franchise business plan template pdf

  • Have you dreamed of getting into entrepreneurship?
  • Have you entered into the franchise?
  • Were you 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 require a loan from the bank.

Developing a business plan will lead you to think about the following points:

  • The real opportunity represented by your chosen brand
  • The reality and consistency of your project
  • Assess your managerial, managerial, sales, etc. skills.
  • Market Qualification
  • The risks and benefits of the activity
  • chances of success
  • The financial dimension of the project and its feasibility
  • Projection into your company’s future…

The business plan will be a necessary tool for your bankers and partners in the future, which will be centered around:

  • 1. Project description
  • 2. Market research

The initial stage which consists of validating the economic model and the idea is limited because you have chosen a brand that has proven itself, however you must make sure that you comply with the brand standards.

Investments to be financed

The franchisor has already tested at least one beta unit. It contains information on the cost of investments needed to create a point of sale.
These investments consist of the following components:

  • Location: includes rent payment, security deposit and real estate broker fees.
  • Building design, furniture, IT equipment, vehicle, etc.
  • Inventory is an essential and important component of financing: you must carefully assess its size as well as its potential seasonality.
  • An entry fee must be paid to the franchisor (average 13 thousand euros).

These investments will be financed in two ways:

  • Through your personal contribution which will generally represent 30% of the total investment amount
  • Through a loan obtained from your bank to obtain the balance

Expected Income Statement

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

This exercise will allow you to elaborate your vision of the evolution of your activity.

The main point will be to determine the turnover rate. You will need to get the most accurate possible idea of ​​salable volumes or billable services depending on the assembly area and the experience of established franchisees.

It is crucial to determine the level of turnover that will allow you to start making money.

To be efficient and reliable, you can rely on the results of other brand franchisees and get help from an accountant. You can then compare your accomplishments with the forecast items and understand the discrepancies.

Franchise Guide

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You will be able to evaluate the expected monthly receipts and payments during the first year of activity and see what money should remain in cash at the end of each month.

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

The business plan will allow you to evaluate the amount of your money to verify that it is positive each month. Otherwise, it is advisable to resort to an additional loan from your bank.

3 year financing plan

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

If not, you should consider getting a new credit.

Traps to avoid

  • Don’t put your thoughts in writing
  • Do not contact network franchisees beforehand
  • Not making a business plan
  • Not assessing your watershed accurately enough
  • Not identifying your strengths and weaknesses
  • Failure to identify the risks of the activity
  • Not knowing the competition
  • Not getting help from an expert

Learn more about the business plan:
Action Plan: Step 1
Action Plan: Step 2
Action Plan: Step 3
Action Plan: Step 4

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