Business planning is an essential step for those who wants to create a sustainable and long-lasting franchisor’s business.If approached properly, franchisor’s business is rather sophisticated undertaking aimed at monetization of continuously upgraded intellectual property proprietary to franchisor, providing B2B services to franchisees and improving core business model to meet constantly evolving customers’ needs.Tags: Steps To Writing A Rhetorical Analysis EssayExamples Critical Thinking QuestionsEconomics Assignment HelpChrysalids Comparative EssayCase Study Handbook William ElletEssay On Modern Science And IslamHomework For 1st GradersTrail Of Tears Research PaperAbstract Research ProposalProduct Business Plan Template
This model is most often based on the historical data of the franchisor’s own units.
The financial model is defined as dedicated to “typical” franchisee for a reason.
We also call it the development of the franchise concept that is comprised of these interconnected parts: There are two financial models that have to be prepared – franchisee’s and franchisor’s.
These financial models must reflect the anticipated income, capital expenditures and operating expenditures as well as the assumptions upon which these forecasts were based.
It shows that the financial model is not customized according to a specific franchisee, but serves as a universal model showing the general financial aspects of any franchisee’s business.
However, when preparing the financial model of a typical franchisee, the franchisor should retain the possibility to easily alter the assumptions, so that the model could be used to forecast financial results of the specific franchisees in specific markets.The franchisor should note that its business is long-term, so the more important goal is to increase the value of the franchisor’s business in a long term rather than to earn a higher profit in a short term.The last stage of the franchisor’s business planning process is development of long-term and short-term action plans.Generally, all strategic decisions that lay a foundation for a long-term action plan has been already made during the previous steps of the planning process.Therefore, you only need to describe all long-term plans in a concise and integrated manner.To execute all of these aims successfully, franchisor’s business requires at least some professional planning.First, we recommend lying the foundation for franchisor’s business by establishing its business vision, mission and long-term goals.However, since you are in the very beginning of the franchisor’s business planning, it might be difficult to define precise and reasonable goals. You will be able to come back and adjust these goals more than once during the business planning process.The next step in franchisor’s business planning is execution of the business environment analysis for all countries indicated as your target markets.It is common to carry out this analysis in three dimensions: macro-, meso- and micro-dimension.After performing the environment analysis, it is time to move to the stage of franchisor’s business design.