Writing the Perfect Franchise Business Plan
Just as a quality home demands a detailed blueprint before commencing construction, choosing to franchise your business necessitates a carefully crafted franchise business plan. The franchise business plan is designed to accurately document the franchise foundation, the trajectory for franchise development, and to document a plan for long-term stability of the brand and franchise system. The primary focus of the franchise business plan is to define a go-to-market strategy for how the franchise offering will be structured, presented and executed effectively. A well-structured and detailed franchise business plan can also be used by franchise partners when presenting to financial institutions, malls, community centers or other purposes. It also serves as a marketing plan for franchisors. Proper planning at the outset of any venture helps ensure efficient performance, and Franchise Marketing Systems is here to help.
For starters, initial franchise strategic planning takes place. A company must accurately describe its expansion goals and key success targets along with the Key Performance Indicators needed to duplicate the model. This is the franchisor’s opportunity to reflect on their aspirations for the company and future projections for the brand both at the franchisor and franchisee level. A focus on brand development further formalizes a plan for brand and concept expansion. The question of how to expand the franchise model is explored during this initial strategic planning phase as well, ultimately developing a regionalized plan of expansion. These points are used in the franchise development process and communicated within the franchise business plan.
The industry in which the company operates must be investigated and competitors identified in order to correctly define the new franchise market niche. This competitive analysis is used in a benchmark analysis that gives a company a full understanding for the industry layout and the strategic implications of the franchise model. The franchise business plan covers the top potential competitors of a franchisor, examining the concepts, similarities, and operational formats, uncovering mistakes and successful components of predecessors. The comparative analysis is an excellent tool to discover ways in which the franchise model should operate to replicate others’ success and to avoid any downfalls.
Franchise Development calls for a specific structure applicable to the unique nature of franchising. The franchise business plan must explore how the franchise will be structured and the speed of which it will expand. The types of franchises offered, the owner profile for a franchisee, territory structure, franchisee support programs, franchisor internal staffing, and growth goals must be included. In summation, the franchise business plan will certainly contain the following key points: Financial projections for the company’s model, cash flow analysis of the company’s system, franchisee ROI analysis, franchise model cash flow analysis for the operator, financial projections for sales and business development, franchise growth goals and analysis, and operational, legal and marketing recommendations.
A franchise business plan is a complicated and vital document that must be accurately developed by a franchise industry expert before ever pursuing expansion. Franchise Marketing Systems is an industry-leading franchise development expert here to aid companies every step of the way within their franchise journey, including the franchise business plan. Schedule a free consultation today to further explore your company’s options for franchising!
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