franchise business plan template pdf

  • Have you dreamed of getting started in entrepreneurship?
  • Did you go into franchising?
  • Have you been seduced by a brand?

You begin to understand it well and your project becomes clearer!

The next step is to find out if your project is profitable and viable. This will condition a loan in a bank.

The development of the business plan will make you reflect on the following points:

  • The real option represented by the brand you have chosen
  • The reality and coherence of your project
  • Assessment of your managerial, managerial and sales skills, etc.
  • Market qualification
  • Risks and benefits of the activity
  • The chances of success
  • The financial dimension of the project and its feasibility
  • The projection of your company’s future …

The business plan will be a necessary tool for your banker and your future partners, which will be about:

  • 1. Description of the project
  • 2. Its market research

The initial phase, which consists of validating the economic model and the idea, is limited because you have chosen a brand that has proven itself, but you must make sure that you are in phase with the brand’s standards.

Investments to be financed

The franchisor has already tested at least one pilot unit. It has information specific to the cost of the investments needed to set up a point of sale.
These investments consist of the following elements:

  • The premises: involves payment of a right to the lease, a deposit and real estate agent’s fees.
  • The layout of the premises and the furniture, IT equipment, vehicle, etc.
  • The stock is an essential and essential element to finance: you need to assess its size with precision as well as its possible seasonal.
  • The entrance fee to be paid to the franchisor (average 13 K €).

These investments will be financed in 2 ways:

  • By your personal contribution, which will normally amount to 30% of the total investment amount
  • For a loan taken out in your bank for the balance

The expected income statement

You need to estimate your income, your expenses and your profits over 3 years

This exercise allows you to detail your vision of the development of your activity.

The key point will be the determination of revenue. You will need to get the most accurate idea of ​​the salable quantities or billable services depending on your catchment area and the experience of the installed franchisees.

It is especially important to identify the level of turnover that will allow you to start making money.

To be effective and reliable, you can rely on the results of other franchisees of the brand and be assisted by an accountant. You can then compare your performance with the forecast elements and understand the discrepancies.

franchise business plan template pdf

franchise guide

Download the franchise guide (2021 edition) for free, which will explain you franchising step by step and give you all the keys to a successful project.

To download

Cash

You will be able to assess your expected monthly deposits and withdrawals during the 1st year of activity and see the money that should remain in cash at the end of each month.

Cash consists of money that is available in cash or in the bank.

The business plan allows you to assess the amount of your cash to validate that it is positive each month. Otherwise, it is advisable to take an extra loan from your bank.

The 3-year financing plan

After assessing the need for financing to start your activity, its expected profitability and the monthly cash balance, make sure that the available resources after 3 years will be able to meet your needs: stocks, new investments, etc.

If not, you should consider getting new credit.

Traps to avoid

  • Not to put your thoughts in writing
  • Not having contacted network franchisees in advance
  • Not to make a business plan
  • Do not assess your catchment area accurately enough
  • Not identifying your strengths and weaknesses
  • Not to identify risks of the activity
  • Do not know the competition
  • Not getting help from an expert

Read more about the business plan:
Business Plan: Step 1
Business Plan: Step 2
Business Plan: Step 3
Business Plan: Step 4

Leave a Comment