Probably the most important aspect of developing any franchising program is the development of a franchise feasibility business plan. The franchisor needs to take the time midst all the anxiety and rush to carefully develop a franchise system that will result in success for both the franchisor and franchisees. A strong franchising system not properly planned or implemented generally will lead to failure and financial loss.

RULE OF THUMB: If you fail to plan, you plan to fail.

The new franchisor needs to develop a comprehensive business plan which outlines in detail the franchise operations, functions, and finances of the organization. This business plan may act as an instrument to guide the franchisor during the first three to five years of operation.