Business Plans for Franchisees
Many entrepreneurs who decide to purchase a franchise are surprised to learn that in many cases they will need to present a business plan to someone well before the doors open to customers.
For example, many franchisors require that an individual applying to purchase and operate a franchise must submit a business plan before the franchise will be awarded. For entrepreneurs who require external capital for expenditures such as franchise fees, tenant improvements, start-up expenses, and other working capital requirements will find that investors and lenders will almost always ask for a business plan. And lastly, you will need a business plan for the same reasons franchisors and lenders require one: you need to know where you are going and how you are going to get there. You need a roadmap that will take you to a sustainable, successful business.
How We Can Help
Cayenne Consulting will work with franchisees to develop a business plan that will demonstrate to your audience just why you are the right person to own and operate a franchise. The franchsie business plan will show that you have the requisite skills, talent, background, experience and resources to successfully start and grow a business that provides real products and services. The business plan must be as professional as you intend for the business to be. Make no mistake, it must represent you.
The business plan will likely be 15-25 pages in length and include informative charts, tables, images, and graphs that will aid in giving the reader a better understanding of the business. At a minimum, your franchise business plan must include:
- An Executive Summary
- A company/business description
- A description of the company’s products and/or services
- A market and industry analysis
- A competitive analysis
- A marketing and sales plan
- A management and organization section
- A financial discussion that includes a 3-5 year financial forecast
Cayenne’s Franchise Planning Credentials & Relevant Experience
Several of our consultants have extensive experience in developing business plans for franchisees and franchisors. Here is a brief summary of just some of that work:
- Business plan for the acquirer of an existing Subway franchise. The business plan was presented to the franchisor as well as a commercial lender.
- Business plan for an existing Dunkin’ Brands Master Franchisee who wished to purchase another Master Franchisee in another state. The business plan was submitted to the franchisor and approved.
- Business plan for an experienced restaurant general manager who wished to purchase a Bikinis Sports Bar & Grill franchise in Charlotte, NC.
- Business plan and financial projection for an individual who wished to buy a Twin Peaks casual dining franchise.
- Business plan for the buyer of a franchise for The Weave Shop. The business plan was submitted to a commercial bank.
- Business plan and related documents for a Canadian investor group to fund the acquisition of the exclusive franchise rights for Canada for a fast growing U.S.-based casual dining, fresh Mexican restaurant concept.
- A bank ready business plan and 5 year financial forecast for 22 year restaurant industry veteran who secured a 90% loan for the funding of a Culver’s Restaurant in Arizona.
- A business proposal to be presented to a large Checkers Drive-In Restaurants Master Franchisee in support of the opening of 25 Checkers Drive-Ins in a major Texas city.
We’ve even prepared a business plan for a franchisor that used the business plan to raise over $1 billion to change the company’s business model from franchised stores to company-owned stores. We are not able to mention the name due to the confidentiality of the transaction but most people have heard of the company.
Tips for Franchisees
Here are some great tips* that every franchisee should follow:
- Be passionate about your business
- Be willing to make sacrifices and take on risk
- Leave an extraordinary impression on customers
- Know what sets your franchise apart
- Have a great location
* Source: http://www.inc.com
Tips for a Great Business Plan
Here are some business plan tips for franchisees:
- Do not wait until the last minute. To be safe, allow a minimum of 2-3 weeks to get this done right.
- Do not attempt to do this yourself. This document requires a professional.
- Remember that the business plan must be as professional as you. In many cases, the business plan is how you make a great first impression.
Buying a branded franchise is a proven, effective way to become an entrepreneur. Make no mistake, the cost of becoming a franchisee is often more than creating an independent business from scratch, but buying into a franchise eliminates a lot of the up front work and risk. It is up to you to weigh the costs and benefits. Whether you are buying a franchise or going indipendent, develop a great business plan to give yourself a head start.
Learn More About our Franchise Business Planning Services
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