You have done your research, found an ideal frozen yogurt franchise opportunity, and now you need funding to make your dreams a reality. Time to write your business plan! Lenders use business plans to help determine whether you would be a good candidate for a loan. While writing a business plan may seem daunting, your choice to open a franchise makes your task easier. The Franchise Disclosure Document (FDD) that franchising companies must provide contains a lot of the information you need for a business plan. Certain franchisors will even assist with the preparation of your plan. Some of the sections where the FDD will be a help are:
- Company Summary This section provides an overview of the frozen yogurt franchise company, including a short background. Item 1 of the FDD contains much of this information.
- Business Description This is where you provide information about your specific frozen yogurt shop. Be sure to include a description of the product you will be offering, a summary of start-up expenses, and your prospective location. FDD items 1, 5, and 7 will help you prepare this section.
- Marketing Plan Explain how you intend to build, maintain, and grow your customer base. Item 11 of the FDD will help with this section, especially with addressing advertising and promotion.
- Market Analysis Concentrate on the specific area where you will be located: who your competitors are, how much demand there is for your product, and what gives your business a competitive edge. The information Item 12 provides about your territory comes in handy here.
- Management Summary Here you provide information about who will be handling the day-to-day operations of your frozen yogurt business, especially the role you will fill. Items 9 and 15 detail your franchisor’s requirements regarding your involvement, and requirements for managers, if they are permitted. Use this as a starting point.
- Financial Plan This part of your plan is critical to lenders. You need to list the amount of capital you require to open your shop, and how you intend to raise it. Item 7 helps in figuring out your total financial needs. Franchisors can provide potential income or sales in item 19 of the FDD, but they are not required to.
The FDD makes writing a business plan easier than most people realize. Now you are ready to go get the capital you need! In our next blog, we will cover different franchise funding options. When you are ready to open your frozen yogurt store, Calypso has point of sale system software to help your business run smoothly! There is no need to re-key a weight manually with Calypso’s turn-key yogurt shop solution that reduces the weight by the weight of the cup and can configure multiple cup sizes automatically. Integrated Tare weights make Calypso’s yogurt shop POS system easy for your employees to use, and speeds up transactions to keep your customers happy. Contact Calypso today at 800-771-7100 to get started!