One of the most important aspects of developing the franchise is the actual development of the franchisor feasibility business plan. This business plan will determine whether the franchisor should go or not go into the franchise business. The feasibility study is generally divided into six major areas including executive summary, marketing, management, finance and accounting, legal, and appendices. Each section provides important knowledge and information to the franchisor. This document should and can be used as the guide for the new franchisor and what they do during the first one to five years of operation.

The franchise plan is one of the most useful and important tools the franchisor will even develop. Once the franchise plan has been properly developed, it can be updated on an annual or bi-annual period.