The first and most fundamental principle of franchising,Franchising prosperity doesn’t quite develop by chance. A franchise business plan increases the likelihood of a new franchisor and the franchise’s success by twofold.

Secondly,Businesses operate since they stick to a well-defined and well-executed strategy.

Over 543,000 new firms start in the United States every month, yet only 7 out of 10 survive after two years, while 5 out of 10 survive after five years. 

Surprisingly, over 70% of organizations that survive for five years follow a strategic business strategy.

The finest strategies begin with a particular goal and then establish objectives and techniques to help you achieve it.You should identify a few franchise-specific points in your business plan to franchise.

What is a franchise business plan? 

A business plan is a roadmap that outlines a company’s primary business operations, objectives, and strategies for achieving those objectives. 

When starting a franchise business, it is important to have a plan. This document will outline your goals, strategies and tactics for your business. 

Moreover,this business plan serves as a guide to help you stay on track and meet your desired results.

Lastly.a few key components in your franchise business plan, and below is a brief overview of each section

Components of a franchise model business plan


  1. Company Overview and Purpose of franchise
  2. Mission and Vision statement
  3. Company’s organizational structure
  4. Industry Analysis
  5. Market research and planning
  6. Business Operations
  7. Franchise Marketing plan
  8. Structure of franchise management and support
  9. Franchise Financial Plan
  10. Franchise Development Plan
  11. Appendix


1. Company Overview and Purpose of franchise

The franchisor, its products and services, opportunities, risks, strategies, target market, competition, competitive advantage, and franchisor’s strengths and weakness is analyzed.

Above all,the executive summary of your business plan could be the most crucial component. 

However,Call it the ‘elevator pitch.’



Therefore,The executive summary should never be longer than two pages, and if it will condense to one page, that’s even better.

To sum up,I would suggest a one-page or one-slide overview of the company and industry. You can download the template on a company overview or a comprehensive franchise business plan.

2. Vision Statement

Firstly,Your company’s culture is defined by a vision and mission statement. 

Secondly,the vision and mission statement will explain the company’s primary motivations for being in business and define the boundaries of its operations.

The vision statement reflects your concept regarding the franchisor and system, customers, vendors, profitability, professionalism, community, and the workers.

In addition,it contains franchise ambitions and the regions or cities they intend to expand their franchise business. 



3. Company’s organizational structure

The organizational structure and hierarchy give the reader knowledge regarding the company.

Also, it contains whether and when the company was bought out by the creators.Subsequently with current funding such as stock ownership, mortgages, loans, overdrafts, and debentures. 

Write on notable achievements you’ve made as well as any challenges you’ve faced and overcome—the management of the company and their previous experiences and accomplishments. 

4. Background and analysis of the industry

The industry analysis and background part, second only to the executive summary, is the one that gets the most attention. 

Secondly,you must recognize your market, competitors, and market position for your organization to have proper guidance.

When comparing an organization and its goods & services to competitors, use infographics for clarification and analysis. 

Lastly,I recommend to use Canva,a tool to prepare images and infographics for your franchise business plan and your marketing campaign.

By answering the following questions, define the industry in which you work:

  • How big is the business? The reader will be interested in knowing the industry’s size or expansion.
  • Do a few large enterprises dominate the market, or is it divided among many smaller shops?
  • Who are your primary competitors, leading companies, franchisors, and suppliers in the industry?
  • Is there a big range of possible clients in the industry, or do a few people responsible for a substantial percentage of income?
  • What variables are critical to your industry’s success?
  • What laws, environmental developments, and commercial developments will have an impact on your sector?
  • Based on published projections, what do the industry’s rapid expansion and profile look like?

5. Market research and planning

You discuss your customer profile, market volume, industry developments, present and future competition, and the kind of location you require. It demonstrates to the potential franchisee that you are familiar with the industry you will be working in.

Market research should include

  • Market size and Market share of the franchisor or its micro industry.
  • Type of Market
  • Market Share Analysis
  • Hybrid market
  • Current Business Formats of these markets
  • Demand and Supply-side drivers contribute to the growth of the market segment.
  • Franchise Readiness and Feasibility analysis
  • Ideal Franchisee Profile
  • Franchise Financial Facts 
  • Franchising Models selected among COCO, FOCO, COFO or FOFO models
  • Different Expansion formats
  • Unit Franchise format
  • Master and Sub franchise format
  • Area Franchise format
  • Multi-unit Franchise format
  • Type of business model suitable
  • Business Format Franchising or Product-based franchising

6. Business operations

In any business, employees are the most valuable asset. Firstly,you detail your staffing plans for hiring and paying employees and the training programmes you or the franchisee will give in this area.

Additionally, addresses having the necessary products and materials to sell to the wider populace and run the business. The Operations plan includes concerns with your vendors, such as how they will deliver to you and how you will sell to them.

Also, enlighten yourself on your well-written franchise operational manual, which contains standards for franchisees to follow when operating your franchise. 



7. Franchise Marketing plan

Every investor, lender, bank and member of management wants to know how you plan to bring in new clients for your franchise. You define the entire franchise system’s marketing strategy, along with any neighbourhood and localized marketing tactics, in this area. 

Brand recognition, brand building initiatives, and franchise growth marketing strategy should focus on the market strategy. 

Make it clear to the reader how you plan to launch your business. Finally, you’ll take care of the pricing specifics. 

8. Structure of franchise management and support

Summarize the day-to-day administration necessary to drive the organization, and provide background details about your supervisors if you know who they are. Specify the volume and sort of employees you’ll need to hire, as well as your wage and benefit plans as well as your staff retention strategies.

Prepare your franchise support documents like :

  • Escalation Matrix
  • Franchise startup checklist
  • A Franchise Suggestion format
  • The Franchise non-disclosure/non compete agreement
  • Vendor checklist and purchase formats 
  • Brand kit: Brand logos and brand graphics. Use definition and process.

To sum up, describe the position and responsibilities of your franchise manager, who will be in charge of selling your franchise and providing daily support to franchisees to ensure that business operations operate smoothly. 



9. Financial planning for franchise business 

Firstly,How much money will you need to get your business off the ground?

Secondly,Is it possible that the business will require additional funds in the future?

Franchise Business plan

Give a five-year profit and loss forecast as well as a cash flow analysis. Examine the number of sales needed to break even and create a profit in detail.

Franchise Financial plan includes the fees projected profit and loss statement for franchisees. The franchisor shares this franchise document with the franchisee before signing the franchise. The franchisee will examine and cross-check the financial terms and conditions with the franchise disclosure document.

10. Franchise Development Plan 

To start with,you must include a full description of the “hows” in the business plan in addition to the “whats” of day-to-day operations. 

Secondly,What modifications do you expect to make to meet the plan if your company is already up and running?

To summarize,How much will such changes cost, and when do you plan to repay those costs? Figure out how much money you’ll need when you open and how long it will take to break even and make a profit if you’re beginning a business.

The franchisor must have a franchise sales plan that aligns with their franchise expansion and location strategy and schedules. 

11. Appendix

The appendix is where you can give the reader printouts of your tax records, business and industry publications, information about the community you’ll be servicing, and any other material that will assist them to comprehend the firm.

Writing a business plan may seem daunting, but it is essential to expand your business.

In short,you should enjoy the task of writing your business plan, and if not, you may lack the discipline required to run your own company.

Franchise business plan example

Starting a franchise can be a great way to own your own business with less risk than starting from scratch. It can also be a lucrative way to own a business, with some franchises earning over a million dollars in revenue annually.

However, there are a few key things to consider when starting a franchise. First, you will need to create a detailed business plan.

This plan should include an overview of the franchise, its target market, and how you plan to compete in that market. Likewise, you also include a section on financials, including your estimated startup costs and your projected income and expenses.

You can download our ,franchise business plan template from our downloads page on the website.



Franchise proposal sample doc

A franchise proposal is a document,which is to request the approval of a franchising opportunity from the head office or board of directors. 

The proposal should be well-written and organized to make it easy for the head office to understand. 

Most importantly,be concise and provide all the necessary information to make an informed decision.

The following is a sample franchise proposal is pitch deck to potential franchisee.


Conclusion: Get You Franchise business Plan example


You should have a solid business strategy in place if you want to expand your company effectively. Instead of paying for advisory services, you can construct your business plan with the help of the following points.

Expand your business now with the help of Franchise Deck and profit from developing a franchise business plan. 

Give us a chance to sail with you on your franchising journey. The first milestone of the franchise business model is the franchise business plan. 

The franchise business plan comprises a franchise expansion strategy to decide why, how, when and where to franchise your business.

The franchise model business plan template and customized franchise plan include the franchise strategic plan, franchise proposal sample doc is part of franchise marketing kit.

Do you have any more innovative business plans? Share your plans with us to assist you in improving them, and give us your feedback on the same.


Published On: March 8th, 2022 / Categories: Blog, Home, How to Franchise / Tags: /


  1. Lucas August 1, 2022 at 3:50 am - Reply

    A highly successful franchisor is dedicated to its brand. Running a franchise requires a strong drive and motivation for success. Hence a franchise business plan can help an entrepreneur achieve his/her goals in the right way.

  2. September 21, 2022 at 10:19 pm - Reply

    A standard business plan usually consists of-an govt summary, an overview of your services, thorough market and
    business research, a marketing and sales technique, operational particulars, financial projections, and an appendix.

  3. Gibson March 18, 2023 at 6:51 am - Reply

    ranchise business plans are essential for long-term success in the franchise industry.
    A comprehensive plan should include research into the target market, potential competitors, and the costs associated with the business.
    A business plan should also outline the legal requirements for setting up a franchise in the chosen market.
    A well-crafted franchise business plan should include detailed information about the franchise’s products and services, as well as the marketing strategy. It is important to include financial projections for the franchise business in the plan, including estimated startup costs and expected revenues.

  4. Noel March 18, 2023 at 6:52 am - Reply

    A franchise business plan should also provide information on the franchisee’s responsibilities and the franchisor’s expectations. A key component of the business plan is a competitive analysis, which will enable the franchise to assess its competitive position in the market.
    It is also important to include a risk management plan in the franchise business plan to identify and mitigate potential risks to the business.
    A detailed operational plan should be included in the franchise business plan, which should outline the day-to-day operations of the franchise.
    The franchise business plan should include a clear vision and mission statement to guide the franchisee’s decisions.

  5. Glennon March 18, 2023 at 6:53 am - Reply

    A franchise business plan should also include a section on customer service, outlining the standards and policies that will be in place. A franchise business plan should also include a section on employee training and development, as well as procedures for hiring and managing employees.
    The franchise business plan should include strategies for managing inventory and controlling costs.
    The franchise business plan should also include a section on financial management, including budgeting and forecasting.
    Finally, the franchise business plan should include a section on exit strategies, outlining how the franchise will be exited and the possible outcomes.

  6. Katherina August 15, 2023 at 6:26 am - Reply

    How will your online business run day-to-day? The operations part describes the
    required requirements for your small business to run easily.

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