Franchised Restaurant Business
Plan
Franchised Restaurant Executive Summary
In this article, we will focus
on the development of a SBA business plan for a franchise restaurant. The most
wonderful things about operating a franchise restaurant business is that you are
able to capitalize on their extensive marketing campaigns and brand-name that
allows them to operate with the relatively low with risk. This is one of the
primary benefits of fight franchising although franchising can be expensive
process if it is not done appropriately. Again, we are to have a focus on the
development of a plan, specific for a SBA loan, as relates to the franchise
restaurant.
As we discussed in several of
all articles pertaining to specific business plans, the first going to start
with an executive summary of. In this executive summary, you're going to want to
focus specifically on the amount of money you need in for a franchise
restaurant, how much money you'll be contributing to the franchise, franchise
fees, the anticipated monthly payment of your loan, anticipated monthly interest
rate associate with your loan.
Additionally, you are going to
want to focus specifically not on the experience you had as it relates to
operating a retail establishment, the establishment, and your one centralized
location. This is, again, extremely important as the small business
administration wants to make sure that you are properly qualified to operate his
business on a day-to-day basis. Also, within the executive summary, you're going
to want to focus on the products or services that you selling for your franchise
restaurant.
Once this is complete, with a
new executive summary, going to want to focus on a brief breakdown of how you
intend to use your SBA loan funds and you anticipated profit and loss for the
first five years of operation. This would provide the loan officer with an
overview so that they can quickly see whether or not you're operating and
economically viable franchise restaurant within your target market. In this
section, you may also want to discuss how you intend to increase business during
the first five years including the ongoing development of additional locations
via your franchise license.
SBA Loans for Franchised Restaurants
The next section the business
plan focuses on the financing of your franchise restaurant. This includes a full
breakdown of the franchise fees, restaurant development costs, kitchen
equipment, restaurant equipment, working capital, and marketing capital that
you'll need on an ongoing basis in order to effectively develop your location.
In this section, it is common
to have information that relates to investor equity, management equity, who owns
what percentage of the business, who sits on the Board of Directors, and
applicable exit strategies as it relates to the franchise restaurant.
As relates to exit strategies,
it is important to note that there is a very strong demand for franchise
restaurants and even receive a substantial price to earnings multiple as it
relates to the ongoing franchise network that you're developing with a specific
franchise for.
Franchised Restaurant Products and Services
In the next section of the
business plan you're going to want to focus on the food that is served through
your franchise restaurant, the pricing associated with the food that you're
selling, and an attempt of catering operations that may be associated with your
franchise location. It is important to provide the exact menu has been given to
you through your uniform franchise offering circular today were able to
effectively show to the SBA exactly what products and services will be selling
for your location. As relates to SBA loans, loan officers to see that an
individual is purchasing a franchise because the risks associated with balloon
are substantially less than starting a restaurant from scratch that does not
have a nationally or mutually recognized brand name.
Franchised Restaurant Industry Analysis
In the next section of the
business plan, you're going to want to thoroughly focus on the strategic and
market analysis of your franchise restaurant. In this analysis, you're going to
want to discuss the economy at large and have negative changes in the economy
may impact the way that you do business. However, many popular franchise
restaurants typically are able to remain economically viable despite negative
economic changes in the fact that they have a well recognized brand name and it
will continue to eat at these establishments despite negative changes in the
economy.
As you can rewrite this section
of your franchise restaurant business plan, you're going to want to focus on the
number of franchise restaurants in the United States, to know the revenue
generated by franchise restaurants on an annual basis, the number of franchises
restaurants for years in the United States, and market trends and legislation
may impact what you do business as you progress through your business
operations.
As with any industry or market
analysis, you should put all the focus on the specific location that you will be
developing. This includes doing a full demographic analysis that discusses
annual household income, annual median income, and the anticipated demographics
of people that we your franchise restaurant, the population of the area, and
other important metrics that will ensure that your business is economically
viable.
Once you've completed this
section of the business plan, you're going to want to focus on the competition
they face from other local restaurant as well as franchise restaurants in your
area.
Franchised Restaurant Marketing Plan
As with any business plan,
you're going to focus on the specific type of marketing that you will use in
conjunction with your franchise restaurant. This includes the development of
proprietary marketing campaigns that will work side by side with those that have
been dealt developed by the franchise more. Then franchise restaurant, he
marketing campaigns are enacted by the business were typically governed by be
fan tries in company. The major franchising companies, they typically maintain a
number of radio advertisements, television advertisements, print advertisements,
and other forms of media that allow them to become well recognized and highly
trafficked among patrons. As such, is extremely important for you to focus on
the amount of advertising that is spent by the franchising company as relates
promoting their individual stores and partners.
Franchised Restaurant Financial Plan
Now we come to the franchise
restaurant financial plan. As with all business plans, you will need to have a
well-developed financial model that has a profit and loss statement, cash flow
analysis, balance sheet, a breakeven analysis page, and the business ratios
page. This is extremely important work line for a small business administration
loan. We strongly recommend you develop a full five-year financial model so that
you can effectively showcase exactly the anticipated ability to repay the loan
on a month-to-month basis. Of course, and as we have mentioned time and time
again, a certified public accountant can be invaluable resource to you if you
are having issues with developing and the affirmation and financial models as
relates to your franchise restaurant. We, again, strongly recommend that you
specifically to your financial model to show how your business will remain
economically viable for a small business administration loan.