CHAPTER 6:

FRANCHISE PLAN
Learning Outcomes:
 Plan the franchise business accordingly; and
 Learn the format of the Franchise Plan
What is the difference
between a traditional
business plan and a
franchise plan? The difference is a
franchise plan
incorporates of both
the franchisee and the
franchisor of which a
traditional business
does nt.
 The Importance of Franchise Plan

Franchisor will encourage prospective franchisee to prepare franchise

plan because:
It is formally recruiting them into the franchise business
system;

by engaging them in preparing the franchise plan, the

prospective franchisee is able to foresee the situation
which is useful for them in making decision either to buy
a franchise or not

It also determines either the prospective franchisee has

the strength either physically or mentally in undertaking
the next venture,

It will also be necessary for financial assistance if needed

by the prospective franchisee
 Format of Franchise Business Plan
INTRODUCTION BACKGROUND OF FRANCHISOR/OWNER
 Name of the company
 Personal particulars of owner
 Nature of business
 Industry profile  Partnership agreement
 Location of business BACKGROUND OF FRANCHISE OUTLET
 Factors in selecting the proposed venture
BACKGROUND OF COMPANY  Physical location
 Name of the company  Price of premise
 Address (business and correspondence)
 Telephone number/fax number/ email address  Availability of manpower
 Form of business  Transportation facilities
 Main business activities
 Distance from customers
 Date of commencement
 Date of registration and registration number  Basic amenities
 Format of Franchise Business Plan
ORGANIZATION/MANAGEMENT/ OPERATIONAL PLAN/ PRODUCTION STRATEGY
ADMINISTRATION PLAN  Operational/innovation process
 Organization’s mission, vision and objective  Process flow chart
 Organizational chart/structure  Production schedule/Capacity planning-output in units
 Human resources planning  Material requirement
 List of office equipment’s’ and supplies  Machine and equipment requirement
 Administrative budget
 Operation layout plan
MARKETING PLAN/ANALYSIS
 Location of operations
 Description of products or services
 Target market  Operational overheads
 Market size  Operational budget
 Competitors FINANCIAL PLAN/STRATEGY/ANALYSIS
 Market share  Pro forma cash flow statements
 Sales forecast  Pro forma profits and loss accounts/income statements
 Marketing strategy  Pro forma balance sheet
References:
 https://www.franchisedirect.com/information/informationforfranchisees/creatingabusinessplanf
oryourfranchise/9/1455/