Franchise Disclosure Document (FDD) document that describes the essential components of the firm such as the financial information, territory, training and competition is needed when starting a franchise business. The second most important thing that you need is a franchise business plan to guide you on how to run the business.
Needless to say, if the business plan is not well written, you will end up making misinformed decisions that will spell doom for your business. Therefore, the plan of activities for the franchise should only be drafted by someone or a team of experts who have the required skills and clear understanding of the importance of the document.
OGS Capital has been offering franchise model business plan services for ten years now. Commitment, a thorough knowledge of the industry and professionalism are some of the core pillars that have kept us going even when we felt like giving up.
Important Details to Include in a Franchise Restaurant Business Plan
Some details must be included in franchise business plans to be considered by the funding panel. Here is a list of the five details that you need to make sure are included in the business plan.
- Level of support that the franchisor will provide
- How the funds will be spent
- Total fees that the franchisor will charge you
- Products and services
- Pricing of the goods and services
This information has to be factual and well-articulated in the business plan for a franchise no matter the kind of business that the new franchise will be involved in future.
Let us go an extra mile and discuss each of the five details that we highlighted above to help you get a clear understanding of what is at stake.
Level of Support
The success of the business is dependent on the support that the franchisor will provide. For instance, the franchisor might decide that you offer employees to help lay the foundation for the operations that you will be conducting for a given period. It is paramount that you engage the franchisor to get a clear understanding of the support that you will receive once you sign the agreement document. More importantly, make sure that everything is put in writing so that in the case of anything, you can use the same documents as evidence in a court of law.
Products and Services
As a new entry into the market, you may be limited to the number of the goods and services that you sell or distribute. Nonetheless, it is important to have a clear understanding of the specific products that you will be selling to customers. Some companies only allow franchisees to sell particular goods or offer a special service. If that is the case, make sure that the information is provided to help steer the whole business in the right direction.
Pricing of the Products and Services
Price is one of the primary factors customers consider when making a purchase decision. Therefore, it is important that you have a pricing system that favors you to achieve your sales profits. However, the pricing plan should also be based on the customers’ expectations and current market prices. Information on how the products and services will be priced should be included in the business plan franchise document.
The franchisee and franchisor need to agree on the pricing system to avert any disagreements down the road. For instance, you need to discuss how often the prices will be adjusted as well as the various factors that would result in price changes. Note that prices may vary from one country to another due to difference in economic scales.
Expenditure and Franchisor Fees
If you intend to get funding from an investor or a bank, it is important that you provide precise details of how you will be spending the money. This kind of information should be included in the business plan for franchise financial model. You also need to go an extra mile and include the franchisor fees that you will need to pay after a given period.
For a franchising business plan that will not disappoint you, get in touch with our team by filling the form. We will use our hands-on experience and expertise to make sure that your business plan is as detailed as possible and capable of taking you to the next level of success.
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OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.