1851

The <a href="https://www.franchisedirect.com/information/informationforfranchisees/creatingabusinessplanforyourfranchise/9/1455/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-do-you-build-a-franchise-business-plan-2717037" target="_blank" rel="nofollow">franchise business plan</a> doesn’t have to be scary or pages long; the primary goal is to be thorough and cover all aspects of the business so the potential lender can understand the complete picture and be at ease with the business’s ability to turn a profit.&nbsp;The franchisee will need a key piece of information to begin compiling their business plan: the franchise disclosure document (FDD). This is provided by the franchisor and contains all the information needed to write the business plan.&nbsp;&nbsp;<h4>Company Description</h4>This is where a franchisee provides an overview of the business and its history. Typically, the information needed to write this section of the business plan is found on Item 1 of the FDD.&nbsp;<h4>Service/Product Description</h4>The service or product the franchise will provide to customers needs to be described in detail. This information is also usually available on Item 1 of the FDD. On Item 16, the franchisee can find what they can and cannot sell as a part of the franchise system they are in.&nbsp;<h4>Market Analysis</h4>The franchisee needs to prove to the lender that they are in a solid business venture that will make a profit in a reasonable amount of time. The key to doing this is to concentrate on the specific market the franchise business is in. For some additional direction, the franchisee should utilize the territory description in Item 12 of the FDD.&nbsp;<h4>Management Structure</h4>This part of the plan covers who will be responsible for the “day-to-day” at this franchise location. There will need to be specification as to whether the business is a sole proprietorship or if it will have multiple owners. For help with this section, Item 15 of the FDD explains the managerial obligations of the franchise owner.&nbsp;<h4>Marketing Plan</h4>How will this business be successful in reaching the right people? This is what the marketing plan details. FDD Item 11 helps address this section, as it provides an overview of the franchisor’s advertising and marketing efforts and a description of the training the franchisee will complete before opening.&nbsp;<h4>Financials</h4>This section is where a franchisee gives the “big picture” of their financial situation, asks for any money needed and gives a financial projection for the business to estimate a reasonable timeframe for the lender to expect full repayment of the loan.&nbsp; For assistance with this section of the business plan, defer to Items 5 and 19 of the FDD.&nbsp;Related articles:<ul><li><a href="https://1851franchise.com/fitforyoufranchising/built-to-grow-how-fit-for-you-franchising-gives-first-time-entrepreneurs-the-chance-to-achieve-their-aspirations-through-scalable-business-planning-2716061#featured">Built to Grow: How Fit For You Franchising Gives First Time Entrepreneurs the Chance to Achieve Their Aspirations Through Scalable Business Planning</a></li><li><a href="https://1851franchise.com/smbfranchising/forbescom-smb-franchise-advisors-shares-why-now-is-the-time-to-invest-in-yourself-as-a-franchisee-2716878#brand-latest-stories">??Forbes.com: SMB Franchise Advisors Shares Why Now Is the Time To Invest in Yourself as a Franchisee</a></li><li><a href="https://1851franchise.com/smbfranchising/why-the-pet-care-franchise-industry-is-on-the-rise-2713219#stories">Forbes: So, You Bought a Franchise. What Happens Next?</a></li></ul>

How Do You Build a Franchise Business Plan? 

1851 Franchise

By analyzing the FDD provided by the franchisor, a franchisee will be able to cover all aspects of their business plan: company description, service/product description, market analysis, management structure, marketing plan and financials. 

how-do-you-build-a-franchise-business-plan

Lawn Doctor

Design with photo of John Perry and Lawn Doctor logo

How a 20-Year Industry Veteran Tripled His Sales With a Lawn Doctor Franchise

lawn-doctor-franchise-success-story-john-perry

Fitness Premier

The Secret to Fitness Franchise Success? It's Not Just the Workouts

fitness-premier-franchise-marketing-support

Fresh Coat

Photo of Fresh Coat vehicle with ladders on top

The Rise of Home Improvement Franchises: Why Now Is the Time to Invest

why-invest-home-improvement-franchise-fresh-coat

HomeTeam Inspection Service

Photo of HomeTeam inspector in red polo and khaki pants, walking by branded vehicle

Real Estate Today: Behind the Drywall: The Truth About Home Inspections

purpose-of-home-inspection

Dog Training Elite

Dog Training Elite Franchise - DTE - National Service Dog Month - 1851 Franchise

Celebrating Service Dogs: Why Proper Training Changes Lives — And How Dog Training Elite Is Leading the Way

dog-training-elite-national-service-dog-month

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Friendly’s Parent Company Acquired by Multi-Unit Franchisee as More Owners Take the Lead in Brand Acquisitions 

friendlys-parent-company-acquired-by-multi-unit-franchisee-as-more-owners-take-the-lead-in-brand-acquisitions

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

How Do You Build a Franchise Business Plan?

MORE STORIES LIKE THIS