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Callum Floyd / October 23, 2018

Comprehensive Franchisor Business Plan

A franchisor needs to have a comprehensive ‘franchisor’ business plan.

A franchisor business plan is different from a conventional business plan because there are a number of additional and unique elements associated with being a franchising company.

Think of the need to consider the following:

  • Franchisee performance and its importance and potential contribution to the franchisor and franchise system performance, and potential scale efficiencies and value-add.
  • Franchisee satisfaction and sentiment and how this can contribute to sustained franchise growth, innovation, adaptability and retention.
  • Franchise recruitment and onboarding and how this is planned to assist unit growth and development.
  • Systemwide change management, involving franchisees and how this must be planned and coordinated well in advance.
  • The potential for a wall of franchise renewals or extensions and how this can impact other planning and considerations.
  • Group marketing fund planning, management and reporting – including franchisee involvement.

A franchisor business is involved and complicated and the work is never totally done. For this reason a comprehensive franchisor business plan is important to ensure there are clear objectives, covering impactful and important areas unique to a franchise system, along with prioritised areas of focus.

Franchize Consultants, has for many years, provided serious franchising companies with a strong structure for planning their franchise systems on an ongoing basis.

Relevant questions:

  • As a franchisor, do you complete a comprehensive franchisor business plan?
  • Does the franchisor business plan address key franchising considerations, like franchisee performance and satisfaction, marketing, innovation and change management?

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