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. Most of the sample business plans we find are for start-up businesses.
Developing a franchise business plan
A franchise business plan does not necessarily differ from any other business plan, but in theory, the franchise business plan should be easier to develop. If there are numerous franchisees in the system you have the possibility of gathering needed information from those sources. An independent start-up requires more investigation as you are on your own, and always remember, any business plan requires you to take some pretty hefty guesses regarding future, including a franchise.
Any business plan requires thought and effort, but in the case of a franchise business plan, not only should your homework be available from, or at least checked against other franchisees, the main purpose from a practical standpoint is to gain financing. If the franchise you are considering is posted on the Small Business Administration’s Franchise Registry this is a major plus for lenders… if money is available to you at all.
Franchisors and the franchise business plan
If you are fortunate enough to have chosen a franchise that publishes an Item 19 or FPR, which is a financial performance representation, you are even better off. While a minority of franchisors publish financial performance statistics, even much of that information is rather limited in building a substantial, meaningful business plan. By the way, the Bibby Group generally would not recommend purchasing a franchise without an FPR. Just something to keep in mind. Our comprehensive franchise articles provide a wealth of information on entrepreneurship to get you started.
And last, understand that any business plan is only a navigation tool good at the start of the journey. Its like an athletic competition. One can train and practice and strategize right up to game time. Then things can happen that were never expected and to win, you make adjustments. Business and franchising are no different.