However, since you are in the very beginning of the franchisor’s business planning, it might be difficult to define precise and reasonable goals. You will be able to come back and adjust these goals more than once during the business planning process.
The next step in franchisor’s business planning is execution of the business environment analysis for all countries indicated as your target markets.
This model is most often based on the historical data of the franchisor’s own units.
The financial model is defined as dedicated to “typical” franchisee for a reason.
It shows that the financial model is not customized according to a specific franchisee, but serves as a universal model showing the general financial aspects of any franchisee’s business.
However, when preparing the financial model of a typical franchisee, the franchisor should retain the possibility to easily alter the assumptions, so that the model could be used to forecast financial results of the specific franchisees in specific markets.
We recommend structuring all long-term plans under two main strategic programmes – franchise network development and franchisor’s business development.
Under the franchise network development programme you must define long-term goals and actions related to franchise marketing, recruiting franchisees, opening new franchised units and ensuring successful operations of the existing franchised units, etc.
Then you must proceed to describing initial long-term business goals.
Generally, when formulating business vision, mission and long-term goals, do your best to answer these questions complexly: Having long-term business goals defined will enable you to use them as a benchmark for validation of other business planning decisions.