Writing a Franchise Management Plan
This part of your business plan needs to be very strongly developed to show that those who are managing the business know what they are doing.
Sometimes, lenders are more interested in lending to management teams than they are to an idea, and you will need to establish your ability to lead the business to success in your franchise management plan.
If your own characteristics in this area are weak, then you will need to demonstrate how your partner – or others on your team – can make up for this lack. It is quite possible that the quality of the management plan in your business plan will make the difference between getting the money – or not.
Identify the Leadership and Their Qualifications
Your franchise management plan should also identify who each person is (including employees) and how and why they are essential to the success of the new business. You should include their education, experience, and quantify some results of their performance and abilities. Basically, this means putting their resumes into this part of the business plan. You will also want your own to be in there, too.
This section is also extremely important because if the proper leadership talent is not deemed present, it stands a good chance of not being financed. Some lenders will even look at this section first and base their conclusions on what they find here. A good presentation will include an honest assessment of your own strengths and weaknesses, and then show how you are prepared to compensate through other partners or employees.
If you have not yet identified all of your management team, then you want to simply put into your management plan that that position is pending. Be sure, though, to identify qualifications and responsibilities of that position.
Identify How Your Business Is to Be Managed
Once all the leaders and managers have been identified, you will then need to show how your business will be managed. Will you be the sole boss/manager, or will others have a part? What percentages of the leadership will others have in the franchise business possess, and will they be given any opportunities to provide some input as to the direction of the company?
What about responsibilities and how are they to be doled out? Is there a strict assignment of tasks, or is there a looser structure that allows some overlap and possibly greater flexibility?
One more thing needs to be added into this part of your management plan, and that is your external management resources. This refers to those that you can call on for advice and direction for your business – if needed. This is even more important if you are lacking in either experience or business management career training. Your lenders will want to see that you have expert help when it should be needed. It will further guarantee your business success.
If you can get direct help from your franchise main office, you want to be sure to include that information.
Identify the Responsibilities of Your Leadership Team
If you have several other people involved, you should create a flow chart showing how everyone relates to each other person. This should also include responsibilities and how they are divided up and who is in charge of what action or task.
Identify the Hiring and Training Process
How employees are brought into the business also needs to be covered. This should include information about what requirements will be held for employees in order to be hired, and how they are to be trained and rewarded for good performance. Also, show how you will motivate employees for top performance with the use of benefits offered and incentives.
Your franchise business management plan needs to carefully identify the management processes involved in your business. Be careful not to use a cookie-cutter management plan template that does not identify each of these parts of the plan and how it uniquely describes your business plans. A well-written plan will help you get what you want – anything less won’t.