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THE FRANCHISEE FEASIBILITY BUSINESS PLAN

The very first step in establishing a comprehensive, integrated franchise plan, to help determine the feasibility of starting a franchise business, is the development of a franchise feasibility plan.  This feasibility study should enable the prospective franchisee to investigate the marketing, management, accounting, financial, legal, and earnings potential of the franchise opportunity.  The plan is outlined below and contains the six different sections of the franchise feasibility business plan. 

A great deal of the material necessary to develop a franchise business plan is obtained from the franchisor in the form of the Uniform Franchise Offering Circular (UFOC).  The well-prepared franchise business plan will contain the critical areas found in most business plans.  However, this feasibility study will also contain elements not found in plans from other proposed businesses.  

The six areas covered include:

(1)            executive summary

(2)            marketing

(3)            management

(4)            financing and accounting

(5)            legal aspects

(6)            appendices

Further sections should explain the franchising approach which the franchisee would follow in developing a successful business operation. Each of these six areas identified above will be described in the sequences below.