fast food franchise business plan pdf

Fast Food Business Plan Template

Over the past 20+ years, we have helped over 7,000 entrepreneurs and business owners create business plans to start and grow their fast foods.

Below are links to each section of your fast food business plan template:

Next Section: Executive Summary >

Fast Food Business Plan FAQs

What is the easiest way to complete my fast food business plan.

Growthink's Ultimate Fast Food Business Plan Template allows you to quickly and easily complete your Fast Food Restaurant Business Plan.

Where Can I Download a Fast Food Business Plan PDF?

You can download our fast food restaurant business plan pdf here.  This is a business plan template you can use in PDF format.

What Is a Fast Food Business Plan?

A business plan provides a snapshot of your fast food restaurant as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why Do You Need a Business Plan for a Fast Food Restaurant?

If you’re looking to start a fast food restaurant or grow your existing one you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your fast food restaurant in order to improve your chances of success. Your fast food business plan is a living document that should be updated annually as your business grows and changes.

What Are the Sources of Funding for a Fast Food Restaurant Business Plan?

Fast Food restaurants are usually funded through small business loans, personal savings, credit card financing and/or angel investors.

This is true for a traditional fast food restaurant, a quick service restaurant and a takeout restaurant business plan.

FAST FOOD BUSINESS PLAN OUTLINE

• Fast Food Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Fast Food Business Plan Summary

Start Your Fast Food Plan Here

Other Helpful Business Plan Articles & Templates

Fast Food Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Fast Food Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Fast Food Restaurant Business Plan & Template

You’ve come to the right place to create your fast food business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their fast food businesses.

Fast Food Business Plan Example

Below are links to each section of a fast food restaurant business plan sample:

Next Section: Executive Summary >

Fast Food Business Plan FAQs

What is a fast food business plan.

A fast food business plan is a plan to start and/or grow your fast food restaurant. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your fast food business plan using our Fast Food Business Plan Template here .

What Are the Main Types of Fast Food Businesses?

There are many types of fast food businesses. The most common fast food restaurants serve hamburgers, fries, and soft drinks. Other common fast food establishments serve chicken, Chinese food, Mexican food, and pizza. There is a recent trend in fast food restaurants serving healthier options such as smoothies, wraps, sandwiches, and salads. A fast food restaurant can be centered around any food genre that is able to be prepared fast and in large quantities to serve multiple customers daily.

What Are the Main Sources of Revenue and Expenses for a Fast Food Restaurant?

The primary source of revenue for a fast food restaurant are the food and drink items sold at the establishment.

The key expenses are the costs to source the ingredients for the menu items, kitchen equipment and supplies, overhead expenses for the staff and rent, and any marketing costs the restaurant chooses to partake in.

What is the Difference Between a Franchise and Non-Franchise Fast Food Restaurant?

A franchise fast food restaurant is a business that is owned and operated by someone who has a contract with a larger company. That company provides the products, training, and marketing for the smaller business. A non-franchise fast food restaurant is a business that is independently owned and operated.

Franchise fast-food restaurants have a set of guidelines and standards to which they must adhere in order to use the franchise name. Non-franchise fast food restaurants do not have these guidelines and can vary greatly in terms of quality, cleanliness, and customer service.

How Do You Get Funding for Your Fast Food Business?

Fast food businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Another option for a fast food business is to obtain a small business loan. SBA loans are a popular option as they offer longer loan terms with lower interest rates. Outside investors, crowdfunding, and/or friends or family are other typical funding options. This is true for a fast casual restaurant business plan or a takeout restaurant business plan.

What are the Steps To Start a Fast Food Business?

Starting a fast food restaurant can be an exciting endeavor. Having a clear roadmap of the steps to start a successful fast food business will help you stay focused on your goals and get started faster.

1. Write A Fast Food Business Plan - The first step in starting a business is to create a detailed fast food business plan that outlines all aspects of the venture. This should include market research on the fast food industry and potential target market size, information on your fast food menu, marketing strategy, pricing strategy and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your fast food business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your fast food business is in compliance with local laws.

3. Register Your Fast Food Restaurant   - Once you have chosen a legal structure, the next step is to register your fast food business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your fast food business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Fast Food Equipment & Supplies - In order to start your fast food business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your fast food business. Marketing efforts includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising to reach your target audience.

Where Can I Get a Fast Food Business Plan PDF?

You can download our free fast food business plan template PDF here. This is a sample fast food business plan template you can use in PDF format.

How To Write a Business Plan for Fast Food Franchise in 9 Steps: Checklist

By alex ryzhkov, resources on fast food franchisee.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Looking to start a fast food franchise and wondering where to begin? You're in the right place! With the fast food industry experiencing continuous growth in the US, now is a great time to seize this lucrative opportunity. According to the latest statistics, the fast food industry in the US generated over $200 billion in revenue in 2020, and experts predict its growth to continue in the coming years. So, let's dive into the nine essential steps you need to take to write a successful business plan for your fast food franchise.

Step 1: Research the fast food franchise industry and market trends

Before you start planning your fast food franchise, it's crucial to understand the industry's current landscape and market trends. Gather information about the top players, emerging concepts, and prevailing consumer preferences to identify your niche and potential opportunities.

Step 2: Identify target customers and their preferences

To make your fast food franchise a success, you need to know your target customers inside out. Conduct market research to determine their demographics, eating habits, and preferences. This insight will help you tailor your menu, ambiance, and marketing strategies to meet their expectations.

Step 3: Assess potential locations for the fast food franchise

Location plays a crucial role in the success of any fast food franchise. Research potential locations, analyze foot traffic, demographics, and competition to ensure you find the perfect spot that offers maximum visibility and customer accessibility.

Step 4: Determine initial investment and financial requirements

Launching a fast food franchise requires a significant financial investment. Calculate the initial investment required, including franchise fees, equipment, inventory, and marketing expenses. Proper financial planning is essential to ensure you have the necessary funds to get your business off the ground.

Step 5: Explore financing options and secure funding

Once you have determined your financial requirements, explore financing options such as bank loans, investors, or crowdfunding. Prepare a solid business plan and financial projections to present to potential lenders or investors and secure the necessary funding for your fast food franchise.

Step 6: Analyze competitors and understand their strengths and weaknesses

Competition is inevitable in the fast food industry. Analyze your competitors to understand their strengths, weaknesses, pricing strategies, and unique selling points. This analysis will enable you to differentiate your fast food franchise and develop strategies to attract customers.

Step 7: Develop a comprehensive marketing strategy

A well-defined marketing strategy is crucial for the success of your fast food franchise. Identify your target audience, create a strong brand identity, and plan effective marketing campaigns across various channels to drive awareness and attract customers.

Step 8: Create a detailed operational plan

An operational plan outlines the day-to-day functioning of your fast food franchise. Define staffing requirements, operational procedures, supply chain management, and quality control measures to ensure smooth operations and consistent customer experience.

Step 9: Assemble a team of key employees and managers

Building a strong team is essential for the success of your fast food franchise. Hire skilled employees, including managers, chefs, and customer service staff, who align with your vision and possess the necessary experience and expertise to deliver exceptional service.

Now that you have a clear roadmap, it's time to get started on writing your business plan for your fast food franchise. By following these nine essential steps, you'll be well on your way to turning your dream of owning a successful fast food franchise into a reality!

Research The Fast Food Franchise Industry And Market Trends

Before starting a fast food franchise, it is essential to conduct thorough research on the industry and market trends. This research will provide valuable insights into the current state of the fast food sector and help you make informed decisions that can contribute to the success of your franchise.

1. Understand the Franchise Industry: Familiarize yourself with the fast food franchise industry and its dynamics. Gain knowledge about the major players, market share, growth opportunities, and challenges that affect the industry as a whole.

2. Study Market Trends: Analyze the latest trends in the fast food industry, such as the demand for healthier menu options, the shift towards online ordering and delivery services, and the emergence of new technologies. Stay updated on consumer preferences, so you can adapt your franchise accordingly.

3. Determine Market Demand: Assess the demand for fast food franchises in your target market. Consider factors such as population demographics, economic conditions, and competition. Conduct surveys or interviews to gather firsthand data on customer preferences and expectations.

Tips for Researching the Fast Food Franchise Industry and Market Trends:

• Subscribe to industry publications and blogs to stay informed about the latest industry news and trends.
• Attend industry conferences and trade shows to network with industry experts and gain insights into market dynamics.
• Utilize market research tools and databases to access data and statistics relevant to the fast food franchise industry.
• Join online forums and communities to interact with franchise owners and industry professionals who can provide valuable advice and insights.
• Engage in competitor analysis to identify successful strategies and areas for improvement.

By conducting thorough research on the fast food franchise industry and market trends, you will be equipped with valuable knowledge and insights that can guide your decision-making process. This research will help you identify potential opportunities and challenges, enabling you to develop a comprehensive business plan that positions your fast food franchise for success.

Identify Target Customers And Their Preferences

Identifying the target customers and understanding their preferences is crucial for the success of your fast food franchise. Here are the important steps to follow:

• Conduct Market Research: Gather data on demographics, such as age, gender, income, and location, to identify your target audience. This will help you tailor your offerings to meet their specific needs.
• Study Consumer Behavior: Analyze consumer trends and behaviors to gain insights into what drives their purchasing decisions. Take into account factors like convenience, price sensitivity, health-consciousness, and taste preferences.
• Segment Your Target Market: Divide your target market into distinct segments based on their characteristics and preferences. For example, you may have segments like busy professionals looking for quick meals, families seeking kid-friendly options, or health-conscious individuals who prioritize nutritious choices.
• Understand Customer Preferences: Conduct surveys, focus groups, or analyze existing data to determine what your target customers prefer in terms of menu options, flavors, portion sizes, pricing, promotions, and overall dining experience.
• Identify Opportunities and Gaps: Identify untapped niches or unmet needs within your target market. This could involve offering unique menu items, catering to specific dietary restrictions, or providing exceptional customer service.
• Engage with your target audience on social media platforms and online forums to get insights and feedback directly from your potential customers.
• Stay updated on emerging food trends and industry innovations to ensure your offerings remain relevant and appealing to your target market.
• Regularly monitor customer reviews and feedback to address any issues, improve your offerings, and enhance the overall customer experience.

Assess Potential Locations For The Fast Food Franchise

Choosing the right location for your fast food franchise is crucial to its success. A strategic and well-thought-out location can attract the right customers and ensure a steady flow of traffic. Here are some important factors to consider when assessing potential locations:

• Demographics: Research the demographics of the area to determine if it aligns with your target customer base. Look for areas with a high population density, a mix of residential and commercial spaces, and a demographic profile that matches your target market.
• Competition: Assess the existing fast food restaurants in the area and analyze their strengths and weaknesses. Consider whether there is enough demand in the market to support another fast food franchise and identify any gaps or opportunities that you can capitalize on.
• Foot Traffic: Evaluate the foot traffic in potential locations by observing the number of people passing by and nearby businesses or attractions that can drive customers to your restaurant. A busy street or a popular shopping center can significantly increase your visibility and attract more customers.
• Accessibility: Consider the ease of access for customers, including parking availability and proximity to public transportation. A location that is easily accessible and has ample parking can encourage customers to visit your restaurant more frequently.
• Cost: Take into account the cost of rent or purchase for each location. Compare the prices of different options and consider the potential return on investment. Additionally, factor in any additional expenses such as renovation or improvements to the space.
• Visit potential locations at different times of the day to gauge the level of activity and customer flow.
• Engage in conversations with local residents and business owners to gather insights about the area and its potential.
• Consider conducting a feasibility study to assess the demand and profitability of your fast food franchise in specific locations.

By carefully assessing potential locations, you can increase the chances of choosing a site that will drive the success of your fast food franchise. It is important to spend time and effort analyzing various factors to make an informed decision that aligns with your business goals.

Determine Initial Investment And Financial Requirements

One of the most crucial steps in starting a fast food franchise is determining the initial investment and financial requirements. This will help you understand the capital needed to launch your business and ensure its smooth operation. Here are some key aspects to consider:

• Franchise fees: Franchise fees are the upfront costs associated with obtaining the rights to operate a fast food franchise. These fees may vary depending on the brand and can range from a few thousand dollars to hundreds of thousands of dollars.
• Royalties and ongoing fees: Franchisees are typically required to pay a percentage of their sales as ongoing royalties to the franchisor. These fees contribute to the ongoing support and benefits provided by the franchisor, such as marketing campaigns and training programs.
• Initial inventory and equipment: You will need to determine the cost of purchasing initial inventory, including ingredients, packaging, and supplies. Additionally, consider the expenses related to acquiring kitchen equipment, appliances, and other necessary systems to run the restaurant.
• Lease or real estate costs: Research the real estate market to estimate the cost of leasing a suitable location for your fast food franchise. Take into account factors such as rent, security deposits, and any required renovations or build-outs.
• Working capital: It is essential to have sufficient working capital to cover daily expenses before your fast food franchise starts generating substantial revenue. This includes funds for payroll, marketing campaigns, utilities, and other operational costs.
• Consult with a financial advisor or accountant to assess the potential investment and financial requirements accurately.
• Consider seeking financing options, such as loans or partnerships, to ensure you have adequate funds to launch and sustain your fast food franchise.
• Explore potential cost-saving options, such as leasing equipment instead of purchasing it outright or considering more affordable locations with potential for growth.
• Remember to factor in contingency funds for unexpected expenses or emergencies to avoid potential financial strain.

By thoroughly determining the initial investment and financial requirements, you will have a clear understanding of the financial commitment needed to establish and operate your fast food franchise successfully.

Explore Financing Options And Secure Funding

Securing funding is a crucial step in starting your fast food franchise. It is important to explore different financing options to determine the best fit for your specific needs. Here are some important considerations when exploring financing options:

• Research and compare loan programs offered by banks and financial institutions. Look for ones that specialize in small business loans or franchise financing.
• Review the terms and conditions of each loan option, including the interest rate, repayment period, and any collateral requirements.
• Consider alternative financing methods such as crowdfunding, peer-to-peer lending, or seeking investors.
• Prepare a thorough and compelling business plan to present to potential lenders or investors. This will demonstrate your understanding of the industry and increase your chances of securing funding.
• Be prepared to provide financial projections, including a detailed budget and revenue forecasts, to justify the amount of funding you are seeking.

Tips for securing funding:

• Start the process early to allow ample time for researching and securing funding.
• Network with other franchisees or industry professionals who may have valuable insights or recommendations for financing options.
• Consider seeking the guidance of a financial advisor or consultant to help navigate the financing process.
• Be prepared to negotiate terms and explore different options to find the most favorable financing arrangement.

Securing funding is a critical component of launching your fast food franchise. By exploring different financing options and taking the necessary steps to secure funding, you can ensure that you have the financial resources in place to successfully start and operate your fast food franchise.

Analyze Competitors And Understand Their Strengths And Weaknesses

One crucial step in writing a business plan for a fast food franchise is to analyze the competitors in your market and gain a deep understanding of their strengths and weaknesses. By doing so, you can identify opportunities for differentiation and develop strategies to position your franchise as a preferred choice for customers. Here are some important factors to consider when analyzing competitors:

• Menu: Take a close look at the menus of your competitors. Analyze the variety of options, pricing, and any unique offerings they have. This will help you determine how to differentiate your fast food franchise by offering a distinct menu that appeals to your target customers.
• Customer Experience: Visit the locations of your competitors and study their customer experience. Pay attention to the cleanliness of the restaurant, the efficiency of service, and the overall ambiance. By understanding their strengths and weaknesses in this area, you can create a customer experience that surpasses your competitors and attracts loyal patrons.
• Marketing and Branding: Examine the marketing strategies and branding efforts of your competitors. Assess their online presence, social media engagement, and advertising campaigns. This analysis will help you identify gaps in the market and determine how to position your fast food franchise as a unique and desirable option.
• Operational Efficiency: Evaluate the operational processes of your competitors, including the speed of service, order accuracy, and employee training. This assessment will enable you to identify areas where you can streamline operations and deliver a more efficient experience to customers.
• Customer Reviews: Study customer reviews and feedback for your competitors. This will provide insights into the aspects of their business that customers appreciate and the areas where they fall short. Use this information to address customer pain points and develop strategies to exceed expectations.
• Consider conducting secret shopper visits to your competitors' locations to gather firsthand experience and insights.
• Utilize online tools and platforms to monitor and track your competitors' activities, such as social media monitoring and competitive analysis tools.
• Engage in industry forums and conferences to stay updated on the latest trends and developments within the fast food franchise sector.

By thoroughly analyzing your competitors and understanding their strengths and weaknesses, you can develop a business strategy that sets your fast food franchise apart and positions it for success. This knowledge will help you make informed decisions regarding menu offerings, customer experience, marketing efforts, and operational efficiencies.

Develop A Comprehensive Marketing Strategy

Developing a comprehensive marketing strategy is essential for the success of your fast food franchise. A well-executed marketing plan can help you reach your target customers, differentiate your brand from competitors, and drive traffic to your restaurant. Here are some key steps to consider:

• Identify your target audience: Research and understand your target customers' demographics, preferences, and behaviors. This will help you tailor your marketing messages and tactics to effectively reach and engage them.
• Define your unique selling proposition (USP): Determine what sets your fast food franchise apart from competitors. Whether it's a special menu item, exceptional customer service, or a convenient location, highlighting your USP in your marketing efforts will attract customers who value those qualities.
• Create a strong brand identity: Develop a cohesive brand identity that reflects your values, mission, and unique offerings. This includes your logo, colors, fonts, and overall visual aesthetics. Consistency across all marketing channels will help build brand recognition and loyalty.
• Implement a mix of marketing channels: Utilize a combination of traditional and digital marketing channels to maximize your reach and exposure. This could include print advertisements, radio spots, social media marketing, email campaigns, and search engine optimization (SEO) strategies.
• Offer promotions and discounts to attract new customers and incentivize repeat visits.
• Engage with your audience on social media by sharing behind-the-scenes content, responding to comments and reviews, and running contests or giveaways.
• Partner with local businesses or organizations for cross-promotions and collaborations.
• Monitor and analyze your marketing efforts regularly to assess their effectiveness and make necessary adjustments.

By developing a comprehensive marketing strategy, you can effectively promote your fast food franchise and generate awareness and excitement among your target customers. Remember to stay updated with industry trends and continuously adapt your marketing tactics to stay ahead of the competition.

Create A Detailed Operational Plan

Creating a detailed operational plan is crucial for the success of your fast food franchise. It outlines the day-to-day processes and procedures that will ensure smooth operations and efficient execution of tasks. Here are some important points to consider when creating your operational plan:

• Define Standard Operating Procedures (SOPs): Establish clear and concise SOPs for each aspect of your fast food franchise, from prepping ingredients to customer service. These guidelines will ensure consistency and quality across all operations.
• Manage Inventory: Implement an inventory management system to track and control the flow of ingredients, supplies, and other items needed for your fast food franchise. This will help avoid stockouts, minimize waste, and optimize cost efficiency.
• Set Staffing Requirements: Determine the number of staff members needed to operate efficiently during different hours of operations. Clearly define roles and responsibilities for each position and establish guidelines for hiring, training, and performance management.
• Implement Quality Assurance Measures: Establish quality control measures to ensure consistency in food preparation, cleanliness, and overall customer experience. This may include regular inspections, employee training programs, and customer feedback systems.
• Manage Cash Flow: Develop proper cash handling processes, including procedures for opening and closing cash registers, reconciling sales, and depositing funds. Implement strong security measures to protect against theft and fraud.
• Adapt to Technology: Embrace technology solutions that can streamline operations and enhance customer experience, such as point-of-sale systems, online ordering platforms, and delivery management software.
• Maintain Equipment and Facilities: Create a maintenance schedule for all equipment and facilities to minimize downtime and ensure optimal functionality. Regularly inspect and repair or replace equipment as needed.
• Monitor and Analyze Key Performance Indicators (KPIs): Track important KPIs, such as sales, customer satisfaction, and employee productivity, to assess the performance of your fast food franchise and make informed operational decisions.
• Regularly review and update your operational plan to adapt to changing industry trends and customer preferences.
• Allocate resources for ongoing staff training and development to ensure continuous improvement.
• Establish strong communication channels among your team members to facilitate efficient information flow and problem-solving.

By creating a detailed operational plan, you can effectively manage the day-to-day operations of your fast food franchise, maintain consistency and quality, and ultimately achieve success in the competitive fast food industry.

Assemble A Team Of Key Employees And Managers

Building a strong team of experienced employees and managers is crucial to the success of your fast food franchise. These individuals will be responsible for the day-to-day operations, customer service, and overall management of your restaurant. Here are some important steps to follow when assembling your team:

• Clearly define your hiring criteria: Before beginning the recruitment process, outline the specific qualities, skills, and experience you are looking for in potential employees and managers. This will help you attract candidates who align with your business objectives and values.
• Advertise job openings: Use a combination of online job boards, local newspapers, and industry-specific websites to promote your job openings. Provide a clear job description and highlight the benefits and opportunities for growth that your fast food franchise can offer.
• Conduct thorough interviews: When screening potential candidates, ask relevant questions to assess their experience, knowledge, and problem-solving skills. Look for individuals who demonstrate a strong work ethic, enthusiasm, and the ability to work well in a fast-paced environment.
• Check references and conduct background checks: Verify the information provided by candidates by reaching out to their references. Additionally, consider conducting background checks to ensure the individuals you hire have a clean record and are trustworthy.
• Provide comprehensive training: Once you have selected your team, invest time and resources in providing thorough training to ensure consistency and excellence in customer service, food preparation, and overall operations. This will help your employees and managers develop the necessary skills to deliver a high-quality experience to your customers.

Tips for assembling a strong team:

• Consider hiring individuals with previous experience in the fast food industry, as they will already have a solid understanding of the operational challenges and customer expectations.
• Look for candidates who demonstrate strong leadership and communication skills, as they will be responsible for effectively managing and motivating your team.
• Offer competitive compensation and benefits packages to attract top talent. This will help you retain high-performing employees and managers in the long run.
• Create a positive and inclusive work environment that fosters teamwork, mutual respect, and a strong company culture. This will contribute to employee satisfaction and enhance overall productivity.
• Regularly evaluate the performance of your team members and provide constructive feedback to help them grow professionally. Recognize and reward outstanding achievements to motivate and incentivize your employees.

Writing a business plan for a fast food franchise requires careful research, analysis, and strategic planning. By following these nine steps, you can create a comprehensive roadmap for success in the competitive fast food industry.

Start by thoroughly researching the fast food franchise industry and market trends to understand the current landscape and identify opportunities for growth. Identify your target customers and their preferences to tailor your offerings to their needs.

Next, assess potential locations for your fast food franchise, considering factors such as foot traffic, accessibility, and competition. Determine the initial investment and financial requirements, and explore financing options to secure funding for your venture.

Analyze your competitors to understand their strengths and weaknesses, so you can differentiate your business and attract customers. Develop a comprehensive marketing strategy to promote your fast food franchise and create a detailed operational plan to ensure efficient and effective day-to-day operations.

Lastly, assemble a team of key employees and managers who can support your business and execute your plans effectively. With a well-crafted business plan in hand, you will be ready to embark on your journey as a fast food franchise owner.

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12+ SAMPLE Fast Food Business Plan in PDF | MS Word | Google Docs | Apple Pages

Fast food business plan | ms word | google docs | apple pages, 12+ sample fast food business plan, what is a fast food business plan, components of a fast food business plan, tips on fast food business plan, how to set up a fast food business, what is the difference of a fast food business plan with a restaurant business plan, what can make a fast food business plan stands out.

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Formal Fast Food Business Plan

• Mission statement
• Vision statement
• Overall concept
• Possible cost
• Possible ROI (return on investments)
• What will be the overall costs for your business?
• How will you choose your target market?
• How much will your product cost?
• What will be the best name for your business?
• What can be your brand marketing strategy ?
• How will you manage your financial projections?
• How can you build the pool of workers?
• How can you have a great menu design?
• How can you gain profit?
• What can be the contents of your business plan?

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Fast-Food Business Plan: Essential Ingredients for Success

A smart fast food business plan is a fundamental part of starting and growing your business. Here's how you do it...

A smart fast food business plan is a fundamental part of starting and growing your business. It not only shows lenders and investors the validity of your concept in order to secure funding, but it also serves as a guidepost and map for continued success.

A strong resource to help get you started is available from the U.S. Small Business Administration. This can help you outline the key sections of a traditional business plan . Offering a brief description for each section of a traditional business plan, it recommends using whatever combination of the following sections are best suited to meet your business plan’s needs: executive summary, company description, market analysis, organization and management, product or service line, marketing and sales plan, funding request (if applicable), financial projections, and an appendix of supporting documents.

This process becomes a lot simpler if you have decided to open a fast-casual restaurant as a franchisee, rather than go it on your own. While you still have to build your own business plan to secure financing, one of the biggest upsides to franchising is guidance from the franchisor and access to the brand’s operational best practices.

Executive Summary

You’ve already done a lot of research and planning (or you should have!) before you even sit down to begin constructing your business plan. You’ve considered which offerings your menu will feature, how you’ll stand out among the competition, and much more.

The Executive Summary is your opportunity to tell this story. It should be your “elevator pitch,” summarizing your vision, including everything from where you’ll obtain your ingredients to the atmosphere and service level your restaurant will offer, to the headcount and roles of your staff, to your site selection criteria, and beyond.

Franchising takes the guesswork out of this piece. You still have the opportunity to tell your story, but also include why you have chosen this fast-casual brand and how you plan to succeed as a franchisee.

Company Description

More detail about your vision (or the franchisor’s) for the company goes here.

What demand or niche will your fast food or fast-casual concept answer or fill? Where do your target customers live and work? What do they do? What are their income levels? What site will you select in order to be visible and available to them? Your Company Description should answer all these questions.

You can also explain what types of funding and resources you already have, if any. This may include partial funding as well as planned sweat equity and expertise in foodservice you or a partner have.

Market Analysis

Your Market Analysis should showcase insight from research you’ve conducted of the competition and your market area.

Are you competing with Taco Bell or Chipotle or a couple of independent hamburger shops — or a mix of chains and local dives? Where are they located? What will be the key differentiators of your fast food or fast-casual restaurant? How many people live in the area? What other businesses and workplaces are nearby? Talk again about the criteria for choosing a location (lease terms, square footage, visibility, etc.) or your chosen site/location, if you’ve gotten that far.

If you are working with a franchise, they typically provide you with an overview of what their target markets look like, and, in some cases, a detailed analysis of the markets or territories available to you.

Organization and Management

Most likely, you’ve already considered potential stars for the team you’ll build. Perhaps you’ve chosen a manager who has some experience managing a similar type of restaurant. Maybe you have already secured the commitment or interest of a talented chef to engineer your menu. Emphasize the skills of the people you’ve chosen for high-level roles, and highlight what you expect from managers and employees for both the front and back of the house.

This is also a good spot to briefly discuss which business structure you’ll use, such as a corporation, LLC with other members, or a sole proprietorship. Seek advice from a trusted attorney before making this decision.

Service or Product Line

This section should illustrate that what you’re offering will be special and unique.

What makes your food and beverage offerings stand out from the competition? If your restaurant will utilize unique equipment or processes that your local competitors may not have, share that information. Are there emerging trends you’re exploiting that the place down the street is not? Maybe you’ve even collected feedback from consumers in the area on how other similar restaurants have failed to satisfy, and you have a plan for doing better.

The most successful franchises have built entire brands on recognizing a demand and providing a product or service to meet it.

Marketing and Sales

If you did not do so in the research phase(s) of your preparation, now would be the time to search for market reports that include psycho-demographic data and information about potential customers. This information will help you build a marketing plan that speaks to your target audience.

Understanding the characteristics of your customer base, such as age, gender, online use and presence, media consumption habits, etc. will allow you to determine the most effective social media channels for posting photos of mouth-watering cheeseburgers with limited-time offers, or how to reward customers who download your app.

Again, if you have chosen to go with a franchise, most of the heavy lifting has probably been done. All you have to do is provide an overview in your business plan and work within the guidelines provided.

Funding Request

The funding request should feel natural to the reader at this point; if you’ve made your case persuasively in previous sections. Show them you’ve crunched the numbers wisely — and ask for what you’ll require to get rolling.

Make sure you find out whether or not a franchise brand works with preferred lenders or has strategic partnerships with financial institutions. Many lenders that work with specific brands have already vetted the brand, which can simplify your request for financing and timeline.

Financial Projections

Take this opportunity to reassure potential investors or lenders with a set of data-based projections. You may choose to break down the first year by month, since you’ll incrementally be absorbing startup costs and may not break even within the first year. That’s perfectly normal. But your projections can then show, in detail, when you predict you’ll start to become profitable, and a longer-term forecast of revenue growth projections.

Because it’s best that your previous sections were efficient and relatively brief, in order to keep the reader’s attention, The Appendix is a reference repository for deeper learning. This may include business articles related to the kind of concept you are opening, formation documents, longer bios of key team members, and more.

Coming to this juncture in the journey, preparing the business plan upon which you will build your future and fast-casual restaurant is exciting, but often challenging. Remember to consider all your options before deciding on which path to take.

Opening a franchise location, with the support of an established brand, instead of starting your own concept from scratch, means you won’t have to “go it alone.” Joining a franchise means access to the franchisor’s guidance, systems, and best practices.

Franchise Opportunities with Wayback Burgers

Wayback Burgers offers qualified candidates the opportunity to open and operate a business in the highly sought-after fast-casual sector with a small footprint and a big upside. Currently operating in 30 states and seven countries, the Connecticut-based burger franchise increased its system size by 14 percent in 2018; and has reached 160 locations worldwide.

Wayback offers initial training and ongoing support for all its franchisees and works diligently on finding innovative ways to offer franchisees the opportunity to increase revenue while adding value to the customer experience.

Inquire Now

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Fast Food Restaurant Business Plan Sample

May.22, 2015

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Table of Content

Fast food flow chart – guick Service with a Smile

The fast food industry is booming, generating over 191 billion dollars in annual revenue and employing more than 10 percent of the U.S. workforce. The fast dining operations a fast food restaurant make up a segment of the dining industry called Quick Service Restaurants (QSR). Despite the fact the industry has already grown quite large, it business continuity plan checklist to expand as enterprising entrepreneurs develop new concepts and menus that are presented in the fast food restaurant business plan sample.

Quick Service with a Smile

Say “fast food” and most people think of hamburger eating establishments with drive-through windows. Yet, the QSR industry is much broader today, offering a variety of concepts and styles, and methods for the ordering and delivery of menu items. The legacy dining companies like McDonald’s, Burger King, and Wendy’s continue to thrive, but new eateries are appearing that expand the quick meal concept.

Recipe for success opening fast food restaurant

Originally, quick service places were walk-in establishments where customers went to the counter and ordered mostly pre-prepared items off a menu posted on the wall or at the drive-through. This basic style has bloomed into a variety of arrangements that include:

• Drive through window ordering only
• Order by phone or online and have the order ready for pick-up or request delivery
• Walk along a buffet style ingredient bar and request specific items
• Street vendors
• Food trucks and carts
• Fast casual (aka limited service or quick casual)
• Mall locations and kiosks

In every case, it is convenience and speed of service that places a dining establishment into the quick service eatery category. Price used to be one of the factors, but that is not necessarily true anymore. There are upscale QSRs today where the price of meals compete with regular dining places.

The QSR will have certain other characteristics:

• Limited menu with quick-fix selection
• No or minimal table service
• Counter service
• Fast service
• Almost identical menus within a chain

Fast casual adds a bit of a twist to the quick meal concept. The limited service dining places are included in the QSR industry, but they are really positioned in between the traditional sit-down and true fast food eateries. Quick causal has a menu that is more customized with a greater item selection of non-processed items, and they offer minimal table service. For example, patrons may order a grilled chicken salad at the counter, and it is delivered to the table. If customers want something else, they must go to the counter and ask for it.

Entrepreneurs interested in starting a new operating concern will need to consider all of the current styles and determine which will work best for the type of menu that will be offered at startup. On the other hand, there may be a brand new concept just waiting for development in the marketing plan for fast food restaurant.

Technology is having an impact on the QSR industry. For example, there are already dining places where customers can walk into the faster service eatery, order items on a digital screen at a kiosk, and then pick up the completed order at the counter. As technology advances, the QSR industry is eagerly adopting new technologies, and that could lead to new concepts.

The first step to an ideal business plan restaurant – come up with a concept

Creative entrepreneurs seem to have no limit to their imagination. Subway serves a sandwich selection and provides a small dining section. McDonald’s is family-friendly with many of the locations offering a playground. California Pizza Kitchen serves a lot more than pizza. The Cheesecake Factory offers over 250 menu items every day that are made fresh daily. Chipotle offers a trendy version of Mexican-inspired menu items.

There seems to be an endless variety of concepts – Indian themed foods, protein smoothies, chicken or chicken salad only, hot dogs, multi-course meals to go, Chinese food, ice cream, fish only, roast beef only, tacos, sandwiches only, salads, yogurt, trendy coffee concoction, and on and on it goes. Some eateries specialize based on their preparation methods, like The Cheesecake Factory.

The concept and the menu are naturally closely tied together. A gourmet hot dog diner would probably not choose a Chinese décor, for example. Everything must blend together which is one reason it is so important to complete one of the fast food restaurants business plans . This is a document that takes the entrepreneur step-by-step through the process from concept to financials. If certain elements do not mesh well, it will become apparent during the development process.

Before opening fast food restaurant consider trends

One of the challenges of being a restaurant owner is staying ahead of market trends. Consumer tastes and preferences change, and the eatery that does not stay on top of those trends could find itself losing customers to the next new concept. Trends come and go, but the following offers an idea of the kind of features modern and informed consumers are looking for on the menu or in food preparation.

• Only Fair Trade drinks served
• Only locally produced ingredients purchased
• Healthy salad options
• Organic food
• Low calorie options for favorite foods or low calorie options added to the higher calorie menu
• Only grilled and never fried menu items
• No processed foods
• Changing menus to reflect current health research
• Special diet menu items like gluten free foods, ingredients safe for diabetics, or heart healthy foods

Dining establishments must be much more transparent today as to what they serve, how it is prepared, the calorie count, the food content, and how ingredients are sourced. Price counts too, but not as much as it used to, depending on the type of dining establishment started. A dollar menu is popular at some establishments, but would not be popular at others because the concept does not support such inexpensive foods. The dollar menu is also quite impractical for most eateries because such a low-priced menu would not cover expenses.

Another trend is enabling customers to order via their smartphones and tablet computers, or via a website. Will the new enterprise be technology enabled? It is one way to differentiate the startup and especially appeal to the digital natives – the Millennials and Gen Z – who expect to use their technology for almost everything.

Elements of Success fast food business plan

Every successful operation has to consider certain critical factors directly related to success. Some are more important than others. One such factor is the location. Putting a hot dog stand next door to the country club that has a dining room may not generate enough revenue. Put that same hot dog stand on a downtown corner, near buildings where thousands of busy people are working in offices, or in a local mall, and lunch and/or dinner sales are going to be high.

On the other hand, a place with a drive-through window that serves biscuits for breakfast and hamburgers for lunch and dinner will want a location that has high traffic flow, especially at mealtimes. The location is also influenced by available lease space, required building modifications, and the monthly lease rate. Of course, the entrepreneur can also build a place from the ground up with the understanding that it will take a lot more startup capital.

Setting the Menu and Prices

Another important and related element is hours of operation which influences the meals that will be served. Will the fast service menu cover breakfast and lunch, lunch and dinner, or all three meals?

The menu must be more varied the more meals that are served. The hours of operation also impacts the required staffing level which in turn impacts operational expenses.

Franchise for start fast food?

Some entrepreneurs choose to buy a franchise. They do so because of the advantages a franchise offers, but never make the mistake of thinking a franchise guarantees success. That is not true. Establishing and growing a franchise takes a significant financial investment and real effort. Advantages include:

• The right to use the brand name which already has market familiarity
• Startup that is turnkey ready
• Access to in-depth training
• Availability of a well-developed operational model
• Access to tested marketing strategies
• Ability to access the knowledge of the corporate personnel
• Sometimes, easier access to capital through the franchising company

Instant brand recognition is a real asset to a fledgling enterprise. Consumers are already familiar with the menu, services, quality, and even the physical layout. People who search out chains appreciate the level of familiarity they have with the operation.

However, the chain operation is also subject to getting its reputation damaged when other franchisees perform poorly. There are millions of people who have had one bad dining experience and refuse to ever try any other restaurant in the same chain. Some go online and post comments like, “Don’t ever try any XYZ restaurant.” It is guilt by association.

All the advantages come with a price in the form of franchise fees which can be quite hefty. The ongoing support is the ROI for paying the fees in a timely manner. The franchise restaurant is not a good choice for an entrepreneur that wants to be in total control of things like hours of operation, menu, vendors, service level, marketing, and so on. Franchisors have a lot of restrictions, and the owner must be willing to play by corporate rules.

Operational and Strategic Planning

Getting ready for startup fast food business.

One of the best ways to understand how to write a high quality roadmap for success is to look at a fast food restaurant business plan sample. Most examples are written to an audience that includes investors and the owner, but always the owner. This is a document that addresses every critical element of the concern, creating a steady path of sustainability. Thousands of people start successful fast food operations every month, but it is not successful by accident.

When the final fast food restaurant marketing plan pdf is published, it contains all the elements of success. It proves the entrepreneur has carefully worked through the details, thought through what is needed to run a smooth enterprise, and identified what it will take to achieve sustainability. A successful startup is no small feat and never happens by accident. All the reasons a food operation is likely to fail are considered and addressed. The reasons include:

• Lack of adequate information about the competition
• Selecting a poor location
• Poorly designed fast food restaurant marketing strategies
• Lack of skilled staff or inadequate staffing
• Inadequate cash flow
• Difficulties obtaining the correct ingredients
• Poorly prepared food

With so many reasons contributing to potential failure, it is easy to start thinking this type of fast service enterprise is too risky. Yet, new operating enterprises are opened all the time, and many become the new fast service chains using the popular franchise model.

This is why it is important to write a document that does not skip steps. For example, the fast food restaurants marketing strategies can play a big role in driving customers to the restaurant. However, the marketing section of the planning document is just one section of several. A high quality document is thorough and attractive to readers, including potential investors.

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Writing fast food restaurant business plan

Ready to write a planning document? The standard sections include the following information:

• Executive Summary – The short summary gets right to the point as to what the fast service company will involve and what makes it unique. This is like a snapshot that captures the essence of the new company, providing a profile and stating the goals. It may also name the amount sought from investors or the amount of the bank loan requested.
• Company Description – This section summarizes the basics about the company. What is the concept? What can customers expect to find when they walk in the door? What is the décor or theme? What type of food will be served and during what hours? Who will own the startup? Are their partners? Where will the operation be located and in what kind of facilities?
• Management – This section offers a profile of the management. Small food establishments are often initially managed and operated by the owner. Larger ones with extended hours will need more than one manager to oversee staff. Who will manage the ongoing concern, and what are their qualifications, including education and experience? What is the management structure? How much will managers be paid?

This section also discusses the personnel plan. One of the many challenges the owner faces is keeping the operation adequately staffed. High turnover can quickly cause customer service problems. How will the management ensure it can keep positions filled and employees trained? Is there a need for a cook, cashier, counter staff, and maintenance or cleaning staff? How many shifts must be covered?

• Products and Services – This is the section where all the research effort into the menu and the sources of ingredients comes together. Provide a description of the products, giving details about the menu, ingredients, customer services, strategies for keeping the menu relevant and updated, and other information as necessary. Services can include things like delivery services or catering packages. Also, how will the ingredients be sourced, and what are the strategies for ensuring an uninterrupted flow? Are there reliable vendors lined up with contracts ready to be put in place?
• Industry, Competitor, and Market Analysis – Remember that one of the reasons for operational failure is due to lack of information about the competition. Every entrepreneur should do in-depth research on the local industry and competition. If unfamiliar with how to do this kind of research, have an experienced consultant conduct the research.

This section describes the industry, narrows the market, names the targeted market, presents the market characteristics, and defines a competitive pricing structure. Specifically, what is the target market, and what are the market needs? The competitive analysis is quite detailed. It addresses market share, barriers to market entry, market needs, and the potential for future competitors to enter the scene. One way to present the information is to do a table layout comparing various characteristics between competitors, on elements like theme, pricing, food quality, hours of operation, etc.

This is also a good place to describe the trends that impact the fast service industry and the market. That description is followed by a description of the specific trends the startup will encompass in its growth strategies.

• Marketing Strategies – The fast food restaurant marketing strategies sample demonstrates the overall path forward to get brand recognition and to grow the startup. The fast food operation needs a steady flow of customers – new and returning. In this section the owner discusses the strategy for penetrating the market and communicating with the market. What kind of promotions and advertising will be conducted? Is there a website that can be turned into a marketing tool? If the operation will sell catering packages or deliver lunches, for example, there is a need for a sales strategy to reach potential customers.

Marketing encompasses price, product, place, and promotion – the 4 Ps. Address each of the Ps, and the startup will be on its way to success.

• Financial Projections – Many entrepreneurs need help preparing this section. It is based on the market analysis and the operational setup. Developing prospective financial data is challenging because there is no historical data to rely on. The statements to include are the profit/loss statements, cash flow statements, balance sheets, and capital expenditure plans. The SBA recommends doing monthly or quarterly financial projections for the first year as a minimum. Another four years of projections are usually included also, but the numbers can be on a quarterly or annual basis.

Also included in this section of the business plan sample for fast food restaurant is any other useful financial information, like ratios, breakeven analysis, and trend analysis. Graphs are beneficial to readers. Also, what startup funding is needed, and what are the targeted sources? Is the owner investing personal funds?

Quality really does count when preparing the document. It counts for the startup owner and for potential investors. This is a living, breathing document too. Once the fast food restaurant business plan pdf is completed, it should not be banished to a drawer or left to linger in old work processing files. The document needs regular updating to keep the business on track.

If unfamiliar with how to prepare such a beneficial document, the most important step you can take is getting professional consulting help. There is too much at risk to take any chances with potential success.

Download Fast Food Restaurant Business Plan Sample in PDF

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How to Write a Franchise Business Plan + Template

Elon Glucklich

8 min. read

Updated February 7, 2024

Free Download:  Sample Franchise Sandwich Shop Business Plan Template

Owning a franchise is an excellent way for business owners to gain instant brand recognition. 

By paying a franchise fee, you can own a fast-food restaurant like McDonald’s, Subway, or Kentucky Fried Chicken, a 7-Eleven convenience store, a gym chain, or even a hotel like a Marriott or Hilton. 

For franchises with fees between $25,000 and $100,000, recent research indicates that the 5-year business failure rate is about 5 percent , just one-tenth of the overall business failure rate. Put simply, you have a much higher chance of success opening a franchise than a traditional business.

But getting a proven brand name doesn’t guarantee success. You’ll need to ensure you understand the franchise’s business model and expectations. 

Plus, you need to determine if there’s a big enough market for your business to be successful, what potential customers expect from businesses like yours, and how many competitors you’ll face.

Fortunately, answering these questions are all part of writing a comprehensive business plan . Here are the steps to writing a franchise business plan that shows your business’s unique value—while answering critical financial and operational questions your franchisor or lender will want to know.

Ready to write your plan? Check out our selection of franchise business plan examples to inspire your own.

• Why you need a business plan for your franchise business

Writing a detailed business plan is crucial for two reasons. 

First , it demonstrates to the franchisor that you understand how their business operates. 

Since the company sets your prices , controls your product inventory, and will likely tell you what marketing tactics you can use—the business plan puts in writing that you understand how their rules and guidelines affect your business.

Second , the plan also organizes all of your expectations, assumptions, and research about your business into one document that serves as a roadmap for success:

• Business objectives
• Franchisor requirements
• Funding needs
• Financial goals
• Growth strategies

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How to write a business plan for your franchise 

1. understand your franchise business model.

Since the franchisor has already established the company’s business model, your business plan should focus on how you can adapt it to be successful in your chosen location .

Imagine you’re planning to open a fast food restaurant, chain hotel, or convenience store. How do these kinds of businesses operate successfully? Consider the business models of each:

Fast food restaurant: Standard menu, streamlined kitchen operations, marketing strategy leaning heavily on national advertising campaigns.

Hotel: Efficient room turnovers, maintaining cleanliness and amenities that the brand promises.

Convenience store: High foot traffic, quick inventory turnover, and flexible operating hours.

Each case presents different business dynamics – and considerations for your business plan. You should be able to show in your plan that you understand the revenue streams and direct costs of running this type of business, and what your customer acquisition costs might be.

2. Conduct a market and location analysis

Buying into a franchise gives you some marketing advantages. You have a widely recognized brand to attract customers, access to promotional materials, and maybe even some information about customer buying patterns from your franchisor.

But operating a franchise doesn’t take away the heavy lifting of market research . Each franchise has to consider local factors that could affect its profitability.

A good starting point is to conduct a SWOT analysis , documenting the strengths, weaknesses, opportunities, and threats facing your business. Here are some other key elements to consider:

Demographic study

• Employment status

Understanding the demographics of the people most likely to visit your business could help you set operating hours or decide who to target with promotions.

Competitor analysis

• Identify your competitors
• Compare your product or service offerings with theirs
• Compare price points
• Compare marketing strategies
• Define the competitive advantage of your business

Don’t just look at direct competitors that are similar to your franchise. If you’re opening a 24-hour 7-Eleven, you should also look at supermarkets, drugstores, or food delivery services in your area.

Geographic analysis

• Neighborhood characteristics
• Population trends

A chain restaurant in a busy downtown probably has different customers and peak times than the same restaurant in a shopping center near a residential area. So it’s essential to understand the characteristics of the neighborhood you’re operating in.

Consumer behavior patterns

• Technology use

Understand what drives consumers interested in your business to make the choices they do. This is where you will want to do online research and, ideally, go out and talk to potential customers.

Franchise-specific research

You should also answer questions about the competitive positioning of the franchise – and franchises as a whole – in your area.

• How do similar franchises perform in your area?
• What is the brand perception of the franchise you intend to start?
• Is there a large enough market in the area for your franchise?
• What non-franchise options are available? What are the advantages or disadvantages for customers who shop there instead?

Be sure to examine what potential customers discuss on social media platforms and online message boards like Reddit to understand what they expect from businesses like yours.

3. Highlight your unique value proposition within the franchise

Even though you’re buying into a proven business model , you’ll still face competition. Your business plan gives you a chance to put on paper what gives you a competitive advantage. 

In the case of a franchise business , your franchisor may be the most important stakeholder to read your business plan. So the plan is to show them you can run a successful business under their name.

Maybe the 7-Eleven convenience store you want to open is in a location with a lot of foot traffic and no larger grocery stores nearby. Or maybe your restaurant offers late-night delivery in an area with few alternatives. 

By outlining your unique value proposition in your business plan—you can align your individual strengths and market opportunities with your franchisor’s proven business model.

Backing up your unique value proposition with any data or information about customers will be especially important if you’re operating in a crowded market with lots of competition.

4. Do your own financial projections and scenarios

The franchisor may provide some guidance, but this is your business.

That means your business plan should include the same financial details and projections as if you were starting a business from scratch. Your financial plan should include:

Start-up costs : The initial investment required to get your franchise off the ground. This should include the franchise fee, the cost of equipment, initial inventory, license fees, and any expenses related to your location.

Ongoing fees and operational costs: These are costs that recur monthly or annually. They include fixed costs like franchise royalties, lease payments, and staff salaries, and variable costs like utilities, inventory, maintenance costs, and marketing expenses.

Revenue projections : Detail how much revenue you expect to bring in monthly. Forecast revenues out into the future, and don’t be afraid to make projections several years out. 

Remember, good financial forecasts are meant to be adjusted as real numbers come in, and comparing your projections with actuals over time can help you make better business decisions.

Break-even analysis : This is where you calculate how long it will take for your franchise unit to cover its initial investment and start making a profit. Knowing your break-even point is essential not just for you but also for lenders.

5. Create an operational plan

Even though the franchise provides the business model, you must ensure it runs smoothly daily. Your business plan should provide a clear operational plan that outlines :

Staffing needs 

You should be specific about the staffing level your business needs . You’ll need cashiers, cooks, and delivery drivers if you’re running a fast-food franchise. List the skills and experience needed for each role, and outline your plans for training new hires.

Inventory management

While a franchise agreement might take some of the pressure off of sourcing your inventory, it’s still your responsibility to develop processes for managing it. 

You’ll need to understand if there are seasonal trends in your business, how often various products are returned, how long an item can sit on your shelves, and a variety of other factors that affect how much of a product you should order and when you should order it.

Quality control

Since you’re operating under a franchise agreement, you must comply with the standards the franchisor sets out for operating their business. Detail the quality control procedures you’ll put in place to meet those standards. 

Also, take some time in the business plan to address how you’ll stay compliant with local, state, and federal laws and the franchise’s policies.

6. Review and adjust your business plan

The business plan for your franchise should not be a static document . Market conditions evolve, consumer demands change, and new competitors emerge. Additionally, Franchisors often update their business models, add new products, or change their marketing strategies.

You may also be expected to periodically share financial reports or general updates about your business with the franchisor. (LivePlan lets you create and share visually engaging, professional reports using information from your business plan.)

Either way, your plan should outline how you’ll account for market shifts or franchise changes in your operations. Just as important, you should make it a habit to review your business plan periodically – many business owners review their plans quarterly or even monthly, especially when starting out. 

That way, they can adapt the plan as their business evolves.

• Download your free sample business plan for a franchise business

If you need help getting your franchise business started, check out one of our free sample franchise business plans . You can download this document in Word form and customize it to get you started on your own business plan. 

It’s just one of 550+ sample business plans we’ve made available to download.

You can also review our step-by-step guide on how to write a business plan for a detailed look at how to write specific sections of a traditional business plan.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

Table of Contents

• How to write a business plan for your franchise 

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Steve Shlemon is president of Ford’s Garage, a 1920s garage-themed burger and craft beer restaurant franchise with locations across the U.S.

If you’ve ever enjoyed a meal at a restaurant with locations across the country, you might find it hard to believe these multi-unit brands each started as a single location.

It takes a thoughtful, methodical approach for an independent brand to grow into a nationally known restaurant franchise with 1,000-plus locations. That’s explosive growth, and at that rate, there are bound to be a few mistakes along the way. But if you stay focused and disciplined, it is possible to drive similar success with your restaurant franchise brand. My experience shows this, having gone from one restaurant location to more than two dozen.

No matter how big you intend to get, your success will always be one restaurant at a time. With each one, the process gets smoother as you and your team learn more and work out challenges that arise. Here’s what I’ve learned about growing brands, from well-run singles to successful mega-units.

1. Go Slow To Go Fast

I always tell people to go slow to go fast—careful and steady wins the race, while lightning-fast can wear you out and result in you getting left behind. In my many years of running restaurant brands, the brands that failed were the ones that grew too fast and outgrew their human capital.

You must be steady and deliberate, directing your energies where they count. For example, your instinct may be to turn your focus to the two restaurants that are underperforming rather than the 18 that are doing great. Allocating resources and effort toward enhancing your successful establishments might lead to better overall outcomes than expending too much energy on the two that are underperforming, which can take a lot more effort and resources to fix.

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In the restaurant space, there’s a tremendous number of details that you have to stay focused on, and you need to make sure that you know every one of your details. That’s why I think the training and development of your people pipeline should be at or near the top of your priority list.

2. Put The Right People In Place

You can have delicious restaurant recipes and a top-notch restaurant brand, but unless you have great people to run that brand and have a great culture in place, you’re not going to succeed. There’s just no way that’s going to work.

This is important for a restaurant brand of any size, but especially when scaling up. As you grow, you’re pulling your top talent out of each location and moving them into the next. The staff you leave behind must continue to be a high-performing team. The culture has to be in place, and you have to have a great customer focus and reputation so guests want you to build another location elsewhere.

As you spread your talent across different locations, you must maintain a robust people pipeline so you don’t grow into a situation like the goose that laid the golden egg—killing your success by pouring everything into one spot so the others wither away.

3. Get The Real Estate Right

One of the most important strategies is to make sure you don’t make any real estate mistakes. You have to be disciplined in your site selection and how much money you will spend on a location to deliver the desired return on invested capital.

Any territory you’re going to give to a franchisee should be small, and it's important to consider how many restaurants they can build in a certain period of time. Make sure to spend a lot of time with your franchisee laying out a plan of the best sites to open first.

Once, I worked with franchisees who found a cheaper site that would be faster to open; unfortunately, it failed. Then, they were hesitant to work on the second and third sites. Had they started with the first two, which were more expensive but located in better areas, they would likely have had no problem launching restaurants later on.

I believe the key is scaling out where you aspire to be while maintaining the discipline to execute it correctly.

4. Keep Up The Quality

Even with your attention paid to the other factors, quality has to remain your number one concern. You can’t ever sacrifice it. As the brand gets bigger, you must be careful not to diminish what it stands for and is built on. You should strive to only make things better.

Even as you grow, for guests, you want to make sure there’s only one location that matters: The one they’re in right now. Make sure the signatures of your brand are consistent across locations, whether this includes memorabilia, menu, atmosphere or price. You must faithfully serve these things no matter how big you get.

5. Never Stand Still

As your brand grows, you should always try to figure out how to elevate everything to make it a little bit better. Whether it’s the quality of the product, the quality of the building itself or the quality of the people in your pipeline, you’ve got to make sure your return on investment is always in line with what you and your partners are looking for. You can only be sure of that if you keep growing at a manageable pace.

Hopefully, these five tips can help ease the growth of your brand. As can be seen, transitioning from a single restaurant to a nationally recognized franchise is doable, but it demands careful navigation, prioritizing the right people and locations, maintaining quality and a continual pursuit of improvement.

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