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Nick,
Is there a difference between a regular business plan
and a franchise business plan? My business partner and
I were thinking about starting a franchise, and most sample
business plans we find are for start-from-scratch businesses.
Thanks!
Catherine
Hello Catherine,
A basic business plan used for both
planning and financing purposes would be similar in "elements"
for independent or franchised start-ups. However, there
may be information available for franchised start-ups
that cannot be generated for independent plans. For example,
the franchisor may have been processed and accepted on
the SBA's franchise Registry. This would be a major plus
when applying for financing with an SBA approved lender.
In addition, if the franchisor has successful units already
in operation, you will most likely receive greater consideration
in financing circles and you will definitely have access
to business plan "input" from the franchisor that you
would otherwise have to generate yourself as an independent.
Good luck,
Nick
Nick,
Hello, I was wondering if you buy a franchise, or
even an existing business, about the details of the business
plan. Does the company that offers the franchise
help in developing the plan so you can obtain a loan?
Every time I read an article or anything about franchising,
I never see any info on this topic. Thanks
Al
Al,
You hear little about the subject because it is rare that
franchisors offer such programs. In fact, there
are only a handful of programs aimed at assisting in this
area and they are not through franchisors. The production
of business plans is a delicate subject for franchisors
because they are conditioned to "not" talk about earnings
claims if those claims are not published in their offering
circular. However, (and this is something that many franchisors
themselves do not know) franchisors are able to talk about
all manner of income and sales issues once you become
a franchisee. Seek a franchisor who understands the law
regarding disclosure, one who has a success record, or
if not, at least knows how to help you in this critical
phase. Also, check out BibbyRosenfeld.com ,
which has established just this type of sorely needed
assistance.
Nick
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