Write a franchise business plan that secures you funding after reading this article


Writing a business plan as a franchisee for funding can be an intimidating task, this article has done the skeleton work on the important details the investor will be interested in viewing to see the worth of the franchise and a return on investment. Franchise Chamber eases the question mark experience on what is suitable in a franchise business plan to secure funding for your franchise  

What the business plan needs to achieve

The franchisor will have already developed the business, but the franchisee business plan underlines vital information that needs to be considered to build a successful franchise by reaching organisational goals, identify and solving potential problems, even how return on investment is met.  

Giving overview of your franchise business

When applying for funding, an introduction into your franchisor’s products, services and methods of business is key. Lenders or investors need to know what kind of business you are asking them to put a risk in, and how relevant the franchise’s existence is to the public.  A detailed and concise explanation can help the financier see the vision you see as the franchisee of the franchise.  

Share franchise objectives and goals

Have a clear sight of your business milestones, investors will want to know which steps need to be completed before seeing return on investment or simply the franchise becoming stable to operate. Being able to deliver key milestones for the franchise shows thought and understanding of the industry you are operating in, instilling trust which is a good recipe in any kind of relationship.

Breakdown of franchise financials and future projections

The financial condition of the franchise is another investors main concern. Besides assisting in growing the economy. Investors are big on seeing a return on investment and they know from business experience, it’s not only their account which is debiting the franchisee’s business account.  

Important details in the business plan

Executive summary

The importance of an executive summary is that it concisely gives an overview of the current details of the franchise, values, mission and unique selling point of the products and services offered. It prepares the investor on what they will be reading further into the document.  

Business opportunity

This section covers why the franchise’s products and services matter to the public. It pinpoints who you are targeting and how you will reach your target market. Explaining how you believe the franchise is best positioned to capitalize on the market is not an over sell but essential to show its value can meet their return on investment.  

Franchise’s current financials (including current and future loan requirements)

A financial breakdown of the franchise is a mandatory section, it is best you find a skilled accountant to do the section if you are not qualified or knowledgeable. It will be made by the company’s balance sheet, cash flow projections and estimated return on investment. These breakdowns will be justification for the funds requested. Including current loans and/or investors is advisable to show investors the parties already involved with the franchise. Showing the franchise’s detailed financial statements and being truthful about those in contractual agreements concerning finances with the franchise could ease their concern and build trust 

Read more on, “How an accountant is an important pillar” (HYPERLINK ACCOUNTANT ARTICLE) in the business.

Description of how the franchise needs the funds

A guide on how the funds will be utilised, explaining how the franchise will segment the requested amount to achieve objectives of the nosiness. Investors need to see if your plans are feasible, practical and if it’s worth the risk.  Most of them having business experience, it is key to get their co-sign and faith regarding your business’s plans.  

Franchise’s current and future loan repayment plans

Investors are interested in how and when they will get their money back. If you have multiple investors or lenders, this is the section to detail how each account will be handled and the duration of each payment plan until each account has reached it return on investment.   

Franchise’s operations & the team

Money makes the world go round but its people who make the money. Investors don’t only look at the opportunity but the people trying to seize the opportunity.  Familiarising the investors with the team, their skills, business experience and achievements is important when you are still persuading the investor. Proving the business has skilled hands which are equipped for its industry, business expansion and use of the funds builds faith and trust. Investors need to feel secure knowing the crew onboard is the necessary and essential crew for success.   

Building trust and a good business relationship in your business plan should be the main goal, and you do that by drawing up a professional and expert business plan that answers majority of the questions that would arise.  

If you are interested in creating a business plan for funding for your franchise or stand-alone business, visit the Franchise Chamber website to book a consultation with our specialists who offer all they know.

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