Franchise Business Plan

Owning a franchise sounds great—until you realize how much planning goes into it. That’s exactly what Joel Libava faced. He found the perfect franchise but had no clue where to start.

When I talked to him, he shared how he went from feeling stuck to running his own business.

He also talked about his mistakes and how a simple business plan helped him figure things out.

This guide isn’t just theory—it’s real lessons from someone who’s been there.

If you’re serious about starting a franchise, explore this business plan template to start the right way.

The importance of a franchise business plan

Yeah, you’re buying an established brand, but that doesn’t mean success is automatic. You still need a plan to make it work.

Here’s why it matters:

• Keeps you from guessing – Instead of figuring things out as you go, you’ll have a clear plan to follow.
• Helps you secure funding – Lenders and investors need a clear business plan to decide if your franchise is worth financing.
• Makes running the business easier – From hiring to marketing strategies, you won’t have to make rushed business decisions.
• Helps you grow – You’re not just opening a franchise—you want it to do well and maybe even expand.

Bottom line? A franchise business plan keeps your business organized and on track. Without it, you’re just hoping for the best.

How to write a business plan for your franchise?

Here’s a step-by-step guide to writing a compelling business plan for your franchise:

1. Executive summary

An executive summary is a quick intro to your entire franchise business plan—a short, clear version that sums up the big picture.

This is the first thing investors and stakeholders will read, so it should grab their attention, highlight what makes your franchise special, and give them a reason to keep reading.

Your executive summary should cover the most important details of your plan, including:

• Franchise concept – What your business is, what it offers, and why it’s unique.
• Market opportunity – The demand for your franchise and who your target customers are.
• Company’s business model – How the business operates and what franchisees can expect.
• Financial highlights – Projected revenue, costs, and profitability.
• Investment details – Startup costs and expected returns for franchisees.
• Your experience – Why you're the right person (or team) to lead this franchise.

The primary goal of this section is to quickly show your franchise’s opportunity, financial potential, and vision.

2. Business description

Your business description is where you tell the story behind your franchise, explain its purpose, and show why it has the potential to succeed.

Instead of just listing what you offer, explain the bigger picture:

• What does your franchise do? (Franchise Industry, services, and overall concept)
• What problem does it solve? (How does it meet buyers' needs or fill a gap in the market?)
• Why does it matter? (Why should people care? What makes it different?)
• What are your business goals? (What do you aim to achieve through your products or services?)

Use this section to highlight your strengths and make your case. Because investors and potential franchisees want to know why your franchise is a great opportunity.

3. Market analysis

Think of your market analysis as proof that your franchise business has real demand and potential. It shows that you understand the industry, your buyers, and your competition.

Here’s what to include in this section:

• Industry overview: Market size, growth trends, and financial projections.
• Target customers: Who they are, where they are, and their buying habits.
• Market gaps & solutions: What problems exist, how your franchise solves them, and why your approach is better.
• Competitive analysis: Who your competitors are and how you stand out.
• Emerging trends: Consumer behavior shifts, new franchise opportunities, and technological advancements.

While planning this section, try to use graphs, stats, and bold numbers to highlight key points. Keep your content clear, concise, and relevant—stick to facts and avoid unnecessary details.

4. Sales and marketing strategies

This part of your business plan explains how you'll attract customers and generate sales.

It’s like a bridge between you and your new customers. Even if you have the best product or service out there, it won’t sell if people don’t know about it or don’t see why they need it.

This section tells investors and partners that you’ve got a solid plan to find your audience, grab their attention, and turn them into paying customers.

Here’s what goes into a marketing and sales plan:

At the end of the day, a strong marketing and sales strategy means you’re not just hoping people will find you—you’re making sure they do.

5. Products and services

Your products and services section clearly explains what your franchise business provides and why it matters.

This isn’t just a list—it’s your chance to show how your offerings meet buyers' needs and set your franchise apart.

Here are a few key questions to answer while drafting this section:

• What exact products or services do you provide?
• Who is your target customer?
• Where can customers buy these products or services?
• When would customers need or use them?
• How do customers access or use your offerings?
• What specific value or benefits do you provide to customers?

Additionally, focus on competitive advantage over features, showing why your offerings matter. Use real-world scenarios to make them relatable and emphasize what makes your franchise unique compared to competitors.

6. Management team and organization structure

This section of your business plan is more than just a list of names and titles—it’s proof that you have the right people to make a profitable business.

Here’s what you need to cover:

• What’s your business structure?
• How many people are on your team?
• What roles do they play?
• Who’s in charge of what?
• How will your team work together to grow the business?
• What experience does each person bring?

To make things clearer, here’s a simple organization chart you can use to lay out your team structure.

Showing investors a strong, capable team builds confidence and reduces concerns about risk.

7. Operations plan

While other sections talk about what you want to do, this one explains exactly how you’ll do it.

The day-to-day operations must align with the standards set by the franchisor in the franchise agreement. This includes supplier relationships, marketing guidelines, and quality control measures.

Each franchisee is required to follow the operational guidelines set by the franchisor, which are detailed in the franchise disclosure document (FDD).

Here’s what to cover in this section:

• Where will you operate? (Office, factory, online convenience store, etc.)
• What tools, systems, or technologies will you use?
• What are your staffing requirements? (Hiring needs, qualifications, training)
• Who are your suppliers, manufacturers, or distributors? And why did you choose them?
• How will you control costs and manage resources efficiently?

By answering these questions clearly, you’ll give stakeholders the reassurance they need—showing them that your business isn’t just an idea, but a well-planned business operation with a real chance of success.

8. Financial plan

Let’s talk about money—because that’s what keeps your business running.

Investors, lenders, and even franchisors want to see that your business can make a profit.

So, here are 3 main financial reports you must include in your franchise financial plan:

• Income statement
• Cash flow statement
• Balance sheet
• Break-even analysis

In addition, enclose the budget for legal fees to review the franchise agreement. Also, mention this expense to show investors you've prepared to understand franchise fees, ongoing costs, and your obligations.

9. Funding requirements

If you need funds to start your franchise, this is where you explain how much you need and what you’ll do with it.

Investors and lenders may request the franchise disclosure document (FDD) to assess the franchisor’s financial history and determine the risk involved before approving funding.

Here’s what you need to include:

• Total amount needed – How many funds you’re looking for?
• Where it’s coming from – Are you using savings? Getting a loan? Bringing in investors? Maybe the franchisor is offering financing?
• How you’ll spend it – A breakdown of costs like equipment, marketing, rent, and working capital.
• How you’ll pay it back – If it’s a loan, what’s the repayment plan? If it’s an investor, what’s their cut?

You can also include a chart illustrating how the funds raised from investors will be allocated across different expenses, as shown below.

Be clear and realistic. If you ask for too much, lenders might think you don’t know what you’re doing. If you ask for too little, you could run out of money before your franchise even takes off.

Download a free sample franchise business plan

Now, are you ready to build your detailed business plan? But need a little help to get started? You’re in the right place. Here, you can download our free franchise business plan template in PDF to kickstart your journey.

This well-structured template has already helped countless franchise owners and entrepreneurs, and I hope it does the same for you. With real-life examples and key insights, you can easily create a plan that covers everything you need to succeed.

Summary

After going through this guide, you now have a solid understanding of how to create a business plan and tackle potential challenges.

But if you're feeling unsure or need expert help, our business plan consultants are here to assist you. Whether you need a full plan, a review, or professional advice, our team is ready to help.

Don’t wait—reach out to us today and get started on building your franchise!