What's the big difference between a traditional start-up business plan and a start-up franchise plan?
Essentially, the latter must combine components of both the franchisee and the franchisor. A franchise business plan, in effect, merges elements of both companies. If you're crafting such a plan, be sure to cover the following eight basic sections, or chapters. Read carefully, as some are slightly different from those found in traditional plans.
Abstract. The abstract in your franchise business plan is briefer than an executive summary. It serves as a prologue.
Business summary. This summary retrieves the omitted subjects of a conventional executive summary and combines them with elements of the traditional company description. Nothing is left out, just rearranged.
Franchise overview. The overview replaces the usual industry analysis.
The market. Treatments of the market and the competition combine to form the market section.
Marketing plan. Marketing and sales strategies are conventionally included together in the marketing plan.
Management qualifications. Essentially the same as in traditional business plans, this section describes your management staff and your operational framework.
Financial pro formas. Also a traditional section, it groups together your financial projections for the first year and for a longer range of three or five years.
Exhibits. This final section is where you put supporting documents needed to evaluate your business plan - either to support information in other sections or to provide auxiliary information not covered. If you have lots of exhibits, consider inserting some in the sections where they apply.
A final thought: If the goal of your franchise business plan is to secure financing, include a specific chapter that doubles as a loan request or as an investment offering proposal.