify a few franchise-specific points in your business plan to franchise.

What is a franchise business plan? 

A business plan is a roadmap that outlines a company’s primary business operations, objectives, and strategies for achieving those objectives. 

When starting a franchise business, it is important to have a plan. This document will outline your goals, strategies and tactics for your business. 

Moreover, this business plan serves as a guide to help you stay on track and meet your desired results.

Lastly.a few key components in your franchise business plan, and below is a brief overview of each section

Components of a franchise model business plan

• Company Overview and Purpose of franchise
• Mission and Vision statement
• Company’s organizational structure
• Industry Analysis
• Market research and planning
• Business Operations
• Franchise Marketing plan
• Structure of franchise management and support
• Franchise Financial Plan
• Franchise Development Plan

1. Company Overview and Purpose of franchise

The franchisor, its products and services, opportunities, risks, strategies, target market, competition, competitive advantage, and franchisor’s strengths and weakness is analyzed.

Above all,the executive summary of your business plan could be the most crucial component. 

However, Call it the ‘elevator pitch.’

Therefore,The executive summary should never be longer than two pages, and if it will condense to one page, that’s even better.

To sum up,I would suggest a one-page or one-slide overview of the company and industry. You can download the template on a company overview or a comprehensive franchise business plan.

2. Vision Statement

Firstly,Your company’s culture is defined by a vision and mission statement. 

Secondly,the vision and mission statement will explain the company’s primary motivations for being in business and define the boundaries of its operations.

The vision statement reflects your concept regarding the franchisor and system, customers, vendors, profitability, professionalism, community, and the workers.

In addition,it contains franchise ambitions and the regions or cities they intend to expand their franchise business .  

3. Company’s organizational structure

The organizational structure and hierarchy give the reader knowledge regarding the company.

Also, it contains whether and when the company was bought out by the creators.Subsequently with current funding such as stock ownership, mortgages, loans, overdrafts, and debentures. 

Write on notable achievements you’ve made as well as any challenges you’ve faced and overcome—the management of the company and their previous experiences and accomplishments. 

4. Background and analysis of the industry

The industry analysis and background part, second only to the executive summary, is the one that gets the most attention. 

Secondly,you must recognize your market, competitors, and market position for your organization to have proper guidance.

When comparing an organization and its goods & services to competitors, use infographics for clarification and analysis. 

Lastly, I recommend to use Canva ,a tool to prepare images and infographics for your franchise business plan and your marketing campaign.

By answering the following questions, define the industry in which you work:

• How big is the business? The reader will be interested in knowing the industry’s size or expansion.
• Do a few large enterprises dominate the market, or is it divided among many smaller shops?
• Who are your primary competitors, leading companies, franchisors, and suppliers in the industry?
• Is there a big range of possible clients in the industry, or do a few people responsible for a substantial percentage of income?
• What variables are critical to your industry’s success?
• What laws, environmental developments, and commercial developments will have an impact on your sector?
• Based on published projections, what do the industry’s rapid expansion and profile look like?

5. Market research and planning

You discuss your customer profile, market volume, industry developments, present and future competition, and the kind of location you require. It demonstrates to the potential franchisee that you are familiar with the industry you will be working in.

Market research should include

• Market size and Market share of the franchisor or its micro industry.
• Type of Market
• Market Share Analysis
• Hybrid market
• Current Business Formats of these markets
• Demand and Supply-side drivers contribute to the growth of the market segment.
• Franchise Readiness and Feasibility analysis
• Ideal Franchisee Profile
• Franchise Financial Facts 
• Franchising Models selected among COCO, FOCO, COFO or FOFO models
• Different Expansion formats
• Unit Franchise format
• Master and Sub franchise format
• Area Franchise format
• Multi-unit Franchise format
• Type of business model suitable
• Business Format Franchising or Product-based franchising

6. Business operations

In any business, employees are the most valuable asset. Firstly,you detail your staffing plans for hiring and paying employees and the training programmes you or the franchisee will give in this area.

Additionally, addresses having the necessary products and materials to sell to the wider populace and run the business. The Operations plan includes concerns with your vendors, such as how they will deliver to you and how you will sell to them.

Also, enlighten yourself on your well-written franchise operational manual , which contains standards for franchisees to follow when operating your franchise. 

7. Franchise Marketing plan

Every investor, lender, bank and member of management wants to know how you plan to bring in new clients for your franchise. You define the entire franchise system’s marketing strategy, along with any neighbourhood and localized marketing tactics, in this area. 

Brand recognition, brand building initiatives , and franchise growth marketing strategy should focus on the market strategy. 

Make it clear to the reader how you plan to launch your business. Finally, you’ll take care of the pricing specifics. 

8. Structure of franchise management and support

Summarize the day-to-day administration necessary to drive the organization, and provide background details about your supervisors if you know who they are. Specify the volume and sort of employees you’ll need to hire, as well as your wage and benefit plans as well as your staff retention strategies.

Prepare your franchise support documents like :

• Escalation Matrix
• Franchise startup checklist
• A Franchise Suggestion format
• The Franchise non-disclosure/non compete agreement
• Vendor checklist and purchase formats 
• Brand kit: Brand logos and brand graphics. Use definition and process.

To sum up, describe the position and responsibilities of your franchise manager , who will be in charge of selling your franchise and providing daily support to franchisees to ensure that business operations operate smoothly. 

9. Financial planning for franchise business 

Firstly, How much money will you need to get your business off the ground?

Secondly, Is it possible that the business will require additional funds in the future?

Give a five-year profit and loss forecast as well as a cash flow analysis. Examine the number of sales needed to break even and create a profit in detail.

Franchise Financial plan includes the fees projected profit and loss statement for franchisees. The franchisor shares this franchise document with the franchisee before signing the franchise. The franchisee will examine and cross-check the financial terms and conditions with the franchise disclosure document.

10. Franchise Development Plan 

To start with,you must include a full description of the “hows” in the business plan in addition to the “whats” of day-to-day operations. 

Secondly,What modifications do you expect to make to meet the plan if your company is already up and running?

To summarize,How much will such changes cost, and when do you plan to repay those costs? Figure out how much money you’ll need when you open and how long it will take to break even and make a profit if you’re beginning a business.

The franchisor must have a franchise sales plan that aligns with their franchise expansion and location strategy and schedules. 

11. Appendix

The appendix is where you can give the reader printouts of your tax records, business and industry publications, information about the community you’ll be servicing, and any other material that will assist them to comprehend the firm.

Writing a business plan may seem daunting, but it is essential to expand your business.

In short,you should enjoy the task of writing your business plan, and if not, you may lack the discipline required to run your own company.

Franchise business plan example

Starting a franchise can be a great way to own your own business with less risk than starting from scratch. It can also be a lucrative way to own a business, with some franchises earning over a million dollars in revenue annually.

However, there are a few key things to consider when starting a franchise. First, you will need to create a detailed business plan.

This plan should include an overview of the franchise, its target market, and how you plan to compete in that market. Likewise, you also include a section on financials, including your estimated startup costs and your projected income and expenses.

You can download our , franchise business plan template from our downloads page on the website.

Franchise proposal sample doc

A franchise proposal is a document,which is to request the approval of a franchising opportunity from the head office or board of directors. 

The proposal should be well-written and organized to make it easy for the head office to understand. 

Most importantly,be concise and provide all the necessary information to make an informed decision.

The following is a sample franchise proposal is pitch deck to potential franchisee.

Conclusion: Get You Franchise business Plan example

You should have a solid business strategy in place if you want to expand your company effectively. Instead of paying for advisory services, you can construct your business plan with the help of the following points.

Expand your business now with the help of Franchise Deck and profit from developing a franchise business plan. 

Give us a chance to sail with you on your franchising journey. The first milestone of the franchise business model is the franchise business plan. 

The franchise business plan comprises a franchise expansion strategy to decide why, how, when and where to franchise your business.

The franchise model business plan template and customized franchise plan include the franchise strategic plan, franchise proposal sample doc is part of franchise marketing kit.

Do you have any more innovative business plans? Share your plans with us to assist you in improving them, and give us your feedback on the same.

A highly successful franchisor is dedicated to its brand. Running a franchise requires a strong drive and motivation for success. Hence a franchise business plan can help an entrepreneur achieve his/her goals in the right way.

A standard business plan usually consists of-an govt summary, an overview of your services, thorough market and business research, a marketing and sales technique, operational particulars, financial projections, and an appendix.

ranchise business plans are essential for long-term success in the franchise industry. A comprehensive plan should include research into the target market, potential competitors, and the costs associated with the business. A business plan should also outline the legal requirements for setting up a franchise in the chosen market. A well-crafted franchise business plan should include detailed information about the franchise’s products and services, as well as the marketing strategy. It is important to include financial projections for the franchise business in the plan, including estimated startup costs and expected revenues.

A franchise business plan should also provide information on the franchisee’s responsibilities and the franchisor’s expectations. A key component of the business plan is a competitive analysis, which will enable the franchise to assess its competitive position in the market. It is also important to include a risk management plan in the franchise business plan to identify and mitigate potential risks to the business. A detailed operational plan should be included in the franchise business plan, which should outline the day-to-day operations of the franchise. The franchise business plan should include a clear vision and mission statement to guide the franchisee’s decisions.

A franchise business plan should also include a section on customer service, outlining the standards and policies that will be in place. A franchise business plan should also include a section on employee training and development, as well as procedures for hiring and managing employees. The franchise business plan should include strategies for managing inventory and controlling costs. The franchise business plan should also include a section on financial management, including budgeting and forecasting. Finally, the franchise business plan should include a section on exit strategies, outlining how the franchise will be exited and the possible outcomes.

How will your online business run day-to-day? The operations part describes the required requirements for your small business to run easily.

this is franchise business plan,

incase you need help with online business plan,email me a t [email protected]

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How to Write a Franchise Business Plan

Posted: 18 Nov 2015 | 7 minutes read

Richard Holden, head of franchising at Lloyds Banking Group, explains how to write a winning business plan

Planning a business is not a simple matter of scribbling down a few ideas. If a franchisee is going to make their plan work, a much more thorough approach must be adopted.

A business plan simply sets out your idea, objectives and how you intend to achieve them. It shows there is a good market for your product or service.

Working document

0You should treat your plan as a working document. While you will need it to secure the financial backing you’re looking for, your plan should never gather dust. It is a great tool for measuring where the business is compared to where you thought it would be. It helps you identify opportunities for your business, as well as development areas you may need to focus on.

You should regularly review your plan. No business plan is ever set in stone, as your plans will evolve over time. So update it at least once a year.

When you start out, a lender will want to study your business plan, so it needs to demonstrate that you have the ability to build a successful business in your chosen market. A lender will only provide you with assistance if it’s confident you will be able to repay the financial commitment you are taking on. Your plan will help provide the confidence that you’ve thoroughly researched the opportunity and fully considered how you intend to develop your business.

While thorough research is necessary, a good business plan doesn’t need to go into minute detail about every aspect of the franchise. It will be relevant, punchy and to the point. It will grab the bank manager’s interest, so that they will want to lend to you.

What would I expect to see in a business plan? It’s always useful to start off with an executive summary, which provides a brief overview of what you’re looking to achieve.

The personal details of the business owner should include name, address, contact details, age, dependents, etc. You can include your previous experience, skills and knowledge or include your CV if you have one as an appendix to the plan.

Your plan should set out a mission statement and your short, medium and long-term objectives for the business. Nobody is going to hold you to these objectives, however it’s useful to understand from the outset what you want to achieve.

A brief overview of the franchise brand and its history is helpful. While a bank’s franchise unit may be fully aware of the opportunity you are investing in, the plan may be read by a bank manager or credit underwriter who doesn’t deal with the franchise brand in question on a regular basis.

Explain what the business does and how it does it. Include details of premises, vehicles, equipment, IT, stock, suppliers, customers, etc. Detail what local market research you’ve undertaken to incorporate demographics, potential customers and competitors.

If you have staff who are important to the business, list their roles and experience. Set out your marketing strategy to include any proposed launch event, public relations activity, website, local and national advertising, media profile, leaflet drops and promotional offers.

Close attention

The financial section is an important part of a business plan and receives close attention from any bank manager reviewing financial support. It’s tough to predict the future trading performance of your business, particularly if you are just starting out, when assumptions will be based on market research and possibly past performance of other franchisees in the network.

Financial projections for the first three years of trade are usually sufficient. However, a bank will be able to guide you. The cash flow forecast and profit and loss projection should be broken down monthly.

A cash flow statement shows the ability of the business to have cash available to pay bills on time. It’s all about timing and the amount of money flowing in and out of the business. A cash flow forecast can be a valuable tool if used correctly to identify potential shortfalls and if you need to take appropriate action. The profit and loss projection will determine when the business will become profitable and how profitable it will be.

Most franchisors will offer support producing your financial projections by providing you with figures to work from. Don’t take things at face value - ask about how and when they were produced and ensure they accurately reflect the potential of your business in your chosen location. Financial projections that have no relation to existing trading performance within the franchise network are speculative and open to challenge.

If you’re taking on an established franchise operation, provide the latest financial trading accounts and up-to-date management accounts for the existing business.

In addition, a bank requires a breakdown of the business owner’s own personal income and expenditure position, as well as their assets and liabilities summary. A bank manager will cross reference this with your personal bank statements, so ensure you provide an accurate summary.

You should also include how much capital you are investing in the business yourself and how much you are looking to borrow from the lender and for how long. Detail what security you are offering the bank to cover the proposed finance. Also declare if you’ve had any past or present financial difficulties, no matter how small they are. It is prudent to have a contingency reserve fund to fall back on in case the business takes longer than expected to get off the ground, so provide details if you can.

SWOT analysis

Producing a SWOT analysis is a useful exercise. Focusing on the business’ strengths, weaknesses, opportunities and threats can help demonstrate you have carefully researched the potential opportunity. Try to mitigate any weaknesses and threats to the business. Include your exit strategy if you have one.

The Lloyds Bank franchising website (www.lloydsbank.com/franchising) and the British Franchise Association website (www.thebfa.org) are great starting points for would be franchisees.

For new business owners, preparing a business plan and financial projections can be an intimidating process. However, it doesn’t need to be, as there is plenty of assistance available for people starting their franchise journey

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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

Growth Strategies Through Various Franchise Structures

There is no one-size-fits-all strategy to building a strong culture, but there are many paths to success and many ways to win the race.

By Brian Balconi

At the recent IFA Annual Convention, a franchise salesperson could be overheard celebrating a deal: “I just sold a three-pack!” Then someone shouted, “I just sold California. We’re putting out a press release announcing 100 more stores under development.” Nearby, a franchise executive sipped iced tea with the contentment from signing 10 individual franchise agreements that month. Which strategy won the race?

Consider four strategies used to grow franchised brands: individual location (one at a time), multi-unit development, master franchising, and area representative.

Individual Location Growing the franchise system one location at a time is the simplest and easiest strategy, but also has its limitations. This plan for growth works best when the franchising strategy is heavily reliant upon an owner-operator model, where the goal is to have many franchisees who have one or two locations — often referred to in franchisor boardrooms as a “onesie twosie” strategy. 

Additionally, to foster a high level of operational excellence, some franchisors grant only one location to a new franchisee in order for the franchisee to first prove his operational capabilities before being considered for multiple locations.

This model allows for more prospective franchisees to qualify, as it has lower financial requirements. But it may also lead to slower growth and more difficulty managing the system-wide growth. If you’re selling individual franchises and you’re stuck in first gear, perhaps it’s time to “rev up” franchise development by using one of the strategies noted below.

Multi-Unit Development  Many, perhaps most, franchisors pursue a multi-unit (or area) development strategy, either as its sole growth strategy or in conjunction with individual location growth. In this strategy, franchisors provide the franchisee with a protected territory in exchange for the franchisee agreeing to open a certain number of locations in a set time. (Note that the protected territory usually carves out non-traditional locations and, therefore, for legal reasons the term “exclusive territory” is generally not used. Check with your lawyer.) If the franchisee does not meet the development schedule, then the franchisor may take away the protected territory.

Multi-unit development strategies involve entering into a development agreement that contains a schedule typically requiring franchisees to develop anywhere between three locations to dozens or more, and a territory that may be anywhere between a few square miles to an entire metropolitan area or state(s). This approach will likely speed growth as franchisees will be required to open locations by specific dates. It will also allow the franchisor to better manage growth.

Typically, franchisees pay an up-front fee, which may be a percentage of the initial franchise fees for the locations to be developed or a lump sum to compensate the franchisor for setting aside the territory. 

Multi-unit development will attract larger and more growth-minded prospective franchisees, but it limits the pool of potential franchisees due to higher financial requirements. A downside of this model is that it ties up territory. Accordingly, it is very important to properly vet prospective multi-unit franchisees, their operational skill sets, and management skills. Also, the prospect must have a well-thought-out business plan that allows for building an infrastructure to scale operations.

For most franchise systems, multi-unit development will add power to their franchise growth.

Master Franchising While master franchising is most often thought of by U.S. franchisors as an international growth strategy, it can also be used within the U.S., either as one large territory or broken out into numerous territories. In the master franchising model, the master franchisor grants the master franchisee the right to open his own stores, as well as subfranchise to other franchisees. The master franchisor provides a protected territory and requires the master franchisee to open them himself, or through his subfranchisees, a set number of locations in a period of time. This provides a great upside for the master franchisee, but also requires more from him. The master franchisor typically has less support obligations and less investment but in exchange for that gives up more control, and only receives a portion of the unit royalty and unit initial franchise fee.

The master franchisee must also set up an infrastructure for being a subfranchisor including operational support, training, marketing, etc. Additionally, the master franchisee must absorb the administrative burden of preparing and implementing a franchise disclosure document (for territories in the U.S.) and coordinating it with the master franchisor.

Although the front-end work will be more involved and will need to be completed before you get out of the gate, for some franchise systems this may be the best strategy.

Area Representative

Another strategy for franchise growth is known by a number of names: area representative, area franchisee, area developer and development agent. As there is not one universal name for this model, speaking to others and even to other experienced franchise executives often requires a lengthy description of the model to ensure both people are speaking about the same structure.

An area representative franchise structure, or simply “area rep” for short, has some similarities to the master franchise structure but in many cases, is more efficient and comes with less administrative burden.

The benefits of using this structure are faster growth, acceleration of income, and additional support without use of resources. Downsides include potential quality control and consistency issues.

Area reps are granted a territory, which is typically larger than a multi-unit development agreement. Within that territory, the area rep will provide certain support services as outlined below. In exchange for this, the area rep receives a portion of the initial franchise fee and a portion of the royalty.  

An area rep’s and the franchisor’s duties can vary with this model. An area rep’s duties often include handling franchise sales in their territory, assisting with site selection and real estate development, and ultimately getting the store open. The area rep also provides operational support. Often, the area rep is required to own and operate one franchised location in order to stay current with the system’s operations and to be used as a training store.  

The franchisor often has a variety of duties such as retaining the franchise agreement, FDD and related legal obligations, which allows corporate to retain the right to enforce the franchise agreement and handle collections and franchise defaults. The franchisor also retains final approval of all new franchisees and sites. The franchisor may handle national lead generation, such as PR and advertising, and charge the area rep a fee for this. Corporate typically provides tools and guidance on site selection and provides store designs.This model has some similarities to master franchising but the franchisor gives up less control, which may allow the area rep model to gain  some efficiencies.

There is no one-size-fits-all strategy but there are many paths to success and many ways to win the race. At the next IFA convention, we’ll share our successes together. Brian Balconi is President – USA of Retail Food Group, the franchisor of Gloria Jean’s Coffees and It’s A Grind Coffee House, and includes Di Bella Coffee.

The 42 Best Franchise Opportunities to Buy & Own in 2022

Published: October 04, 2022

One of the best ways to start a new business is by capitalizing on a franchise opportunity. Not only do franchise opportunities come with premade marketing collateral and high brand awareness, but you get extensive business support from the franchiser .

Let’s take a look at the definition of a franchise, the basic criteria for evaluating an opportunity, and the best franchises to own this year.

We'll cover:

What is a franchise?

How to evaluate a franchise opportunity, best franchises to buy, low-cost/cheap franchises, best franchises to open and own, most profitable franchises, why own a franchise, how to afford your franchise.

Let's get started.

A franchise is a business in which independent entrepreneurs use the rights to a larger company’s business name, logo, and products to operate an individual location. The franchiser is the owner of the larger company who sells the rights to license their business, and the franchisee is the third-party owner and operator of the business locations.

When was the last time you made a fast food stop or purchased a cup of coffee before work? If the brand is recognizable and has multiple locations throughout your city or town, like McDonald's or Dunkin', it's quite possible your favorite food joint is a franchise .

In fact, the US Census reports that 11.4% of all businesses in the US are franchises . While restaurants make up the bulk of franchise opportunities, gas and convenience stores, car dealerships, fitness, real estate, and hospitality sectors also make up a sizable chunk.

But which franchises are best suited for your budget and skill set? Let’s take a look at how you can evaluate a franchising opportunity.

No franchise is one-size-fits-all. Entrepreneurs who want to open a franchise must take into account their budgetary constraints and the franchiser’s support system during the evaluation phase.

Here are a few criteria that you should consider.

Franchise Fees and Set-Up Costs

Every franchisor requires an upfront fee. This can range from hundreds to hundreds of thousands of dollars.

Preferably, the franchise fee would be paid out-of-pocket (though some franchisers offer financing options). Either way, we recommend having at least $10,000 to invest up-front.

Profitability

When you're evaluating a business investment, it's important to know if the opportunity is worth the money.

Determining the profitability of a franchise isn't an exact science, but there are a few factors to consider, including the unit growth, new franchisee success rate, and the franchiser's financial statements.

Support Systems for Franchisees

When selecting a franchiser, take a look at the support systems they’ve put in place to ensure their new location is a success.

7Eleven, for example, flies accepted franchisees to their support center in Dallas for training. They also have a resource center with seminars and events. Not all franchisers, especially small ones, will have extensive resources like 7Eleven, but make sure they offer basic training.

Time Commitment

Operating a franchise will be a decades-long commitment, ideally longer — you can’t operate a store and leave after a year. The franchise term for McDonald’s, for example, is 20 years.

Be sure that you’re prepared to stick around for a while without pursuing other time-consuming commitments (such as an additional career). If you feel that you’ll want to leave in less than ten years, be sure to choose a brand whose franchises are easier to sell.

Available Territories

Most, if not all, franchisers are looking to grow in a particular geographical area. It wouldn’t be profitable, for example, to open a new location just miles from another, or in an area where there’s no demand.

Be sure to check whether your target franchiser wants to open a location in your area. If not, decide whether you’re willing to relocate.

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Fill out the form to get started with your franchise business., brand recognition or growth.

How recognizable is the brand that you’ll be franchising? If it’s a smaller brand, has it seen significant growth in the past year?

These two characteristics will determine whether it will be profitable to operate a franchise for a prospective brand. Sometimes, going for a big, highly recognizable brand isn’t ideal, because up-front costs are significant.

A smaller franchiser could be an easier entry point — so long as the company has been growing in revenue.

Now that you know how to evaluate an opportunity, let’s take a look at our list of the best franchise opportunities to select from. Throughout the pandemic, these franchisers have either seen growth or very little stagnation, making them the best franchises to own.

• The UPS Store
• Sonic Drive-In
• Great Clips
• Kumon Math & Reading Centers
• Sport Clips
• Anytime Fitness
• Ace Hardware

Let's take a look at some of these franchises and see how they stack up. I'll review what each franchise requires in terms of the franchise fee and the initial investment you'll need to make.

A franchise fee is a cost a potential franchisee pays up front to operate the franchise. And the initial investment amount includes expenses such as royalty fees, real estate, and inventory costs.

Each opportunity will have the following information:

• Category: This is the business or industry category for the franchise.
• Franchise fee: A franchise fee is a cost a potential franchisee pays up-front to operate the franchise.
• Initial investment: The initial investment amount includes expenses such as royalty fees, real estate, and inventory costs.
• Financing available: This will tell you whether financing is available for initial investments.
• Franchise details: This is a link that will lead to the franchising page for the business.

1. McDonald's

Category: Fast-Food Franchise

Franchise fee: $45,000

Initial investment: $1,008,000 to $2,214,080

Liquid cash requirement: $500,000 minimum

Royalty fee: 4-5%

Financing available: Yes, through third-party lenders

Franchise details: McDonald's

If you want golden arches of your own, you'll need to put in a hefty initial investment. But with that investment, you get brand recognition, popularity, and years of experience in the fast-food industry.

2. 7-Eleven

Franchise fee : $10,000 to $1,000,000

Initial investment : $37,550 to $1,149,900

Liquid cash requirement: $50,000 - $150,000

Royalty fee: Varies

Financing available : Yes, through 7-Eleven’s internal program

Franchise details : 7-Eleven

As the #1 convenience store , 7-Eleven is seeing unprecedented growth. Its stores are turnkey and you can get started within three to six months, including application, testing, and training.

Franchise fee: $40,000 to $90,000

Initial investment: $109,700 to $1,637,700

Liquid cash requirement: $125,000 to $250,000

Royalty fee: 5%

Franchise details: Dunkin'

Dunkin' dropped the "Donuts" from its name, but this business is as recognizable as ever with locations in 32 countries. It was rated #1 in customer loyalty by Brand Keys’ Customer Loyalty Engagement Index. And they support their franchisees with training and assistance with site selection, construction, operations, management, and marketing.

4. The UPS Store

Franchise fee : $29,950

Initial investment: $138,433 to $460,031

Liquid cash requirement: $75,000 minimum

Financing available: Yes, through Guidant Financial

Franchise details: The UPS Store

The UPS Store is the top-ranked franchise in the business services industry. It boasts financial stability, brand recognition, and dedicated training and support — and 84% of the U.S. population lives within 10 miles of a UPS Store.

Franchise fee: $50,000

Initial investment: $383,500 and $2,620,800

Financing available: No

Franchise details: Popeyes

Popeyes is consistently one of the top franchises to own in Entrepreneur's Franchise 500 Rankings . It's a well-known fast-food brand with a global presence, strong advertising strategies, and well-developed core philosophies.

6. Sonic Drive-In

Initial investment: $1,240,000 to $3,540,000

Royalty fee: 2.5-5%

Franchise details: Sonic Drive-In

This drive-in chain prides itself on its operational excellence and customer service. This brand keeps growing — its franchise owners saw $1,341,000 in average gross sales.

7. Great Clips

Franchise fee: $20,000

Initial investment: $136,900 to $259,400

Liquid cash requirement: $50,000 minimum

Royalty fee: 6%

Franchise details: Great Clips

Great Clips has been in business for 30 years and provides its franchise owners with up-to-date technology and training. It has invested heavily in market research to provide customers with the best service and experience.

8. Taco Bell

Franchise fee: $25,000 to $45,000

Initial investment: $525,100 to $2,622,400

Liquid cash requirement: $750,000 minimum

Royalty fee: 5.5%

Franchise details: Taco Bell

This quick-service restaurant brand has been around for 50 years and has developed financial stability and brand recognition. It has a proven operating system and gives you access to restaurant resources and a community of more than 350 franchisees who know the business.

9. Kumon Math & Reading Centers

Franchise fee: $1,000

Initial investment: $74,428 - $156,590

Liquid cash requirement: $70,000 minimum

Financing available: No, but Kumon will cover up to $36,000 of your business expenses

Franchise details: Kumon

Kumon is ranked consistently in the top 10 of Entrepreneur’s Franchise 500 list. This is an ideal franchise to buy because of its low fee and potential for high profitability in a time of remote learning.

10. Sport Clips

Category: Hair Salon Franchise

Franchise fee: $59,500

Initial investment: $224,800 to $373,300

Liquid cash requirement: $200,000 minimum

Franchise details: Sport Clips

Sport Clips is growing and showing its strength and stability — it has a high continuity rate of 95.4% over the past five years. This means that out of all the stores that opened throughout the last five years, more than 95.4% of them are open today. It attributes this stability to relatively low startup costs, solid support systems, and continual monitoring of store performance.

11. Anytime Fitness

Franchise fee: $35,000

Initial investment: $105,000 to $720,000

Liquid cash requirement: $100,000 minimum

Royalty fee: $549 per month

Franchise details: Anytime Fitness

Anytime Fitness is one of the strongest performing fitness franchises out there today. With over 4 million members world wide, Anytime Fitness' brand recognition is high, but operating costs are low.

12. Ace Hardware

Franchise fee: $5,000

Initial investment: $280,000 to $2,000,000

Liquid cash requirement: $250,000

Financing available: Yes

Franchise details: My Ace

Ace Hardware exudes a local feel, which starkly contrasts the big-box home improvement stores like Home Depot and Lowe's. This franchise prides itself on stellar customer service and store-brand products.

The initial investment in a franchise can be pricey, and range anywhere from a few thousand dollars to over a million. If you're looking to purchase a franchise at a lower price point, there are options for you in a variety of industries.

1. Cruise Planners

Category: Travel Franchise

Franchise fee: $6,995

Initial investment: $2,095 to $22,867

Liquid cash requirement: $11,000

Royalty fee: 1.5-3%

Franchise details: Cruise Planners

Cruise Planners is a cruise planning agency. It's home-based, so you don't need to factor in the cost of real estate. Prior experience in travel planning is not required, and the company offers comprehensive training.

2. SuperGlass Windshield Repair

Franchise fee: $9,500 to $28,500

Initial investment: $9,910 to $31,000

Liquid cash requirement: $15,000

Royalty fee: 4%

Franchise details: SuperGlass Windshield Repair

SuperGlass Windshield Repair has been operating for 30 years and specializes in the repair of rock damaged and cracked windshields. Overhead costs can be kept low due to its mobile option — a physical shop location is not required. It also offers classroom and on-the-job training,

Franchise fee: $2,520 to $44,000

Initial investment: $3,985 to $51,605

Liquid cash requirement: $150,000

Royalty fee: 10%

Franchise details: JAN-PRO

JAN-PRO is a commercial cleaning franchise whose clientele is other businesses. They offer three options for franchising: international master franchise , executive business , and home-based opportunities.

4. Jazzercise

Franchise fee: $1,250

Initial investment: $2,500 to $38,000

Liquid cash requirement: $2,900

Franchise details: Jazzercise

If you're looking to start a low-investment, exercise business, a Jazzercise franchise might be a good fit for you. It offers various price points to begin a franchise and you can find the one that aligns with your budget.

5. Dream Vacations

Franchise fee: $495 to $9,800

Initial investment: $3,245 to $21,850

Liquid cash requirement: $9,800

Financing available: Yes, through their internal financing system

Franchise details: Dream Vacations

Dream Vacations is a home-based travel agency franchise with no overhead or inventory — this keeps the cost of initial investment low. It's a great option for military veterans and offers discounted investment prices.

• Freddy's Frozen Custard and Steakburgers
• Culver's Butterburgers and Frozen Custard
• Planet Fitness
• Club Pilates
• Nothing Bundt Cakes
• Soccer Shots

Some companies have seen unprecedented growth or are particularly driven to grow. They’re actively looking for new opportunities because they’re still in the initial stages of expanding their reach.

These are prime opportunities for prospective franchisees. You can take advantage of a growing name in the business while being the reason the name grows and becomes more authoritative.

Below are our top picks for the best-growing franchises to buy. In this list, we’ll take a look at the initial investment, the franchise's growth rate over the past three years, and the number of franchise locations, or franchise units.

1. Freddy's Frozen Custard and Steakburgers

Initial investment: $640,552 - $2,077,046

Three-year growth rate: 44.6%

Total franchise units: 386

This fast-casual restaurant is known for its burgers and freshly-churned custard. After your initial investment, you can expect your restaurant to open in eight to 18 months, depending on location and whether you're buying or leasing property.

2. Culver's Butterburgers and Frozen Custard

Three-year growth rate: 21.2%

Total franchise units: 765

Founded in 1984, Culver's has been a well-recognized name in the burger and custard business. It's a top franchise and offers an established operating system with over 35 years of experience.

3. Planet Fitness

Three-year growth rate: 45.9%

Total franchise units: 2,059

Planet Fitness is known for its Judgment Free Zone® philosophy — making first-time gym users feel comfortable as they begin their fitness journeys. This gym has over 14 million members and franchisees have a median annual operating income of $567,000.

4. Club Pilates

Three-year growth rate: 192.6%

Total franchise units: 597

Club Pilates is one of the top pilates franchises in the United States. Founded in 2007, this group fitness franchise carries out up to 8 million pilates workouts a year.

5. Nothing Bundt Cakes

Initial investment: $430,200 - $624,300

Three-year growth rate: 60.6%

Total franchise units: 355

This bakery is unique because, despite being a franchise, it has a "Mom and Pop shop" feel. There are locations across the United States, and its cakes have been featured in popular media outlets like Food and Wine Magazine, Food Network "Unwrapped", and Franchise Times.

6. Pure Barre

Three-year growth rate: 20.6%

Total franchise units: 563

Pure Barre is a popular, boutique fitness brand with nearly 600,000 clients. The business offers multiple revenue streams: bar classes and activewear. And it provides support and training for real estate, operations, consulting, marketing, and more.

7. uBreakiFix

Three-year growth rate: 14.8%

Total franchise units: 585

uBreakiFix specializes in repairs of all types of electronics — from computers to TVs to gaming consoles. The rise of remote work and in-home entertainment makes this a great contender for this year.

8. Soccer Shots

Three-year growth rate: 26.7%

Total franchise units: 242

Soccer Shots is a children's soccer program with a focus on character development. It has a low overhead cost, supports its franchisees , and has well-established relationships with national brands like Adidas and the U.S. Soccer Foundation.

9. Mathnasium

Three-year growth rate: 26.1%

Total franchise units: 1,074

This math learning center opened in 2002, and its mission is to "help every child understand — and master — math." Mathnasium has earned many accolades , and over the past four years, its average-per-unit gross sales grew 10% annually.

10. Kona Ice

Initial investment: $145,600 - $169,200

Three-year growth rate: 43.7%

Total franchise units: 1,305

Kona Ice, a seller of shaved ice, offers the benefit of having relatively low initial costs while still having solid brand recognition. Each franchise is operated out of a truck, meaning that you won’t spend money on land or real estate. The best part? You can open a Kona Ice location in less than two months .

Next, we curate the most profitable franchises overall — taken from both our list and lists around the web.

• Orangetheory Fitness
• Cruise Planners
• Jimmy John's Gourmet Sandwiches
• Papa John's

The franchises listed above are seeing the largest growth in franchise locations over the past year, which is one of the key indicators of profitability.

Feeling overwhelmed? Not sure how to get started? Read our guide on how to become an entrepreneur to get the basics down before purchasing a franchise.

Owning a franchise has countless benefits. You can profit from the franchiser’s recognizable brand while essentially running your own operation. The most profitable franchises rarely fail, removing the risks typically associated with opening a brand-new business .

Let’s dive into the benefits you’ll enjoy after investing in a franchise opportunity.

1. Franchises are already well-known in their market.

One of the biggest challenges of launching a startup is creating enough brand awareness to attract and convert customers.

Because most franchises have been operating for a few years at minimum, they’ve generated enough awareness for your first customer to walk in within days of opening your doors. The brand can be recognized immediately.

If it’s not, then potential customers need only look up the name of your business, and all the locations will show up. This demonstrates to potential buyers that the brand is proven and reputable. Think about it: Would you go to an unknown shop or a shop that has multiple locations? Likely the latter.

2. You see greater profits as a franchise owner.

Because franchisers have already established multiple businesses and have generated brand awareness, you will have a greater potential for profits than if you were to operate an independent business.

That does come at a premium cost, such as franchise fees and ongoing royalties paid out to the franchisers. However, you will see a high return-on-investment once new customers begin walking in almost immediately after opening the location.

3. You get the training you need to operate the franchise.

Don’t have industry-specific experience? Good news: You don’t need any. You simply need to be available for the company’s training schedule to learn how to operate your brand-new franchise location.

Franchisers don’t expect you to have specific experience in the field. For instance, if you’re considering opening a Kumon location, Kumon won’t require you to have a Master of Arts in teaching. All you need is to be proficient in math and reading and be willing to work with children.

4. You will receive in-person support and assistance.

Most franchisers have field representatives that visit independently-owned locations to ensure operations are progressing smoothly. Even if the franchiser doesn’t offer an in-person visit, you will have a strong support group from your fellow franchisees. You can go to networking events (or create your own) to find new ways to market your location, hire more help, and attract more customers.

5. Franchises offer lower risks.

All of these benefits conspire to make franchises lower-risk business ventures. Sure, there’s always a potential for your franchise location to fail, but this risk is much, much smaller compared to the risk you face when opening your own business.

If things go awry, you can sell the franchise location to another person. After all, the brand name is still valuable. Just because you can’t afford to operate that location doesn’t mean another person can’t.

Franchise Drawbacks

1. Franchises can have high upfront costs.

Initial investment costs in a franchise can be pricey, especially if you are buying a well-known profitable business like Dunkin’ or McDonalds. For smaller franchises, you’ll still have to shell out thousands up front.

While buying into a successful franchise comes with many benefits — including a built-in customer base, the initial lump sum needed to get started can be prohibitive for some.

2. Franchises may have more restrictive regulations or guidelines.

Unlike starting your own business from scratch, franchises come with a list of guidelines franchisees must follow. These terms and guidelines can be found in your franchise agreement.

The franchisor may dictate:

• Business hours
• Decor and signage

These guidelines are meant to create uniformity so that each franchise is the same at every location.

3. The franchisor may oversee your business' finances.

In addition to dictating how your business runs, franchises also lack autonomy when it comes to finances. Your franchisor will most likely control all aspects of the franchise's financial dealings. Be prepared to routinely submit financial statements such as your balance sheet and income statements.

4. Franchises often require additional ongoing fees and expenses.

In addition to startup costs, franchise owners should budget funds for reinvestment in the business and other fees stipulated by the franchisor. These additional costs can come in the form of training fees, royalty fees or other services like advertising.

While owning a franchise offers important benefits, it does come at a high cost. Read on to learn how you can afford a franchise.

Opening up a new location of a franchise is costly. You’ll need to not only cover the franchise fee, but have thousands of dollars in liquid assets.

First up, make sure that you have a good enough credit score to qualify for loans. Having a savings account is also essential. Keep in mind that some franchisers could require you to pay for the up-front fee without a loan. For that reason, you should consider franchises that accommodate your unique financial situation.

Here are a few of your funding options:

1. Small Business Loans

Small business loans are an excellent option for covering your franchise fee and up-front investments. Depending on your financials and your lender, you can qualify for hundreds of thousands of dollars, which will more than cover you during the setup phase.

2. Small Business Grants

Small business grants are another avenue to consider, with a minor caveat: Most grant issuing authorities look for independent startup owners, not for franchise owners. For that reason, you’ll want to parse carefully through the options.

If you identify as BIPOC, you can also consider small business grants specifically for minorities .

3. Microlending

Microlending is another great franchise funding option. If you don’t have enough capital to qualify for bigger loans, you can use a micro-loan. These loans typically amount to less than $50,000 and are best for you if you’re planning to open up a location for a low-cost franchise. Ideally, you would also have other sources of funding, such as investors and friends and family, to cover the up-front franchise costs.

4. Investors

Just as if you were launching your own startup, you can and should look for investors for your new franchise location. You should also distribute equity according to your investors’ initial investment.

Before seeking investors, review the franchise agreement to ensure you’re not violating the terms of your franchisor-franchisee partnership. Some franchisers may not allow you to seek individual investors because of the terms. It also may be overly complicated to account for franchise royalties, investor equity, employee payouts, marketing fees, and operational costs when calculating your net profits.

5. Friends and Family

One of your best options for funding? Your very own friends and family. As mentioned, opening a franchise location requires a hefty investment. Even if your friends and family chip in at $100 a piece, you’ll be much closer to affording your franchise than you were yesterday. In addition, your friends and family can be an excellent source of new business once you open your doors.

Become an Entrepreneur by Buying a Franchise

You can become an entrepreneur by starting your own business — or by buying a franchise from a major brand. Take advantage of an established brand name while enjoying the perks of running your own operation. Franchises can be highly worthwhile to own, especially when you create a strong business plan that helps your profits grow.

Editor's note: This post was originally published in October 2020 and has been updated for comprehensiveness.

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Use These 3 Steps to Find The Perfect Franchise Opportunity For You Once you've decided to buy, here are three steps for finding the franchise that's right for you.

By Ray Titus Edited by Carl Stoffers May 21, 2024

Key Takeaways

• First, you must honestly evaluate your motivations, strengths, and weaknesses.
• Build a support team, including a broker, lawyer, and accountant, to guide you through the process.
• Use resources like Entrepreneur's Franchise 500 to assess the industry and specific franchises.

Opinions expressed by Entrepreneur contributors are their own.

You've decided to take your career to the next level by investing in a franchise. Now what? With more than 800,000 franchise establishments in the United States, how do you find the one that's right for you?

It's a mix of objective performance indicators and gut-level instinct, in an ongoing balance until you purchase. First, list your wants and needs, your budget and the things you are good at and enjoy versus those you are not good at and hate doing. Friends and family are good sources for these insights; they know you best so they can tell you whether they think you'd be good at it.

You don't have to do all of this alone; nor should you. Plan to have a team behind you: a broker if you're buying an existing location, with a lawyer and an accountant when you're in the final stages.

Once you've decided to buy , here are three steps for researching the perfect franchise for you.

Related: Considering franchise ownership? Get started now to find your personalized list of franchises that match your lifestyle, interests and budget.

Start with yourself

You will be one of your most critical resources when researching the franchise. Before you get to the financial or logistical aspects, you must be sure you've chosen the best industry and company for you – and if franchising itself is right for you .

Ask yourself the following questions:

• Why do I want to own a franchise? Can I really see myself doing this? If you're in this to get rich quick, better look elsewhere. Prosperity should be your goal (who goes into business to not make money?), but you should know it will take a lot of hard work to get there. If your goal is to have more control of your career by running your own business, consider if you're ready to be the boss in difficult times, when sales are slow, or the team isn't performing.
• Do I know enough about this industry to buy into it? You don't necessarily have to have run a restaurant, sign company or any business in the past to succeed in a franchise, but the more you know about the company and industry you're eying, the more successful your investment will be. And the less experienced or knowledgeable you are, the more critical it will be to identify people you can turn to for answers you don't have.

Research the company and its industry

You have a wide variety of resources: Publications like Entrepreneur 's Franchise 500 can give you a sense of the industry as a whole. The brand's website can help you analyze its products/services, history, mission and values; look at its social media and online reviews for customer feedback. Ask the franchise to connect you with a franchisee. Meet with a local representative and visit existing locations of the franchise and its competitors. Also, consider:

• Does the franchise have a history of success and strategic growth? A franchise that isn't adding locations and attracting new franchisees is just another business with multiple venues. Check out the market for the product or service, including growth opportunities. If the franchise brand doesn't have a clear plan for where and where not to locate new franchise locations, it may not be the best choice for you. The brand should also be willing to share backup materials for its earnings claims.
• Does the company have resources for training, setup and ongoing support ? You should expect detailed help choosing and setting up your location, thorough training for your team and networking opportunities to learn from vendors and fellow franchisees. Initial training should last one to two weeks, followed by two to three weeks of set-up and periodic on-site visits for setting up technology and marketing.
• Discovery Day is an exploration day for prospective franchisees to learn more about the brand. Prepare for it by getting the agenda and learning whom you'll be meeting with. Prepare three to five questions for each person. Your goal should be to get a good feel for the company and its culture.
• Franchisee feedback. The brand should be willing to let you speak to an owner without a corporate "chaperone." Ask the owner about their experience with the brand. Has the company provided adequate training and support? Does it seem to care about its franchisees? And the bottom line: Would they do it again?

Related: Find Out Which Brands Have Ranked on the Franchise 500 for Longest, Earning a Spot In our New 'Hall of Fame'

Be willing to walk away

Throughout your research, be alert to red flags , such as a lack of success in a flagship location, failure to provide manuals and reluctance to have a "discovery day." You should be able to visit other franchisees on your own, outside the presence of a company representative.

Researching a franchise requires willingness to dive deep into the company you're looking at and to keep asking questions until you understand and can accept the answers. You'll be sinking a significant amount of your money, time and heart into this investment, so don't rush into it – and don't be afraid to walk away. It's OK to drop a prospect that doesn't look or feel right if you do so at the brand's established "point of no return." At United Franchise Group , we prepare for that possibility by making our deposit fully refundable before final signing, if the applicant isn't comfortable with the marketing, location or lease before they commit to ownership. The last thing we want is a franchisee in a business they don't like.

Of all the factors to look for as you research, the overarching one should be the franchise's support and respect for you. You should get a sense that the brand is out for more than a cut of your revenue but is there to help you succeed. While you're investing in the franchise, the franchise should be investing in you — setting you up for success, which creates their success.

Entrepreneur Leadership Network® Contributor

CEO of United Franchise Group

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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$532 million committed to National Battery Strategy, but no plan yet on how to reclaim supply chain

More than half a billion dollars of federal government funds have been set aside to encourage production of batteries in Australia, but exactly how the scheme will work has not yet been figured out.

A new National Battery Strategy has been released, aiming to make the country a globally competitive battery maker for domestic use and as an export opportunity.

It is part of the government's Future Made in Australia policy, which aims to grasp the economic opportunities of the global transition to net zero emissions, as well as ensuring China does not control the supply chain.

The centrepiece of the strategy is $532 million in financial incentives for the production of batteries. Announced in the budget earlier this month, the funding would be spread over seven years and administered by the Australian Renewable Energy Agency (ARENA).

But the scheme, dubbed "Battery Breakthrough", has not yet been formulated, despite funding due to commence in the coming financial year.

"The government will work closely with industry and other stakeholders to design, develop and deliver the Battery Breakthrough," the strategy reads.

From 'dig and ship' to 'renewable energy superpower'

The National Battery Strategy focuses on areas the federal government sees Australia having a competitive advantage, including turning raw minerals into substances used in the global electric vehicle supply chain.

The other areas of focus are large-scale energy storage for the electricity grid, building batteries for industrial uses and developing technical and safety standards.

In a statement, Industry and Science Minister Ed Husic said Australia could become a "renewable energy superpower" by "moving beyond a 'dig and ship' economy".

"It's inexcusable that we supply half the global supply of lithium but produce less than one per cent of the world's processed battery components," he said.

"Australia is a pioneer of battery tech, yet for too long we've sent our ideas offshore and lost the good jobs they create.

"The global clean energy transition is happening — and we've got a once-in-a-lifetime opportunity for Australia to create more well-paid, secure jobs."

There is also potential for households to benefit from more batteries being made locally.

In 2023, 3.7 million homes in Australia had rooftop solar, but only 250,000 had batteries.

The National Battery Strategy suggests the new funding will mean "Australian manufacturers can meet the growing demand for stationary energy [and] provide more choice to consumers".

The 'one country' controlling the global battery supply chain

While the National Battery Strategy does not mention China directly, it notes that "one country" dominates global processing and manufacturing of batteries.

From small vehicle-based batteries to large-scale industrial batteries, "supply chains are highly concentrated, with more than 75 per cent of supply coming from one country", the strategy reads.

"As this market evolves, it's important to ensure Australia builds sovereign capabilities where it is a necessary and efficient way to strengthen Australian economic resilience or security," the strategy reads.

"Building this industry now will ensure Australia can develop and access the newest battery technologies, securing the economy and helping protect against potential market shocks."

Other nations are also moving to build up or protect their own battery-making capacity from China's dominance.

The United States introduced manufacturing tax credits for batteries and related components as part of its Inflation Reduction Act in 2022.

Last week, the US went further, raising tariffs on lithium-ion batteries and related parts from 7.5 per cent to 25 per cent.

Tariffs of 25 per cent were also announced for a range of critical minerals, graphite and permanent magnets.

The Future Made in Australia policy has similar aims to the US's Inflation Reduction Act, with battery production central to both schemes.

"We want to make more things here and with global demand for batteries set to quadruple by 2030, Australia must be a player in this field," Prime Minister Anthony Albanese said in a statement.

"Batteries are a critical ingredient in Australia's clean energy mix. Together with renewable energy, green hydrogen, and critical minerals, we will meet Australia's emission reduction targets and create a strong clean energy manufacturing industry."

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