Knowing How to Develop a Franchise Business Plan Is the First Step

The success of your franchise won't rely on how good of a product or service you have. If you want your franchise to truly be successful, you're going to need a thorough franchise business plan. 



Developing a business plan for a franchise isn't too different from a plan you'd create for any other business. The key difference is that you want your business plan to be as templatized and simple to follow as possible.

Remember, your business plan is going to be your franchise's literal guide to success. Leaving out a key step could lead to confusion and problems for you in the future. 

Do you need to develop a business plan? Consider this your beginner's guide to creating a stellar business plan that can help both you and your franchisees grow. 

How to Write a Franchise Business Plan

We're not going to bore you with details on how to write a business plan. There are plenty of resources available on how to write a business plan outline and full plan. That's why we're going to focus on what you can do to create a business plan that's as helpful as possible for your franchisees. 

The important thing to remember about writing a business plan for your franchisees is to be as detailed as possible. There's no way to over-explain when you're essentially writing a blueprint for success. 

Details aside, there are other important things to know when you're coming up with your plan. If you want to help your franchisees succeed when they open their doors, make sure you follow these steps when you're writing your plan. 

1. Be Specific About Business Structure

Should every store in your franchise have at least two managers on location? Do you find that it's best to hire in-house receptionists or to outsource your clerical work? How many people should be working during each shift?

Outlining the business structure and day-to-day responsibilities are crucial for the success of your franchise. You don't want any franchisee to make guesses about the way things should be run. 

Be sure to include any recommendations you may have around staffing. If there are staffing agencies you prefer or other services you've had success with, let your franchisees know. 

2. Talk About Your History and Market 

You want your franchisees to know why they made a good decision when they decided to open one of your businesses. That's why we recommend starting off every business plan with some helpful information on your product and your market. 

Tell them your unique founding story. Having owners know about the company's history can help them know the best way to talk about your business and sell your products and services. 

A little insight into the market you're in and other competitors can also be helpful. Let your franchisees know that you've done your research, and you know how to help them succeed in a competitive business landscape. 

Remember, you want your franchisees to believe in your company, its mission, and your ability to create a successful franchise. All of this can give them the extra confidence they need to get their new location off the ground. When you develop a business plan adding these little extras can be a big help.

3. Give Deep Insight Into Operations 

Don't make the mistake of just giving your franchisees a list of numbers to call when they need new supplies. Give them a little insight into the source of their supplies and why you choose certain materials. 

We talked before about how it's important to give franchisees explicit direction on what they need to do to make their business a success. Give them the proper context about why you work with certain suppliers or use specific materials. If not, they may make purchasing decisions that could harm their products or services. 

Let them know that a certain supplier may be more expensive but that less expensive alternatives are worse quality. Be explicit about penalties or problems that can come from using unauthorized products and materials. 

4. Set Realistic Financial Expectations 

Everyone gets into business with the end goal of making money. Eventually, your franchisees will be well on their way to running a thriving business. However, you should let them know what to expect financially in the very beginning. 

Give them a realistic profit/loss model for their first year in business. Focus on anticipated sales, material costs, and overhead when you're making your model.

This information won't just tell them what to expect. It can also help them financially prepare for potential lean times when they're starting off. 

Let them know that your estimates are meant to be a guide but that things can change. The amount of money they make can also depend on the location they choose, the time of year they open, and market forces they can't control. 

5. Make a Thorough Reference Section 

What should your franchisee do if they have any questions about what they've read? You can't expect them to pick up the phone and give you a call. That's why every franchise business plan should have a helpful reference/appendix section. 

This isn't necessarily a part of your business plan, but it's still something helpful to include. This can elaborate on information that was stated in your plan and give people more context when it's needed. 

Your reference/appendix section is also a great place to put any other additional information you think your franchisees may like. If you have any positive press about your business, biographies of yourself or other founders, or even just fun info about the company, now is your chance to use it!

Connect With the Experts 

A solid franchise business plan is the best way to set you and your franchisees up for success. If you focus on crafting something that's thorough, easy to understand, and even easier to follow, your franchisees will be off to a great start.

Franchising your own business can be exciting, but it can also be confusing. How do you find interested buyers? Is there a way to make sure that you're on the right track to making your franchise a success? 

If there's one thing we know here, it's how to make a franchise a success. We're here to help you grow a successful franchise and fulfill all of your business plan consulting needs. Contact us today so we talk about the best way to work together.