The Franchise Business Plan

Writing a franchise business plan is important for several reasons. The most common reason you begin writing a business plan is to seek financing.  If you want to buy a franchise, you will probably seek SBA business startup financing.  The bank will review the business plan as part of its lending decision review process.

Some franchises will require you write a plan. They want to see how you envision running the business, keeping in mind their business plan format. Completing the plan is also an indicator of how serious you are about buying the franchise.

Validate, Once More, to Yourself That You Want to Proceed

You should create a business plan when buying a franchise to make sure the investment makes sense for you.  You should have a plan to follow or you will waste valuable time reaching the breakeven point.

Any investment you make should always be researched, and thoroughly considered in advance. Creating your own franchise business plan will help you keep focused on reaching profitability faster.   The process of writing a plan also gives you a chance to prove to yourself you could be happy with this kind of business.   Don't just run with a template provided by the franchise. Tailor the small business franchise plan to yourself.  It is YOUR FUTURE!

Your Family Needs to See Your Plan!

Finally, you should share this document with your MOST IMPORTANT  co-investors:  your spouse and family.  You MUST have their support for the venutre to be a success.   Your family must be ready to support the time and money you will invest in the business.  

CPA and Franchise Lawyer Review of Your Plan

Your CPA and franchise attorney will each be able to add perspective to your franchise business plan.  You absolutely want your CPA to review your franchise pro-forma statement.  You want to make sure an independent person, not emotionally invested in the purchase, will support the financial statement in your franchise business plan.