As discussed in a previous best practice, we regard Franchisee Business Planning as a critical franchise system management process. We believe comprehensive franchisee business planning to be an important driver of both franchisee and, as a by-product, franchisor performance.
Within this we regard a Franchisee Business Planning Template that is bespoke to the business as an important best practice.
To be effective, the business planning template needs to be relevant to the business. It needs to address many areas; not least, key situation and background factors, objectives for the business, functional plans (including people and marketing), financial budgets, and action plans.
A universal Franchisee Business Planning Template (when compared to franchisees adopting their own format) then provides many advantages. As examples:
- The franchisor is able to ensure the franchisee business plan covers all factors relevant to their unit-level business model and particular franchise structure (e.g., management, fees, objectives, performance criteria etc).
- A detailed franchise manual section dedicated to the business plan’s background and completion, including useful tips, ideas and approaches, is then possible.
- Field managers and franchisees can be more easily trained and coached on effective business planning.
- Easy comparisons and insights, and also the cascade of objectives from franchisees to franchisor, are then possible.
- Franchisees can easily share plans, make comparisons and positively influence their own direction. This ability to share, in a common format, also makes for more productive franchisee performance groups.
A franchise should really contain a system, and that system should include a universal and well proven approach to franchisee business planning.
We suggest that a great franchising template is one important success factor for facilitating successful business planning within a franchising company.
About the Franchising Best Practice 500 Series
This is part of a series of franchising best practices. Franchize Consultants is sharing and publishing these best practices weekly for the betterment of franchising. We know that better knowledge and execution of franchising best practices leads to bigger and more valuable franchisor and franchisee businesses.
We have assembled the first 40 best practices into The Best Practice Handbook, which is available for purchase.