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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Nov. 30

Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2020

Business Startup Guides
Checkout our new sister site!

Free Franchise System 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.

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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
  • Loan Amortization and ROI Tools
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $250,000 for the development of a franchise system restaurant while showcasing the expected financials and operations over the next three years. The Franchise System, Inc. (“the Company”) is a New York based corporation that will develop restaurant franchises that will be located in the greater New York metropolitan area. The Company was founded by John Doe.

1.1 Products and Services

The Franchise System will become a well known franchise system in the greater New York metropolitan area. The restaurants’ 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 business will generate revenues from the sale of franchise licenses, ongoing royalty fees, and income from Company owned restaurant locations. The third section of the business plan will further describe the services offered by the Franchise System.

1.2 The Financing

Mr. Doe 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. The financing will be used for the following: • Development of the Company’s initial Franchise System location. • Financing for the first six months of operation. • Capital to purchase kitchen equipment. • Working capital • Development of Uniform Franchise Offering Circular Mr. John Doe will contribute $50,000 to the venture.

1.3 Mission Statement

Mr. Doe’s mission is to develop a franchise system that yields substantial benefits to its franchisees and partners while remaining within the letter of the law as it relates to the sale of business opportunities to the general public.

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 and potential franchisees within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

The Franchise System, 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 Franchise System, 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 Franchise System’s earnings. Additionally, the business will carry a higher sales premium because of the brand name associated with the business.

3.0 Products and Services

Below is a description of the products offered by the Franchise System.

3.1 Food and Beverage Products

As stated in the executive summary, the Franchise System 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 Franchise System 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.

3.2 Franchise Operations

The Company plans on employing an aggressive growth strategy via the creation of franchised locations and territories. Management feels that by partnering with franchisees, the Company can effectively enter markets without taking a significant financial risk. Management understands that this methodology of growth creates significant risks for its partners, which is why the Company has decided to offer each franchisee a great deal of support and services to ensure the success of each location. The planned offering includes services such as: • General business advice and counseling • Accounting and tax support • Regulator and legal support • A representative assigned to the franchisee to assist in the management of the business

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the franchised restaurant and franchise system 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 moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.

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. The growth of entrepreneurship in the United States has increased significantly over the last five years. Many economists have done studies that have shown that the dawning of the Internet era has caused a resurgence of entrepreneurship in the United States. It is now easier for a startup company to raise capital, filing necessary forms, and advertise than it was five years ago. This can mostly be attributed to the fact that the Internet provides a portal for entrepreneurs and financiers to find each other.

4.3 Customer Profile

The restaurant’s average customer will be a middle to upper middle class man or woman living in the Company’s targeted market. Common traits among clients will include: • Annual household income exceeding $50,000 • Lives or works no more than 10 miles from the Company’s location. • Will spend $25 to $35 per visit to the Franchise System location Among franchisees, Management has outlined the following demographics of people that will become partners with the business: • Annual household income of $100,000 • Will spend $50,000 to $250,000 on the development of their franchise • Lives within New York, Connecticut, or New Jersey

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 Franchise System location.

5.1 Marketing Objectives

  • • Establish strong relationships with franchisees.

  • • Effectively launch a wide scale regional marketing campaign.


5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow the Franchise System to easily target customers and potential franchisees. 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 System will maintain an extensive infrastructure to maintain an aggressive marketing and advertising campaign on a regional level. The methods of these advertisements include print and media advertising in addition to Internet and alternative mediums. The Company will maintain a sizable amount of print and traditional advertising methods within local the local market to promote the Company owned franchise’s food products. At the onset of operations, the Franchise System will distribute an expansive number of coupons for discounts on food/beverage products.

5.3 Pricing

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 Company will have an annual revenue growth rate of 7% per year.

  • • 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.

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 Franchise System will have 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