A franchise business plan defines the expectations of a new business, at the same time helps in anticipating various challenges that you might face. Thus, developing a franchise business plan is the most crucial exercise especially if you are going to be a franchisor in Middle East countries like Dubai and Saudi Arabia.

Writing a franchise business plan becomes important if you want financing from any third-party source as this would be the first document they would ask you for. The creation of a business plan is quite easier in a franchise business in comparison to an independent business.
This is because the franchisor already has a lot of data such as financial information that can be included in the business plan.

What Is a Franchise Business Plan

If you are about to set up a new business, a business plan is a key document and if in case you are writing a business plan for expansion of an already existing business, say a franchise, then it is referred to as a franchise business plan where few additions are supposed to be implemented.

A business plan is so very important as it will help you set out future objectives regarding the business and also certain strategies on how to achieve the goals. When talking about a franchise business plan, it must be a reflection of both parties as no one size fits all.

A franchise business plan serves as a roadmap for structuring the business.
More importantly, the franchise business plan has to be brief yet factual, hence it makes sense if it is written straightforwardly unless you want to confuse the reader. If a certain business involves technical information, then including it in the business plan should not increase the complexity.

What Is Included in a Franchise Business Plan

A franchise business plan will assist you in achieving your business goals and objectives. It will help you stay focussed on the strategies that may help in better execution of decisions to reach the milestone quickly.

A franchise business plan would also make a clear judgement on the profit-sharing ratio between the franchisee and the franchisor. Thus, writing a franchise business plan is the key to a successful outcome.

Here’s how to create a franchise business plan to define the overall business strategy:

Business Model Feasibility Analysis
Business model feasibility analysis will help you know if your franchise business will grow and be profitable. People tend to underestimate the importance of this analysis and do not spend enough time researching the feasibility of the venture.

This is so not right as sometimes after researching feasibility, you might find that it was a poorly thought-out franchise with a huge risk.
Revenue Statement
Let’s assume you are dedicated to starting a new franchise business, and you are creating a franchise business plan. A crucial part of this plan would be the revenue statement that should be looked at very carefully to keep a tab on the budget, costing, profit and loss, funds and total expenses.

Capital Investment
Capital investment deals with having enough cash or assets to fund any business-related operations. The financial institution, bank or investors are the sources of capital investment.

Capital investment is a significant parameter to be included in a business plan.

Sweat Equity Analysis
The value of hard work or effort you might put into your business shall be outlined by the sweat equity analysis. For calculating the amount of sweat equity, you can divide the amount of the investor's investment by the percentage of equity it describes.

Cashflow & Break-even Analysis
It is crucial to do the break-even analysis to understand the viability of your franchise business. You can check if your overhead is fine or needs to be reduced by doing the cash flow and break-even analysis.

Franchisor Revenue Projections
A conventional franchisor revenue projection would include income statements, cash-flow statements along with supporting assumptions. The franchisor usually provides the revenue projections as a part of their franchise disclosure document.

Franchisee Revenue Projections
Making revenue projections at the start of your franchise journey should ideally help you know the profit that you might earn in two to three years. In case you are not satisfied with the projections, walking away and opting for another franchise with better statistics can be the right choice.

ROI Projections
Return on investment (ROI) projections is another metric commonly used to know the likelihood of getting a return from an investment. ROI does the comparison between the profit and loss from an investment relative to its cost.

Financial Planning (for Franchisor & Franchisee)
Having financial plans for both franchisor and franchisee proves to be very beneficial and healthy for the franchise business as it helps in increasing the overall bottom-line profit. A worthy business plan for franchise store can improve the future outcome or results.

Why YRC to write franchise business plan

Do you need a business plan for a franchise? Your Retail Coach is a retail consulting company providing its clients with a multitude of services related to business plans. We have proven industry expertise in writing a franchise business plan.

At Your Retail Coach (YRC), we understand that every business has different needs. Thus, we are here to guide you in your journey by following a focused approach to develop a customized franchise business plan.
Our team of professionals will have a discussion with you to learn about your exact business needs and requirements before creating a business plan. To say it all, the business plan writing services at YRC has been substantiated keeping your business needs in mind.

Any edits or changes required in plans are also made in the business plan if necessary to ensure optimalbusiness plan development . You can get in touch with YRC to unlock new growth opportunities and the true potential of your business.

Source from: https://www.whatech.com/bpm/blog/697469-how-to-write-a-franchise-bu...