After you line up financing, find a suitable location, hire staff and organize a potentially successful business plan, you must turn to external factors to effectively predict your future. There are a slew of factors to take into consideration that usually are beyond your control. While you may have contingency plans in place to deal with outside influences that affect your business, sometimes the best you can do is improvise when they occur. Economy The global economy is one of the biggest external factors that will, at some time, affect your business.
Lagorio Senior writer, Inc. Lagorio When Harland Sanders sold his first Kentucky Fried Chicken franchise inthe document he prepared for the first batch of franchisees was a mere two pages in length. Things have changed a lot in the intervening years. Today, the extremely rigid Franchise Disclosure Document, which is proffered by a franchiser before any agreement is pursued, must contain a preordained list of 23 items.
Most franchise agreements run 75 pages or longer. Compared with these highly-formatted documents, a franchise business plan tends to be much shorter and focus on the dream. It is prepared by the franchisee as an introduction to and overview of a business opportunity and can therefore be more flexible, says Gary Castrogiovanni, a professor at Florida Atlantic University's Adams Chronicle live business plans for Entrepreneurship.
Much like any traditional start-up business plan, a franchise plan should provide a company's vision, a financial analysis, and a marketing plan. The main difference is that it must address in detail the economics of both the franchiser and the franchisees - and show how the parent and its affiliates will be able to make money together.
Here's how to read a franchise business plan with a trained eye.
The Basics As with any business plan, you should expect to see several sections laid out in a franchise plan, including most vitally an introduction or abstracta management overview, a marketing strategy, detailed financial projections, and the financial requirements for investing in a purchasing a franchise.
Although it's easy to breeze through the first three sections, which lack financial projections or detail about your involvement as an investor, they can yield crucial information and you should spend time reviewing them. First, you will want to see if any material on the franchisor's website differs from the material in the business plan.
You also want to make sure many elements of the franchise's strategy match your company's culture and style.
Keep an eye out for the business plan's description not only of the service and products involved, but the size and competitive nature of the business - and the challenges and risks involved.
The business plan should be frank, thorough, and in tune with any additional research you've done on the market. Next, you'll typically come to a description of the management roles in the franchise, including information on the people who fill those roles in biographical form.
Again, you might want to do additional research - even just spend a few minutes on Google - to learn more about and verify the backgrounds of everyone involved.
|Focus on One Area||Girdles and socket wrenches: Sears filed for Chapter 11 bankruptcy protection Monday, buckling under its massive debt load and staggering losses.|
|Cameroon stripped of 2019 Africa Cup of Nations||Violent teen video shocker The group has been an anchor presence on the Quayside, transforming the fortunes of its premises and encouraging other investors and operators to follow suit and to have confidence in the area.|
|Clinical problem solving||THE business case for the Fraser Coast Sport Precinct has survived the council meeting, but the plan may not be formally adopted until a later date. Today's motion only recommends the council receive the business plan and note its contents, rather than adopting or rejecting it.|
|LATEST SHOWS||Financial plan for a new business By November 26, Financial plan for a new business 5 stars based on 40 reviews isocis.|
Where you would normally find industry analysis in a business plan, most franchise business plans typically include a franchise overview, along with a description of the market the franchise would be entering - and its competition. These should be thorough, and lead seamlessly into a marketing plan.
The plan should specify how territories will be carved up, and how many locations per territory a franchisee will be allowed or expected to open. Finally, a franchisor should convey a sense of culture and personality in his or her business plan. Look for a franchisor to display confidence and ambition as well as a sense of loyalty to the prospective franchisees in the proposal.6 days ago · Chronicle Live - PM GMT November 23, Aldi and drive-thru KFC among plans lodged for new Northumberland retail park Chronicle Live - PM GMT November 22, PWG Connections to triple turnover after moving to Northumberland business park.
Itacate jumps on national trends, plans to open fast-casual Mexican restaurant in Chili. Itacate has a full-service restaurant in Penfield, as well as take-out places in Henrietta and Gates.
Local news, prep sports, Chicago sports, local and regional entertainment, business, home and lifestyle, food, classified and more! The Chronicle will update this story when more information is available. +22 Emergency crews fight a blaze Friday night at the Glass Guy business on North Street in Chehalis.
Kathleen Pender writes the Net Worth column in The San Francisco Chronicle. She explains how the big business and economic news of the day affect a household's net worth. Teesside Live, the latest North East, Middlesbrough and Teesside news, sport, business, what's on, weather and travel from the Evening Teesside.