franchise business plan overview

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How to Write a Business Plan for Your Franchise This vital step can make the difference between success or failure in the franchise world.

By Clarissa Buch Zilberman Edited by Carl Stoffers May 8, 2023

You're set on becoming a franchisee . You may think it's time to call a franchisor, tell them you're interested, and get funding from your local bank , right? Wrong.

If you're considering buying a franchise, you'll need to write a thorough business plan before moving forward.

A business plan is a detailed document that describes how your business will achieve its goals. Consider it an essential tool for any business owner — including franchisees!

Sound daunting? It can be. But it's a crucial and necessary step in starting your own business. Plus, becoming a franchisee means that the franchisor will provide some of the strategies, plans and overall business information , with some minor tweaks for your specific market.

Here's how to get started.

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

Start with comprehensive research

Before you can begin writing your franchise business plan, you need to gather information about your franchise business . Research the industry, market trends and competitors in the area. You should utilize a SWOT (strengths, weaknesses, opportunities, and threats) analysis of the business, as well.

Next, research the franchisor's history, vision, mission and values . This will help you understand the franchisor's expectations and see if your goals align with the brand. You may have already done a lot of this research when narrowing down your franchise choices .

Related: The 4 Biggest Myths About Franchising

Define your business concept and target market

Your business concept should include details about your product or service , pricing strategy, location, unique selling proposition and market advantages.

Much of this information will be supplied by your franchisor. However, make sure to tweak it correctly for your specific location and audience .

Develop a financial plan

A financial outline is a critical component of your franchise business plan. It should include details about your startup costs, ongoing expenses , revenue projections and profitability.

You should also share cash flow, balance sheets and income statements here. With these documents, you can readily identify any gaps in your business and develop strategies to address them.

Related: 10 Tips to Go From Employee to Boss, From Franchisees Who Did It

Outline your marketing and sales strategy

You may get a headstart from your franchisor on the marketing and sales strategy . This is where you'll want to include more information about your target audience, marketing channels and tactics to promote your business.

From a sales strategy perspective , include your pricing strategy, sales team structure and sales targets that are tailored to your area.

Develop an operations plan

Your operations plan should include details about your day-to-day work, staffing requirements and supplier relationships. You should also outline any technology and equipment needs, inventory management and quality control procedures , some of which your franchisor may dictate.

Create a management team and personnel plan

Your management team and personnel plan should detail the leadership structure of your business, each team member's role and responsibility and the qualifications and experience needed for each position.

You should also outline a staffing plan , which will include your recruitment strategy, employee benefits and training and development programs.

Create an executive summary

An executive summary is literally a summary of your business plan that will provide all the necessary information to someone who only has a few moments to review your business plan. It should summarize the key points of your franchise business plan and research.

Get started by outlining your business plan

A franchise business plan, at the minimum, should include the following sections :

• Executive Summary: This section provides a brief overview of your business, your mission statement, goals and target market.
• Company Description: This section includes more information about your business, such as what you do or sell, your company history and your management team.
• Market Analysis: This section analyzes the market for your products or services, including your target market, competition and competitive advantage.
• Operations Plan: This section describes how your business will operate, including your location, your marketing and sales strategies and management and staffing plan.
• Financial Plan: This section projects your business's financial performance, meaning your revenue, expenses and profit.
• Appendix: This section includes supporting documents, such as financial statements, marketing materials and legal documents.

A business plan will help you succeed

Writing a franchise business plan is a critical step in becoming a successful franchisee . It requires comprehensive research, a well-defined business concept, a solid financial plan, a strong marketing and sales strategy, a detailed operations plan and a competent management team.

Remember: It's a living document, so be sure to update it regularly as your business grows and changes. This will ensure that your plan always reflects the current state of your business.

Tackle a business plan logically and seek help from an expert or your franchisor, as necessary. Then you're off to get your loan, finish your applications and open your doors !

Related: Is Franchising Right For You? Ask Yourself These 9 Questions to Find Out.

Entrepreneur Staff

Freelance Writer, Editor & Content Marketing Consultant

Clarissa Buch Zilberman is a writer and editor based in Miami. Specializing in lifestyle, business, and travel, her work has appeared in Food & Wine, Realtor.com, Travel + Leisure, and Bon Appétit, among other print and digital titles. Through her content marketing consultancy, By Clarissa , she leverages her extensive editorial background and unique industry insights to support enterprise organizations and global creative agencies with their B2B, B2C, and B2E content initiatives. 

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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 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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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 franchise 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: Your executive summary should explain why you want to start a franchise business. It should also explain which franchise brand you’re pursuing and what it does. Give a brief overview of how your business will be different.
• Market opportunity: Describe the target market in brief, and explain the demographics, geographic location, and psychographic attributes of your customer. Explain how your franchise business meets its needs. Clearly describe the market that your business will serve.
• Mention your product or services: briefly describe what products or services a customer can expect from your business, depending on your industry and franchise type.
• Management team: Name all the key members of your management team with their duties, responsibilities, and qualifications.
• Financial highlights: Provide a summary of your financial projections for the business’s initial years of operation. Include any capital or investment requirements, startup costs, projected revenues, and profits.
• Call to action: After giving a brief about your business plan, end your summary with a call to action, inviting potential investors or readers to the next meeting if they are interested in your business.

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:

• Product distribution franchise: This franchise model involves the franchisor providing products and franchisees selling them to consumers. Product distribution franchisees must follow a few guidelines and pay a fee for using trademarks and trademark names.
• Management franchise: Franchisee owners manage the day-to-day operations of management franchises. Franchisees operate independently from the franchisor.
• Business format franchise: Franchisor gives the rights to use the trademarks and trade name to franchisees, but they are heavily involved in how the business operates and provides the service to consumers.
• 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.
• Ownership: Describe the owners of your franchisee and mention their roles in running it. Who owns what shares in the business, and how each owner helps in the business?
• Mission statement: Include a mission statement that aligns with the franchisor’s statement while highlighting your values and goals.
• Business history: Include an outline of your franchise business’s history and how it came to be in its current position. If you can, add some personality and intriguing details, especially if you got any achievements or recognitions till now for your incredible services.
• Future goals: It’s crucial to convey your aspirations and your vision. Include the vision of where you see your franchisee in the near future.

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: Identify your target market and define your ideal customer. Know more about your ideal customer and the products or services they prefer. For instance, an ideal customer may prefer rapid food delivery from a fast food franchisee or unique designs and the latest clothing collection from a clothing brand.
• Market size and growth potential: Provide an overview of the industry. It will include market size, trends, growth potential, and regulatory considerations. Highlight the competitive edge and how your business is different from the rest.
• Competitive analysis: Identify and analyze the local market, including direct and indirect competitors. Evaluate their strengths and weaknesses, and explain how your business can offer qualitative services.
• Market trends: Analyze current and emerging trends in your industry, such as technological changes or customer preferences. Explain how your business will cope with all the trends. For example, people are shifting towards online food ordering, so explain how you plan on dealing with this as a fast food franchisee.
• Regulatory environment: Describe any regulations or licensing requirements that affect your business depending on your industry.

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:

• 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: In all descriptions of services and products, emphasize the importance of safety and quality. Explain how your franchisee will ensure consumer safety and quality depending on your business.

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): Clearly define your unique selling propositions; which can be competitive pricing, extraordinary ambiance, brand recognition, etc.
• Marketing strategies: Develop a marketing strategy that includes a mix of online and offline marketing tactics. Consider social media, email marketing, content marketing, brochures, print marketing, and local events.
• Sales strategies: Mention your sales strategy as in – offering discounts, utilizing online delivery, planning royalty programs, partnering with local businesses, etc.
• Customer retention: Describe how your business will retain customers and build loyalty, such as through loyalty programs, special events, or personalized service. Verify if these offers align with franchise policies to avoid future conflicts.

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: Tell the staffing requirements of your business, including the number of employees needed, their qualifications, and the duties they will perform. Also, mention the perks you will provide to your employees.
• Operational process: As you are owning a franchisee, you should follow the standard operation procedure (SOP) set by your franchisor.
• 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: Describe the types of equipment that will be used in your daily operations, for example. If you own a fast-food franchisee you may require cold storage, a microwave, a refrigerator, etc.

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: Describe your management team’s key members, roles, and responsibilities. It should include the owners, senior management, and people involved in the business operations, including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Describe the organizational structure of the management team, including reporting lines and how decisions will be made.
• Compensation plan: Describe your compensation plan for the management team and staff, including salaries, bonuses, and other benefits.
• Board of advisors: If you have a board of advisors for your business, then mention them along with their roles and experience.

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: Create a projected profit & loss statement that describes the expected revenue, cost of products sold, and operational costs. Your business’s anticipated net profit or loss should be computed and included.
• Cash flow statement: Estimate your cash inflows and outflows for the first few years of operation. It should include cash receipts from clients, vendor payments, loan payments, and any other cash inflows and outflows.
• Balance sheet: Prepare a projected balance sheet, which shows the business’s assets, liabilities, and equity.
• Break-even point: Determine the point at which your franchise business will break even or generate enough revenue to cover its operating costs. This will help you understand how much revenue you need to generate to make a profit.
• Financing needs: Estimate how much financing you will need to start and operate your business. It should include short-term and long-term financing needs, such as business loans.

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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Franchise Business Plan Template [Updated 2024]

Business Plan for Franchises

Franchise businesses are great in that they have much higher success rates than starting a business from scratch.

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

The following business plan template gives you the key elements to include in a winning plan for your franchise business. It can be used to create a franchise restaurant business plan, a store franchise business plan, a startup business franchise or any other type of franchise business plan. In addition to this template, all franchise business plans should also include market research to help support the business opportunity and help craft your marketing plan and financial projections.

You can download the franchise business plan template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of a business plan to help you with how to create a franchise business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan Click below to see each section of our free franchise business plan template. You can also click here to get our franchise business plan sample pdf .

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Franchise Business Plan Outline

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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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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How To Create A Franchise Business Plan

Embarking on the journey of establishing on how to create a  franchise business plan can be an exhilarating venture, full of promise and potential. Yet, in the dynamic world of entrepreneurship, success is often rooted in meticulous planning and strategic foresight. A key pillar in the foundation of a flourishing franchise is the creation of a well-structured and thoughtful business plan. Whether you’re a prospective franchisee eager to chart your path or a seasoned franchisor aiming for expansion, understanding how to create a franchise business plan is the compass that can guide your success. 

In this comprehensive guide, we delve into the intricacies of crafting a robust franchise business plan, exploring the vital components that transform aspirations into actionable strategies. Join us on this journey as we unravel the art and science behind creating a roadmap for franchise success.

Table of Contents

What is a franchise business plan, why do you need a franchise business plan, what are the main types of a franchise, analysis of the local market, analysis of the local, regional and national competition.

A franchise business plan is a comprehensive document that outlines the strategic roadmap for both the franchisor and franchisee, providing a detailed framework for the successful establishment and operation of a franchise. This document encompasses various crucial elements, including the franchise concept, market analysis, financial projections, and operational strategies. 

It delineates the rights and responsibilities of both parties, delineates the franchise model, and addresses key factors such as training, marketing, and ongoing support. A question on how to create a franchise business plan is crucial for both attracting potential franchisees and ensuring the successful expansion and management of the franchise network. It provides a comprehensive overview of the business opportunity, sets expectations, and serves as a reference point for all stakeholders involved in the franchising process.

The plan serves as a guiding tool, offering insights into the target market, competition, and potential risks. Additionally, it provides a structured approach to financial planning, helping stakeholders make informed decisions. Overall, a well-crafted franchise business plan serves as a foundational document, fostering clear communication, strategic alignment, and long-term success within the franchising relationship.

A franchise business plan is a fundamental and essential tool for various reasons, serving both the franchisor (the business owner granting the franchise) and potential franchisees. Here are several key reasons why having a franchise business plan is crucial:

• For Franchisors: It provides a strategic roadmap for the expansion of the business through franchising. A well-thought-out plan outlines the goals, objectives, and steps needed to grow the franchise network successfully.
• For Franchisees: It offers a clear understanding of the franchisor’s vision, mission, and strategic direction. Franchisees can align their goals with the overall business strategy outlined in the plan.
• For Franchisors: It promotes transparency with potential franchisees. The business plan outlines the franchise opportunity, the business model, and the franchisor’s expectations, fostering trust and credibility.
• For Franchisees: It provides clarity on what is expected from them, including initial investment, ongoing fees, and operational requirements. This transparency helps potential franchisees make informed decisions.
• For Franchisors: A comprehensive business plan is often required when seeking financing or investors to support the expansion of the franchise. It demonstrates a well-thought-out strategy and financial viability.
• For Franchisees: Some franchisees may seek financing to launch their businesses. A solid business plan can be instrumental in securing loans or attracting investors.
• For Franchisors: It helps ensure legal compliance with franchise regulations. The business plan includes details about the Franchise Disclosure Document (FDD) and the franchise agreement, addressing legal considerations and requirements.
• For Franchisees: Understanding the legal aspects of the franchise is crucial. The business plan provides insights into the legal framework within which the franchise operates.
• For Franchisors: It aids in financial planning for the franchisor’s expansion strategy. The business plan includes financial projections, helping to assess the feasibility and profitability of franchising.
• For Franchisees: It allows potential franchisees to understand the financial requirements, including initial investment, ongoing fees, and potential returns. This information is crucial for making informed financial decisions.
• For Franchisors: It outlines the operational guidelines and support provided to franchisees. This ensures consistency across the franchise network and helps maintain the brand’s integrity.
• For Franchisees: It serves as a guide on how to operate the franchise successfully. The operational plan provides insights into the day-to-day requirements and standards expected by the franchisor.
• For Franchisors: It outlines the marketing and sales strategy for attracting potential franchisees. A well-structured plan helps in promoting the franchise opportunity effectively.
• For Franchisees: It provides information on how the franchisor plans to market and promote the overall brand, which contributes to the franchisee’s success.

Source: Photo by iStockphoto

A franchise business plan is essential for both prospective franchisees and franchisors. It serves as a roadmap for the business and helps outline key elements that contribute to its success. Here are the key components that should be included in a franchise business plan:

Executive Summary :

The executive summary is a concise overview of the entire business plan, providing a snapshot of the franchise’s key elements. It should encapsulate the franchise’s mission, goals, and a brief summary of each section of the plan, offering potential investors and stakeholders a quick understanding of the business’s direction and value proposition.

Business Description :

In this section, provide a detailed overview of the franchise concept, highlighting its uniqueness and value proposition in the market. Discuss the franchise’s history, background, and development, including any notable milestones or achievements. This narrative should convey the brand’s story and its journey to its current position, establishing a compelling narrative for investors and franchisees.

Franchise Model :

Clearly define the franchise model, specifying the type of franchise (e.g., retail, service, manufacturing) and its operational structure. Detail the rights and responsibilities of both the franchisor and the franchisee, outlining the contractual agreements, support systems, and operational guidelines that govern the franchising relationship. Clarity in the franchise model ensures alignment and understanding between all parties involved.

Market Analysis :

Conduct a comprehensive analysis of the target market, delving into demographic trends, consumer behavior, and competitive landscape. Identify the target audience and their preferences, as well as competitors operating within the same market space. Analyze market trends and potential demand drivers to assess the market’s viability and growth prospects, informing strategic decisions and marketing initiatives.

SWOT Analysis :

Perform a SWOT analysis to assess the franchise’s internal strengths and weaknesses, as well as external opportunities and threats. Identify areas of competitive advantage, such as proprietary technology or strong brand recognition, as well as areas needing improvement, such as operational inefficiencies or market saturation. Use this analysis to develop strategies for leveraging strengths, addressing weaknesses, capitalizing on opportunities, and mitigating threats, enhancing the franchise’s competitive position.

Franchisee Requirements :

Outline the qualifications and characteristics of an ideal franchisee, including skills, experience, and financial capabilities. Specify the financial requirements for prospective franchisees, detailing initial investment costs, ongoing fees, and potential revenue streams. Clear communication of franchisee requirements ensures alignment between franchisors and potential investors, reducing the risk of misunderstandings or mismatches.

Training and Support :

Describe the training programs provided to franchisees, covering topics such as product knowledge, operational procedures, and customer service standards. Detail ongoing support mechanisms, including marketing assistance, operational guidance, and technology support, designed to empower franchisees and facilitate their success. Robust training and support systems are essential for maintaining consistency and quality across the franchise network.

Marketing and Sales Strategy :

Outline the marketing plan for the franchise, encompassing both corporate-level and franchisee-level initiatives. Define the target market segments, positioning strategies, and promotional tactics aimed at attracting customers and driving sales. Develop sales strategies and targets, setting clear objectives and performance metrics to measure success. A cohesive marketing and sales strategy ensures brand visibility, customer engagement, and revenue growth for the franchise.

Financial Projections :

Provide detailed financial forecasts, including income statements, balance sheets, and cash flow projections, for both the franchisor and potential franchisees. Include assumptions used in creating the financial projections, such as sales forecasts, pricing strategies, and cost structures. Financial projections provide stakeholders with a clear understanding of the franchise’s revenue potential, profitability, and return on investment, guiding investment decisions and business planning.

Legal Structure and Agreements :

Clearly define the legal structure of the franchise, including entity formation, ownership arrangements, and regulatory compliance. Include details of the franchise agreement, disclosure documents, and any other legal agreements governing the franchising relationship. Addressing legal considerations upfront ensures transparency, accountability, and adherence to legal requirements, mitigating legal risks and liabilities.

Risk Analysis :

Identify potential risks and challenges associated with the franchise, assessing their likelihood and potential impact on the business. Common risks may include market volatility, regulatory changes, operational disruptions, or competitive threats. Develop strategies for risk mitigation, such as diversification, contingency planning, or insurance coverage, to protect the franchise’s interests and ensure business continuity.

Operational Plan :

Outline the day-to-day operations of the franchise, detailing key processes, workflows, and performance standards. Discuss the supply chain management, production processes, and quality control measures implemented to maintain operational efficiency and product/service excellence. An operational plan provides a roadmap for executing the franchise’s business model effectively, ensuring consistency and reliability across the franchise network.

Exit Strategy :

Provide a plan for the potential sale or exit from the franchise, considering factors such as succession planning, transfer of ownership, or business dissolution. Evaluate various exit options and develop contingency plans to mitigate potential risks and maximize value for stakeholders. A well-defined exit strategy provides clarity and direction for navigating transitions in ownership or market conditions, safeguarding the franchise’s long-term viability.

Include any additional documents or supporting materials that supplement the business plan, such as resumes of key personnel, market research data, legal documents, or financial statements. The appendix serves as a repository for relevant information that provides additional context and credibility to the business plan, enhancing its comprehensiveness and persuasiveness.

Remember that the specific details included on how to create a franchise business plan may vary depending on the nature of the franchise concept, industry dynamics, and target market characteristics. It’s important to customize the business plan to align with the unique needs, goals, and circumstances of the franchise, ensuring its relevance and effectiveness as a strategic tool for business growth and success.

Franchises come in various forms, catering to different industries and business models. The main types of franchises are:

• This type involves the distribution of a franchisor’s products through a network of independent retailers. Franchisees benefit from the established brand and product line, focusing primarily on sales and distribution. Examples include beverage distributors, automotive parts suppliers, and consumer goods distributors.
• Widely prevalent, business format franchises provide a comprehensive system encompassing not only products but also services, trademarks, and operational support. Franchisees gain access to a proven business model, standardized processes, and ongoing assistance. Popular examples include fast-food chains, retail outlets, and service-oriented businesses.
• In a management franchise, the franchisor offers support in various aspects of business management, including marketing strategies, employee training, and operational guidance. Franchisees take on the role of managing the day-to-day operations while leveraging the expertise and support provided by the franchisor. This model is common in industries like hospitality and business services.
• Single-unit franchises involve the ownership and operation of a single location. In contrast, multi-unit franchises empower entrepreneurs to own and manage multiple units within a specified territory. Multi-unit franchising offers economies of scale and broader market coverage, allowing for increased profitability.
• Master franchisees hold the rights to operate and sell franchises within a designated territory. They act as intermediaries between the franchisor and sub-franchisees, facilitating expansion and providing localized support. Master franchises are often found in international expansion strategies.
• Existing businesses can opt for a conversion franchise model, where they transition into a franchise system. This approach allows established businesses to benefit from a proven brand, operational framework, and expanded market reach while maintaining some degree of autonomy.
• Similar to master franchising, area development franchises involve a commitment to opening a specific number of units within a predefined area. Area developers typically have exclusive rights to that territory, overseeing both the development and support of sub-franchisees.
• Co-branding franchises bring together two or more complementary brands or services in a single location. This strategy leverages shared customer bases and resources, providing consumers with a diverse range of products or services. Examples include coffee shops within bookstores or automotive service centers with convenience stores.
• Home-based franchises allow entrepreneurs to operate businesses from the comfort of their homes, minimizing the need for physical office space. This model is common in industries such as consulting, tutoring, or digital marketing services.

Understanding the nuances of these franchise types is crucial for prospective franchisees and franchisors, as it influences the structure, operations, and scalability of the business. Choosing the right franchise model depends on factors such as industry, market dynamics, and individual preferences.

An essential component of the franchise business plan is the analysis of the local market. This involves a detailed examination of the specific geographic area where the franchise will operate. Factors such as demographic trends, consumer behavior, and local economic conditions must be considered. Understanding the unique characteristics of the local market allows franchisors and franchisees to tailor their strategies to meet the specific needs and preferences of the target audience. 

This analysis should cover aspects such as consumer purchasing power, cultural influences, and any local regulations that may impact the business. A well-informed understanding of the local market is crucial for developing effective marketing campaigns, setting appropriate pricing strategies, and ensuring the overall success of the franchise within its specific community.

In addition to local market analysis, evaluating the competition at the local, regional, and national levels is vital. Identify existing businesses offering similar products or services and assess their strengths, weaknesses, and market positioning. Understanding the competitive landscape helps in formulating strategies to differentiate the franchise and capitalize on unique selling propositions. 

Regional and national competition analysis provides insights into broader market trends and potential challenges that may arise. By conducting a thorough examination of competitors, franchisors and franchisees can refine their value propositions, pricing strategies, and marketing tactics to gain a competitive edge. This analysis is integral to making informed decisions and adapting strategies based on the dynamics of the broader market.Top of Form

In conclusion, a question on how to create a franchise business plan is a meticulous process that involves careful consideration of various factors. From defining the franchise concept to analyzing local and broader market dynamics, the plan serves as a comprehensive guide for all stakeholders involved in the franchising process. It not only outlines the strategic roadmap for expansion but also enhances transparency, attracts investors, and ensures legal compliance. 

On how to create a franchise business plan, Your Franchise Fit is committed to providing guidance and support at every step of the way. Whether you are exploring franchise opportunities, seeking assistance in crafting a business plan, or require insights into the intricate world of franchising, our expertise is here to assist you.

Contact us today or more information and personalized details tailored to your unique aspirations and business goals. Your Franchise Fit is dedicated to helping you embark on a successful and fulfilling journey in the world of franchising.

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• Business advice

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

More From Forbes

How to effectively use franchising to help combat rising costs.

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Paul Flick is the CEO of Premium Service Brands , a leader in home services franchise opportunities.

The pandemic sent shockwaves through our global supply chain, causing sweeping delays and price increases.

And while the impact of the pandemic is in the rearview mirror for some, many businesses are still coping with high inflation and skyrocketing expenses. Consumers are also feeling the pinch. U.S. food prices alone jumped 25% from 2019 to 2023.

I believe that new technology and enhanced communication can help franchisees weather these economic challenges and rising costs.

Rising Costs Strain Small Businesses

According to Truist, at least 43% of small-business owners ranked rising costs as their top concern, followed by inflation and economic uncertainty. Having to manage these short-term challenges can limit growth and ramp up stress.

Small-business owners are taking proactive steps and making tough choices to cope with rising costs. To stay afloat, they’re raising prices, trimming spending and "accepting lower profitability," according to the same Truist report.

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Franchising is one way entrepreneurs can open a turnkey business with training, support and ongoing guidance.

Despite rising costs, labor shortages and climbing interest rates, the franchise industry is bullish on growth in 2024. The International Franchise Association forecasts franchising will add 15,000 locations this year and generate $893.9 billion.

If you’re considering pursuing a franchise opportunity, here are just a few ways to most effectively use it to help combat rising costs and scale your business.

Being part of a franchise system can help give you access to innovative technology that helps you manage your business. Modern technology can provide real-time labor costs, sales success rates, average job sizes, cost of goods and more. Having access to better data enables you to manage your business efficiently.

With technology being such an important aspect of combating rising costs, make sure you choose a franchisor that will train its franchisees on how to use the brand-specific systems through modeling and constant support. Ensure that the technology can seamlessly integrate or is user-friendly enough to warrant your switching. In looking toward the future, don't be afraid to ask how the technology can be scaled.

Business Coaching

Many franchisors offer business coaching services to give franchisees the training and tools they need to succeed. A business coach can use results from other locations in the system to help develop budgets and forecast costs. According to an ICF Global Coaching Client Survey, at least 99% of the people who participate in coaching are “satisfied” or “very satisfied” with the process.

I find that participating in coaching at any step in your journey is beneficial. If you are a new owner, coaching provides the tools to set you up for success. Even if you are a seasoned owner, though, look to peer groups and regional meetings to refresh your systems and network with other successful franchisees and brand coaches.

Vendor Management

One strength of franchisees is their ability to use group purchasing power to negotiate and lower the costs of supplies. As part of this process, it's important to frequently review vendor relationships and strive to reduce costs without reducing quality.

Much like with technology, when choosing a new vendor, make sure to do your research. Consider whether they are a good fit for your brand, culture, budget and timeline. Ask other business owners who use that vendor about their experience. Read contracts thoroughly, and be aware of what happens if you are not happy with a vendor to minimize paying for time or services you no longer require.

Regional Meetings

Pricing and supply costs are dependent on geography. A franchisee in the Northeast may be able to charge higher prices for services than locations in other parts of the country, but they’ll also pay more for labor and supplies. Understanding how location can impact the cost of doing business is important.

Regional meetings can help franchisees learn about this and the other aspects of franchising I've mentioned. During these meetings, franchisees share best practices, collaborate on regional initiatives and network with their peers. It’s also an opportunity to share new products or services.

Before attending, understand what you want to get out of these meetings. I recommend that you plan to attend the closest meeting to keep travel costs down and schedule 1:1 time with coaches and peers ahead of time to maximize your investment.

While evidence suggests high prices are here to stay , with the right strategies in place, franchise support can ease the burden of rising costs and help franchisees continue to flourish.

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?

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the middlemen

The Opaque Industry Secretly Inflating Prices for Prescription Drugs

Pharmacy benefit managers are driving up drug costs for millions of people, employers and the government.

Credit... Photo illustration by Jens Mortensen for The New York Times

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By Rebecca Robbins and Reed Abelson

This is the first article in a series about how pharmacy benefit managers prioritize their interests, often at the expense of patients, employers and taxpayers.

• June 21, 2024

Americans are paying too much for prescription drugs.

It is a common, longstanding complaint. And the culprits seem obvious: Drug companies. Insurers. A dysfunctional federal government.

But there is another collection of powerful forces that often escape attention, because they operate in the bowels of the health care system and cloak themselves in such opacity and complexity that many people don’t even realize they exist.

They are called pharmacy benefit managers. And they are driving up drug costs for millions of people, employers and the government.

The three largest pharmacy benefit managers, or P.B.M.s, act as middlemen overseeing prescriptions for more than 200 million Americans. They are owned by huge health care conglomerates — CVS Health, Cigna and UnitedHealth Group — and are hired by employers and governments.

The job of the P.B.M.s is to reduce drug costs. Instead, they frequently do the opposite. They steer patients toward pricier drugs, charge steep markups on what would otherwise be inexpensive medicines and extract billions of dollars in hidden fees, a New York Times investigation found.

Most Americans get their health insurance through a government program like Medicare or through an employer, which pay for two different types of insurance for each person. One type covers visits to doctors and hospitals, and it is handled by an insurance company. The other pays for prescriptions. That is overseen by a P.B.M.

Biggest P.B.M.s Dominate

Each P.B.M.’s estimated share of prescriptions filled in the United States.

CVS Health’s

UnitedHealth’s

Cigna’s

Express Scripts

Express Scripts/

Cigna merger

“I t ’ s just

nuts.”

Joseph Kaplan

A Modern Health Care Conglomerate

CVS Caremark

CVS Pharmacy

Mail-order pharmacy

CVS Specialty

Group purchasing

organization

Drug marketing

Group purchasing organization

Drug marketing partner

Fees Paid by Drug Manufacturers Doubled

What drug manufacturers paid in fees to P.B.M.s or their associated G.P.O.s.

$3.8 billion

“ W e were

ripped off.”

K ent McKinley

Overcharging for a Cancer Drug

CVS Caremark charged Oklahoma far more than the wholesale cost for everolimus.

Price charged by

$138,000 per year

Wholesale cost for

a local pharmacist

P.B.M.s Charge Inflated Prices

Two P.B.M.s charged two different clients much more than the wholesale cost of abiraterone acetate, a cancer drug.

What CVS Caremark

charged Blue Shield

$3,000 per month

What Express Scripts

charged Hyatt

Price available

from a wholesaler

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Star Wars: What Was The Sith "Grand Plan?"

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The origins of the grand plan, explained, sheev palpatine carried out darth bane's grand plan, the grand plan's downfall, explained.

• The Sith Grand Plan aimed to destroy the Jedi, culminating in the rise of the Galactic Empire under Palpatine's rule.
• Darth Bane initiated the Grand Plan beginning with the institution of the Rule of Two to ensure that each Sith's power would grow over generations.
• Luke Skywalker thwarted the Grand Plan by rejecting the Dark Side and redeeming his father, Darth Vader.

Star Wars is a long and sweeping story told through eons beginning a long time ago, in a galaxy far, far away. However large in scale the saga may be, the crux of the story falls over the span of several decades, during which the Jedi Order falls and the Sith rise in the form of the Galactic Empire in 19 BBY (Before the Battle of Yavin). Little did most citizens in the galaxy know that this landmark shift of power was the result of millennia of planning.

Long before the events of The Phantom Menace , the Sith fell out of notice of the general population of the galaxy and even the Jedi Order itself. The galaxy rejoiced in an extended period of peace and prosperity in what became known as the days of the High Republic. Few even remembered the Sith save for the Jedi themselves, and even they were left only to tell stories of their former enemies who once wielded the Dark Side with such power and skill. Yet, all this time, deep within the heart of the galaxy, the Sith lived on, ever plotting their return. Through the ages, one beacon lay at the end of their schemes, a grand plan that would bring about the final destruction of the Jedi and the return of the Sith Empire in all its glory.

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The Sith Order fell in the days of the Old Republic after a long-fought war with the Jedi Order, which had the backing of the Republic. Despite the downfall of the Sith, which saw most of their members destroyed, a most significant entity escaped death against all odds. Darth Bane survived the final battle against the Jedi on Suusan, vowing revenge against the Sith's eternal enemies. However, Bane was nothing if not tactical, recognizing that, to destroy the Jedi fully, he would have to bide his time. In fact, it might take several generations before the time was right to finally destroy the Jedi once and for all. Undeterred by the necessary wait, Bane concocted a dastardly scheme that would see the Republic corrupted from within , inevitably bringing the Jedi down with it. Bane called this the "Grand Plan."

Left to his own devices for years, the Sith Lord Darth Bane set about expanding his web of contacts, gaining power all the while. He also established the infamous Rule of Two, which maintained that only two Sith could ever exist at one time: a master and an apprentice. This strengthened each individual Sith, forcing each generation to grow stronger than the last as apprentices overthrew their masters and began the cycle anew. Ironically but not unexpectedly, Bane was eventually himself overthrown by his apprentice, Darth Zannah, who took his place as the new Lord of the Sith. Zannah continued her master's plans all the same, watching and waiting as the Republic grew more corrupt, both by her own design and of its own accord. Generations followed, and Zannah was replaced by Darth Cognus, who was herself replaced by another apprentice. Things finally came to a head with a succession of several last Sith.

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The network truly began to expand under the watchful eye of the Sith Lord Darth Tenebrous , who maintained his civilian identity as a renowned starship designer. Likewise, Darth Plagueis, Tenebrous's apprentice, made contacts among the Banking Clan, giving the Sith valuable resources that would come into play in the next several years. Plagueis eventually overthrew Tenebrous and trained his own apprentice, Sheev Palpatine, a.k.a. Darth Sidious. A talented pupil, Sidious took quickly to his master's teachings and took the Grand Plan one step further by beginning a career in the political world as a Senator of the Republic and, eventually Supreme Chancellor.

After killing his master, Sidious masterfully manipulated the Sith Rule of Two , constantly replacing each of his apprentice with a new one, so that none would ever grow powerful enough to destroy him. As such, he ensured that he would be the one to finally execute the Sith Grand Plan. Pulling strings both from within the Republic and their opposition, the Separatists, Sidious plunged the galaxy into a three-year conflict known as the Clone Wars. All the while, Sidious consolidated power as Sheev Palpatine, becoming the most powerful leader in the Republic's recent history. After finally gaining the allegiance of the Chosen One, a Jedi named Anakin Skywalker, Sidious executed the Grand Plan, extinguishing the Jedi Order and reorganizing the Republic into the first Galactic Empire with little opposition from the Senate. Few recognized, however, that this Empire really stood in place of the old Sith Empire that had once ruled the galaxy long before they were wiped out by the Jedi.

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Darth Sidious ruled the galaxy as emperor for over twenty years, victorious over the Republic and, more importantly, over the Jedi. Palpatine's plot, however, required that he remain more powerful than Darth Vader , his new apprentice. Allowing Vader, who was the Chosen One, to become too powerful would mean that Sidious too would fall in the same way that Bane, Zannah, Cognus, Tenebrous, Plagueis, and all other Sith had for centuries. Vader's cybernetic body did this job for Palpatine, hindering his inherent Force abilities and keeping him a shell of the man he once was. Even so, Palpatine eventually decided that the time had come to replace Vader too, and sought to recruit Anakin Skywalker's son, Luke.

What Palpatine failed to realize, and indeed all of the Sith right down to Darth Bane neglected, was the inherent goodness that a pure Jedi should have. This quality was not necessarily present in the Jedi who fell at the execution of the Grand Plan, but it was in Luke Skywalker. Luke refused to join the Emperor, choosing rather to die than kill his father and take his place. Enraged, Palpatine sought to kill the young Jedi by electrocuting him to death with Force lightning. Touched by his son's purity and love, however, Darth Vader betrayed Emperor Palpatine and killed him, ending his reign. in the end, the Grand Plan died with Palpatine , who underestimated the power of a good heart.

The Sith Grand Plan sought to bring about the extinction of the Jedi. While it indeed made them endangered for some time, the Jedi rose again with a fresh perspective on what it means to be a Force-wielder. Luke Skywalker and his father brought about the end of the Grand Plan, saving the galaxy and allowing the Jedi to return once more.

The original trilogy depicts  the heroic development of Luke Skywalker as a Jedi and his fight against Palpatine's Galactic Empire alongside his sister, Leia . The prequels tell the tragic backstory of their father, Anakin, who is corrupted by Palpatine and becomes Darth Vader.

Created by George Lucas, Star Wars began in 1977 with the then-eponymous film that would later be retitled Episode IV: A New Hope. The original Star Wars trilogy centered on Luke Skywalker, Han Solo and Princess Leia Organa, who helped lead the Rebel Alliance to victory over the tyrannous Galactic Empire. This Empire was overseen by Darth Sidious/Emperor Palpatine, who was aided by the cybernetic menace known as Darth Vader.In 1999, Lucas returned to Star Wars with a prequel trilogy that explored how Luke’s father Anakin Skywalker became a Jedi and eventually succumbed to the dark side of the Force. This, of course, is what led him to become the aforementioned Darth Vader.Lucas would sell Lucasfilm and Star Wars to The Walt Disney Company in 2012, and two years later, Disney declared the entire Expanded Universe – consisting of novels, comic books, video games and more – non-canon. The new era of Star Wars canon was bolstered by the sequel trilogy, which kicked off in 2015 with The Force Awakens. This trilogy saw a new generation of heroes band together to take down the First Order, an Empire-like regime that rose from the ashes of Palpatine’s original Empire. The faction was led by Supreme Leader Snoke and later Kylo Ren, the son of Han and Leia and the grandson of Darth Vader.Outside of the prequel, original and sequel trilogies, Disney experimented with Star Wars anthology films such as Rogue One and Solo. When Disney+ launched in 2019, the company also expanded into live-action television with The Mandalorian, which paved the way for The Book of Boba Fett, Ahsoka, Andor and more. The streaming service also housed the revival of The Clone Wars for its final season and a spinoff called The Bad Batch.As for the Expanded Universe, while those stories are no longer canon, fans can still revisit them under the Star Wars Legends banner.

• Overview of American Consumer Credit Counseling

Key services offered by ACCC

• Pricing and Fees

Comparison with other debt management services

American consumer credit counseling review.

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Americans have taken on record levels of credit card debt  at a time when rising interest rates make such debt more expensive. The combination of excessive debt and high interest can overwhelm your personal finances, but if you're struggling to pay off credit cards or other unsecured debt, you have options.

As one of the best debt management services , American Consumer Credit Counseling can help you pay off your balances over time without ruining your credit or adding to your financial burdens. See if ACCC and its debt management plan is right for you.

A debt management plan (DMP) is a type of repayment plan that's set up and managed by a non-profit credit counseling agency like ACCC. As part of ACCC's DMP, creditors may waive late and overlimit fees, lower interest rates, reduce monthly payments and bring passed due accounts current (also known as re-aging).

Cost: $39 one-time fee and $7 monthly maintenance fee per account

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Available in all 50 states
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Free preliminary counseling session
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Monthly fee capped at $70
• con icon Two crossed lines that form an 'X'. Takes four to five years to complete

American Consumer Credit Counseling is a non-profit credit counseling agency that offers advice on various financial topics such as budgeting, student loans, and bankruptcy. The main service it offers is a debt management plan, usually over three to five years, that costs a $39 setup fee and a $7 monthly fee per account, capped at $70. With an affordable fee structure and positive reviews, ACCC is one of the best credit counseling services.

• ACCC can offer you Debt Management Counseling to help you:
• Reduce your interest rates and monthly payments by 30-50%
• Consolidate credit card bills into one simple monthly payment
• Bring an end to harassing calls from debt collectors
• 100% free consultation with a certified debt specialist
• Become Debt-Free (3 - 5 years in most cases)

Overview of American Consumer Credit Counseling 

Introduction to accc.

American Consumer Credit Counseling (ACCC) is a nonprofit agency offering credit counseling , debt relief , and financial education services. Operating since 1991, the agency helps clients deal with unsecured debts such as credit cards, store cards, medical bills, installment loans, and debt collection accounts. Beyond debt management and credit counseling, ACCC provides counseling on bankruptcies and housing-related issues, as well as debt settlement and debt consolidation services.

ACCC is headquartered in Auburndale, Massachusetts, and has 26 offices across 17 states and Washington, D.C. The agency also provides online services nationwide. According to its most recent annual report (for 2021), ACCC conducted over 26,000 counseling sessions and helped thousands of customers pay off debt and improve their financial literacy.

User reviews and ratings

ACCC is a member of the National Foundation for Credit Counseling, and is accredited by the Council on Accreditation. The agency has an A+ rating from the Better Business Bureau, with an average customer rating of 4.96 stars out of five, and only four complaints filed in the last three years. Its brick and mortar locations have over 13,000 combined reviews on Google, of which over 99.5% provided ratings of four or five stars.

Credit counseling services

Before enrolling in ACCC's debt management program, you'll meet with one of their credit counselors for a free consultation. Your counselor will review your finances (including income, expenses, assets, and liabilities) and present personalized options to resolve your financial issues. 

Debt management plan

If you opt into the debt management program, American Consumer Credit Counseling will negotiate with creditors to reduce your monthly payments by waiving fees, extending repayment periods, and lowering interest rates. The balance of your accounts won't change, but negotiating more favorable terms makes paying them off easier. They might also ask your creditors to re-age accounts so they show as current instead of delinquent . However, this can only be done once every five years.

After creditors accept proposals for repayment, ACCC will inform them of your debt management plan and become the payer on your accounts. Instead of paying creditors individually, you'll pay all your bills at once by transferring funds to an account with ACCC. Those funds will then be passed on to creditors, ensuring all your payments are made on time. You'll receive a monthly statement to keep you apprised of the status of all your accounts.

The debt management program is designed to last roughly four years, though how long it takes depends on how much you owe, how much you can pay, and the terms ACCC is able to negotiate with creditors. Completing the program as designed will generally eliminate all your enrolled debt.

Pricing and fees

Initial consultation fees.

ACCC provides a free consultation with a certified counselor before you enroll in a debt management or other program. There's no obligation to enroll in any ACCC services following your consultation.

Ongoing Service Fees

If you decide to proceed with the debt management program, you'll pay a one-time $39 enrollment fee. After enrollment, you'll pay a monthly maintenance fee of $7 per account, which is capped at $70. Both the enrollment fee and monthly maintenance fee may be reduced or waived entirely based on your state's regulations or if you are experiencing financial hardship.

ACCC says its debt management program lasts three to five years in most cases. Enrolling a single account at $7 per month for four years would cost a total of $375 (including the $39 enrollment fee). Enrolling three accounts would cost $1,047, while enrolling 10 or more accounts would cost $3,400.

ACCC's debt management program stands out for its low fee structure. Beyond the $39 enrollment fee, the most you'll pay is $70 per month, but the average enrollee pays much less. By comparison, other top debt management and settlement services charge 15-25% of the amount of debt settled, and may also charge monthly fees and setup fees. That percentage can easily outstrip ACCC's monthly fees for larger debts, especially when you're enrolling only a few accounts.

Unlike a debt settlement program, debt management does not reduce the amount you owe, but it also doesn't put your credit at great risk of further damage. That makes ACCC a good fit if you have good credit and are confident you can make monthly payments on time. That said, if you miss a payment, your creditors may break off their agreements, ending your debt management plan.

Also unlike most debt settlement programs, there is no minimum debt required to enroll. You can participate in ACCC's debt management program even if your debts and number of accounts are relatively small, though your credit counselor may recommend a different course of action in that case.

Finally, ACCC stands out for offering service in all 50 states (including its network of brick and mortar offices), and for its highly favorable reviews.

Does American Consumer Credit Counseling Affect Credit?

Signing up for American Consumer Credit Counseling itself will not have a direct effect on your credit. However, your credit score may change as a result of actions taken over the course of a debt management program.

When you sign up for ACCC, you are encouraged, but not compelled, to close your lines of unsecured credit so you do not accrue additional credit while enrolled in your debt management plan. Closing those lines may cause an initial drop in your credit score, lowering your credit utilization ratio . However, the plan should improve your credit score overall as you pay off your existing debts. 

As you pay off your debts and keep tabs on your credit reports, you may notice a "CC" added to your lines of credit. This indicates that your debt is being managed through a credit counselor. This notation doesn't affect your credit score, but a creditor may look at this notation negatively when they consider your credit application. 

However, this mark is removed from your credit reports once you wrap up your debt management plan. Since you shouldn't be opening new lines of credit while paying a debt management program, the CC should be of little concern. If the mark remains on your credit report after your plan is over, dispute the inaccurate information with the credit bureaus.

American Consumer Credit Counseling Frequently Asked Questions

ACCC is accredited by the Council on Accreditation and the Better Business Bureau, where it has an A+ rating. The agency is also a member of the National Foundation for Credit Counseling, and is highly rated by customers online.

ACCC can help you manage your debt by offering tailored debt management plans and financial education to help you manage and reduce debt.

Yes, ACCC offers housing counseling to assist with mortgage and rental issues.

ACCC's debt management plans are effective for many users, helping them reduce debt and improve financial health and literacy.

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