A life changing decision such as franchising your business cannot and should not be taken without a clear blue print in place. This blue print is what we refer to as a franchise business plan. This plan will guide you from time to time and clarify any doubts that you could have at any given point of time. With the entire franchise process involving a substantial amount of planning and paperwork, it would only be natural for everyone involved to face some amount of confusion as they go along. Hence, the need for this franchise business plan.
The franchise business plan is a core document that is created to understand what you want to do, how you will do it, how long it will take and how much money will be needed and how will the payback happen. It is a strategy document which will elaborate your entire journey into franchising and will be a forecast of how the entire business will pan out.
A franchise business plan is also of great use when it comes to dealing with investors. Banks and other private investors study this plan in detail and determine your net worth.
For a franchisee who is interested in your business, this business plan is required to understand what your profile is, what types of franchisees would be suitable, what is your net worth, and how much you could afford and what is the risk you could take. However, the main point to be noted here is that this plan is primarily created as a blue print for your internal use. It is to be shared with franchisees only in cases where both parties deem necessary.