Free Franchised Restaurant Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $250,000 for the development of a café while showcasing the expected financials and operations over the next three years. The Franchised Restaurant, Inc. (“the Company”) is a New York based corporation that will acquire a restaurant franchise that will be located in the greater New York metropolitan area. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The Franchised Restaurant is a widely recognized brand name restaurant in the United States. The primary fare of the restaurant consists of steak dishes, although the business also carries an extensive line of seafood, chicken, rubs, burgers, sandwiches, and similar American cuisine. The restaurant also features an expansive salad bar. The third section of the business plan will further describe the services offered by the Franchised Restaurant.
1.2 The Financing
Mr. Die is seeking to raise $250,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Mr. Doe’s mission is to develop his franchise to the exacting standards set forth by the franchiser agreement.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the food service industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market. Mr. Doe may also seek to increase the number of franchises he owns after the fifth year of operations.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
The Franchised Restaurant, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Mr. Doe requires $250,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Franchised Restaurant, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Company. Based on historical sales figures, the business may be able to sell for 7 to 10 times the previous year’s earnings based on the strength and regularity of the Franchised Restaurant’s earnings. Additionally, the business will carry a higher sales premium because of the household name associated with the business.
3.0 Products and Services
Below is a description of the products offered by the Franchised Restaurant.
As stated in the executive summary, the Franchised Restaurant is a famous franchised restaurant that offers a diverse line of steaks, chops, seafood, chicken, ribs, burgers, and salads. The restaurant also offers an expansive salad bar. The Company will ensure that Mr. Doe’s location meets the exacting standards set forth in the franchise agreement. Pricing for the Company’s menu can be found in the fifth section of the business plan.
The Franchised Restaurant also offers its patrons an expansive line of beverages including bottled water, fountain sodas, and beer/wine. The Company will ensure the proper procedures for serving alcohol at the establishment. The business intends to also serve a limited selection of alcohol, which will include wine and beer. Currently, Mr. Doe is acquiring the necessary licensure to allow the business to sell alcoholic products at the restaurant’s location. At all times the business will comply with all state and municipal laws regarding the sale of alcohol.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the franchsied restaurant industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
There over 600,000 restaurants and eateries in the United States. Gross annual receipts total more than $172 billion dollars per year. It is one of the country’s largest grossing industries. The industry also employs over ten million people, and generates an average annual payroll of more than $34 billion dollars per year. The franchise industry has changed significantly over the last ten years. The industry has shifted towards franchisors becoming the total providers of services and financing for their franchisees. Many franchisors now offer complete financing options for their prospective franchisees as well as consulting services. Most parent companies of franchised organizations receive approximately eight percent (less for lower margin businesses) of all gross receipts. Additionally, franchisors usually have a large scope of authority when dealing with their respective franchisees. For instance, in addition to receiving a percentage of total gross receipts, the Company may also charge consulting fees to the franchisees. Parent companies may also have franchisees purchase units of goods for sale directly from the business. In other instances, the Company may act as a creditor to the franchisee by providing loans and lines of credit to its members.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Mr. Doe intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its location. Below is an overview of the marketing strategies and objectives that Mr. Doe will use once he launches his Franchised Restaurant location.
5.1 Marketing Objectives
• Develop marketing and advertising campaigns that will effectively compliment the marketing strategies of the franchisor.
• Effectively capitalize on the national level marketing campaigns implemented by the franchising company.
• Establish a strong relationship with the franchising company.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Franchised Restaurant to easily target men and women within its location. These strategies include traditional print advertisements and discounts offered as a part of a grand opening campaign. Below is a description of how the business intends to market its services to the general public. The Franchising Company maintains an extensive infrastructure to maintain an aggressive marketing and advertising campaign on a national level. The methods of these advertisements include print and media advertising in addition to Internet and alternative mediums. The franchise has been extremely successful in maintaining its customer base on a nationwide basis. Mr. Doe’s location will also benefit from the very high visibility location for his Franchised Restaurant. The Company will maintain a sizable amount of print and traditional advertising methods within local the local market to promote the franchise’s food products. At the onset of operations, the Franchised Restaurant will distribute an expansive number of coupons for discounts on food/beverage products.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Owner will acquire $250,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
• The Company will have an annual revenue growth rate of 7% per year.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. In the current economic climate, the business may have some issues with top line income generation as the housing market situation, the credit crunch, and oil prices have caused discretionary income purchases (like eating a restaurant) to decline. However, the Franchised Restaurant has a high visibility brand name, and the franchise is known for its affordable American style cuisine.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis