When writing a business plot for a franchise, information about the franchisor is critical in obtaining financing. The franchisor is the key to the operation. Its success or failure will ultimately be the franchisee’s success or failure. The questions listed in the franchise opportunity handbook must be answered. These questions include how many years the franchisor has been in operation, the types of help the franchisor provides to the franchisee (training, site selection, financing, etc.), what the franchisor provides for you that you cannot do on your own, how many other franchises the corporation has and where they are located. All franchise costs must also be itemized to show the initial franchise fee, the monthly royalty fee, and advertising fees. Finally, financial institutions and investors will usually want to see a copy of the offering circular and a sample franchise contract.
The business plot will require the entrepreneur to answer:
How long has this franchise been in business?
How many outlets does it have operating?
Do you have financial statements for the franchisor for the last three years?
Do you have an offering circular?
Do you have a sample franchise contract?
Did you consider other franchises?
Why did you pick this franchise over others?
What services does the franchisor provide to franchisees?
What are the costs involved?

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