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How to create a franchise business plan?

A franchise business plan is an important document which will help prospective franchisee buyers to understand your proposition. The franchise business plan is also referred to as the franchise brochure sometimes.

1. About the brand - When was the company incorporated, what is the perceived value of the brand. How many franchise outlets are there in the market already. It will be good to have a testimonial or two from existing franchisees which will boost the confidence of potential franchisees.

2. Leadership team - Given that the franchisee's are buying your vision and promoting your brand. They want to make sure that the franchise has a solid leadership.

3. Financials and ROI - What is the amount of investment required to buy the franchise. It's good if everything is as clear as possible and no cost is omitted which might surprise the buyer later on.

4. Profit sharing - Potential franchisees' want to make sure what is the amount they will take away at the end of the month. Considering that there are different franchise models, it's better to mention how exactly profits will be shared between the franchisor and franchisee.

5. Operational Guidelines - This consists of a document which could help the franchise buyer understand the rules and processes of running the franchise. It is best to share this document before signing up the buyer.

These are some of the things keep in mine while creating a franchise business plan.

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