FRANCHISE PROPOSAL SAMPLE
Before setting up any franchise, it is necessary that the franchisee analyses and finds a franchise that suits his area of interest and goes well with his business aspirations. A franchisee would never want to invest his money in any brand unless he is assured of a considerable amount of profit in the future. A good number of big brands available in the market would want you to invest your money into their brand.
To convince you to invest your money in their brand, the brands pitch their ideas to you in the form of a proposal known as the FRANCHISE PROPOSAL SAMPLE. It is a document that contains various features and advantages of investing in their brand.
Your proposal must be appealing and should be able to highlight the key benefits that the franchisee would receive on investing in your venture.
A business proposal is the first impression of your brand and it helps the franchisee in assessing the true potential of your brand. Your proposal needs to be up to the mark so that it can be successful in explaining why your business offers an ideal opportunity to them and can help them flourish. It is necessary to consult an expert who can help you put your ideas down on the franchise proposal in an appealing manner.
The following points need to be taken care of while preparing a franchise proposal:
Briefly outline the nature and purpose of your business along with your overall business objectives.
Precisely describe the kind of product or service you are offering for sale in the market
To make the franchisee place a sense of trust in your brand, you must mention the distinctive features of your products and services, and also describe how market-flexible it is.
A concise description of your product's sale state in the market and a mention of the target sector and customer base for the sale of your product.
Present a track record of your success in the market to build the trust of the franchisee so that he can have confidence in your brand.
It is necessary to assure their support to reduce the feeling of comfort that would help him place his sense of trust in your brand.
A franchise proposal helps the franchisee to have a better understanding of how your franchise will perform in the market and it will consist of all the financial projections.
IMPORTANCE OF A FRANCHISE PROPOSAL:
BUSINESS IDEA- A franchise proposal is a well-set document that helps you in easily communicating the objectives and idea of your business to prospective franchisees.
CUSTOMER BASE- A business plan helps you to let the franchisees ascertain their target customer group which helps in the more efficient functioning of the franchise.
MARKETING PLAN- For any franchise taking up your brand name, it is necessary to devise a business plan for them. It also provides them with a description of marketing and sales during the training.
MANAGEMENT ROLES- A franchisee must be aware of his key roles and duties. If the role of the franchisee is pre-defined, he will be able to assess the weak points and make arrangements for the same.
DAILY OPERATIONS- To make the franchise a success, the day-to-day working of the franchise must be on point and there should necessarily be a mention of the effectiveness of the business procedure.
A franchise proposal sample is given below:
Date
Name
Street Address
City, State, and Zip Code
Dear Sir or Madam:
_________ (the “Proposed Franchisee”), presents the following Franchise Proposal to
________ (the “Franchisor”), to summarize the general business structure, experience, and qualifications of the Proposed Franchisee, and to outline the terms and conditions governing the Franchise Proposal for the franchise business sought by the Proposed Franchisee.
Proposed Franchisee: _______________.
Business Structure: The Proposed Franchisee is a ________, organized under the laws of the
State of __________ in ______.
Controlling Principals: The Controlling Principals and management team of the Proposed Franchisee have
extensive business experience and over _ years in the ________ business segment.
The Controlling Principals are: ________________________
_______________________________.
The resumes of the Controlling Principals are attached hereto as Attachment “A”.
Proposed Franchise Location: The Proposed Franchisee has found an ideal location for the franchisee business
located at __________________. The proposed location is zoned
appropriately to operate the franchise business and possesses the following location strengths:
_______________________________
_______________________________
_______________________________
_______________________________.
Protected Territory: In addition to the proposed location for the franchise business, the Proposed Franchisee would also like the option to build additional franchises in the next few years in the surrounding area. As part of
the proposed Franchise Agreement, we would request that the following territory be protected for our exclusive use for the term of our Franchise Agreement:
_____________________.
Proposed Term: ____ years.
Proposed Fees: ___________
ALL TERMS AND CONDITIONS CONTAINED HEREIN ARE PROPOSALS ONLY AND ARE SUBJECT AT ALL TIMES TO THE TERMS AND CONDITIONS OF THE FRANCHISE DISCLOSURE DOCUMENT, FRANCHISE AGREEMENT, AND ALL EXHIBITS AND ATTACHMENTS THERETO, AND TO APPLICABLE
STATE AND FEDERAL FRANCHISE LAWS, RULES, AND REGULATIONS.
This is a standard franchise proposal sample.
A franchise process flowchart is given below:
Self- evaluation
Hire a franchise consultant
Completion of legal documents
Attracting potential franchises
Multi-unit development
Formulation of marketing strategy
Offer proper guidance to your franchises
Little do people realize the importance of a proper business plan. It is very important to list down the tasks and procedures before starting any function as this will be helpful in the efficient execution of the formulated business strategy. A business proposal is way more than a mere legal contract. Apart from defining the legal powers, rights, and duties of both the franchisee and the franchisor, it defines the area and methods of operation of a franchise.
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