Whether you are considering expansion of your business by franchising, have started to franchise your business or are an established franchisor, producing a Franchise Development Business Plan is essential.
When you want to replicate your business as a franchise, you will need to start with at least an outline Franchise Development Business Plan. This will support your ideas for franchising and provide a clear idea of the infrastructure requirements that you will need to have in place before you invite them on board as new franchisees. Franchisors that do create a Franchise Development Business Plan find that it helps them more than anything else to crystallize their thinking, so that they know exactly what they need to do on a week-by-week, month-by-month basis. The first analysis that needs to be performed in producing the plan relates to discussing the best way to franchise your business. We find that all businesses have two, or even three, different ways in which they can be franchised. When analyzing why franchisors fail, it is often not because their particular product or service was not in demand, but simply because that they chose the wrong method to offer the franchise to the market. Once you have settled on the format of your franchise business, it should be possible to map out the franchise development growth strategy and engage a team of professional advisors to ensure that you keep heading in the right direction. Creating a franchise offer is entirely different to a normal trading activity in relation to your original business. You may also need to consider setting up a separate company to mastermind your franchise development, rather than place the responsibilities of developing a franchise within your existing company. Time also needs to be taken to look closely at the financials and project the revenue streams for you as a franchisor, as well as for your franchisees. It should detail a worthwhile reward for you in return for all of your activities as well as providing your franchisee.