franchise business plan sample pdf

Franchise Business Plan

What is your initial plan when you have just franchised a business? Most people would find it absurd to immediately prepare a business plan for their franchise. Many would think that when you franchise, the franchisor would provide them the business plan apart from other elements necessary to operate the business. However, that is not the case. The task of creating a business plan for your franchise heavily falls on you. You have to note that developing a franchise business plan is not necessarily similar to the business plan of independent businesses.

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It is much simpler because, most likely, the franchisor can provide the answers to most of the questions that your business plan is seeking to address. Hence, creating a franchise business plan does not really require tough brainstorming, planning, and preparation. Although you still need to be specific in your goals as a franchise, the franchisor can provide you the information regarding your target market, the suitable location for your business, and many other basic information.You may also see  advertising and marketing business plan examples .

Franchise Marketing Plan Template

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Do not be too overwhelmed with the thought of creating a successful business plan and instead focus on what you can do and what you can ask from your franchisor. Moreover, the examples of franchise business plan displayed below can surely help you in your start-up.

Banking Franchise Business Plan Example

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Basics in Franchise Business Plan Example

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Company Franchise Business Plan Example

Franchise Definition

By the book, a franchise is a method of parceling out goods or service. It is a type of business where the franchisee agrees to pay certain fees as well as follow certain business franchise rules in order to acquire the right to sell the goods or services of the franchisor, the company who established the company. The franchisee can also benefit from its business methods, trade secrets, goodwill, professional training, as well as operating assistance.You may also see company plan examples .

Popular Franchises

As we all know, many people love franchising business because the franchisor does not need to do hands-on on the operations because it has a lot of franchisees who can do the actual selling. Although they can operate a business on their own, they do not bear the hassle of opening branches to the different parts of the world. In fact, it is the franchisee’s task to disseminate the business in different areas.You may also see  restaurant operational plan examples

On the other hand, it would be less bothersome for the franchisees to open up a business when they do franchising because they already have the basic requirements for a start-up from the franchisor. They only need to pay the fees, get some professional training, and adhere to the rules and immediately operate. The risk of losing is also low.You may also see  business proposal letter examples

Hence, no wonder why there are a lot of franchising businesses today which are evidenced by the following companies:

1. McDonald’s

3. Burger King

4. Pizza Hut

5. 7 Eleven

6. Marriott International

8. Dunkin’ Donuts

9. InterContinental Hotels and Resorts

10. SUBWAY®

11. Baskin-Robbins

12. Domino’s Pizza

13. Taco Bell

14. Ace Hardware Corporation

15. Jani-King Commercial Cleaning Services

16. Wyndham Hotels and Resorts

18. Carrefour

19. Europcar

20. Choice Hotels

Comprehensive Franchise Business Plan Example

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Detailed Franchise Business Plan Example

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Entrepreneurship Business Plan Example

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Elements of a Franchise

A franchise, for it to operate legally, consists of the following three elements: trademark, fee, and control or assistance.

Under the trademark of the franchisor, the franchisee must operate his business in providing goods or services. For example, when you are franchising Ace Hardware Corporation, you do not need to make your own company name as you are adopting the company name of the franchisor. Hence, in your operations, you must bear the name Ace Hardware Corporation.You may also see  restaurant strategic plan examples

There are certain franchise fees associated to the franchise which is a requirement and a condition for you to obtain the franchise and begin the operation. While the franchise fees are payment for the trademark and other benefits that a franchisee acquire from the franchisor, some franchisors would use the fee to aid in the start-up materials and tools of the franchisee.

Control or Assistance

Another element of a franchise is that, although the franchisee is running the business through his or her own operations, the franchisee is still subject to various requirements that are imposed by the franchisor. These include requirements regarding the location of the business, the design of the site as well as the appearance of the store, hours of operation, sales methods, marketing, as well as management systems.You may also see  business plan guidelines examples

Key Considerations

If you are still new to franchise, you need to know and understand the basics in franchising for you to easily perform franchising operations. There are some points to consider when you are in a franchise business, and these are as follows:

1. Business Suitability

One of the critical factors that you must consider is the suitability of your business. This includes your personal aims, your objectives, as well as your ability and will to manage this type of business—franchising.

2. Benefits

Another thing that you must consider in franchising is the benefit that you can acquire from the franchise. Although most of the franchise have a low risk of not being profitable, there are some franchise that would provide you very less returns.You may also see  tutoring business plan examples

3. The Downside

You must also consider the downside of franchising. For the franchisor, he or she must carefully assess the franchisee regarding the ways they can be trained and controlled. For the franchisee, he or she must scrutinize the legitimacy of the business.

4. Franchisor’s Life

Know that if you are a franchisor, it is your responsibility to manage the initial period of the franchise as well as to train the franchisee. He or she must also ensure to keep the franchisee interested in their business through launching and introducing new products and services.You may also see  farm business plan examples

5. Corporate Image

Franchisees can benefit from a strong corporate image of the franchisor. The franchisor must be legal and registered, and if the franchisor has a trademark, it must be registered with the Patent Office.

6. Legal Agreement

There must be an agreement signed before the commencement of the franchise or start of the franchise operations. There must also be an agreement as to who will shoulder the legal costs, whether it may be the franchisor or the franchisee. For this, you might want to take a look at franchise agreements .

7. Financial Matters

Another important consideration is the financial aspect of the franchisor. The franchisee would normally expect that there is transparency in the financial statements of the franchisor and that the accounting records involve positive amounts.

The franchise products or services must be carefully tested in the market with a pilot franchise and an independent franchisee for a certain period of time, usually over a minimum of twelve months to ensure that the franchise is not a failure.You may also see risk plan examples .

9. Operating Areas

In order to find the optimum area of the franchise, where it is conducive to the target market, a research must be carried out to define a certain location that will support the business based on the number of people, number of households, number of businesses, number of cars, etc. You might also be interested in rental property business plan .

10. Franchise Package

The franchise must provide the franchisor the benefit of the franchise even at the commencement of the franchise through providing a package of a fair amount of initial stock, training, manuals, accounting system, and other necessities for a start-up. For reference, you can check out tech startup business plans .

11. Brand Security

As has been said above, the patent or trademark of the franchisor must be registered with the Patent Office. This will cover the protection for the business name and the logo of the business . This will also ensure the franchisee that the business he or she is into is not only credible but also safe and secured.

12. Company Structure

The structure of the company who serves as a franchisor must also be taken into consideration. This will enable the franchisee to understand more about the business that he or she is into.You may also see  convenience store business plan examples

Franchising Business Plan Fundamentals

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Sefa Franchise Business Plan Outline Checklist Example

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Short Franchise Business Plan Example

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Soup and Salad Franchise Restaurant Business Plan Example

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Sections of a Franchise Business Plan

If you have already started in your franchise, one of the first things that you must have is a business plan . Although you might think that the resources and basic provided by the franchisor is enough, well, it is really not. You must have your own business plan that will detail your plans as well as the detailed steps in achieving those plans.

In your business plan, you must include these important section for it to be comprehensive and detailed:

1. Operational Plan

In your operational plan , it must contain information demonstrating your understanding of the nature of the business, the products and services for sales, the systems and methods used in selling, as well as the processes engaged to operate the business.

Operational plan is important in order to demonstrate how the business is executed. Also include your ways in interacting the customers, the delivery of the products or services, the systems for communication, execution timetables, among others.

2. Marketing Plan

In this section of your business plan, you must illustrate the company’s blueprint in order to create interest not only in the company but also its products. Normally, the franchisor would provide you advertising materials for your marketing. However, you may also need to develop additional advertising materials that better suits in the area where you are doing business.

The importance of marketing plan is that it is used to map out how to engage the market and sustain customer flow. You must include in your marketing plan the description of your target market, the channels for communication, marketing strategies, and many other plans related to marketing.

3. Management Plan

In your management plan, you must include the management—the people who set the strategies, oversee and execute, allocate the resources, and make the decisions—as well as the company’s vision and philosophy. Normally, the franchisor already has this in their company documents, but you can contribute in enhancing and improving their management plan through creating your own relevant management plan. This is integrating your own vision for your franchise to the management plan that they have already created.

This is important because it provides evidence of competency and management systems. Hence, relevant sections from the franchise management manual, tactical positions, strategic principles, and prevailing business models must also be included in this section of your business plan.

4. Financial Plan

Your financial plan is your method of proving how your operations can make money in doing what it is supposed to do. You may include in your plan the financial successes of other franchises and of the franchisor’s own operations. This is to demonstrate your anticipated success in your franchise.

A financial plan is important in order to show the key elements of the company’s operation. Hence, it is recommended that you will include in your financial plan your operational budget, the funds that you need and expect to raise of borrow, as well as the anticipated costs and revenues in the form of projections.

If you are contemplating on venturing into franchise business, it is better that you start immediately and enjoy the benefits from your franchise. The earlier, the better. Remember, a franchising business provides lesser risk and you are assured of the return, especially when you are franchising a business that already established its name in the industry, for example, McDonald’s.You may also see lean business plan examples .

So what are you waiting for? Make the wise decision now, and use the examples of franchise business plan provided above to help you in your start-up. If you got to start some time, why not now?

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Franchise Business Plan Template

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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

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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.

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Creating a business plan for your franchise: what to prepare before asking for money.

🕒 Estimated Reading Time: ~8 minutes

Congratulations! You’ve decided that owning a franchise is the right investment for you. You may have even already decided on the type of franchise, and maybe even the franchise brand you are going to pursue.

What’s next? Financing. Securing the funding needed to make your franchise dreams a reality. And unless you are one of the fortunate people that has enough money saved to cover costs, you will likely be seeking a lender to make up the difference between the amount of money you currently have to invest and amount of money needed to open and maintain your franchised business until you 'break even.' (Breaking even is the point in the lifespan of a business where the operation starts turning a profit.)

To convince lenders that you are worthy of their money, the creation of a business plan is crucial. Lenders use a business plan as a guide to assess whether the prospective franchisee is a on a path towards success and profitability.

To approve loans, lenders want to have a clear, straightforward account of the business to be opened, the principals involved, and—perhaps most importantly—perspective on when the borrowed money will likely be repaid.

It's helpful to prepare for the meeting with the lender like a college graduate student would prepare for a thesis defense presentation. In both instances, it is the goal of the person (or people) going into the meeting to have done the adequate level of research necessary to competently back up the stated claims for the desired result (be it the granting of a master's degree to the student or the gaining of a loan for the prospective franchisee).

Important note: the business plan isn’t just for getting money.

Not only does a business plan help in securing funding, it forces you to take a hard look at the investment you are about to make. It gives you a chance to anticipate the challenges that come with opening a business, and temper unrealistic expectations.

As time passes and you move further into franchise ownership, the business plan you’ve created should be updated and utilized as a guide in helping you reach your franchise goals.

Parts of a Business Plan

Creating a business plan doesn't have to be complicated.

There is no standardized length for a business plan, but no lender wants to read a novel-length presentation. The main thing is that the plan is thorough enough to cover all aspects of your individual franchise. You want to give the lender confidence that you are prepared to take on the managing of a business that will turn a profit in a reasonable amount of time.

The key is compiling the proper information to address the reservations of the lenders you will meet with. This is where opening a franchised business offers a notable advantage over an independent business.

The franchise disclosure document (FDD) provided by the franchisor of the system you are investing in contains a great deal of the information needed to complete a business plan.

This information includes the company’s corporate background, a description of the target market, the competitive advantage of the product/service, marketing initiatives, plus the start-up and ongoing costs. Some franchisors even offer assistance to franchisees in the preparation of the plan.

Common parts of a business plan include the following, according to the Small Business Administration  (a sample business plan is located at the end of this article):

Company description: A good place to look for the information for this section is Item 1 of the FDD. Provide an overview of the franchise and its history to the lender. You will also provide a brief outline of the franchise’s service/product (more detailed information will be given in the next section).

Service/product description: Describe in detail the service and/or product your franchise will provide to customers. This section can be combined with the company description. Again, Item 1 of the FDD is where you will find much of the information you need for this section. Item 16 will also be helpful in discussing what you will and will not be able to sell as a franchisee of a particular franchise system.

Market analysis: Use this section to prove to the potential lender that you are not jumping into a business venture on a whim. Concentrate on the specific area (market) in which the franchised business will be located. The territory description in the FDD (Item 12) will help you to a point.

Give a brief discussion of the following:

• How big is your market?
• What kind of people (demographically and financially) make up this market?
• Is the market under-served in regards to this service/product?
• If there is competition, who are your competitors and what is your competitive advantage?
• Discuss what experts are forecasting for the service/product in terms of trends and growth possibilities for your specific market (can include demographic, legislative or environmental factors).

Management structure: This section provides a look at the people who will be responsible for the day-to-day operation of the franchise, particularly you as the owner. Is this venture going to be a sole proprietorship or will there be multiple owners? Explain if you will be involved day-to-day with business operations, or will be acting as an absentee owner.

For yourself and all of the others with an ownership stake, if applicable, detail all business qualifications. Stress any and all experience (even if volunteer) that is relevant to being successful in the future with the franchise operation. Item 15 of the FDD will help with explaining the managerial obligations of the franchisee.

Marketing plan: 'How are you going to get customers?' is the main question you’re answering in this section. Use FDD Item 11 to your advantage here. It provides an overview of the franchisor’s advertising and marketing efforts. Also, it provides a description of the training you will complete before opening. Often marketing and sales courses are part of required training.

Financials: This is the meat of your business plan. In this section, don’t only ask for the money you need. Give the lender the big picture of your financial situation as well. Detail how you are going to obtain the entire initial investment. Often times, a lender will not be financing all of the franchise investment. Are you using a mix of personal savings, loans, credit, etc.?

In addition to the funding request, you will be doing some financial projection. Give a reasonable time frame when the lender can expect full repayment of the loan, and back up that claim with figures. Include graphs and charts detailing the start-up costs, projected profit and loss and projected sales forecast for the franchise.

The franchisor can be of significant help to you in completing this section (via Items 5 and 19 of the FDD, and in direct conversation). However, keep in mind the franchisor is restricted legally about making certain claims about projected earnings. Be conservative with the projections as unexpected delays and unforeseen circumstances do happen.

Appendix: The appendix technically isn’t a part of the business plan, but an additional section to present items that would enhance your presentation. Include items you feel would be necessary to giving the lender a complete picture of you and the franchise you are seeking financing for. Examples include: the resumes of management figures, tax returns, media clippings, etc.

As previously mentioned, the best outside source of information to complete your business plan is the franchisor. No other outlet is going to know that franchise system better. 

Additional resources include online sites such as Bplans.com, which offers site visitors a substantial library of sample plans to review, as well as general business websites like the Small Business Administration. Prospective franchisees can also use a professional business plan writer, particularly for the review of a plan before sitting down with the lender.

Confidentiality agreement: Because business plans contain sensitive and confidential information, the content needs to be safeguarded against potential leaks. To do this, you will need to enter into a confidentiality agreement with the parties you allow to review your business plan.

The agreement will bind them not to disclose or reveal any confidential information they receive, without your written permission.

Sample Business Plan Confidentiality Agreement Template

Sample franchise business plan: Please note that the example business plan linked below is a sample of one way to format a business plan. There are several different acceptable formats, and the contents of business plan sections will vary significantly due to factors including the franchise system, the type and amount of loan sought, the franchisee’s background, etc.

Sample Business Plan

Suggested reading:

• The Ultimate Guide to Franchising
• What is Franchising?
• The Benefits of Franchising
• Choosing the Most Profitable Franchise for You
• 11 Key Steps in Opening a Franchise
• Franchises vs. Business Opportunities
• The Cost to Start a Franchise and Financing Options
• Basics of the Franchise Disclosure Document (FDD)
• Creating a Business Plan for Your Franchise
• Completing and Signing a Franchise Agreement

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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 • 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

Whether you want to start your own franchise business or expand an existing one, you need a business plan. the following franchise business plan template lets you know what elements you need to include in a successful franchise business plan., fill the form to download business plan templates.

To ensure your franchise business success in this highly competitive market, you need a properly structured franchise business plan. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their franchise businesses. Using the following franchise business plan template, you can put together an effective business plan.

Things to Know Before Writing a Franchise Business Plan

The franchise business industry has two primary agents; franchisor and franchisee. A franchisor is the business system/brand owner, and a franchisee is an entity that rents the business system/brand name against a fixed initial fee and royalty. 

A franchise business plan is popular in many industries. Popular franchise systems are fast food chains like McDonald’s, KFC, Subway, etc. You can find a franchise opportunities in many industries. 

A franchisee operates a business location under the guidelines of the franchisor. You have little freedom to experiment with new things. 

The FDD, or Franchise Disclosure Document, is the legal contract between a franchisor and a franchisee. FDD has details of the rights and responsibilities of the two parties. This is generally a lengthy document. You need to understand it before you buy a franchise. 

The franchise industry is growing fast. As International Franchise Association (IFA) reports, 2022 is the year of opportunity for franchises. 

The estimated number of total franchises in 2021 was 774,965 with a total number of employees at 8,192,600, and an output of $787.7 billion. 

The total GDP size of the franchise economy in 2021 was $474.2 billion. The growth projections for franchises in 2022 stand at 2.2%. 

These are the top industries with the most number of franchises. 

• Quick Service Restaurants (188,402 franchises)
• Retail Food, Products, and Services (162,579 franchises)
• Personal Services (114,012 franchises)
• Business Services (99,296 franchises)
• Commercial & Residential Services (75,678 franchises)

Key Success Factors for Franchise Business

A franchise business has different dynamics as you are selling an established brand to a market with a demand for that brand’s products or services. 

We have identified these five factors that play a crucial role in making a franchise successful. 

• A Loyal Customer Base for the franchisor brand makes sure you’ll have enough demand to successfully run your franchise business 
• A Clear Market Position . This means that you are selling products where there is a need and where the brand fulfills that need. 
• Franchisor Business Operating Expertise : When a franchisor has business expertise, chances are they will better lead the industry and develop the market for the brand 
• Established Brand Name : Running a McDonald’s franchise is far more profiting than a Huddle House
• Ability to Control Stock: When franchisees can control stock locally, they can meet increased demand, control costs, and reduce waste. 

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What is a Franchise Business Plan?

A franchise business plan is a roadmap for starting and growing your franchise business. Your business plan outlines your business concept, identifies your target customers, presents your marketing strategy, and details your financial projections.

Any bank or investor you approach will require a franchise business plan, so putting one together will be critical to securing funding.

In short, writing a business plan can help you succeed if you’re thinking of starting a franchise business or pitching to investors or venture capitalists.

Why You Need a Franchise Business Plan

Franchise business plans can be used to gain interest from potential investors or to secure loans from banks. They are also helpful to you as the owner. A franchise business plan allows you to thoroughly analyze every aspect of your potential business.

A solid, detailed plan gives you a clear path to follow, forces you to examine the viability of a franchise business idea, and may help you better understand your company’s finances and competition.

A franchise business with a plan grows 30% faster than the rest. On the other side, if we look at the fast-growing companies, 71% of them have a business plan .

A franchise business plan is a living document that should be updated annually as your company grows and changes.

Free: Franchise Business Plan Examples

Do you need help creating a franchise business plan? Check out these six free, proven franchise business plan examples from different industries to help you write your own.

Funding Sources for Franchise Business

Conventional Banks and Credit Unions

You can get a loan from banks, credit unions, or other financial institutions. Getting such a loan for a franchise business depends on many factors including turnover, credit history, and expected revenue of the business. 

SBA regularly offers loans, grants, and lifelines for small businesses. Keep an eye on the 7(a) program that is aimed at small businesses in the early stages. 

Business Partners 

A franchise business is a high investment business. Consider adding business partners to create a money pool big enough for the business needs.

Retirement Funds 

If you have retirement funds available, you can use retirement funds or 401k for starting a franchise. 

Securities-Backed Line of Credit

if you have an investment portfolio, you can get a line of credit against those securities. These securities will serve as loan collateral. 

Equipment, Machinery, and Furniture Lease

You can get franchise machinery, vehicles, computers, furniture, and other equipment at lease. If you get an equipment lease, you may also get a buyout for $1 when the lease term ends. 

Looking to Build Business Credit for Your Franchise?

A franchise business’ success is partially determined by its supply chain. We can help you purchase goods and services on Net 30 terms. Create a net 30 account with us and start building your business credit. 

How to Write a Franchise Business Plan

To write a franchise business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a franchise business plan, or you can just download our proven  sample business plans  to get a better idea.

Free Franchise Business Plan Template in PDF and Word

Download our franchise business plan template in PDF and Word here.

Executive Summary

The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.

It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.

Tell them what kind of franchise business you have and what stage you’re in; for example, are you a startup, do you have a franchise already that you want to expand, or do you have a lot of franchise businesses?

Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.

• Provide a high-level overview of the franchise industry
• The name, location, and mission of your franchise company
• A description of your franchise business, including management, advisors, and a brief history
• Discuss the type of franchise business you are operating, Give an overview of your target customers., and how your company differs from competitors in the industry
• Create a marketing plan that describes your company’s marketing strategies, sales, and partnership plans.
• And give an overview of your financial plan

Check out these executive summary examples to help you write a perfect one for your franchise business plan.

Free: Franchise Business Plan Executive Summary Examples

An executive summary is the most important part of your franchise business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.

Company Analysis

• Company summary: Your company analysis will describe the type of franchise business you are running and its future goals. The type of franchise business you might be focused on  (for example,  Quick Service Restaurants, Retail Food, Products, and Services, Personal Services, Business Services, or Commercial & Residential Services)
• Company history: When and why did you start your franchise business?
• What milestones have you achieved so far? Your milestones could include served 100th customer, new fleet purchase, etc.
• Legal structure and ownership: Do you have S-Corp status? Is it an LLC ? A sole proprietorship ? Describe your legal structure.
• Mission statement: An overview of your franchise company’s guiding principles. Learn how to write a perfect mission statement .

Industry Analysis

The franchise business plan’s research section will most likely be the most time-consuming. Here, you will elaborate on how you will fit into the existing franchise market.

Since your research findings should serve as a sound confirmation of the conclusions you have outlined thus far, they will demonstrate your understanding of the industry and market.

Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.

• Give a quick overview of the franchise industry. Define the franchise business in terms of size (in dollars), historical background, service region, and products.
• Examine previous trends and growth patterns in the franchise industry.
• Identify the market’s major competitors.
• Age, gender, and general lifestyle of the targeted market
• Determine the factors that have an impact on the franchise industry. These might include government regulatory rules and other businesses’ competitive activities.
• Using research data, the industry forecast expected growth over the next five to ten years. Predictions should be made for both the long and short term.
• Describe how your franchise business intends to position itself in the industry. Concentrate on how your franchise business can benefit from opportunities highlighted in the industry.

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Customer Analysis

The first condition for franchise business is to identify its target customers clearly. Different franchise business have different customers. 

The customer analysis section is an important part of any franchise business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how your franchise items will meet those requirements.

Customer analysis may be divided into two parts: psychosocial profiles (why your franchise items suits a customer’s lifestyle) and demographic profiles (descriptions of a customer’s demographic qualities).

With regards to demographics, include information about the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers have.

The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better you can attract and retain customers. 

Competitor Analysis

It is necessary to do a competitor analysis. Because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:

• Identify the strength and weakness of your franchise business competition.
• Search for opportunities to distinguish your franchise from competitors.

The first step is to determine who your direct and indirect competitors are.

The direct competition consists of other franchise businesses that offer the same goods or services to the same audience. 

Your indirect competitors are other options that customers have to purchase from you that aren’t direct competitors.

Among indirect competitors are the business selling similar product or service. For example, if you have McDonalds’ franchise, someone selling Chinese or Italian food is your indirect competitor. 

Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your franchise business— but keep an eye on the indirect competition as well, just in case.

Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.

You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:

• Prices – Are they offering cheaper products or services than you and other competitors, what value do buyers get for that price?
• Quality – Are they offering premium quality? What is the perceived worth in the eyes of the customers?
• Customer service – How they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
• Reputation — The sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers

The final section of your competitive analysis should include a list of your areas of competitive advantage. For example, how will you offer better value at competitive prices for the target market.

Consider how you will outperform your competitors and include them in this portion of your  franchise business plan.

Free: SWOT Analysis Examples

Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.

Marketing Plan

Creating a marketing plan for a franchise business involves identifying the target demographic and finding the goods and services that suit their preferences.

As part of your marketing plan for a franchise business, you should include:

Pricing and Product Strategy

Your franchise business must offer goods or products that are different from those of your competitors. Research what your competitors offer and how they price their offer. 

Placing and Promotions

Place explains the location you’ll chose for your franchise and the reasons of the selection.

Promoting your franchise business is the final part of your marketing plan. In this step, you document how you will drive customers to purchase your goods or services. A few marketing methods you could consider are:

• Marketing on social media
• Web Marketing
• Organize events
• Local Newspaper and TV ads
• Banners and Bill boards 
• Local Radio Ads 

You should also think about your franchise company’s Unique Selling Proposition (USP), which should explain why clients should choose you over other franchise businesses. Ensure that your USP is reflected in your marketing.

Pro Tips: Learn how to create a marketing plan in a business plan .

Operations Plan

While the previous sections of your franchise business plan described your goals, your operations plan discusses how you will achieve them.

An operations plan section in a business plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.

Your operational plan should be able to answer the following questions:

• Who – Personnel in charge of completing specific tasks.
• What – A breakdown of the responsibilities of each personnel.
• Where – The location of everyday operations.
• When –The deadlines for completing tasks and goals.
• How much – The amount of money required for each department to perform their job.

Your operations plan should be divided into two individual parts, as seen below.

Your daily short-term processes include all the tasks involved in producing goods or services, managing operations, selling, employee management, etc. 

Long-term goals are milestones you hope to reach. they might be growing your business, such as introducing new items or retail outlets, meeting particular sales milestones, and meeting other essential business-oriented goals like recruiting more staff, opening additional locations, and so on.

Management Team

When writing a franchise business plan, the management section of a business plan outlines your management team, staff, resources, and how your business ownership is structured.

This part may be easily organized by dividing it into the following points:

Ownership Structure

Internal Management Team

External Management Resources

Human Resources

This section outlines your franchise business’s legal structure. An LLC or a Corp is favored in the franchise business ecosystem. 

This section should not only outline who is on your management team but also how each person’s skill set and experiences will contribute to the growth of your franchise business. Ideally, you and/or your team members have direct expertise in the franchise business. If this is the case, highlight your experience and skills.

Think of these external management resources as your internal management team’s backup. Consider forming an advisory board if your team is lacking expertise and experience with franchise business.

An advisory board would consist of 3 to 7 people who would serve as mentors to your franchise business. They would help with strategic direction and strategy advice.

If necessary, search for advisory board members with expertise running franchise business.

Describe all of your company’s external professional advisers, such as accountants, bankers, attorneys, IT experts, business consultants, and/or business coaches. 

The final topic to consider in the management area of your franchise business plan is your human resource needs.

Financial Plan

As part of your financial plan in a business plan , you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Financial statements include your income statement, balance sheet, and cash flow statement.

Income Statement

A profit and loss statement is more commonly called an income statement. It shows your revenue and subtracts your expenses to determine whether you were profitable or not.

As you develop your income statement, you need to develop assumptions. Will you serve 50 customers per day or 200? Will sales grow by 2% or 8% per year? Your choice of assumptions will greatly impact your business’s financial forecasts. Conduct as much research as possible in order to ground your assumptions in reality.

Free: Income Statement Template

Create a financial statement for your franchise business by downloading our free income statement templates.

Balance Sheet

While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.

The balance sheet shows your franchise business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:

• Assets: Tangible goods with the monetary worth that the company owns.
• Liabilities: Debt owing to a company’s creditor.
• Equity: The net difference when the total liabilities are subtracted from the total assets.

The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.

Create a pro forma balance sheet for your franchise business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.

Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.

For example, spending $500,000 to build out your franchise will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.

Similarly, if a bank sends you a check for $200,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.

Cash Flow Statement:

Your cash flow statement will help you determine how much money you need to start or grow your franchise business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a franchise business:

• Fees for registering a franchise business
• Taxes and licenses costs
• Business insurance
• Payroll or salaries paid to staff
• Facility rent and security deposits
• Construction / remodeling
• Start-up Inventory

Free: Balance Sheet Template

Create a financial statement for your business by downloading our free balance sheet templates.

List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.

Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.

Bonus Tip: Learn what to include in a business plan appendix when writing a business plan.

Summary of the Franchise Business Plan

A franchise business plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the franchise business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your franchise business.

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Also, you can download our 300+ free business plan templates covering a wide range of industries.

OR, we can create your franchise business plan for you

Since 2010, Wise business plans’ MBA professional business plan writers has developed business plans for thousands of companies that have experienced tremendous success.

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We will show you some real-world business plan examples so you may know how to write your own, especially if you are seeking a bank loan or an outside investment and need to use SBA-approved formatting.

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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

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Get this complete sample business plan as a free text document.

Pizzeria Franchise Business Plan

Start your own pizzeria franchise business plan

4 Moons Pizzeria

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The following plan is based on years of experience, is highly focused and promises to follow a path of prosperity.  It is based on conservative sales figures, and actual sales may be higher. The projections contained herein are authentic and will be used as the budget for the business. 4 Moons Pizzeria will show a profit almost immediately, and will increase sales and profits each year thereafter.

1.1 Objectives

The objective is to lease a site at 555 West Blue Plum Lane. We will need to remodel the interior according to the Franchisor’s design. We plan to duplicate and massage the successful formula used by Franchisor. We will use our own personal strategies and skills to create our own success in our 4 Moons Pizzeria. We plan to train our crew to ensure outstanding results in quality food and customer service. Our objectives are as follows.

• Be the first 4 Moons Pizzeria in Nevada
• Provide the highest quality product, duplicating Franchisor’s successful pizzerias in Oregon
• Give top notch service in a quick and efficient manner
• Keep our menu simple to maintain low food cost
• Maintain the competitive, fast-casual dining at the mid-range price point
• Use marketing strategies to build volume quickly
• First year sales over $677,000 with a 6% growth yearly
• Maintain and expand an outstanding reputation as being the best neighborhood pizzeria

1.2 Mission

4 Moons Pizzeria exists for the purpose of generating sales and profit. Because we are a service business, we will also exist to serve our customers. These two reasons for our existence are inextricable. If one aspect does not exist, the other will cease to exist.

• We will always offer a fresh product and welcoming environment
• We will remain cheerful, courteous, well trained, and focused on pleasing our guests
• We will strive to become the first destination of choice for those in our neighborhood and community
• Our staff will be offered a workplace where they can prosper and grow in a dignified, fun, and rewarding manner
• We will give support to and contribute to our community schools, churches, groups, and businesses

1.3 Keys to Success

Our policy of being operating managing members is to make sure we pass by every table to greet, visit with, or at least send a smile to our guests.

We will visit any table or answer to any phone call that has feedback, positive or negative. We will use every means available to satisfy our customers.

We will be committed to the success and happiness of our staff.

We will be committed to providing quality food and beverage at all times.

We will consistently follow the franchisor’s proven methods.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Established in 1958, 4 Moons Pizzerias are an award winning, “Home of the brick oven Pizza”. They offer a comfortable, friendly ambience, with its new “Modern Pizzeria” design. The menu features pizza, hot calzones, strombollis, sandwiches, baked pastas, and fresh tossed salads. The pizza dough is made fresh everyday on site. Beverages include soft drinks, imported and domestic beer, micro brews, and an impressive wine list.  Food ingredients are the finest available including USDA Choice meats.

2.1 Company Ownership

We are an LLC,  limited liability company, with four managing owners holding an equal share (25%) and interest in the franchise.

• Carol Mittani : General Managing Owner – Hands-on management of all daily restaurant and company operations.
• Steve Solutrian : Vice Managing Owner / Sales and restaurant operations. Hands-on management of daily operations and sales trends.
• Diane Solutrian : Vice Managing Owner / All office procedures. Hands-on management of daily operations.
• Rikard Mittani : Vice Managing Owner / Marketing and future finances and investments. Hands-on management of daily operations.

2.2 Start-up Summary

We hope to take advantage of an existing structure located at 555 West Blue Plum Lane, at Lakeside Center. It is 2,828 square feet. We will remodel according to the Franchisor’s designs to make our concept both visually and functionally suitable.

Construction is estimated at $214,630 – see attached “Franchisor’s Construction Cost Sheet” for item breakdown.*

Start-up cash on hand is estimated for 3 months working capital, inventory, labor and rent.

Short-term assets include phone equipment, smallwares, booths, chairs, tables, pendants, sconces, and lighting.

Long-term assets include all kitchen equipment, POS system, and signage.

*Confidential and proprietary information omitted from this sample plan.

4 Moons Pizzerias are comfortable and inviting. We are a fast-casual operation with dine in, take-out, and delivery. The decor and theme are centered around the cutting edge open kitchen with brick arches and distinctive lighting. Our energy and atmosphere will appeal to families, groups, and schools.

The real power and energy of the pizzeria will come from the attentive and courteous service provided by our managers and staff. Our fresh menu will be prepared by our motivated kitchen team, and carefully orchestrated to provide the best service to our customers who are our priority. We will have at least one manager on duty at all times.

Our hours are Sunday thru Thursday 11 am. to 10 pm. Friday and Saturday 11 am. to 11 pm. Take out available during store hours. Delivery hours are 4 pm to closing everyday we are open. We will offer delivery all day on Saturday and Sunday and some holidays.

Market Analysis Summary how to do a market analysis for your business plan.">

Ohno is one of the fastest growing cities in America with Nevada being voted the best small business state in the country. Ohno is a community diverse in the arts and culture. We have a strong labor market, low taxes, affordable housing, and natural amenities making Ohno an attractive place to live and do business.

The greater Ohno metropolitan area population has grown one third through the last decade and is projected to grow 11.4% in the next five years.

The median age is 36 years old with household incomes averaging $65,895. With a strong local economy we have a population with disposable cash for dining and entertainment.

According to the Nevada Restaurant Association, Nevada restaurants are expected to lead the nation in sales growth at 7.6%.  Nevada is also the fastest growing state in the union. 

4.1 Market Segmentation

4 Moons target market is a three mile radius of site location. Within the three mile operating radius is a population of 121,705. The total number of households in this area is 48,839 with an average income of $58,197.

This area is densely populated, and a desirable part of town in which to live. It is an under-served portion of town, especially to the west up to the Caughlin Ranch area. It  is on one of the most traveled corridors in Ohno, Blue Plum Lane. Located near two of Ohno’s most popular malls, Parklane and Shopper’s Square.

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In this area we have some of the best schools. 4 Moons Pizzerias provides support for local area school groups and sports teams, as well as local church groups. We will be involved through providing sponsorships, discounts, and donations.

4.2 Target Market Segment Strategy

We haven’t ruled any one group or class out in our target market area. Just about everyone eats pizza. Most residents in this area have busy schedules, and find value in exceptional and timely service, as well as mouth watering, delightful food. We believe most everyone will appreciate our value based menu and family atmosphere. We have a strong commitment to community involvement including sponsorship for school/group teams.

We strongly believe we will overcome any competition in our area. The local competition includes Sticky Paws Pizza, Damynos, Gridlow’s Pizza, Hoopla Take-and-Bake, Clodhopper’s, and Little Sayzar. Most of these are at least two miles from our location and are no competition to our concepts, ideals, fresh products, and welcoming service.

4.3 Service Business Analysis

Pizza Statistics:

• Represent 17% of all restaurants.
• Americans eat approximately 100 acres of pizza a day.
• Pizza is a $32+ billion per year industry with continuing overall restaurant growth.
• Accounts for 10% of all food service sales.
• 93% of Americans eat pizza at least once a month.
• 67% of Americans order pizza for a casual evening with friends.
• Children between 3-11 prefer pizza over all other food groups.

4.3.1 Competition and Buying Patterns

4 Moons Pizzerias are competitive in the mid price point, fast casual dining market. With an average ticket of $17.00, we are priced above Hoopla Take-and-Bake and Damyno but below Squaretable.

Quality, Quick, and Simple is the goal of 4 Moons Pizzerias. The customers are provided with the highest quality product. Store design provides a warm and friendly environment for all.

Strategy and Implementation Summary

Emphasize service We will differentiate ourselves with SERVICE! We will establish our business offering as a clear and viable alternative for our target market.

Build a relationship-oriented business Build long-term relationships with customers, not single-visit deals. Become their restaurant and destination of choice. Make them understand the value of the relationship.

Focus on target markets We need to focus our offerings on specific population groups as the key market segment we should own. We do not want to compete for the buyers who go to “fast food” or “take and bake” types of restaurants. We definitely want to be able to sell to smart, quality conscious customers.

Utilize the various skills of our Managing Owners and learn through the extensive training program provided by Franchisor.

5.1 Competitive Edge

Clearly our competitive edge will be our customer service experience and management approach. Our smiling, unassuming, and good natured approach to all of our customers will be evident, and highly appreciated.

We will constantly monitor our product to ensure quality food and beverage at all times. Our recipes are delicious, made fresh daily, and our toppings go all the way to the edge of the pizza crust.

5.2 Marketing Strategy

We will start our marketing during the construction phase. Our main factor in success is simply that a person can enjoy a good pizza, fast service, and friendly familiar faces.

We will all be involved in Sales and Marketing. We will gather information about the neighborhoods, use our POS System to track top sellers and gather a customer base for marketing offers.

• Kids school tours
• Gift Certificate Program
• Phone book advertisement
• Door hangers
• Sporting events for schools and group events
• Eye catching signage
• Excellent service and high quality food
• Word of mouth

5.3 Sales Strategy

The marketing strategy discussed previously in this business plan will generate the desired sales.

We require our staff  to have a thorough and comprehensive understanding of the menus, ingredients and methods of preparation of all of our foods. We train our staff to always describe and recommend items, even to regular customers, and to always up-sell. The key to our employee’s success in up-selling is the realization that it almost always brings in better tips because the checks are higher.

We will emphasize service to differentiate ourselves. We will establish our business offerings as a clear and viable alternative for our target market, from the scores of “slow delivery”, “frozen dough”, and “your average” pizza chains.

We will build long-term relationships with our customers, becoming their destination of choice for delivery, take out, and dine in. We will sell ourselves as the best neighborhood and community pizzeria.

5.3.1 Sales Forecast

We are forecasting sales of approximately $677,000 in our first fiscal year (May 2005 to April 2006) with an opening date of mid-May 2005. We foresee sales increasing at .5% monthly, an overall yearly rate of 6% per year. Our forecast is conservative and is based on an average of $17.00 average per order.

We are convinced that our business will increase with time. We have a strong management team who will be on property daily to monitor daily operations. We will constantly watch food quality, customer service, and costs.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

4 Moons consists of four members with an equal concern in our franchise. We will owner operate our pizzeria daily. We will keep our starting salaries low to keep labor costs down. Each member contributes with a generalized assignment as well as being trained in all restaurant operations, including making pizza, working the counter, and delivering pizza. We are an extremely experienced, and well balanced team.

• Please see our attached resumes for a precise summary.*

Carol Mittani will be General Manager working every day to insure success. Steve Solutrian, Diane Solutrian, and Rikard Mittani will be on site various hours, and during  peak dinner hours to help with general operational tasks, plus opening to closing hours on the weekend.

* Confidential and proprietary information omitted from this sample plan.  

6.1 Personnel Plan

We plan to have a part-time staff to include pizza makers, delivery drivers, and counter persons. We are planning on a staff of 10 employees to come on at peak business levels.

Our first month will have a higher labor rate due to training, pre-opening preparation and grand opening labor.

We have forecasted labor at 18% of gross sales. We will strive to keep our payroll at 18% or lower.

Financial Plan investor-ready personnel plan .">

Our main concerns will be aggressive time management to keep labor costs under control. Proper purchasing, food preparation and handling, and control of cheese consumption to keep food costs down. Growth will be sustained through increased sales.

7.1 Start-up Funding

4 Moons has $160,000 initial investment, $25,000 of which will cover the franchise fee.

Our estimated start up is $505,000.  We are seeking an SBA Loan in the amount of $345,000 (see Long term liability line).

7.2 Important Assumptions

We are projecting profit based on the performance of other franchises and our own judgement based on the following:

• We assume by using marketing strategies, sales strategies, good customer relationships, fresh food, and good management practices, we will succeed.
• In order to meet the sales goal in the first year, open for at least 360 days, we would have to sell 111 checks each day with a $17 per check average.
• Our sales each day should reach an minimum average of $1,881.43.
• Our forecast is based on an average . Some months will increase and others decrease. We do not predict any major decreases in sales, as Ohno area restaurants are busy all year round.

7.3 Break-even Analysis

Break-even based on fixed costs including rent, insurance, maintenance, investor note, and pre-opening amortization. Additionally, controllables such as service labor, kitchen labor, management labor, excess rent, advertising, royalty, and legal/professional fees are included.

7.4 Projected Profit and Loss

As the Profit and Loss table shows, the company expects to continue its steady growth in profitability over the next three years. We predicted a conservative 6% per year increase in sales.

The first month may have higher payroll due to employee training and restaurant set up.

Our operating expenses include rent at $4,242 estimate per month, royalty fees of 5% of gross sales, equipment rental and repair, utilities projected at 11% of gross sales, administrative charges including PC charges, cleaning supplies, payroll charges, and office supplies.

Marketing fees are 4% of gross sales per month.

7.5 Projected Cash Flow

The cash flow depends on assumptions for good daily operational management, good traffic counts in the restaurant, inventory turnover, payment days, and accounts receivable management. We do not predict any new financing until we open our second franchise.

Principal amounts are based on a loan of $345,000 with a 10 year SBA Loan at 7% interest.

7.6 Projected Balance Sheet

The balance sheet is quite solid. We do not project any real trouble meeting our debt obligations–as long as we can achieve our specific sales objectives.

7.7 Business Ratios

The company’s projected business ratios are provided in the following table. The final column, Industry Profile, shows ratios for the “Pizza Restaurant Industry”, as determined by the Standard Industry Classification 5812.0600 with annual sales of $500,000 to $999,000.

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Manufacturing Business Plan PDF Example

• May 7, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful manufacturing business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your manufacturing business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a manufacturing business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the manufacturing industry, this guide, complete with a business plan example, lays the groundwork for turning your manufacturing business concept into reality. Let’s dive in!

Our manufacturing business plan covers all essential aspects necessary for a comprehensive strategy. It details operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Provides an overview of the manufacturing company’s business concept, market analysis , management, and financial strategy.
• Facilities & Equipment: Describes the facility’s capabilities, machinery, and technological advancements.
• Operations & Supply: Outlines the production processes, supply chain logistics, and inventory management.
• Key Stats: Offers data on industry size , growth trends, and market positioning.
• Key Trends: Highlights significant trends impacting the industry, such as automation and localization.
• Key Competitors : Analyzes primary competitors and differentiates the company from these rivals.
• SWOT: Analyzes strengths, weaknesses, opportunities, and threats.
• Marketing Plan : Outlines tactics for attracting new contracts and maintaining client relationships.
• Timeline : Sets out key milestones from inception through the first year of operations.
• Management: Information on the management team and their roles within the company.
• Financial Plan: Projects the company’s financial performance over the next five years, detailing revenue, profits, and anticipated expenses.

Manufacturing Business Plan

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Executive Summary

The Executive Summary introduces your manufacturing business plan, offering a concise overview of your manufacturing facility and its products. It should detail your market positioning, the range of products manufactured, the production process, its location, size, and an outline of day-to-day operations.

This section should also explore how your manufacturing business will integrate into the local and broader markets, including the number of direct competitors within the area, identifying who they are, along with your business’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the business’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your business’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

Facilities & equipment.

Describe your manufacturing facility. Highlight its design, capacity, and technology. Mention the location, emphasizing accessibility to transport routes. Discuss advantages for efficiency and cost management. Detail essential equipment and its capabilities.

Operations & Supply Chain

Detail product range. Outline your operations strategy for efficiency and scalability. Discuss supply chain management. Highlight sourcing of materials, inventory control, and logistics. Emphasize strong partnerships with suppliers and distributors.

Make sure to cover here _ Facilities & Equipment _ Operations & Supplies

Market Overview

Industry size & growth.

Start by examining the size of the manufacturing industry relevant to your products and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing demand for sustainable manufacturing processes, automation, and advanced materials. For example, highlight the demand for products that utilize eco-friendly materials or energy-efficient production techniques, alongside the rising popularity of smart manufacturing.

Key Competitors

Then, consider the competitive landscape, which includes a range of manufacturers from large-scale enterprises to niche firms. For example, emphasize what makes your business distinctive, whether it’s through advanced technology, superior product quality, or specialization in certain manufacturing niches. This section will help articulate the demand for your products, the competitive environment, and how your business is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for your manufacturing business. Highlight Strengths such as advanced production technology and a skilled workforce. Address Weaknesses, including potential supply chain vulnerabilities or high production costs. Identify Opportunities like emerging markets for your products or potential for innovation in production processes. Consider Threats such as global competition or economic downturns that may impact demand for your products.

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, trade shows, digital marketing, and strategic partnerships. Emphasize the importance of showcasing product quality and technological advantages to differentiate your business in the market.

Finally, create a detailed timeline that outlines critical milestones for your manufacturing business’s launch, marketing initiatives, customer acquisition, and expansion goals. Ensure the business progresses with clear direction and purpose, setting specific dates for achieving key operational and sales targets.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the manufacturing business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the manufacturing business toward its financial and operational goals.

For your manufacturing business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your manufacturing business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your manufacturing business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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