Franchise Business Plans: What you need to know

FAQs: December 4, 2019

Learn how to create a franchise business plan

Whatever kind of business you operate, a business plan is an essential document – and that’s every bit as true for a franchise business as well. As the old saying goes, “If you fail to plan, you plan to fail”.

But it’s not enough to simply ‘have’ a plan. You can’t just develop it and then stick it in a drawer and forget about it.

Instead, at Chicken Treat, we believe in creating a strong Franchise Business Plan, and also regularly updating it so that it stays front-of-mind. Only then can it keep you on track for your business success. 

What is a Franchise Business Plan?

If you’re buying a franchise, you’ll need two types of business plans:

  1. A Pre-Loan Approval Plan. Firstly, you’ll need a plan to show any lending institutions you approach about borrowing money to buy the franchise. This plan gives your potential investor the information they’ll need to make a decision based on costs and financial projections. It’s often a standard pre-loan approval business plan.
  2. A Goals & Strategies Business Plan. You’ll need the second type of business plan once you’ve secured funding. This plan outlines your goals for your new franchise business, along with how you plan to achieve them. If you’re a Chicken Treat franchisee, we’ll help you to create this document during your initial ten-week induction training period.

You’ll actually spend much of your ten-week training program focusing on developing your Franchise Business Plan. You’ll start with the financial plan you used to secure funding, and build on it to capture the bigger picture of your franchise business’s strategy. 

We’ll share what’s worked in our other stores with you, and then help you to decide how you’ll align your business to the overall brand.

Why a Franchise Business Plan is so important

Having a business plan is key to running a successful franchise business. For many years we’ve worked alongside our franchisees to create and execute successful business plans. Based on this experience, we’ve identified three big reasons why a Franchise Business Plan is so important. Those reasons are that it helps you to…

Focus your efforts

A focused business plan creates a focused business. With so many things going on in your business at any one time, it’s easy to get distracted by the day-to-day minutiae of running a franchise restaurant. A business plan stops this from happening by keeping you focused on your larger goals.

Weather your storms

Working toward the bigger picture helps you to weather the rough patches in your business. You can use your Franchise Business Plan to track your progress towards your goals and make necessary adjustments to steer your business around bad weather.

Ensure your team is ‘on the same page’

The most successful Chicken Treat franchisees are those who put their ‘plan on a page’ somewhere easily visible in the office, and then share it with their managers. This keeps everyone aligned, and helps to unify the team’s focus. If everyone knows the big picture, they can all work together to achieve it.

How long does it take to create a business plan?

A Franchise Business Plan isn’t something you can write up in a couple of hours. That’s why we make business planning a key focus of your initial ten-week training. And of course, the focus doesn’t just stop when the plan is complete…

Creation

On your first day of training, we’ll spend two hours helping you to start your Franchise Business Plan. We’ll approach it from multiple perspectives – looking at sales, people, local area marketing and community.

Then, every week over your ten-week induction, we’ll keep building on the plan together until the end of your training.

At this point, you should have a robust plan. However, we believe that a business plan is never truly complete. It’s a living document, so you need to keep reviewing and updating it.

Presentation

Part of the planning process involves talking through your big goals. Once you’ve set your goals, you’ll present them to several people: your Business Consultant, the State Manager, the Regional Training Consultant, the Head of People and the CEO.

This presentation means that everyone is aware of what you want to achieve, so they can support you in putting plans into place to get there.

Review

Every year, we update our long-term strategy for Chicken Treat as a brand. We refresh our plans and set new goals for the coming year. When we do this, we encourage you to refresh your own strategies to align with the broader goals of the brand.

Plus, we know that the hardest part of planning often isn’t creating the Franchise Business Plan: it’s going on to actually use the plan as a business tool. But to get the most from your plan, you need to constantly refer to it and update it as your circumstances change.

And of course, we provide you with the support you need to do that. Our Business Consultants and your State Manager can help you to work out how to update your plans in line with the overall brand goals.

Looking for a Franchise Business Plan example?

A Franchise Business Plan shouldn’t be too long or convoluted. Keep it short and aligned to your franchisor’s brand strategy – otherwise, it will seem like too much work to keep updated. An out-of-date business plan is almost as useless as one that never existed.

For example, our simple, effective Chicken Treat Franchise Business Plan template helps you to zero in on the elements your plan really needs. 

It has pages that cover:

– Core initiatives. Here, you record the actions you’ll focus on for your first year.

– SWOT analysis. These pages help you to conduct a Strengths, Weaknesses, Opportunities and Threats analysis of both yourself personally, and your business. 

– Franchisor Strategy. This should be a one-page summary, provided by your Franchisor, that details the overall brand’s strategy for the period ahead. Your Business Plan needs to align to the key points, so it’s important to include it. 

– Plan on a page. This is a one-page executive summary of what you hope to achieve in your first 12 months as a Chicken Treat franchisee. It includes your vision, goals and any initiatives you want to implement under each of five strategic pillars of the business.

– Steps to reach strategic objectives. This page breaks down your goals into measurable actions and steps.

– Location analysis. This helps you look closely at the neighbourhood around your franchise store to paint a picture of your target audience and competitors.

– Local Area Marketing Plans. Here you can detail how you’ll leverage what you find in your location analysis to plan local area marketing initiatives. 

– P&L snapshot. This is where you record a Profit and Loss snapshot for your first financial year.

– Financials. Here’s where you keep track of your financial goals and actuals for the financial year to make sure you’re on the right path.

Want to know more?

Our Chicken Treat Franchise Business Plan document helps you to keep your business on track.  We do all we can to make your business a success, and we’d love to have you join the team. 

Want to know more about becoming a Chicken Treat franchisee? 

Get in touch today. 

Leisha Fontana 

Franchising Manager

leisha.fontana@craveablebrands.com.au 

0408 927 750